Report Overview

Increased industrialization and infrastructure development, the government’s initiatives to diversify the economy, growing demand for bulk chemicals from end-use industries such as construction, automotive, and healthcare, and the abundant availability of resources for chemical production are propelling the growth of the Saudi Arabia Bulk Chemicals Market during the forecast period between 2023 and 2029.

Saudi Arabia Bulk Chemicals Market – Industry Trends & Forecast Report, 2029

Saudi Arabia bulk chemicals market size was estimated at USD 7,256.31 million in 2022. During the forecast period between 2023 and 2029, the size of Saudi Arabia bulk chemicals market is projected to grow at a CAGR of 3.97% reaching a value of USD 9,478.02 million by 2029. The major factor driving the growth of Saudi Arabia bulk chemicals market is the growing emphasis on diversification, with the country aiming to reduce its reliance on oil revenues by expanding its chemical manufacturing capabilities. This has led to increased investments in downstream industries, such as petrochemicals and plastics. Also, sustainability has gained prominence, driving the adoption of eco-friendly processes and the development of bio-based chemicals. Further, technological advancements and digitalization have played a significant role in enhancing operational efficiency and optimizing production processes. There has been a focus on international collaborations and partnerships to leverage expertise and access global markets, fostering growth and competitiveness in the Saudi Arabia bulk chemicals market.

Saudi Arabia Bulk Chemicals Market - Overview

Bulk chemicals, also known as commodity chemicals, refer to large-scale, basic chemical compounds that are produced and traded in high volumes. They serve as building blocks for various industries and play a crucial role in the global economy. Bulk chemicals encompass a wide range of products, including acids, solvents, polymers, fertilizers, and petrochemicals. These chemicals are typically produced through industrial processes, often involving refining or synthesis of raw materials such as petroleum, natural gas, or minerals. Due to their widespread use and high demand, bulk chemicals are produced and distributed by large chemical companies on a global scale, forming the foundation of many manufacturing sectors.

Growth Drivers

Saudi Arabia's Thriving Petrochemical Industry

Saudi Arabia bulk chemicals market is witnessing a significant growth surge, primarily driven by the country's flourishing petrochemical industry. With an abundance of oil and natural gas reserves, Saudi Arabia has become a global powerhouse in the production of petrochemicals. This dominance has allowed the country to capitalize on its competitive advantage by leveraging its resources for the production of bulk chemicals, such as ethylene, propylene, and methanol. The consistent investment in infrastructure and advanced technologies has further propelled the growth of the Saudi Arabian bulk chemicals market, attracting international investors and fostering partnerships with global chemical giants. This continuous expansion in the petrochemical sector acts as a strong growth driver, positioning Saudi Arabia as a key player in the global bulk chemicals industry.

Restraints

Regulatory Challenges

In Saudi Arabia, the bulk chemicals market encounters significant restraints due to mounting regulatory challenges despite a surge in demand. The industry, driven by factors like population growth and industrial expansion, grapples with stringent regulations about environmental concerns and safety standards. Authorities have implemented rigorous compliance requirements, increasing operational costs and hindering market growth. Also, geopolitical tensions and fluctuating oil prices affect the availability and affordability of raw materials, impacting the overall stability of the sector. To overcome these hurdles, stakeholders must collaborate with regulatory bodies to develop sustainable practices and innovative solutions that balance economic growth with environmental responsibility, ensuring long-term success for the Saudi Arabia bulk chemicals market.

Impact of COVID-19 on the Saudi Arabia Bulk Chemicals Market

The COVID-19 pandemic significantly impacted the Saudi Arabia bulk chemicals market, leading to disruptions and a slow recovery. As a vital sector in the country's economy, the market experienced a decline in demand due to reduced industrial activities and supply chain disruptions. Lockdown measures, travel restrictions, and reduced international trade hampered the export-import dynamics, affecting the overall growth of the industry. The market witnessed decreased investments and delayed projects, causing challenges for both local and international players. While the industry gradually recovers, it faces ongoing uncertainties and the need to adapt to changing market dynamics in a post-pandemic era.

Saudi Arabia Bulk Chemicals Market

Segmental Coverage

Saudi Arabia Bulk Chemicals Market – By Type

On the basis of type, Saudi Arabia bulk chemicals market is split into Inorganic and Organic segments. Inorganic chemicals refer to substances that are derived from non-living matter, such as minerals and metals. These chemicals find applications in various industries, including construction, automotive, and electronics. On the other hand, organic chemicals are compounds that contain carbon atoms and are primarily derived from living organisms or fossil fuels. They are used in the production of plastics, pharmaceuticals, and agricultural chemicals. While both segments play significant roles in the Saudi Arabian chemical industry.

Saudi Arabia Bulk Chemicals Market – By End User

Based on end user, Saudi Arabia bulk chemicals market is divided into Construction, Automotive, Healthcare, Food & Beverages, and Agriculture segments. The largest end-user segment in the Saudi Arabia bulk chemicals market is the construction segment. The construction segment encompasses the demand for chemicals in various construction activities, including residential, commercial, and infrastructure projects. Construction in Saudi Arabia has been witnessing significant growth, driven by government initiatives and investments. Bulk chemicals play a crucial role in construction applications, such as cement and concrete production, insulation materials, paints and coatings, adhesives, and sealants. The expanding construction sector, fueled by infrastructure development and urbanization, has led to a high demand for bulk chemicals, making it the largest segment in the Saudi Arabia market.

Competitive Landscape

Major players in the Saudi Arabia bulk chemicals market include Saudi Basic Industries Corporation, Saudi Arabian Oil Company, Saudi Chemical Holding Company, Saudi Arabia BASF, Basic Chemical Industries Group, Saudi Industrial Investment Group, Saudi Factory for Chlorine & Alkalies, Nama Chemicals, Advanced Petrochemical Company, and ADDAR Chemical Company. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In January 2023 - Kingdom of Saudi Arabia signed a USD 1 billion agreement with an Indian company UPL Limited to produce agricultural chemicals which will manufacture agrochemicals and the company also offers crop protection solutions.

• In December 2022 - Saudi Basic Chemical Industries (SABIC) announced the opening of a new unit, Saudi Industrial Chemicals factory situated in Jeddah. The new factory helps SABIC in producing dioctyl terephthalate from ethyl hexanol.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2022
	Base Year – 2022
	Estimated Year – 2023
	Forecast Period – 2023–2029
Facts Covered	Revenue in USD Million
Market Coverage	Saudi Arabia
Product/ Service Segmentation	Type, End User
Key Players	Saudi Basic Industries Corporation, Saudi Arabian Oil Company, Saudi Chemical Holding Company, Saudi Arabia BASF, Basic Chemical Industries Group, Saudi Industrial Investment Group, Saudi Factory for Chlorine & Alkalies, Nama Chemicals, Advanced Petrochemical Company, ADDAR Chemical Company

 

By Type

• Inorganic

• Organic

By End User

• Construction

• Automotive

• Healthcare

• Food & Beverages

• Agriculture

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Bulk Chemicals Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Demand from Infrastructure Sector
         2. Advancements in Manufacturing Processes
      2. Restraints
         1. Volatility in Raw Material Prices
      3. Opportunities
         1. Growing Population and Changing Lifestyle
      4. Challenges
         1. Environmental and Regulatory Concerns
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Bulk Chemicals Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Inorganic
         2. Organic
      2. By End User
         1. Construction
         2. Automotive
         3. Healthcare
         4. Food & Beverages
         5. Agriculture
         6. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Bulk Chemicals Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Bulk Chemicals Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Saudi Basic Industries Corporation
   2. Saudi Arabian Oil Company
   3. Saudi Chemical Holding Company
   4. Saudi Arabia BASF
   5. Basic Chemical Industries Group
   6. Saudi Industrial Investment Group
   7. Saudi Factory for Chlorine & Alkalies
   8. Nama Chemicals
   9. Advanced Petrochemical Company
   10. ADDAR Chemical Company
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

 

 

List of Figures

 

Figure 1       Saudi Arabia Bulk Chemicals Segmentation

Figure 2       Saudi Arabia Bulk Chemicals Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Bulk Chemicals Market Size, By Value (USD Million), 2019-2029

Figure 5       Saudi Arabia Bulk Chemicals Market Share, By Type, By Value, 2019-2029

Figure 6       Saudi Arabia Bulk Chemicals Market Share, By End User, By Value, 2019-2029

 

List of Tables

 

Table 1        Saudi Arabia Bulk Chemicals Market Size, By Value (USD Million), 2019-2029

Table 2        Saudi Arabia Bulk Chemicals Market Size, By Type, By Value, 2019-2029

Table 3        Saudi Arabia Bulk Chemicals Market Size, By End User, By Value, 2019-2029

Table 4        Saudi Basic Industries Corporation Company Overview

Table 5        Saudi Basic Industries Corporation Financial Overview

Table 6        Saudi Arabian Oil Company: Company Overview

Table 7        Saudi Arabian Oil Company Financial Overview

Table 8        Saudi Chemical Holding Company: Company Overview

Table 9        Saudi Chemical Holding Company Financial Overview

Table 10      Saudi Arabia BASF Company Overview

Table 11      Saudi Arabia BASF Financial Overview

Table 12      Basic Chemical Industries Group Company Overview

Table 13      Basic Chemical Industries Group Financial Overview

Table 14      Saudi Industrial Investment Group Company Overview

Table 15      Saudi Industrial Investment Group Financial Overview

Table 16      Saudi Factory for Chlorine & Alkalies Company Overview

Table 17      Saudi Factory for Chlorine & Alkalies Financial Overview

Table 18      Nama Chemicals Company Overview

Table 19      Nama Chemicals Financial Overview

Table 20      Advanced Petrochemical Company: Company Overview

Table 21      Advanced Petrochemical Company Financial Overview

Table 22      ADDAR Chemical Company: Company Overview

Table 23      ADDAR Chemical Company Financial Overview