TWIC - Chemicals

Wednesday, December 6 2023

This week in
Consulting

Navigating the Chemical Industry: Trends, Innovations, and the Road Ahead

Editorial

As someone deeply immersed in the chemical industry, serving as the EVP of Strategy & Transformation at a prominent chemical company, it brings me so much joy to spill the beans on what’s cooking in this ever-changing world. Join me in exploring the latest trends, innovative strides, and the challenges that shape the chemical industry in this edition of This Week in Consulting.

Sustainability is the buzzword shaking things up in the chemical world. We used to be all about turning fossil fuels into cool stuff like plastics and medicines, but now we’re flipping the script with green chemistry.

Beyond sustainability, we delve into the growing significance of Environmental, Social, and Governance (ESG) factors in future transactions and industry trends. What elements contribute to the development of a focused, balanced strategy for sustained profitability among chemical and specialty material distributors in an increasingly competitive market?

A fascinating turn is underway in Europe’s chemical industry, where sustainable shifts are blending seamlessly with digital technology. This synergy promises to redefine how the industry operates, presenting exciting possibilities for efficiency, transparency, and eco-friendly practices.

Amid the global slowdown in demand casting a shadow on 2023’s recovery hopes, the surge in India’s chemicals industry emerges as a silver lining. Projections point towards a tripled market share by 2040, showcasing resilience and potential growth in the face of challenges.

So, I extend an invitation to you to take a deep dive into the captivating world of chemicals and materials. Let’s embark on this journey together, exploring the nuances of innovation, sustainability, and industry dynamics. Share your thoughts, and let’s spark an engaging conversation about the trends shaping the future of the chemical industry.

Laurent THOMAS

Laurent THOMAS

Chairman Consulting Quest

This week’s must read

In this edition of This Week in Consulting, we explore latest trends, innovative strides, and the challenges that shape the chemical industry.

Helicon Consulting’s 2023 analysis of the Green Chemical Industry emphasizes a rising focus on sustainable practices, valued at $101B+ and projected to reach $229B by 2030. Innovations like precision fermentation signal a transformative shift, despite scaling challenges, foreseeing green chemistry’s normative integration.

Yekaterina Tarasova, Jeremiah Johnston, & Diana Garibay @Helikon Consulting

This week’s media

In the Chemical Show’s video, Kevin Yttre, President at Grace Matthews, a specialized chemicals investment bank, shares insights on M&A advisory roles, focusing on valuation, legal terms, transaction pace, and intangibles. He highlights ESG’s significance in future transactions and industry trends.

Thought Leadership

 

Arthur D Little’s report explores digital tech in Europe’s chemical industry for sustainable shifts, citing five focal points: process optimization, circularity, product design, and logistics. It highlights data, automation, and challenges like costs, and skills, advocating collective actions and support for smaller firms.

Dr. Marina Samoylova, Dr. Sophie Wilmet, Dr. Daniel Witthaut & Dr. Michael Kolk @Arthur D Little

 

Deloitte’s report reveals the chemical industry’s challenges, dashed recovery hopes in 2023 due to global demand slowness. US anticipates a soft landing, with concerns about underlying demand and overcapacity. The outlook highlights trends: energy transition, regional dynamics, digitalization, circular economy, and sustainability measures fostering trust.

David Yankovitz, Kate Hardin, Robert Kumpf, & Ashlee Christian @Deloitte

 

 

In Alexander Group’s analysis, chemical and speciality material distributors pursue profitable growth through new logo acquisition, sales expansion with high-margin offerings, strategic talent investment, and data-driven account prioritization. This focused, balanced strategy positions distributors for sustained profitability in a competitive market.

Priya Ghatnekar & Norberto Lopez @Alexander Group

 

McKinsey’s report highlights India’s chemicals industry surge, poised for global prominence. Projections indicate tripled market share by 2040, driven by domestic demand and supply chain shifts. Despite strengths, challenges in talent and regulations persist, demanding strategic planning for success.

Jakob Fischer; Avinash Goyal; Ayush Gupta, Rupali Jain; Nitika Nathani; Marco Moder; Chris Musso; Sanchay Vaidya and Ulrich Weihe @McKinsey

This week’s consulting news selection

Resolution Economics, LLC integrates The Red Maple Group into its Financial Advisory Services practice, adding expertise in business valuations and CFO consulting, enhancing their offerings.|@Resolution Economics, LLC

Vantage Leadership Consulting welcomes Susan Ko, Ph.D., as a partner, elevating client service, business growth, and thought leadership. Her extensive experience enriches the company’s offerings, fostering deeper client engagement.|@Vantage Leadership Consulting

Prime announces the acquisition of Aventine Consulting LLC, strengthening its health economics and market access services, providing crucial US presence for global clients and domestic market needs.|@Prime

Mohamed Kande, with vast experience at PwC, is set to become the new Global Chair, succeeding Bob Moritz. His commitment to diversity, technology, and strategy heralds PwC’s future endeavors.|@PwC

Chairman and Co-founder at | + posts

Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.

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