£11.0bn
£XXX.Xm
7,726
106
£XXX.Xm
Revenue is expected to contract at a compound annual rate of 1.6% to £11 billion over the five years through 2023-24. The pandemic significantly disrupted downstream manufacturing activity, as buyers had lower production, reducing the need for organic basic chemicals used as intermediate products. The temporary closure of construction sites across the UK during the COVID-19 outbreak meant sales of organic basic chemicals used to make plastic piping, wire coatings, insulation and other construction products fell, dampening revenue.The Russian invasion of Ukraine hiked the price of key inputs like crude oil and natural gas. While high gas and oil prices inflated revenue, manufacturers could not pass all of the costs onto consumers, so profitability fell. British chemical manufacturers have also faced significant competition from foreign manufacturers, which benefit from lower wage costs and continued access to cheap Russian oil and gas. Revenue is estimated to fall by 14.2% in 2023-24, with the average profit margin set to be 3.1%.Growing environmental awareness will eat into downstream plastic manufacturing, reducing the need for organic basic chemicals. Strong competition from imports will remain a key issue as foreign manufacturers benefit from low wages and a growing chemical production sector. Revenue is expected to contract at a compound annual rate of 1% to £11.6 billion over the five years through 2028-29. As oil and natural gas prices fall and organic basic chemical manufacturers renegotiate supply contracts, the industry profit margin is expected to quickly recover to 7.3% in 2028-29.
Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated £11.0bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue (£m)
2024 |
---|---|---|
ExxonMobil Chemical Limited | 637.3 | |
Ineos Chemicals Grangemouth Ltd | 209.4 |
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Industry revenue is measured across several distinct product and services lines, including Ethylene, Propylene and Other. Ethylene is the largest segment of the Organic Basic Chemical Manufacturing in the UK.
Ethylene sales have been weakened by campaigns against plastic use
Companies in this industry manufacture organic chemicals via basic processes such as thermal cracking and distillation. Manufactured from refined petroleum or liquid hydrocarbons sourced from the upstream oil and gas extraction industries, the industry’s products are used in a wide variety of products including automotive components and various durable and consumable goods.
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SIC 20.14 - Organic Basic Chemical Manufacturing in the UK
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The pandemic and Russia-Ukraine war hit chemical supply internationally. The COVID-19 pandemic hit demand for chemicals, while the Russian invasion of Ukraine has caused cost...
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Companies consolidate to bolster dominance. Organic base chemical manufacturers have been consolidating to better their competitive stance, enjoy improved economies of scale ...
Learn about the performance of the top companies in the industry.
ExxonMobil Chemical Limited banks on the UK and EU market. Despite the weak pound, ExxonMobil Chemical Ltd earns most of its revenue from exports. However, the share of domes...
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Including values and annual change:
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Key data sources in the UK include:
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The market size of the Organic Basic Chemical Manufacturing in the UK industry in United Kingdom is £11.0bn in 2024.
There are 106 businesses in the Organic Basic Chemical Manufacturing in the UK industry in United Kingdom, which has declined at a CAGR of 3.7 % between 2018 and 2023.
The market size of the Organic Basic Chemical Manufacturing in the UK industry in United Kingdom has been declining at a CAGR of 1.6 % between 2018 and 2023.
Over the next five years, the Organic Basic Chemical Manufacturing in the UK industry in United Kingdom is expected to grow.
The biggest companies operating in the Organic Basic Chemical Manufacturing market in United Kingdom are ExxonMobil Chemical Limited and Ineos Chemicals Grangemouth Ltd
Ethylene and Propylene are part of the Organic Basic Chemical Manufacturing in the UK industry.
The company holding the most market share in United Kingdom is ExxonMobil Chemical Limited.
The level of competition is moderate and decreasing in the Organic Basic Chemical Manufacturing in the UK industry in United Kingdom.