CIA issues optimistic forecast
15 Jan 2000
The chemical industry may be facing tough times, but the longer-term prospects are still positive, according to a global forecast issued by the UK Chemical Industries Association. Looking ahead to 2010, the report predicts that chemicals demand will grow by 63 per cent compared with 1996.
The report sees the balance of chemicals demand shifting. Over half of the increase in demand and production will come from developing countries, it says, as will two-thirds of the rise in exports. The Far East (not including Japan) will recover from its recent crisis, and by 2010 will account for 35 per cent of the increase in production.
The CIA expects demand growth to be strongest in areas with an environmental aspect, such as water treatment chemicals and fuel additives. The trend towards ageing populations will also fuel growth in the pharmaceuticals, diagnostics and medical products sectors.
New features of the industry emerging in the past few years are set to continue, the report says. These include the separation of life sciences from traditional chemistry; the increasingly complex web of alliances and joint ventures between the major petrochemicals players; and the growth in opportunities for small and medium-sized businesses, based on their flexibility and speed of response.
