Today’s chemical industry is worth billions of dollars.The major producers of chemicals in the 20th and 21st centuries were the United States, Europe, Japan and, most recently, China.These superpowers are producing many of the chemicals we use in our daily lives, from medical chemicals to nail polish removers.But as the clamour for a clean, green environment grows, chemical manufacturer will have to find new and innovative ways to maintain their relevance and profitability.
The rise of China
In the early 2000s, China’s dominance in the chemical industry was caused in part by the weakening of European industry.Since 2000, the European Union has been in a state of instability and instability, which has effectively led to the stagnation of the chemical industry.
In addition, chemical production is expensive, and manufacturers find they can set up chemical production facilities in China at 40-60% lower costs than in Europe.
Finally, Europe’s environmental policies have made it difficult for chemical manufacturer to set up factories.For all these reasons, European production of chemical products has declined, leaving room for China’s growth.
But China’s chemical industry is not just built on European weaknesses.China is an ideal place for chemical production for many reasons.It has the resources and raw materials, the production technology and the availability of rapid financing and investment.
Challenges for the chemical industry in 2020
Reduce pollution: Even in China, everything related to the environment cannot be ignored.China recently banned the production of chemicals in various areas near the Yangtze River because of heavy pollution.Germany, the United States and Japan could ramp up production as China struggles to find factories and meet its demand for raw materials.
Research and development: Chemical industry experts also say there will be less production and more research and development over the next decade.Production is already under way using advanced technology.Now, you need to find new ways to use this technology.While there are many untapped areas to explore, there is no doubt that the necessary innovation will be in areas that minimize emissions and go green.
Social media: By 2020, big companies in the chemical industry will need to make the most of social media.We live in the age of millennials and Generation Z, who are used to getting information from social media.The chemical industry has traditionally been a conservative industry, and chemical manufacturer needs to modernise their PR strategies to remain relevant.
The world needs chemicals
While the global chemical industry faces many challenges, there is no doubt that it will rise to the challenge.
The chemical industry has existed since the 1730s, and since then has been adapting and reshaping itself to suit The Times.
The purpose of an industry is to meet the needs of consumers, so if those needs change, so will the industry.
