Global sales of chemicals more than doubled over the past decade, driven in large part by emerging economies that accounted for around 80 percent of new chemical production capacity.
Over the past decade, chemical sales in Turkey have closely followed the global trend. Turkey is an attractive investment location for chemical companies with its robust market growth fueled by end-user markets and its competitive production costs. Turkey is also a regional production, management, and export hub for leading brands in the chemicals industry. Chemical giants such as BASF, Henkel, Bayer, Evonik, Linde, P&G, PPG, and Dow have been producing in Turkey for decades and have continued to grow over the years.
The sustained growth in customer industries in Turkey is also a source of strength. Turkey is the largest commercial vehicle producer in Europe, the 17th largest automotive manufacturer in the world, the 7th largest agricultural producer in the world, and the largest textile producer in Europe, accounting for 3 percent of global exports.
As part of the urban transformation project in Turkey, it is estimated that around 6.5 million residential units nationwide will be demolished and rebuilt over the next 20 years. Thus, Turkey’s construction industry, which is valued at USD 60 billion, is one of the fastest growing end-user markets for the chemicals industry in Turkey.
Another promising area in Turkey’s chemicals industry is the plastics sector, which accounts for almost 3 percent of global plastics production. This makes Turkey the 2nd largest producer of plastics in Europe and 7th largest producer globally. The paint industry also offers opportunities for investors as Turkey ranks as the 5th largest paint producer in Europe.
Turkey is the 2nd largest net importer of petrochemicals in the world after China. The significant gap between the capacity and the consumption of petrochemical products offers ample opportunities for local and foreign investors. There are also lucrative opportunities in Turkey’s surroundings that investors can tap into by utilizing the country’s strategic location and top-notch infrastructure. Petrochemical consumption in surrounding markets, such as Europe and MENA, accounts for one-fourth of the global total.
The combination of a growing economy, a large domestic market, advanced infrastructure, a skilled and competitive workforce, and investor-friendly legislation ensures that manufacturers in Turkey’s chemicals sector stand to reap long-term returns from investing in one of the most promising emerging nations in the world.