For the second half of 2011, sales growth for the global chemicals market is expected to be solid, but volume growth will be milder, according to Deloitte Touche Tohmatsu’s “Compass 2011: Global Chemicals Sector Midyear Outlook.” Sales have been on the rise due to steeper prices and growth in developing markets. In 2010, Asia Pacific sales grew 1.7% to comprise 45% of the chemical industry’s sales. Sales in the Americas and Europe fell 0.7% and 1.0% to make up 31% and 24% of sales in 2010, respectively. Increased sales are expected for all three regions for the second half of 2011. To increase gross profits, chemical companies have cut R&D costs over the past decade. Some companies have shifted their R&D focus to collaborations, emphasized process innovation, or incorporated noncentral disciplines, which has been a factor in some recent mergers and acquisitions (M&A). In 2010, chemical industry M&A totaled $73.7 billion, 9.3% shy of the 2008 figure. In 2011, such transactions are expected to top 3,000 for the first time since 2008.

Source: Deloitte Touche Tohmatsu