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Organic Chemical Manufacturing in the US - Market Research Report (2015-2030)

Jullian Guirguis Jullian Guirguis New York, United States Last Updated: January 2025 NAICS 32519

Revenue

$141.2bn

2025

$141.2bn

Past 5-Year Growth

Profit

$XX.Xbn

Employees

74,433

Businesses

1,050

Wages

$X.Xbn

Organic Chemical Manufacturing in the US industry analysis

Over the past five years, the industry has witnessed steady growth. This upward trajectory reflects a robust market that has adapted to changes in demand and operational efficiencies. The industry enjoyed increased revenue, driven by various factors such as technological advancements in catalytic processes and automation. A diverse range of applications for organic chemicals, including pharmaceuticals, plastics and agricultural products, bolstered demand significantly. While market volatility exists, the industry's resilience has been evident. Innovations in green chemistry, including the development of biodegradable polymers, have also contributed to the upward trend. Regulatory changes, such as the 2015 Toxic Substances Control Act reform, mandated stricter evaluations of chemical substances, impacting operations, but companies adapted effectively through compliance strategies. Competition remains intense; however, some companies maintain a competitive edge through strategic investments in research and development focusing on sustainable products.

Trends and Insights

  • The industry has seen revenue growth over the past five years. This growth has been supported by decreasing labor fees, which have helped increase profit in the organic chemical manufacturing processes. Revenue expansion has been notable despite market fluctuations affecting specific product categories like synthetic organic alcohols and flavor materials.
  • Ethyl alcohol is the industry's most significant product offering and is integral in chemical manufacturing and beverage production. Synthetic organic chemicals, such as synthetic alcohols and fatty acids, also maintain substantial roles, fulfilling diverse industrial demands. Product diversification remains crucial as the industry adapts to shifting regulatory and consumer requirements.
  • The Southeast and Great Lakes regions comprise a substantial portion of industry operations because of their proximity to raw materials and major market access. These areas provide logistical advantages critical to efficient supply chain management for organic chemical manufacturing. Their strategic location supports robust manufacturing operations.
  • The industry is marked by low concentration levels, which influence competitive strategies centered around innovation and pricing. To attract customers, companies focus on developing new synthetic organic compounds and improving cost efficiency. This fragmentation allows for competition across varied company sizes, creating niche market opportunities.

Access hundreds of data points and trends

  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 3.8 % over the past five years, to reach an estimated $141.2bn in 2025.

Trends and Insights

Economic indicators show consolidation with stable revenue growth and declining employment figures

  • The industry has experienced stable revenue growth with a CAGR of 3.8% over the past five years, reaching $141.2 billion. Despite this growth, the number of establishments has decreased at a CAGR of 1.1%, totaling 1,411 and the number of enterprises has contracted at a CAGR of 1.2%, with a total of 1,050 enterprises. Employment figures have also decreased at a CAGR of 0.5%, resulting in 74,433 employees. This points to a consolidation trend that leaves larger and more efficient manufacturers dominating the industry and suggests increased automation and technological advancements.
  • Additional trends and insights available with purchase
Organic Chemical Manufacturing in the US
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

Advancements in organic solar cells open new frontiers for space exploration and drive industry growth

  • The recent article: Light, Flexible and Radiation-Resistant: Organic Solar Cells for Space, published by ScienceDaily on January 10, 2025, sheds light on groundbreaking advancements in organic solar cell technology. According to this article, researchers from the University of Michigan have demonstrated the potential for organic solar cells made from carbon-based materials to outperform traditional silicon and gallium arsenide solar cells in space applications. These organic cells, especially those made with small molecules, can withstand the intense radiation in space without declining performance, offering a promising alternative for space missions that prioritize lightweight and flexible materials.

Biggest companies in the Organic Chemical Manufacturing in the US

Company
Market Share (%)
2025
Revenue ($m)
2025
Profit ($m)
2025
Profit Margin (%)
2025
Royal Dutch Shell Plc
16,494.9
2,210.6
13.4
Shin-Etsu Chemical Co., Ltd.
724.5
38.4
5.3
Merck KGaA
501.1
26.6
5.3

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Organic Chemical Manufacturing in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Ethyl alcohol, Cyclic crudes, coal tar, wood chemical and intermediate products and All other basic organic chemical products. Ethyl alcohol is the largest segment of the Organic Chemical Manufacturing in the US.

Trends and Insights

Ethyl alcohol plays a crucial role by being the largest contributor to industry revenue

  • Ethyl alcohol, also known as ethanol, is a widely used organic compound with applications in the aerospace and pharmaceutical industries. As the most significant product in terms of revenue, it is essential in producing alcoholic beverages and fuels like bioethanol. This compound's revenue strength comes from its versatility and demand across various markets. Ethyl alcohol's continuous demand supports ongoing research to enhance its production efficiency.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry manufactures basic organic chemicals (other than petrochemicals), industrial gases and synthetic dyes and pigments. Key product groups include gum and wood products, cyclic crudes and intermediates, ethyl alcohol and other basic organic chemicals. These products are predominantly intermediates that are used as raw material inputs by other manufacturing industries in the production of downstream products.

What's included in this industry?

Manufacturing gum and wood chemicals Manufacturing cyclic crudes and intermediates Manufacturing ethyl alcohol Manufacturing other basic organic chemicals Manufacturing synthetic organic alcoholsManufacturing fatty acidsManufacturing bulk pesticides

Companies

Royal Dutch Shell PlcShin-Etsu Chemical Co., Ltd.Merck KGaA

Purchase this report to view all 3 major companies in this industry.

Related Terms

FEEDSTOCKVINYL ACETATE MONOMER (VAM)ETHYL ALCOHOLCO-PRODUCTCAPTIVE USE PRODUCT

Industry Code

NAICS 2017

NAICS 32519 - Organic Chemical Manufacturing in the US

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 industry has seen revenue growth over the past five years. This growth has been supported by decreasing labor fees, which have helped increase profit in the organic chemi...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

Ethyl alcohol is the industry's most significant product offering and is integral in chemical manufacturing and beverage production. Synthetic organic chemicals, such as synt...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • 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 Southeast and Great Lakes regions comprise a substantial portion of industry operations because of their proximity to raw materials and major market access. These areas p...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each state in 2025
  • Number and share of revenue each state accounts for in 2025
  • Number and share of wages each state accounts for in 2025
  • Number and share of employees in each state in 2025

Detailed analysis

  • Geographic spread of the industry across North America, 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

The industry is marked by low concentration levels, which influence competitive strategies centered around innovation and pricing. To attract customers, companies focus on de...

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 2020-2025
  • 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

Consolidation trends are reshaping competitive strategies within the industry as companies pursue mergers and acquisitions. Larger companies are increasing their market share...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Royal Dutch Shell Plc's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Shin-Etsu Chemical Co., Ltd.'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Merck KGaA's performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for Royal Dutch Shell Plc, and factors influencing its performance in the industry
  • Description and key data for Shin-Etsu Chemical Co., Ltd., and factors influencing its performance in the industry
  • Description and key data for Merck KGaA, and factors influencing its performance in the industry

External Environment

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

Analyst insights

The 2016 reform of the Toxic Substances Control Act (TSCA) has significantly raised industry compliance requirements. Under these reforms, stricter safety evaluations and rep...

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

Purchases dominate cost structures owing to the necessity for a continuous supply of raw materials. Raw material price fluctuations directly impact cost management within the...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2018-2023)
  • Industry Tax Structure (2018-2023)
  • Income Statement (2018-2023)
  • Balance Sheet (2018-2023)
  • Liquidity Ratios (2018-2023)
  • Coverage Ratios (2018-2023)
  • Leverage Ratios  (2018-2023)
  • Operating Ratios (2018-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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

What is the market size of the Organic Chemical Manufacturing in the US industry in United States in 2025?

The market size of the Organic Chemical Manufacturing in the US industry in United States is $141.2bn in 2025.

How many businesses are there in the Organic Chemical Manufacturing in the US industry in 2025?

There are 1,050 businesses in the Organic Chemical Manufacturing in the US industry in United States, which has declined at a CAGR of 1.2 % between 2020 and 2025.

Has the Organic Chemical Manufacturing in the US industry in United States grown or declined over the past 5 years?

The market size of the Organic Chemical Manufacturing in the US industry in United States has been growing at a CAGR of 3.8 % between 2020 and 2025.

What is the forecast growth of the Organic Chemical Manufacturing in the US industry in United States over the next 5 years?

Over the next five years, the Organic Chemical Manufacturing in the US industry in United States is expected to grow.

What are the biggest companies in the Organic Chemical Manufacturing in the US market in United States?

The biggest companies operating in the Organic Chemical Manufacturing market in United States are Royal Dutch Shell Plc, Shin-Etsu Chemical Co., Ltd. and Merck KGaA

What does the Organic Chemical Manufacturing in the US in United States include?

Manufacturing gum and wood chemicals and Manufacturing cyclic crudes and intermediates are part of the Organic Chemical Manufacturing in the US industry.

Which companies have the highest market share in the Organic Chemical Manufacturing in the US in United States?

The company holding the most market share in United States is Royal Dutch Shell Plc.

How competitive is the Organic Chemical Manufacturing in the US industry in United States?

The level of competition is high and steady in the Organic Chemical Manufacturing in the US industry in United States.

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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 the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

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.

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