The chemical industry is the largest manufacturing sector in the UK, which is in turn among the top ten chemical-producing nations in the world. UK manufacturers' total sales of chemicals and chemical products increased by an estimated 12.6% between 2001 and 2005, to £55.1bn at manufacturers' selling prices (msp). Growth would have been even faster but for the impact of the global economic slowdown that occurred in 2001 and 2002, together with the intense competition within the industry, which has affected UK suppliers' sales and held back price increases.

Although this report focuses on the UK, the chemical industry is a highly globalised sector, which processes raw materials and supplies intermediates (semi-processed raw materials) to other manufacturing industries in the UK and worldwide. Consequently, the industry is strongly dependent upon the performance of the international economy and on global prices for raw materials such as oil and other commodities. Indeed, the chemical industry is vulnerable to slowdowns in the wider economy, because its products are used in almost all manufacturing sectors, from electronics to pharmaceuticals, and its output forms the basis for a host of everyday products.

The industry is dominated by international companies and has experienced a wave of consolidation over the past 5 years. However, there are still many small companies in the biotechnology sector and some of the largest companies have demerged their life-sciences and agrochemical interests.

Key Note forecasts that UK manufacturers' sales of chemicals and chemical products will continue to increase at a healthy pace over the next 5 years. Growth is expected to slow in 2007 and 2008 as the global economy slows and as extra capacity comes onstream, depressing prices. However, global economic growth should begin to accelerate again in 2009 and 2010.

Overall, the long-term outlook for the UK chemical industry appears positive, although there are likely to be significant changes within the industry over the next 5 years. UK production of relatively simple chemicals is likely to decline as these activities continue to be transferred to lower-cost bases in the developing world. However, the hi-tech, high-value-added end of the market, where the UK has a significant competitive advantage, should continue to expand at a rapid rate. The pharmaceutical industry, in particular, is likely to experience continued strong growth.

Executive Summary


1. Market Definition

* REPORT COVERAGE
* MARKET SECTORS
* MARKET TRENDS
* Industry's Recovery from Slump Continues
* Chemical Industry Undergoing Further Consolidation
* New European Regulatory Environment
* ECONOMIC TRENDS
* Gross Domestic Product
* Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
* Inflation
* Table 2: UK Rate of Inflation (%), 2001-2005
* Household Disposable Income
* Table 3: Household Disposable Income per Capita (£), 2001-2005
* Unemployment
* Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005
* Population
* Table 5: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
* MARKET POSITION
* The UK
* Overseas

2. Market Size

* THE TOTAL MARKET
* Table 6: UK Manufacturers' Sales of Chemicals and Chemical Products by Value at Current Prices (£m at msp), 2001-2005
* Figure 1: UK Manufacturers' Sales of Chemicals and Chemical Products by Value at Current Prices (£m at msp), 2001-2005
* Table 7: UK Manufacturers' Sales of Chemicals and Chemical Products by Sector by Value at Current Prices (£m at msp), 2001-2005
* Figure 2: UK Manufacturers' Sales of Chemicals and Chemical Products by Sector by Value (%), 2005
* BY MARKET SECTOR
* Basic Chemicals
* Table 8: UK Manufacturers' Sales of Basic Chemicals by Sector by Value at Current Prices (£m at msp and %), 2001-2005
* Plastics in Primary Forms
* Fertilisers and Nitrogen Compounds
* Pharmaceuticals, Medicinal Chemicals and Botanical Products
* Table 9: UK Manufacturers' Sales of Pharmaceuticals, Medicinal Chemicals and Botanical Products by Sector by Value at Current Prices (£m at msp and %), 2001-2005
* Paints, Varnishes and Similar Coatings, Printing Ink and Mastics
* Table 10: UK Manufacturers' Sales of Paints, Varnishes and Similar Coatings, Printing Ink and Mastics by Value at Current Prices (£m at msp and %), 2001-2005
* Perfumes and Toilet Preparations
* Table 11: UK Manufacturers' Sales of Perfumes and Toilet Preparations by Value at Current Prices (£m at msp and %), 2001-2005
* Soap, Detergents, and Cleaning and Polishing Preparations
* Table 12: UK Manufacturers' Sales of Soap, Detergents, and Cleaning and Polishing Preparations by Value at Current Prices (£m at msp and %), 2001-2005
* Pesticides and Other Agrochemical Products
* Table 13: UK Manufacturers' Sales of Pesticides and Other Agrochemical Products by Value at Current Prices (£m at msp and %), 2001-2005
* Photographic Chemical Material
* Table 14: UK Manufacturers' Sales of Photographic Chemical Material by Value at Current Prices (£m at msp and %), 2001-2005
* Essential Oils
* Table 15: UK Manufacturers' Sales of Essential Oils by Value at Current Prices (£m at msp and %), 2001-2005
* Man-Made Fibres
* Table 16: UK Manufacturers' Sales of Man-Made Fibres by Value at Current Prices (£m at msp and %), 2001-2005
* Glues and Gelatines
* Table 17: UK Manufacturers' Sales of Glues and Gelatines by Value at Current Prices (£m at msp and %), 2001-2005
* Explosives
* Table 18: UK Manufacturers' Sales of Explosives by Value at Current Prices (£m at msp and %), 2001-2005
* Other Chemical Products
* OVERSEAS TRADE
* Chemicals
* Table 19: UK Balance of Trade in Chemicals and Chemical Products by Value (£m), 2001-2005
* Pharmaceuticals
* Table 20: UK Balance of Trade in Pharmaceuticals by Value (£m), 2001-2005

3. Industry Background

* INTRODUCTION
* NUMBER OF COMPANIES
* Table 21: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Chemicals and Chemical Products by Turnover Sizeband (£000, number and %), 2005
* EMPLOYMENT
* Table 22: Number of UK VAT-Based Local Units Engaged in the Manufacture of Chemicals and Chemical Products by Employment Sizeband (number and %), 2005
* REGIONAL VARIATIONS IN THE MARKETPLACE
* DISTRIBUTION
* HOW ROBUST IS THE MARKET?
* LEGISLATION
* Chemicals Regulations
* Dangerous Substances and Preparations Regulations
* REACH
* KEY TRADE ASSOCIATIONS
* Association of the British Pharmaceutical Industry
* British Plastics Federation
* Chemical Industries Association
* European Chemical Industry Council

4. Competitor Analysis

* THE MARKETPLACE
* MARKET LEADERS
* AstraZeneca PLC
* Company Structure
* Current and Future Developments
* Financial Results
* The BOC Group PLC
* Company Structure
* Current and Future Developments
* Financial Results
* BP Chemicals Ltd
* Company Structure
* Current and Future Developments
* Financial Results
* Cookson Group PLC
* Company Structure
* Current and Future Developments
* Financial Results
* Croda International PLC
* Company Structure
* Current and Future Developments
* Financial Results
* GlaxoSmithKline PLC
* Company Structure
* Current and Future Developments
* Financial Results
* Imperial Chemical Industries PLC
* Company Structure
* Current and Future Developments
* Financial Results
* Johnson Matthey PLC
* Company Structure
* Current and Future Developments
* Financial Results
* Shell Chemicals UK Ltd
* Company Structure
* Current and Future Developments
* Financial Results
* Yule Catto & Co PLC
* Company Structure
* Current and Future Developments
* Financial Results
* OTHER COMPANIES
* Albion Chemicals Ltd
* BASF AG
* The Dow Chemical Company
* DuPont (EI du Pont de Nemours and Company)
* LANXESS AG
* Univar Ltd
* OUTSIDE SUPPLIERS
* MARKETING ACTIVITY

5. Strengths, Weaknesses, Opportunities and Threats

* STRENGTHS
* WEAKNESSES
* OPPORTUNITIES
* THREATS

6. Buying Behaviour

* INTRODUCTION
* INDUSTRIAL USES
* PHARMACEUTICAL USES
* VAGARIES OF DEMAND

7. Current Issues

* REACH
* COMPANY ACTIVITY
* Mergers and Acquisitions
* BOC and Linde Merge
* Bayer Merger with Schering Creates New Drugs Giant
* Merck Buys Serono After Failing to Buy Schering
* Chinese Chemical Plants Threaten Environment

8. The Global Market

* MARKET SIZE
* Table 23: Global Production of Chemicals by Value ($bn), 2001-2005
* By Region
* Table 24: Global Production of Chemicals by Region by Value ($bn), 2005
* MARKET TRENDS

9. Forecasts

* INTRODUCTION
* The UK Economy
* Gross Domestic Product
* Table 25: Forecast Growth in UK Gross Domestic Product in Real Terms (%), 2006-2010
* Inflation
* Table 26: Forecast UK Rate of Inflation (%), 2006-2010
* Unemployment
* Table 27: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010
* FORECASTS 2006 TO 2010
* Table 28: Forecast UK Manufacturers' Sales of Chemicals and Chemical Products by Sector by Value at Current Prices (£m at msp), 2006-2010
* MARKET GROWTH
* Figure 3: UK Manufacturers' Sales of Chemicals and Chemical Products by Value at Current Prices (£m at msp), 2001-2010
* FUTURE TRENDS
* Demographics
* Table 29: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010
* Market Segmentation
* New Product Development
* Industry Consolidation

10. Company Profiles

* Astrazeneca Plc
* THE Boc Group Plc
* Bp Chemicals Ltd
* Cookson Group Plc
* Croda International PLC
* Glaxosmithkline Plc
* Imperial Chemical Industries Plc
* Johnson Matthey Plc
* Shell Chemicals Uk Ltd
* Yule Catto & Co PLC

11. Consumer Confidence

* METHODOLOGY
* KEY FINDINGS THIS QUARTER
* THE WILLINGNESS TO BORROW
* Confidence Rebounds
* Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006
* Fewer Adults Wish to Borrow
* Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), August 2005-2006
* SPENDING FROM SAVINGS
* Strong Recovery in Spending from Savings
* Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), August 2005-2006
* Savings Grow in Relative Importance
* Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), August 2005-2006

12. Further Sources

* Associations
* Publications
* General Sources
* Government Sources
* Other Sources
* Bisnode Sources