5 Majorly Important Trends in the Chemical Industry
According to Statista, the United States is the largest national producer of chemical products globally. In 2017, including the pharmaceutical sector, its chemical output value was more than $765.4 billion.
It is a very exciting time to keep up with the chemical sector and the trends that are happening.
Keep reading to discover more about the chemical industry, including who the top chemical companies are, and what the DOW chemical stock predictions are.
Top Chemical Companies
Some of the biggest chemical companies that are dominating the industry include BASF, Dow Chemical, ExxonMobil Chemical, LyondellBasell Industries, and INEOS.
The biggest company in the world is currently BASF. This German company currently have a net profit of $62.30 billion.
Following close behind is Dow Chemical, this American company has a net profit of $57.51 billion. With a net profit of $55 billion, ExxonMobil Chemical is the third-largest chemical company in the world.
The fourth-largest chemical company is LyondellBasell Industries, which is based in the Netherlands and have a net profit of $51 billion. The fifth-largest chemical company in the industry is INEOS, who have a net profit of $47 billion. INEOS is based in the UK.
Latest Trends in the Chemical Industry
These are the latest trends in the chemical industry that might affect your business. These 5 trends provide an insightful overview of the current chemical industry trends and can help to provide an understanding of how to prepare your business in the future.
The digitalization in the chemical industry encourages better globalization of products and resources in the sector.
Recent technological advancements such as in-memory processing power and unlimited data storage at lower costs allow businesses to connect and communicate better, and increase the speed at which they access, process and analyze data.
Chemical companies who want to capitalize on the efficiency and competitive gains that come with the impact of the digital world need to ensure they have a solid business process and IT foundations and software. Their systems need to operate efficiently in order to develop new business strategies that create innovative products.
The demand for chemicals continues to grow in existing and newly emerging markets all across the world.
On a daily basis, there are new innovative business models, concepts, and processes being created and developed by chemical companies. This is shrinking the lifecycles and rapid commoditization of products.
Chemical companies are feeling the pressure of developing new products, formulations, and services. But to stay ahead of the trends, the successful companies need to maintain their competitive edge.
Many companies are currently re-evaluating their business processes and embracing how new technologies can improve their company. Integrated business planning and execution is a great way for these businesses to achieve their goals and targets.
3. Sustainability and the Circular Economy
Due to tighter environmental regulations, chemical companies need to operate as ecosystems. These ecosystems need to provide sustainability and help the economy.
The impact of emissions and waste disposal means that chemical companies need to reduce the number of raw materials used. Many are doing this by focusing on renewables, energy recovery, recycling, and re-using products and materials.
This trend will help to achieve a circular economy which can maximize value and conserve the resources. Some examples of what companies have done so far include introducing bio-based plastics which can be recycled. Other companies have focused on improving the efficiency of wind turbines.
4. New Business Models
With the assistance of digitalization, chemical companies are re-inventing their business models. The main aim of creating new business models is to be able to transform their products and services in response to the rapidly changing demands of the market.
New business models that chemical companies are focusing on include
- creating ecosystems
- becoming more customer-focused
- and using technology to improve the overall running of the business.
Innovative business models need to have an IT infrastructure that allows them to achieve their goals. They also need a skilled workforce, who are able to come up with new ideas that can benefit the business.
5. Customer Expectations
Chemical companies need to jump on board of changing their customer service so that it fits the new chemical clients and customers.
Customers and clients are getting younger. Due to the demographics of the customers, they expect to buy products and services that are easy to purchase. They also require instant communication and demand real-time access to company information.
This trend means that chemical companies need to embrace technology to improve their communication. It also means that they need to deliver excellent customer satisfaction.
DOW Chemical Stock Predictions
Stock predictions are not easy to make, however, the best way is to look at previous data and statistics of the DOW Chemical’s stock.
There has been a 30 day high of the DOW stock price, which was $66.65 and the low was $58.20. The 90 day high was $67.50 and the low was $58.20. The 52 week high for the Dow Chemical Company was $67.50 and the low was $51.60.
According to Stockinvest, the stock is expected to rise by 2.91% in the next 3 months. So, there might be some money in this successful US chemical company, if you know how to trade stocks.
Does your company need existing molecules or new synthesis? Then this company can help you speed up your chemical innovation today.
Important Trends in the Chemical Industry
If you are a chemical company or just have an interest in the chemical industry, then make sure you note down these 5 latest trends and work out what they mean for you and your business.