Advent of new products and applications, greater environmental awareness, and changes in consumer preferences are some of the factors currently impacting the value chain of chemical companies across the world. Post economic downturn, the chemicals and materials industry has charted steady growth. Much of the gains witnessed in the industry can be attributed to the surging demand from emerging nations, such as India, China, and Brazil. Also, the industry is poised to gain from the rising penetration of bio-based and renewable chemicals. 

However, as the industry continues to reel under skyrocketing prices of raw materials, sustaining growth is unlikely to be a cakewalk. Also, concerns regarding hazardous emissions and stringent regulations imposed to curtail the use of certain chemicals are a threat to the industry. Because scope for product differentiation is very limited, companies operating in this industry require robust strategies to achieve sustainable growth.

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