Chemical Industry

Market Report 2008 Twelfth Edition, July 2008

Publication Date	July 2008
Publisher	Key Note
Product Type	Report
Pages	105
ISBN Number	not applicable
Product Code	KEY00054

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Summary

The UK chemical market is one of the countrys largest manufacturing sectors (accounting for around 14% of the UKs manufacturing industry as a whole), and is also one of the largest sources of exports in the manufacturing industry. The UK remains one of the top ten chemical producers in the world.

International chemical companies dominate the industry in the UK, with many famous UK names falling prey to foreign competitors.

Momentously for the industry and the UKs economy, Imperial Chemical Industries (ICI) was acquired by Akzo Nobel of the Netherlands in January 2008 for $17.5bn. ICI was once regarded as the bellwether company, occupying a huge position in the financial markets and in the economy as a whole. However, the UK remains home to two of the worlds most important pharmaceutical firms - AstraZeneca and GlaxoSmithKline - as well as numerous small and dynamic pharmaceutical firms.

Nevertheless, the chemical industry is a global business and, unsurprisingly, large multinationals (principally based in the US, Germany and France) dominate the overseas chemical industry. Yet the chemical industry is also developing rapidly in fast-growing economies such as China, which have a huge appetite for chemicals, as well as in the Middle East, where many of the resources consumed by the industry are produced.

UK manufacturers total sales of chemicals, chemical products and man-made fibres increased in value by nearly a quarter during the review period (2003 to 2007). Increases in 2006 and 2007 reflected strong global economic growth and particularly buoyant sales in Asia, as well as robust price rises.

Key Note believes that growth was still fairly strong in 2007 but that conditions deteriorated towards the end of the year in developed economies such as the US and the UK.

Key Note estimates that global sales of chemicals increased in value by 6% in 2007 - but it appears that the rate of growth may have peaked in 2006 during the current cycle. In terms of regions, Asia now accounts for the largest proportion of sales, mainly due to the rise of China and India.

However, the EU remains the worlds leading exporter and importer of chemicals, and accounts for half of global trade in chemicals.

The chemical industry has expanded significantly over the past 5 years (2003 to 2007), reflecting a strong global economic background. However, the International Monetary Fund (IMF) expects global growth to slow markedly in 2008. It is also predicting relatively slow growth in 2009 - but has warned that there is a 25% chance that the global economy will record growth of 3% or less in 2008 and 2009, equivalent to a global recession.

This will inevitably affect the chemical industry, which will also experience much lower growth rates. Increased capacity will limit the industrys ability to raise prices; yet, at the same time, it is likely to be facing fierce cost pressures, since the price of oil (which provides many of the raw materials for the industry) could remain very high. More positively, the IMF believes that many of the fast-expanding emerging economies will continue to grow strongly.

Content

Executive Summary
1. Market Definition
- Report Coverage
- Market Sectors
- Market Trends
- Boom Likely to Come to An End in 2009
- Merger and Acquisition Activity Continues Apace
- Economic Trends
- Table 1: UK Gross Domestic Product at Current and
- Annual Chain-Linked Prices (m), 2003-2007
- Inflation
- Table 2: UK Rate of Inflation (%), 2003-2007
- Household Disposable Income
- Table 3: UK Household Disposable Income per Capita (), 2003-2007
- Unemployment
- Table 4: Actual Number of Unemployed Persons in The UK (Million), 2003-2007
- Population
- Table 5: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007
- Market Position
- The UK
- Overseas
2. Market Size
- The Total Market
- Table 6: The UK Market for Chemicals, Chemical Products and Man-Made Fibres
- UK Manufacturers Sales by Value at Current Prices (m at Msp), 2003-2007
- Figure 1: The UK Market for Chemicals, Chemical Products and Man-Made Fibres
- UK Manufacturers Sales by Value at Current Prices (m at Msp), 2003-2007
- Table 7: The UK Market for Chemicals, Chemical Products and Man-Made Fibres
- UK Manufacturers Sales by Sector by Value at Current Prices (m at Msp), 2003-2007
- Figure 2: The UK Market for Chemicals, Chemical Products and Man-Made Fibres
- Estimated UK Manufacturers Sales by Sector by Value at Current Prices (%), 2007
- by Market Sector
- Basic Chemicals
- Table 8: The UK Basic Chemicals Sector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Plastics in Primary Forms
- Fertilisers and Nitrogen Compounds
- Pharmaceuticals, Medicinal Chemicals and Botanical Products
- Table 9: The UK Pharmaceuticals, Medicinal Chemicals and Botanical Products Sector
- UK Manufacturers Sales by Value at Current Prices (m at Msp and %), 2003-2007
- Paints, Varnishes and Similar Coatings, Printing Inks and Mastics
- Table 10: The UK Paints, Varnishes and Similar Coatings, Printing Inks
- and Mastics Sector UK Manufacturers Sales by Value at Current Prices
- (m at Msp and %), 2003-2007
- Soap, Detergents, and Cleaning and Polishing Preparations
- Table 11: The UK Soap, Detergents, and Cleaning and Polishing Preparations Sector
- UK Manufacturers Sales by Value at Current Prices (m at Msp and %), 2003-2007
- Perfumes and Toilet Preparations
- Table 12: The UK Perfumes and Toilet Preparations Sector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Pesticides and Other Agrochemical Products
- Table 13: The UK Pesticides and Other Agrochemical Products Sector
- UK Manufacturers Sales by Value at Current Prices (m at Msp and %), 2003-2007
- Man-Made Fibres
- Table 14: The UK Man-Made Fibres Sector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Other Chemical Products
- Table 15: The UK other Chemical Products Sector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Glues and Gelatine
- Table 16: The UK Glues and Gelatine Subsector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Essential Oils
- Table 17: The UK Essential Oils Subsector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Photographic Chemical Material
- Table 18: The UK Photographic Chemical Material Subsector UK Manufacturers
- Sales by Value at Current Prices (m at Msp and %), 2003-2007
- Prepared Unrecorded Media
- Table 19: The UK Prepared Unrecorded Media Subsector UK Manufacturers
- Sales by Value at Current Prices (m at Msp and %), 2003-2007
- Explosives
- Table 20: The UK Explosives Subsector UK Manufacturers Sales
- by Value at Current Prices (m at Msp and %), 2003-2007
- Other Chemical Products Not Elsewhere Classified
- Table 21: The UK other Chemical Products Not Elsewhere Classified Subsector
- UK Manufacturers Sales by Value at Current Prices (m at Msp and %), 2003-2007
- Overseas Trade
- Chemicals
- Table 22: UK Exports and Imports of Chemicals, Chemical Products
- and Man-Made Fibres (m), 2003-2007
- Pharmaceuticals
- Table 23: UK Exports and Imports of Basic Pharmaceutical Products
- and Pharmaceutical Preparations (m), 2003-2007
3. Industry Background
- Recent History
- Number of Companies
- Table 24: Number of UK Vat-Based Enterprises Engaged in The
- Manufacture of Chemicals, Chemical Products and Man-Made Fibres
- by Turnover Sizeband (000, Number and %), 2007
- Employment
- Table 25: Number of UK Vat-Based Enterprises Engaged in The
- Manufacture of Chemicals, Chemical Products and Man-Made Fibres
- by Employment Sizeband (Number and %), 2007
- Regional Variations in The Marketplace
- Distribution
- How Robust Is The Market?
- Legislation
- Chemical Substances
- Dangerous Substances
- Reach
- Key Trade Associations
- Association of The British Pharmaceutical Industry
- British Plastics Federation
- Chemical Industries Association
- European Chemical Industry Council
4. Competitor Analysis
- The Marketplace
- Market Leaders
- Akzo Nobel
- Company Structure
- Current and Future Developments
- Financial Results
- Astrazeneca Plc
- Company Structure
- Current and Future Developments
- Financial Results
- Bp Chemicals Ltd
- Company Structure
- Current and Future Developments
- Financial Results
- Cookson Group Plc
- Company Structure
- Current and Future Developments
- Financial Results
- Croda International Plc
- Company Structure
- Current and Future Developments
- Financial Results
- Glaxosmithkline Plc
- Company Structure
- Current and Future Developments
- Financial Results
- Johnson Matthey Plc
- Company Structure
- Current and Future Developments
- Financial Results
- Linde Group
- Company Structure
- Current and Future Developments
- Financial Results
- Shell Chemicals UK Ltd
- Company Structure
- Current and Future Developments
- Financial Results
- Yule Catto & Co Plc
- Company Structure
- Current and Future Developments
- Financial Results
- Other Companies
- Basf Ag
- Dow Chemical Company Ltd
- Ineos Group Ltd
- outside Suppliers
- Marketing Activity
5. Strengths, Weaknesses, Opportunities and Threats
- Strengths
- Weaknesses
- Opportunities
- Threats
6. Buying Behaviour
- Introduction
- Industrial Uses
- Pharmaceutical Uses
- Vagaries of Demand
7. Current Issues
- Pharmaceutical Industry
- Demand for Medicines Set to Surge by 2020
- Oil Prices
- Conflicting Forecasts on Outlook for Oil Prices
- European Chemical Sector Faces Profits Downturn
- Corporate Developments
- Akzo Nobel Affected by Falling Home Sales in The US
- Dow Chemical Hit by Higher Raw-Material Prices
- Sabic Targets Asias Booming Economies
8. The Global Market
- Market Size
- Total Global Sales
- Table 26: Global Sales of Chemicals by Value ($Bn), 2003-2007
- Global Sales by Region
- Table 27: Global Sales of Chemicals by Region by Value ($Bn), 2007
9. Forecasts
- Introduction
- Forecasts 2008 to 2012
- Table 28: The Forecast UK Market for Chemicals, Chemical Products
- and Man-Made Fibres UK Manufacturers Sales by Value at Current Prices
- (m at Msp), 2008-2012
- Market Growth
- Figure 3: The UK Market for Chemicals, Chemical Products and Man-Made Fibres
- UK Manufacturers Sales by Value at Current Prices (m at Msp), 2003-2012
- Future Trends
- The Economy
- Table 29: Forecasts for The UK Economy (%, Million and 000), 2008-2012
- Demographics
- Table 30: Forecast UK Resident Population by Sex (000), Mid-Years 2008-2012
- Market Segmentation
- Product Development
- Competitor Forecasts
10. Company Profiles
- Astrazeneca Plc
- Boc Group Plc (The)
- Bp Chemicals Ltd
- Cookson Group Plc
- Croda International Plc
- Glaxosmithkline Plc
- Imperial Chemical Industries Ltd
- Johnson Matthey Plc
- Shell Chemicals UK Ltd
- Yule Catto & Co Plc
11. Further Sources
- Associations
- Publications
- Government Sources
- Other Sources
- Bisnode Sources
- Key Note Research
- The Key Note Range of Reports