1. Through the epidemic: the global chemical industry is recovering, and the capital market is getting better.
In 2020, the COVID-19 epidemic will sweep the world and will 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 chemical industry on the epidemic is relatively controllable. With the recovery of the Chinese and global economy, 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 active in mergers and acquisitions, and the capital market will continue to improve.
2. High potential market: Green China is booming and biochemical industry is gradually emerging
In early 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 with greater force and throughout the life cycle. At the same time, consumers' awareness of green health is increasing. Pure natural, biodegradable, 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 biological 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.
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 links of 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 set off a long-term journey of import substitution in the continuous development and catch-up of local enterprises.
4. Model innovation: customer orientation continues to evolve, and B-end product brands rise
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, Cordura, etc. will promote Chinese players to become high-value, high-performance, Transformation of strong product and business model combination.
In 2021, China's chemical industry is expected to start the exploration of branding development models. In addition to overcoming the challenges of technology research and development and business models, it is more important to transform the operation and management model in depth to match the development requirements of the front-end. In the future, the local market is expected to witness the rise of more and more B-end brands.
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