The basic chemicals sector is the largest within the chemical industry and accounted for more than a third of total manufacturers' sales of chemicals in 2014, said Key Note. It added: "In recent years, UK manufacturers' sales of basic chemicals have fallen as the market faced increasing competition from low-cost producers in Asia and the Middle East, where the costs of energy, labour and raw materials are significantly lower."
The second largest sector within the UK chemical industries is basic pharmaceuticals products and pharmaceutical preparations sector, which made up just under a third of the total chemical sales in 2014.
Key Note said: "Aside from increasing competition from chemical producers overseas, the chemical industry in the UK is also facing major regulatory challenges, including the Climate Change Act and the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation, which put further pressure on the competitiveness of the UK chemical industry on the global stage."
Key Note has predicted that the chemical industry will grow by 3.8% in 2015, followed by a further increase of over the years that follow.
'Chemical Industry' is the latest Market Update published by Market Intelligence provider Key Note.
