As an important branch of modern chemical industry, the chemical new materials industry covers multiple sub fields such as high-performance plastics, special rubber, advanced fibers, etc. It has the characteristics of light weight, excellent performance, and strong functionality. The upstream of its industrial chain mainly includes basic raw materials such as crude oil, coal, natural gas, as well as chemical additives, monomer intermediates, etc; The midstream is the research and development, production, and processing of new chemical materials, and technological innovation and product quality are the key to enterprise competitiveness; Downstream applications are widely used in fields such as aerospace, automotive manufacturing, electronic information, new energy, and biomedicine. With the continuous advancement of global technology and industrial upgrading, the chemical new materials industry is facing unprecedented development opportunities. Market demand continues to grow, and the industrial chain is developing in a coordinated manner, showing broad prospects for development.

1、 Analysis of the Development Status of the Chemical New Materials Industry

1. Market size

The market size of new chemical materials continues to expand globally.According to the report released by the China Research Institute of Puhua Industry《Market Outlook Analysis and Investment Strategy Research Report on China's Chemical New Materials Industry from 2024 to 2029》DisplayIn 2021, the global market size of new chemical materials is about 3.5 trillion yuan, and it is expected to reach 610 billion US dollars by 2028, showing strong growth momentum. In the Chinese market, the market size of new chemical materials is expected to reach nearly one trillion yuan in 2022, with an average annual growth rate exceeding 10%. The Forward looking Industry Research Institute predicts that the compound growth rate of China's chemical new materials market size will be about 15% from 2024 to 2029, and the overall market consumption size is expected to reach 3.8 trillion yuan by 2029.

2. Production capacity

The production and capacity of new materials in China's chemical industry continue to grow. In 2022, the production of new chemical materials in China reached 33.23 million tons, a year-on-year increase of 12.07%. Preliminary estimates suggest that the production of new chemical materials in 2023 will be approximately 33 million tons, with a production capacity of 45 million tons per year. In addition, the self-sufficiency rate of new materials in China's chemical industry continues to increase, with an overall self-sufficiency rate of nearly 79% in 2023. However, it still cannot fully meet market demand in the fields of high-performance resins, high-performance synthetic rubber, high-performance fibers, functional membrane materials, and electronic chemicals.

3. Supply and demand situation

On the supply side:

Production growth: In recent years, the production scale of new chemical materials in China has been increasing year by year, mainly due to technological progress and market demand.

Number of Enterprises: As of July 2024, the number of registered enterprises related to new chemical materials in China has exceeded 30000, and the number of newly registered enterprises continues to increase. Among them, there are a large number of enterprises in provinces such as Shandong, Guangdong, Jiangsu, and Zhejiang.

Technological progress: Domestic enterprises have continuously enhanced their technological research and innovation capabilities in the field of new materials, and some products have been replaced by domestic production. However, there are still technological barriers in some high-end fields.

In terms of demand:

Market demand continues to grow: The widespread application of new chemical materials in emerging industries and their continuously enhancing performance advantages have driven the sustained growth of market demand. Especially in the fields of aerospace, electronic information, and new energy vehicles, the demand for high-performance and environmentally friendly chemical new materials has significantly increased.

Import dependence: Although China's self-sufficiency rate in new chemical materials continues to increase, it still heavily relies on imports in some high-end product sectors. For example, key raw materials such as polyolefin elastomers (POE) and adiponitrile still need to be imported in large quantities.

2、 Analysis of the Competitive Landscape in the Chemical New Materials Industry

1. Hierarchical division

First tier:Mainly composed of leading foreign and domestic enterprises in segmented fields, such as international giants like BASF and Covestro, as well as leading domestic enterprises like Wanhua Chemical, Huafeng Chemical, and Jinfa Technology. These enterprises have rich experience, complete industrial foundations, generally large equipment scales, and high technological levels. They usually occupy the high and mid-range markets with high-quality basic and modified products, and are therefore often market leaders, obtaining relatively lucrative profits.

Second tier:Mainly state-owned enterprises and leading private enterprises, such as Juhua Group and Xinhecheng. These enterprises entered the market early, accumulated certain industry experience and technical reserves, had a certain scale of equipment, strong technical accumulation and talent reserves, and a relatively complete product chain. Most of their products enter the mid-range market, but there are still some products in the low-end market, so their profits are not stable enough.

Third tier:For other small and medium-sized private chemical enterprises. These enterprises have weak industrial foundations, small equipment scales, generally low technological levels, and incomplete product chains. A few larger enterprises with strong technological foundations are in the low-end market of basic products, while most enterprises are distributed in a wide and dispersed terminal product market. Although relatively weak in terms of technology and market share, there are also some companies that have achieved certain results in specific fields through distinctive and differentiated development.

2. Regional distribution

From a regional distribution perspective, the number of competitors in China's chemical new materials industry is mainly distributed in the Yangtze River Delta, Pearl River Delta, and the southeastern coastal areas such as Beijing Tianjin Hebei, with a relatively large number of enterprises in provinces and cities such as Shandong, Guangdong, Jiangsu, and Zhejiang. These regions have developed economies, strong industrial foundations, and strong technological innovation capabilities, providing strong support for the development of the chemical new materials industry.

3. Market concentration

The concentration of China's chemical new materials market is relatively low. Although top enterprises occupy a certain market share, there are still a large number of small and medium-sized enterprises in the entire industry, and market competition is fierce. This situation is conducive to promoting technological innovation and industrial upgrading, but it may also lead to the emergence of vicious competitive behaviors such as price wars.

3、 Analysis of the Development Trends and Prospects of the Chemical New Materials Industry

1. Analysis of Development Trends in the Chemical New Materials Industry

Technological innovation drives development

Technological innovation is the core driving force for the development of the chemical new materials industry. With the advancement of technology and the increase in research and development investment, new technologies, processes, and products continue to emerge in the field of chemical new materials. These innovations not only enhance the performance and quality of products, but also promote the extension and expansion of the industrial chain. In the future, technological innovation will continue to lead the development direction of the chemical new materials industry, promoting the industry to move towards high-end, refined, and green direction.

Green environmental protection has become mainstream

With the increasing global awareness of environmental protection and the popularization of sustainable development concepts, green and environmentally friendly new chemical materials will become the mainstream of the market. These materials have the advantages of low pollution, biodegradability, and recycling, which meet the development requirements of energy conservation, emission reduction, and circular economy. In the future, green environmental protection will become an important development direction for the chemical new materials industry, promoting the industry to achieve green transformation and sustainable development.

Market demand continues to grow

With the rapid development of strategic emerging industries such as new energy, high-end equipment, green environmental protection, and biotechnology, the market demand for chemical new materials will continue to grow. These fields have an urgent demand for high-performance and high value-added new materials, providing broad development space for the chemical new materials industry. At the same time, with the promotion of consumption upgrading and technological progress, the demand for new chemical materials in traditional fields will continue to increase.

Collaborative development of industrial chain

The chemical new materials industry chain involves multiple links such as raw material supply, production and processing, and application development, requiring close coordination and cooperation between each link. In the future, the coordinated development of the industrial chain will become an important trend in the chemical new materials industry. By strengthening cooperation and communication between upstream and downstream enterprises, resource sharing, complementary advantages, and collaborative innovation can be achieved, promoting the upgrading and development of the entire industrial chain.

2. Analysis of the Development Prospects of the Chemical New Materials Industry

The market size continues to expand

With the continuous growth of market demand and the continuous improvement of the industrial chain, the market size of the chemical new materials industry will continue to expand. According to the forecast of Forward looking Industry Research Institute, the compound growth rate of China's chemical new materials market will remain at a high level in the coming years, and the overall market consumption scale is expected to continue to grow.

Continuous optimization of product structure

With the promotion of technological innovation and changes in market demand, the product structure of new chemical materials will continue to be optimized. Traditional high pollution, low value-added products will gradually be phased out, while high-performance, high value-added new materials will gradually become the mainstream in the market. At the same time, with the extension and expansion of the industrial chain, the application fields of new chemical materials will continue to expand and deepen.

The competitiveness of enterprises continues to improve

With the intensification of market competition and the promotion of coordinated development of the industrial chain, the competitiveness of chemical new material enterprises will continue to improve. Top enterprises will continue to consolidate their market position and expand their market share by leveraging their advantages in technology, brand, and scale; Small and medium-sized enterprises will seek market breakthroughs and achieve rapid development through distinctive and differentiated development. Meanwhile, with the strengthening of international cooperation and exchanges, the gap between domestic enterprises and international leading enterprises will continue to narrow.

Continuous optimization of policy environment

The support of national policies for the chemical new materials industry will continue to increase. The government will promote the innovative development and transformation of the industry through a series of policy measures. These policies will include increasing research and development investment, supporting technological innovation, optimizing industrial layout, and promoting green development. At the same time, the government will strengthen international cooperation and exchanges to promote China's chemical new materials industry to the world stage and participate in global competition.