Türkiye's Chemical Industry Aims for 15% Export Growth, Targets $35 Billion in 2024

In an ambitious move, Türkiye's chemical industry is setting its sights on a substantial increase in export revenues, aiming for around 15 percent growth in 2024 compared to the previous year, with a targeted total of $35 billion. This strategic goal follows a challenging period in 2023, where the industry witnessed an 8.7 percent decline in export revenues, amounting to $30.57 billion, attributed to a 15 percent drop in global commodity prices.

Adil Pelister, the president of the Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB), shed light on the impact of the global economic landscape on Türkiye's chemical sector. He pointed out that the decline in export revenues in the preceding year was primarily influenced by the significant reduction in global commodity prices, which had a cascading effect on the industry.

A closer look at the performance of sub-sectors within the chemical industry reveals a mixed picture. Last year, nine out of the 16 sub-sectors experienced growth in export revenues. The plastics sector emerged as the frontrunner, securing the top spot with export revenues totalling $9.1 billion. Following closely, the mineral fuels and oils sub-sector claimed the second position, contributing significantly with $8.3 billion in export revenues.

Despite the challenges, Türkiye's chemical sector retained its position as the country's second-largest exporting industry in 2023, amassing a total of $30.6 billion in revenues. This figure represented a noteworthy 13.8 percent share of the country's overall export revenues, highlighting the industry's continued significance in Türkiye's economic landscape.

It is essential to contextualize these achievements within the broader framework of Türkiye's export landscape. In 2023, the country's total export revenues experienced a modest uptick of 0.6 percent, reaching a record high of $255.8 billion. The chemical sector's contribution of 13.8 percent to this total indicates its resilience despite the myriad challenges faced during the year.

In a positive development, Türkiye's chemical industry demonstrated an increased presence in global chemical exports during the first half of 2023. According to Pelister, the industry managed to boost its share by approximately 10 percent, signalling a promising trajectory amid global uncertainties. This growth in global market share not only positions Türkiye as a competitive player but also underscores the industry's potential to contribute significantly to the country's economic well-being.

As the chemical industry charts its course for 2024, the targeted 15 percent growth in export revenues to reach $35 billion reflects a robust commitment to recovery and expansion. The sector's ability to adapt to evolving global dynamics and capitalize on emerging opportunities will undoubtedly play a pivotal role in shaping Türkiye's economic narrative in the coming year.