The chemical industry is undergoing a rapid transformation, registering unprecedented growth in terms of production and revenue generation. The Indian chemical industry is expected to become USD 304 billion by 2025. Experts believe that demand for chemical products is expected to grow over 9 percent per annum over the next five years. Hence, it is paramount on the part of chemical businesses to scale up their production and stay ahead of others by embracing the latest trends in the industry.
Here are the top 3 trends that are shaping the future of the chemical industry.
Increasing Focus on Circular Economy
Today most of the businesses are following a linear ‘take-make-dispose’ approach wherein materials are made into products, the products are used and then the materials are thrown after use. This has led to the shortage of raw materials and energy supplies across the world. In addition to that, this conventional approach is also causing adverse impact on the environment in the form of emissions and waste disposals.
So, chemical industries across the world are increasingly moving towards sustainable businesses models with emphasis on circular economy. Unlike the linear ‘take-make-dispose’ approach in which components lose their value gradually, circular economy helps to keep raw materials and products at their highest utility with no change in value. The main objective of the circular economy is to enhance the recovery, recycling and reusability of the final products. It not only helps to minimize the environmental impact but also helps to reduce the manufacturing costs. For instance, let us take the example of bio-based plastics which are completely biodegradable, recyclable and reusable. These plastics can be disposed along with normal garbage and cause no negative impact on the environment. Switching to renewable energy sources such as solar or wind energy to meet the energy requirements is another example of circular economy.
Digitization is disrupting every sector today, and chemical industry is no exception to this obvious phenomenon. Digital technologies are transforming almost every aspect of chemical industry across the value chain from manufacturing to supply and distribution.
In the case of chemical industry where supply and demand dynamics are vital, digital technologies are proving to be very helpful. Technology is enabling business owners with real-time demand forecasting and better logistic management while providing them with actionable data insights by analysing the historic data.
Mobility has already been in usage for the past few years in the industry. Emerging technologies such as IoT, blockchain, AI, etc. are expected to take central stage, enabling businesses with novel techniques to address their issues.
Today, the world has become a global village with the communication revolution where every country is interlinked with other countries. Like every other industry, chemical industry is globalizing while rapidly attracting investments from multiple nations. The globalization has opened up a wider market for the chemical industry, enabling chemical companies to market their products in the foreign markets.
Key Takeaway – Adaptability to Change
These three trends are going to determine the decision making of key decision makers in the industry. The conventional factors such as better availability of raw materials, brand image in the market, closeness with customers, etc. can no longer be enough for businesses to sustain in this highly competitive market. Businesses should adapt to change and take advantage of it without being taken away by the change.
Having said that chemical industry has its own and unique set of challenges that are hindering the growth of the sector. Helping business owners address their issues, SolutionBuggy connects them with expert chemical industry consultants. Different types of chemical industry consultants such as chemical plant consultants, chemical process consultants, chemical formulation consultants, chemical production consultants, chemical safety consultants, and chemical certification consultants from SolutionBuggy provides chemical industries and professionals with end-to-end guidance and mentor them on all their specific requirements.