Chemicals: Uncovering Growth Trends and Competitive Landscapes in Leather and Organic Sectors

What Drives Growth in Chemical Sector for Leather Industry?

The chemical sector is experiencing significant growth trend in the leather industry, largely driven by demand from consumer goods sector, including apparel, footwear, and accessories. Advanced technologies are enabling the industry players to enhance the functionality and appearance of leather products, thus contributing to growth. Increased spending capacity, changing lifestyles, disposable income and urbanisation in emerging countries are amplifying the demand, with the Asia-Pacific region at the forefront.

How is the Organic Chemical Sector Faring?

On the other hand, the organic chemical sector has been registering its own growth dynamism. Main growth drivers include technological advancements, burgeoning demand for organic chemicals in various industrial applications, and the increasing emphasis on sustainable production methods. Environmental concerns and stringent regulations are propelling the shift towards bio-based chemicals. Emergence of cluster chemistries - coupling previously isolated reactions, presents promising prospects. However, volatility in raw material prices poses a challenge for the sector.

Who Are the Key Players and What is the Competitive Landscape?

The chemical sector, encompassing both leather and organic, is characterized by a highly competitive landscape with key players striving for material innovation, expansion of production capacities and strategic alliances. Major players include BASF SE, DowDuPont, Sumitomo Chemical Co., and SABIC. Competition is being fuelled by the changing needs of end-use industries, expanding consumer markets, and the increasing demand for bio-based chemicals. But, geopolitical tensions and trade uncertainties may test business models and readjust competitive strategies.