Skip to content

Industry Research Report on the Chemicals in Brazil.

Value Chain outline

The chemical industry in Brazil is a complex and crucial sector, acting as a backbone for numerous other industrial activities, including agriculture, automotive, construction, pharmaceuticals, and consumer goods. Its value chain is typically characterized by several interconnected steps, starting from the extraction and processing of raw materials and progressing through the production of basic, intermediate, and specialty chemicals, culminating in the supply of these products as essential inputs for a wide array of downstream industries.

Identification and description of each step in the value chain

The value chain of the chemical industry in Brazil can be broadly segmented as follows:

  1. Raw Materials: This initial step involves sourcing and processing the fundamental inputs for chemical production. In Brazil, key raw materials include fossil derivatives like petroleum and natural gas (particularly from pre-salt reserves), industrial minerals such as potassium, sulfur, and salt, and renewable resources like biomass, ethanol, and sugar, reflecting the country's strong agribusiness sector.

    • Segments: Fossil-based raw materials, Mineral-based raw materials, Bio-based raw materials.
    • Types of Players: Oil and gas companies (e.g., Petrobras, although its chemical segment contribution needs specific analysis), mining companies, agricultural producers, and companies focused on biofuels and biochemicals.
    • Main Activities: Extraction, purification, transportation, and initial processing of natural resources into forms usable by the chemical industry.
    • Examples of Key Players: Petrobras (for fossil fuels), mining companies (for minerals used in fertilizers and other chemicals), companies involved in ethanol and sugar production (for bio-based inputs).

  2. Basic Chemicals: This step involves the large-scale production of fundamental chemical compounds, often produced in integrated complexes. These chemicals serve as the building blocks for a wide range of other products. This step is heavily reliant on the raw materials sector, particularly petrochemical feedstocks like naphtha and natural gas for organic basics, and minerals for inorganics.

    • Segments: Petrochemicals (organic basics like ethylene, propylene, benzene), Inorganic Chemicals (acids, bases, salts, chlorine, soda), Oleochemicals (chemicals derived from plant oils and animal fats).
    • Types of Players: Large petrochemical companies operating integrated complexes, producers of industrial gases, and manufacturers of bulk inorganic chemicals.
    • Main Activities: Cracking, synthesis, distillation, and other large-scale chemical processes to transform raw materials into basic chemical compounds.
    • Examples of Key Players: Braskem (petrochemicals), Unigel (petrochemicals, fertilizers), Unipar (chlor-alkali).

  3. Intermediate Chemicals: This stage takes basic chemicals and further processes them to create intermediate compounds. These intermediates are not typically final consumer products but are essential inputs for the production of a wide variety of downstream chemicals and materials.

    • Segments: Resins and Elastomers (polyethylene, polypropylene, PVC, synthetic rubber), Solvents, Plasticizers, Monomers, and various Organic and Inorganic Intermediates.
    • Types of Players: Companies specializing in polymerization, synthesis, and modification of basic chemicals. Often large chemical corporations with diverse portfolios.
    • Main Activities: Polymerization, synthesis, formulation, and other chemical reactions to create more complex molecules from basic chemicals.
    • Examples of Key Players: Braskem (resins), Elekeiroz (plasticizers, oxo-alcohols), companies producing various organic and inorganic intermediates.

  4. Specialty Chemicals: This step focuses on producing chemicals with specific properties and functionalities, designed for particular applications in various industries. This segment is often characterized by higher value-add, R&D intensity, and closer relationships with end-users.

    • Segments: Agrochemicals (fertilizers, pesticides), Pharmaceuticals (active principles), Construction Chemicals, Adhesives and Sealants, Paints, Coatings, and Varnishes, Personal Care and Cosmetics Ingredients, Cleaning Products, Additives, Dyes and Pigments, Industrial & Institutional Cleaners.
    • Types of Players: Companies focused on specific end-markets, often involving significant R&D and technical service. Can range from large multinational corporations with specialty divisions to smaller, niche producers.
    • Main Activities: Synthesis of complex molecules, formulation, application development, technical support to customers, and tailoring products to specific performance requirements.
    • Examples of Key Players: Mosaic (fertilizers), BASF (agricultural solutions, coatings), Dow (various specialties), Clariant (specialty chemicals), Nouryon (specialty chemicals), AkzoNobel (paints and coatings, pulp and paper chemicals), NCH Brasil (industrial maintenance and cleaning chemicals).

  5. Final Products / Downstream Industries: This represents the industries that heavily rely on the chemical sector for their essential inputs. While not strictly part of the chemical industry's core manufacturing, these sectors drive the demand for chemical products.

    • Segments: Plastics Transformation (packaging, automotive parts, construction materials), Agriculture (using fertilizers and defensives), Pharmaceuticals (manufacturing medicines), Construction (using paints, adhesives, construction chemicals), Automotive (using plastics, coatings, fluids), Textiles (using fibers, dyes), Food and Beverages (using additives, packaging), Pulp and Paper (using processing chemicals), Water Treatment.
    • Types of Players: Manufacturers in various downstream sectors, ranging from large corporations to small and medium enterprises.
    • Main Activities: Manufacturing, assembly, packaging, and distribution of finished goods for consumer or industrial use, utilizing chemical products as key components or processing aids.

Value Chain Summary Table

Attribute Raw Materials Basic Chemicals Intermediate Chemicals Specialty Chemicals Final Products / Downstream Industries
Description Sourcing and processing of fundamental inputs. Large-scale production of basic compounds. Processing basic chemicals into intermediate compounds. Production of chemicals with specific properties for particular applications. Industries using chemical products as key inputs for manufacturing finished goods.
Key Activities Extraction, purification, transportation. Cracking, synthesis, distillation. Polymerization, synthesis, formulation. Synthesis of complex molecules, formulation, application development, technical support. Manufacturing, assembly, packaging, distribution.
Main Segments Fossil-based, Mineral-based, Bio-based. Petrochemicals, Inorganic Chemicals, Oleochemicals. Resins & Elastomers, Solvents, Plasticizers, Monomers. Agrochemicals, Pharmaceuticals (APIs), Paints, Adhesives, Cosmetics, Cleaning Products, Construction Chemicals, etc. Plastics Transformation, Agriculture, Pharmaceuticals, Construction, Automotive, Food & Bev, Textiles, etc.
Types of Players Oil/Gas, Mining, Agriculture, Bio-refineries. Large Petrochemical Producers, Inorganic Chemical Producers, Industrial Gases. Polymer Producers, Manufacturers of various intermediates. Global Chemical Corporations, Niche Producers, Formulators. Manufacturers in diverse sectors (packaging, agriculture, construction, pharma, etc.).
Examples of Players Petrobras, Mosaic (mining aspect), Sugar/Ethanol producers. Braskem, Unigel, Unipar. Braskem, Elekeiroz. Mosaic (Fertilizers), BASF, Dow, Clariant, Nouryon, AkzoNobel, NCH Brasil. Various industries: food, packaging, construction, automotive, etc. (The customers of the chemical industry).
Volumes/Sizes (2024) Significant production of oil, gas, minerals, biomass. Part of the total chemical industry production (estimated US$ 158.6 billion total). Part of the total chemical industry production. Significant contribution to total industry revenue (e.g., Agrochemicals, Pharma, Paints). Drive demand for the entire chemical value chain.
Challenges Cost & availability, environmental concerns. High raw material costs (gas), international competition, capacity utilization. Competition from imports, fluctuating demand. R&D intensity, regulatory compliance, competition, specific market dynamics. Market demand fluctuations, input costs, regulatory environment.

Examples of Main Players

Identifying the absolute top players solely based on Brazilian chemical revenue for 2024-2025 is challenging due to limited publicly available data broken down by country and specific chemical segments for all companies. However, based on reported revenues, market presence, and operational scale in Brazil as indicated in the search results, the following companies are among the most relevant players in the Brazilian chemical industry:

  • Braskem S.A.: As the largest petrochemical company in Latin America and a leader in thermoplastic resins in the Americas, Braskem is a central player in the basic and intermediate chemicals steps, particularly petrochemicals and polymers. [Table] The company operates three major petrochemical complexes in Brazil and has a significant production capacity of resins. [Table] Despite facing financial challenges and reporting losses in 2023 and 2024 due to market conditions, it remains a dominant force, supplying essential materials to various downstream industries. [Table] Braskem has announced investments aimed at increasing production capacity and efficiency, partly supported by government incentives like the REIQ program.

  • The Mosaic Company (Mosaic Fertilizantes): While a global producer of crop nutrients, Mosaic has a very significant presence in Brazil's agribusiness sector, primarily operating within the Specialty Chemicals step (Fertilizers) and also involved in the Raw Materials step through mining operations. [Table] They are a major supplier of phosphate and potash-based fertilizers, crucial for Brazil's agricultural output. [Table] The company's performance in Brazil is closely tied to the agricultural market dynamics and global fertilizer prices, facing impacts from lower prices and sales volumes in recent periods. [Table] Mosaic operates a large network of mines, plants, and distribution facilities across the country. [Table]

  • BASF SE: A major global chemical company with a diversified portfolio, BASF operates across several segments in Brazil, including agricultural solutions (Specialty Chemicals), materials, industrial solutions, and formerly architectural paints. [Table] They are a key supplier to the agricultural sector with crop protection products. [Table] While their global revenue is substantial, their specific revenue contribution from the Brazilian chemical market across all segments is not precisely delineated in the provided sources, but their broad presence indicates significant operations within the country. [Table] BASF is focused on innovation, sustainability, and navigating challenging market conditions with cost-reduction programs. [Table]

  • Dow: An American multinational, Dow has a presence in Brazil serving various markets like packaging and infrastructure. [Table] They operate within the Specialty Chemicals and potentially Intermediate Chemicals steps, offering a range of technology-based products. [Table] Like other global players, Dow's performance is influenced by global macroeconomic conditions and production costs, leading to a focus on cost reduction and portfolio optimization. [Table]

  • Unigel Participações S.A.: A significant Brazilian chemical company, Unigel is a leader in Latin America in styrenics, acrylics, and nitrogen fertilizers. [Table] This places them in the Basic Chemicals and Specialty Chemicals (Fertilizers) steps. [Table] The company has industrial units in Brazil and aims to reduce dependence on imports by restarting plants. [Table] Unigel has faced financial difficulties, reporting losses, particularly impacted by the shutdown of its Agro segment plants. [Table] They are a major producer of nitrogen fertilizers in Brazil. [Table]

Other relevant players mentioned in the sources with operations in Brazil include Elekeiroz (Intermediate Chemicals - oxo-alcohols and plasticizers), AkzoNobel (Specialty Chemicals - paints, coatings, pulp and paper chemicals), Clariant (Specialty Chemicals), Nouryon (Specialty Chemicals), Unipar (Basic Chemicals - chlor-alkali), Innova (Intermediate Chemicals - styrenics/polymers), and Grupo OCQ (segments not explicitly detailed but involved in REIQ investments). [Table, 10, 28, 31]

Volumes and Sizes

The Brazilian chemical industry is significant on a global scale, ranking as the fourth largest in the world by revenue and representing 11% of Brazil's industrial GDP. It supports over 2 million direct and indirect jobs.

In 2024, the net revenue of the Brazilian chemical sector was estimated at US$ 158.6 billion, reflecting a slight decrease of 2.3% in dollar terms compared to 2023, but an increase of 2.1% when measured in Reais, due to currency devaluation.

Brazil remains heavily dependent on imports to meet its demand for chemical products. In 2024, imports totaled US$ 63.9 billion, an increase of 11.5% in volume compared to 2023, reaching 65.3 million tons. A significant portion of these imports, 41.1 million tons, consisted of fertilizer intermediates.

Exports of Brazilian chemical products reached US$ 15.2 billion in 2024, a 4.3% increase in value over the previous year, but with stable physical volume.

This substantial difference between imports and exports resulted in a chemical trade deficit of US$ 48.7 billion in 2024, the second largest in the historical series, highlighting a significant challenge for the national industry. In the first quarter of 2024 alone, the deficit was already US$ 9.9 billion. The accumulated deficit for the twelve months ending February 2025 increased slightly to US$ 49.59 billion.

Imports have shown increased volumes across several industrial chemical groups in 2024, including resins and elastomers (+32.4%), organics (+14.3%), inorganics (+9.1%), and other diverse chemicals for industrial use (+9.3%). This trend of increasing imports, often at predatory prices, has put pressure on domestic production and utilization rates. In early 2025 (first bimestre), production, domestic sales, and national apparent consumption (CAN) of industrial chemicals saw declines compared to the same period in 2024, with capacity utilization falling to 57% in February 2025.

Estimates for 2025 project a slight recovery in the sector, with a projected growth of 3.5% in production volume, following a 2.8% increase in 2024.

Specific volume and market share data for individual players and segments are not consistently detailed across the provided sources for 2024-2025, but the overall market size and trade dynamics indicate the scale of operations. Braskem, for instance, has a resins production capacity of 5.7 million tons in Brazil, with a utilization rate of 72% in the first half of 2024. [Table] Mosaic Fertilizantes sold 9 million tonnes in Brazil in 2024. [Table]

References