Global sales of chemicals more than quadrupled over the past two decades, driven in large part by emerging economies that accounted for more than 80 percent of new chemical production capacity.
Chemical sales in Türkiye have closely followed the global trend. Türkiye is an attractive investment location for chemical companies with its robust market growth fueled by end-user markets and its competitive production costs. Türkiye ranked as a 7th globally in FDI inflow over past decade.
Türkiye is becaming a regional production, management, and export hub for leading brands in the chemicals industry. Chemical giants such as BASF, Henkel, Bayer, Evonik, Air Liquide, SOCAR, Linde, Ravago, P&G, PPG, and Dow have been producing in Türkiye for decades and have continued to grow over the years.
The sustained growth in customer industries in Türkiye is also a source of strength. Türkiye is the largest commercial vehicle producer in Europe, the 12th largest automotive manufacturer in the world, the 10th largest agricultural producer in the world, and the largest textile producer in Europe, accounting for 4 percent of global exports.
As part of the urban transformation project in Türkiye, it is estimated that around 6.5 million residential units nationwide will be demolished and rebuilt over the next 20 years. Thus, Türkiye's construction industry, which is valued at USD 60 billion, is one of the fastest growing end-user markets for the chemicals industry in Türkiye.
Another promising area in Türkiye's chemicals industry is the plastics sector, which accounts for almost 3 percent of global plastics production.
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 Türkiye's surroundings that investors can tap into by utilizing the country's strategic location and top-notch infrastructure.
Türkiye's remarkable rise in the defense and aviation sectors has created new opportunities in niche and high value-added areas within the chemical industry, such as composites, coatings, sustaianable fuels and specialty chemicals.
The combination of a growing economy, a large domestic market, advanced infrastructure, a skilled and competitive workforce, and investor-friendly legislation ensure that manufacturers in Türkiye's chemicals sector stand to reap long-term returns from investing in one of the most promising emerging nations in the world.
