Profitability Analysis of global chemical

The overall profitability of global chemical is good, but there is significant differentiation. ‌
According to the data of the top 100 global chemical companies in 2024, their total revenue is $1.25 trillion, net profit is $107.835 billion, and average net profit margin is 8.61%. Among them, there are 12 enterprises with a net profit margin higher than 20%, demonstrating strong profitability. These enterprises are mainly concentrated in the fields of electronic materials, functional materials, and PVC.
Comparison of Profitability of Different Types of Chemicals
Specialty Chemicals: Driven by innovation, the specialty chemical industry has shown strong growth momentum in 2024, with generally improved profit margins. The growth rate of segmented markets such as AI chip materials and bio based chemicals is particularly significant.
Oil and Fat Chemicals: The global oil and fat chemical market is expected to reach 28.9 billion US dollars in 2024, with a compound annual growth rate of 4.2% over the next five years. The North American market holds the largest share, while the Asia Pacific market has the fastest growth, mainly due to the supply of raw materials and the development of new applications in the region.
Key factors affecting the profitability of chemicals
Market demand: Changes in demand in the global chemical market directly affect profitability. For example, the increase in personal hygiene awareness after COVID-19 has driven the growth of disinfectant demand, which in turn has driven the growth of the ortho phenylphenol market.
Technological innovation: High R&D investment and product innovation are important means to enhance profitability. For example, Shinetsu Chemical has achieved a global competitive advantage in the fields of electronic materials, functional materials, and PVC by placing a high emphasis on research and development and cost leadership strategies.
Market segmentation: Focusing on segmented markets can bring higher profitability. For example, some companies have achieved high net profit margins through deep cultivation in niche fields such as life sciences and personal care, porous carbon, and flame retardants.