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Organic Basic Chemical Manufacturing in Germany - Market Research Report (2014-2029)

Robert Maier Robert Maier Frankfurt, Germany Last Updated: January 2024 WZ C20.14DE

Revenue

€59.7bn

2024

€55.6bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

89,801

Businesses

105

Wages

€XX.Xbn

Organic Basic Chemical Manufacturing in Germany industry analysis

The products manufactured by the industry form the basis for downstream chemical sectors. In international comparison, however, industry players are often unable to produce at competitive prices, partly due to high energy and labour costs in Germany as a production location. As the sector's products also often have little potential for differentiation, it is very important for the sector's players to impress with their proximity to and close cooperation with domestic customers as well as high processing quality. However, competitive pressure from more favourable foreign players is constantly increasing.The past five years have been characterised by a very volatile industrial economy and strong fluctuations in energy and raw material prices. The years from 2020 onwards have been particularly challenging for industry players. The Russian invasion of Ukraine at the beginning of last year caused prices for raw materials and energy in Europe to rise sharply. Many industry players reduced their production because production costs rose more sharply than sales prices. The industry is not expected to recover in the current year either, as the industrial economy has cooled noticeably since 2022. Demand for chemical raw materials is currently weak and the high price pressure continues to weigh heavily on the earnings situation of many players. IBISWorld expects industry turnover to fall by 25.2% to €59.7 billion in 2023. This corresponds to an average annual decline in turnover of 2.8% since 2018.For the period from 2023 to 2028, IBISWorld expects an average annual increase in turnover of 0.4% and industry turnover of 60.8 billion euros in 2028. As the industry can hardly differentiate itself through its products, it has few strategic options apart from even closer cooperation with potential industry customers. At the same time, competitive pressure from abroad is growing. IBISWorld therefore assumes that the number of industry players and employees will fall by 2028.

Trends and Insights

  • The organic raw materials manufacturing industry acts as a base industry for the rest of the chemical sector. As such, it is dependent on the development of the downstream industries.
  • Hydrocarbons account for the largest share of sales in the organic raw materials and chemicals manufacturing industry. The most important chemicals in this segment include the basic olefins ethylene, propylene and butylene.
  • The Central region is home to the largest number of companies in the sector. There are two large chemical park clusters in this region, one in North Rhine-Westphalia in the Düsseldorf area and one in Frankfurt-Höchst in Hesse.
  • Competition within the industry is moderate. The industry has very little potential for product differentiation. Nevertheless, industry players can differentiate themselves from competitors through the purity of their products and by specialising in less common organic raw materials and chemicals.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.8 % over the past five years, to reach an estimated €59.7bn in 2024.

Trends and Insights

The sector is closely linked to downstream stages of the value chain in the chemical industry

  • The organic raw materials production sector acts as a basic industry for the wider chemical sector. The industry players act as an indispensable supplier of raw materials for many chemical sectors. The most important products include hydrocarbons such as ethylene or propylene, carboxylic acids, aromatic compounds and fatty alcohols.
  • Additional trends and insights available with purchase
Organic Basic Chemical Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Supplying the speciality chemicals industry is likely to become increasingly important in the coming years

  • On the whole, the challenging market situation for the industry over the past three years is unlikely to change much in the coming years. IBISWorld does not expect the German industry to return to the production level of 2019 until the middle of the decade. This will reduce demand and increase cost pressure.

Biggest companies in the Organic Basic Chemical Manufacturing in Germany

Company
Market Share (%)
2023
Revenue (€m)
2023
BASF SE
5,378.0
Basell Polyolefine GmbH
4,391.0
OMV Deutschland GmbH
1,429.0

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Organic Basic Chemical Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Hydrocarbons, Organic compounds with nitrogen functions and Carboxylic acids. Hydrocarbons is the largest segment of the Organic Basic Chemical Manufacturing in Germany.

Trends and Insights

The production of short-chain hydrocarbons forms the basis of value creation in the industry

  • Hydrocarbons account for the largest share of sales in this sector by comparison. The most important chemicals in this segment include the basic olefins ethylene, propylene and butylene. These chemical substances, which belong to the alkenes, are produced by cracking natural gas and crude oil, but also ethane.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry includes the production of organic raw materials and chemicals, for example by splitting or distillation. The industry definition does not include the production of plastics and synthetic rubber.

What's included in this industry?

HydrocarbonsOrganic compounds with nitrogen functionsCarboxylic acidsAldehydes, ketones, quinones, ethers and acetalsTechnical fatty alcoholsOrganic-inorganic and heterocyclic compounds

Companies

BASF SEBasell Polyolefine GmbHOMV Deutschland GmbH

Purchase this report to view all 5 major companies in this industry.

Related Terms

OLEFINECRACKINGNAPHTHAPETROCHEMISTRYBTX-(BENZENE, TOLUENE, ETHYLBENZENE, XYLENES) AROMATICSINORGANIC CHEMISTRYORGANIC CHEMISTRYCYCLIC AND ACYCLIC COMPOUNDSFERMENTATIONCHEMISTRY 4.0/INDUSTRY 4.0

Industry Code

WZ 2008

WZ 20.14 - Organic Basic Chemical Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The organic raw materials manufacturing industry acts as a base industry for the rest of the chemical sector. As such, it is dependent on the development of the downstream in...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Hydrocarbons account for the largest share of sales in the organic raw materials and chemicals manufacturing industry. The most important chemicals in this segment include th...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The Central region is home to the largest number of companies in the sector. There are two large chemical park clusters in this region, one in North Rhine-Westphalia in the D...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition within the industry is moderate. The industry has very little potential for product differentiation. Nevertheless, industry players can differentiate themselves f...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

BASF SE, headquartered in Ludwigshafen am Rhein, is the largest chemical company in the world. The Group is currently represented by its own companies in around 90 countries ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of BASF SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Basell Polyolefine GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of OMV Deutschland GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for BASF SE, and factors influencing its performance in the industry
  • Description and key data for Basell Polyolefine GmbH, and factors influencing its performance in the industry
  • Description and key data for OMV Deutschland GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The production volume serves as an indicator of the demand for organic raw materials and chemicals. As the industry products are the starting materials for many industrial pr...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The current high energy and commodity prices are squeezing the profit margin. Despite volatile crude oil and natural gas prices, the profit margin usually only fluctuates by ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Organic Basic Chemical Manufacturing industry in Germany in 2024?

The market size of the Organic Basic Chemical Manufacturing industry in Germany is €59.7bn in 2024.

How many businesses are there in the Organic Basic Chemical Manufacturing in Germany industry in 2024?

There are 105 businesses in the Organic Basic Chemical Manufacturing industry in Germany, which has declined at a CAGR of 0.0 % between 2019 and 2024.

Has the Organic Basic Chemical Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Organic Basic Chemical Manufacturing industry in Germany has been declining at a CAGR of 2.8 % between 2019 and 2024.

What is the forecast growth of the Organic Basic Chemical Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Organic Basic Chemical Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Organic Basic Chemical Manufacturing market in Germany?

The biggest companies operating in the Organic Basic Chemical Manufacturing market in Germany are BASF SE, Basell Polyolefine GmbH and OMV Deutschland GmbH

What does the Organic Basic Chemical Manufacturing in Germany include?

Hydrocarbons and Organic compounds with nitrogen functions are part of the Organic Basic Chemical Manufacturing industry.

Which companies have the highest market share in the Organic Basic Chemical Manufacturing in Germany?

The company holding the most market share in Germany is BASF SE.

How competitive is the Organic Basic Chemical Manufacturing industry in Germany?

The level of competition is moderate and steady in the Organic Basic Chemical Manufacturing industry in Germany.

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Competitors

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.