Recently, Roland Berger, one of the world's top strategic management consulting companies, released a special report for the beginning of 2021-"Roland Berger "Foreseeing 2021" China Industry Trend Report", predicting the main trends and business trends of key industries in the next year .

Regarding the chemical industry, the report pointed out that in 2021, the post-epidemic chemical industry will usher in a new round of growth opportunities: the development direction of green and high-end will create emerging opportunities for industry companies in sub-sectors and a customer-oriented market trend. It will also give birth to a series of model innovations such as the branding of B-end products.

According to Roland Berger’s report, China’s chemical industry will present four major trends in 2021:

01

Through the epidemic: the global chemical industry recovers, and the capital market is getting better

In 2020, the new crown epidemic will sweep the world and have a severe impact on various industries. As some chemical products have rigid requirements for production and life, and the demand for anti-epidemic chemicals such as alcohol, surfactants, and some polyolefins has grown against the trend, the impact of the epidemic on the chemical industry is relatively controllable. With the recovery of the Chinese and global economies, the chemical industry has accelerated the recovery process after passing the recession turning point, and the scale of operations and the performance of the capital market have gradually formed a "U-shaped" reversal.

In 2021, it is expected that investment institutions and industry players will grasp the upward trend and strengthen the industrial layout. The global chemical industry will gradually become more active in mergers and acquisitions, and the capital market will continue to improve.

02

High-potential market: Green China is booming, and biochemical industry is gradually emerging

At the beginning of 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment jointly issued a "plastic ban" (also known as the new "plastic restriction order"), determined to restrict the use of plastic products from the entire life cycle with greater force. At the same time, consumers' awareness of green health is increasing. Pure natural, degradable, and sustainable bio-based materials have become an alternative to traditional chemicals. Some of their processes have gradually highlighted cost advantages and are rapidly receiving attention and deployment from all walks of life.

In 2021, the consumption scale of emerging biochemical products such as PHA (polyhydroxy fatty acid ester), EPA (eicosapentaenoic acid), and pentanediamine may grow rapidly. At the same time, unlike Europe and the United States where large-scale chemical groups deploy the bio-industry, domestic research institutes and start-up companies play a key role in leading the development of biochemical industry. In the future, there will be a number of technology-driven emerging players and industry leaders that have successfully listed on the Chinese market.

0 3

Emerging categories: high-end applications activate the market, 5G materials are hot

In 2020, the 5G industry will gradually enter large-scale development. In view of the high-speed and short-distance characteristics of 5G networks, new base stations and new terminals have put forward higher performance requirements for supporting materials. The radio frequency, transmission, shielding, and heat dissipation have spawned various new material product opportunities. For example, third-generation semiconductor materials suitable for high-power devices, new resins such as PTFE, PPE/PPO, etc. required for high-frequency and high-speed copper-clad PCBs, and microwave dielectric ceramics for high penetration and high weather resistance of terminal housings Modified glass fiber resin.

In 2021, major international chemical giants such as DuPont, Dow, and Henkel will continue to leverage their first-mover advantages in the field of 5G new materials; my country will gradually start a long-term journey of import substitution in the continuous development and catch-up of local companies.

0 4

Model innovation: customer orientation continues to evolve, and the B-end product brand rises

Competition in the chemical industry is becoming increasingly fierce. Many players are actively exploring customer-oriented production and business models in an effort to build a "moat" of differentiated competition.

Players are not only transforming from supplying products to providing comprehensive solutions, but also from pre-sales and after-sales phased services to full life cycle customer cooperation: especially in the fields of fiber and engineering plastics, leading players are digging deeper into the B-end (for Merchants and enterprises) product branding potential, relying on C-end (for direct consumers) brand recognition to drive sales to downstream B-end customers. At the same time, fierce competition in footwear and apparel industries has also spawned the demand for branding development in the upstream of the supply chain in the downstream links. Taking fiber branding as an example, major shoe and apparel companies around the world have continued to develop in-depth cooperation with fiber players. The successful cases of international fiber brands such as Toray, Lycra and Cordura will promote Chinese players to become high-value, high-performance, Transformation of highly viscous product and business model portfolio.

In 2021, my country's chemical industry is expected to start the exploration of the brand-based development model. In addition to overcoming the challenges of technology research and development and business models, it is more important to deeply transform the operation and management model to match the front-end development requirements. In the future, the local market is expected to witness the rise of more and more B-end brands.

Source: Petroleum and Chemical Industry Park

[Source: Released by Ningbo Petrochemical Development Zone]

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