Saudi Arabia Bulk Chemicals Market, By Type (Inorganic Vs Organic), By End User Industry (Construction, Automotive, Healthcare, Food & Beverages, Agriculture, Others), By Region, Competition, Forecast & Opportunities, 2028
Saudi Arabia Bulk Chemicals market was valued at USD 8535.49 million in 2022 and is expected to register robust growth during the forecast period with a CAGR of 4.08%, owing to rapidly increasing infrastructural investments by the government of Saudi Arabia.
Bulk chemicals also known as commodity chemicals are a group of chemicals that are manufactured on a very large scale to satisfy the needs of various industries. Bulk chemicals often act as a raw material for a major number of specialty chemicals which are manufactured for a specific application in various industries.
Increasing Demand from Infrastructure Sector is Driving Market Growth
Saudi Arabia’s construction industry remains a leading industry in the Middle Eastern region despite macroeconomic conditions affecting the sector globally. Construction output growth is expected to grow by approximately 3.5% in Saudi Arabia in the year 2022. Construction chemicals are primarily used for increasing the speed of the work in construction projects that are under development or in new projects to add strength and stability to the constructions. Bulk chemicals are important elements for building complex constructions and have truly transformed the concept of construction industry. Government project such as King Salman Park, Neom City, Red Sea Project, Jabal and other infrastructure projects are increasing the demand for products made from petrochemical or bulk chemical such as adhesive, tiles and others, thereby supporting the growth of Saudi Arabia bulk chemical market.
Rising Demand from Chemical Industries
Saudi Arabian chemical industry is on recovery path after the COVID-19 pandemic and witnessed a rebound growth in 2022. As the bulk chemical market have varied applications, the market is controlled by prominent players with developed portfolios having refined and modern management approach. Saudi Arabia leads the world in the manufacturing of several essential chemicals, such as polyethylene, ethylene, glycol, and methyl tert-butyl ether (MTBE). Saudi Arabia is one of the most efficient country in the world at producing ethylene, which has permitted Saudi Arabia to take 10% of the total global trade of bulk chemicals.
Favorable Government Policies Driving Market Growth
Industrial growth is powered by the government policies for various end user industries which brings investments in the country. Government programs such as Public Investment Fund Program and National investment strategy is bringing huge amount of money in the kingdom. Government policies such as Vision 2030, low domestic energy costs, and a ready supply of raw materials create favorable circumstances for investment and are likely to improve the demand of bulk chemicals in the region.
Recent Developments
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook