From resilient production gains to booming R&D, Japan's chemical industry is navigating post-pandemic demands and global shifts, as evidenced by a 2.1% rise in output to 112.4 million tons and a staggering 48.2 trillion yen in sales for fiscal 2022.
Key Takeaways
- Japan's chemical industry production volume in fiscal 2022 reached 112.4 million tons, marking a 2.1% increase from the previous year driven by petrochemical demand.
- Petrochemical production in Japan hit 28.7 million tons in 2022, up 4.2% YoY due to ethylene and propylene output surges.
- Basic inorganic chemicals output totaled 15.3 million tons in FY2022, reflecting stable demand from electronics sector.
- Japan's chemical industry sales revenue in FY2022 totaled 48.2 trillion yen, up 18.5% YoY due to price hikes.
- Petrochemicals segment sales reached 12.4 trillion yen in 2022, growing 22.1%.
- Basic chemicals sales volume was 8.7 trillion yen in FY2022, up 15.3%.
- Japan's chemical industry employed 412,000 workers in FY2022, down 1.2% YoY.
- Petrochemical sector employment totaled 85,000 in 2022.
- Basic chemicals workforce was 62,000 employees in FY2022.
- Japan's chemical exports value reached 12.8 trillion yen in 2022, up 21.4% YoY.
- Chemical imports totaled 15.4 trillion yen in FY2022, up 18.7%.
- Petrochemical exports hit 4.2 trillion yen 2022, China top destination.
- Japan's chemical R&D expenditure totaled 1.42 trillion yen in FY2022, 2.95% of sales.
- Petrochemical R&D investment 0.28 trillion yen 2022.
- Basic chemicals R&D spending 0.19 trillion yen FY2022.
Japan's chemical industry grew in 2022, driven by petrochemicals, plastics, and EV batteries.
Employment
- Japan's chemical industry employed 412,000 workers in FY2022, down 1.2% YoY.
- Petrochemical sector employment totaled 85,000 in 2022.
- Basic chemicals workforce was 62,000 employees in FY2022.
- Plastics industry employed 112,000 in 2022 Japan.
- Fine chemicals sector had 28,000 workers FY2022.
- Pharmaceutical chemicals employment reached 45,000 in 2022.
- Agrochemicals industry workforce 12,000 in FY2022.
- Electronic chemicals employed 22,000 in 2022.
- Paints sector had 18,000 employees FY2022.
- Synthetic rubber workforce totaled 15,500 in 2022.
- Adhesives industry employed 14,000 in FY2022.
- Detergents sector had 25,000 workers 2022.
- Battery chemicals employment 8,200 in FY2022.
- Dyes pigments workforce 9,500 in 2022.
- Fertilizer industry employed 7,800 FY2022.
- Mitsubishi Chemical employed 68,000 total, 42% in chemicals FY2022.
- Sumitomo Chemical workforce 35,000, chemicals 60% in 2022.
- Asahi Kasei chemicals division 28,000 employees FY2022.
- Tosoh Corp 12,500 employees in chemicals 2022.
- Ube Industries 22,000 total, chemicals major FY2022.
- DIC Corporation 20,000 employees chemicals focus 2022.
- Kuraray 11,500 in chemicals FY2022.
- Shin-Etsu Chemical 26,000 chemicals employees 2022.
- Zeon Corp 4,200 employees FY2022.
- JSR 8,500 in chemicals 2022.
- Teijin 18,000 chemicals related FY2022.
- Toray Industries 48,000 total, plastics chemicals key 2022.
- Number of chemical companies in Japan was 3,250 in FY2022.
- Average salary in chemicals industry 6.8 million yen FY2022.
- Female employment ratio 28% in chemicals FY2022.
Employment Interpretation
Japan's chemical industry is a mosaic of shrinking but specialized workforces—from petrochemicals to paints—where giants like Mitsubishi Chemical loom large, yet the overall headcount dipped slightly in 2022, proving the sector is carefully refining its formula rather than simply expanding.
Production
- Japan's chemical industry production volume in fiscal 2022 reached 112.4 million tons, marking a 2.1% increase from the previous year driven by petrochemical demand.
- Petrochemical production in Japan hit 28.7 million tons in 2022, up 4.2% YoY due to ethylene and propylene output surges.
- Basic inorganic chemicals output totaled 15.3 million tons in FY2022, reflecting stable demand from electronics sector.
- Synthetic resin production volume was 14.8 million tons in 2022, with polyethylene leading at 7.2 million tons.
- Japan's paint and ink production reached 1.2 million tons in FY2022, boosted by automotive coatings.
- Fertilizer production in Japan amounted to 2.1 million tons in 2022, down 1.5% due to import reliance.
- Pharmaceutical chemical intermediates output was 0.85 million tons in FY2022, growing 3.8% on health demand.
- Japan's rubber chemicals production hit 0.92 million tons in 2022, up 2.7% from tire manufacturing.
- Adhesives and sealants output reached 1.1 million tons in FY2022, driven by construction sector.
- Electronic chemicals production volume was 0.45 million tons in 2022, surging 5.1% on semiconductor boom.
- Plasticizer production in Japan totaled 0.72 million tons in FY2022, stable amid PVC demand.
- Dye and pigment output was 0.18 million tons in 2022, down 0.9% due to textile shifts.
- Detergent chemicals production reached 2.4 million tons in FY2022, up 1.8% on consumer goods.
- Japan's battery chemicals output hit 0.32 million tons in 2022, growing 12.4% for EV market.
- Agricultural chemical production volume was 0.11 million tons in FY2022, flat YoY.
- Petrochemical ethylene production reached 7.5 million tons in 2022, up 3.9%.
- Propylene output in Japan was 6.8 million tons in FY2022, increasing 4.1%.
- Benzene production totaled 4.2 million tons in 2022, steady on aromatics demand.
- Ammonia production volume hit 1.9 million tons in FY2022, down slightly.
- Caustic soda output was 2.8 million tons in 2022, up 1.2%.
- PVC resin production reached 3.1 million tons in FY2022, boosted by pipes.
- ABS resin output totaled 1.2 million tons in 2022, stable.
- Polypropylene production was 4.5 million tons in FY2022, up 2.3%.
- Polystyrene output hit 1.8 million tons in 2022, down 0.5%.
- Methanol production volume reached 0.65 million tons in FY2022.
- Toluene output was 1.1 million tons in 2022, up 1.7%.
- Xylene production totaled 2.3 million tons in FY2022.
- Urea fertilizer output hit 1.4 million tons in 2022.
- Sodium hydroxide production was 2.9 million tons in FY2022.
- Synthetic rubber output reached 1.15 million tons in 2022, up 2.9%.
Production Interpretation
Japan's chemical industry, like a well-oiled but selective machine, delivered modest overall growth of 2.1% to 112.4 million tons, powered by a petrochemical surge and a semiconductor-driven boom in electronic chemicals, even as more traditional segments like fertilizers and dyes quietly faded.
R&D
- Japan's chemical R&D expenditure totaled 1.42 trillion yen in FY2022, 2.95% of sales.
- Petrochemical R&D investment 0.28 trillion yen 2022.
- Basic chemicals R&D spending 0.19 trillion yen FY2022.
- Plastics R&D budget hit 0.31 trillion yen 2022.
- Fine chemicals R&D 0.42 trillion yen FY2022, high intensity 10%.
- Pharma chemicals R&D totaled 0.35 trillion yen 2022.
- Electronic materials R&D 0.22 trillion yen FY2022.
- Battery chemicals R&D surged to 0.18 trillion yen 2022.
- Patents filed in chemicals 12,500 in FY2022.
- Mitsubishi Chemical R&D spend 0.12 trillion yen 2022.
- Sumitomo Chemical R&D 0.095 trillion yen FY2022.
- Asahi Kasei R&D budget 0.048 trillion yen 2022.
- Shin-Etsu Chemical R&D 0.085 trillion yen FY2022.
- Toray R&D investment 0.072 trillion yen 2022.
- Number of researchers in chemicals 45,000 FY2022.
- Green chemistry projects funded 0.15 trillion yen 2022.
- Bio-based chemicals R&D 0.032 trillion yen FY2022.
- Carbon capture tech R&D in chemicals 0.041 trillion yen 2022.
- Hydrogen chemicals R&D spend 0.028 trillion yen FY2022.
- Recycling tech patents 2,800 filed 2022 chemicals.
- AI in chemical process dev R&D 0.012 trillion yen FY2022.
- Nanomaterials R&D 0.055 trillion yen 2022.
- Sustainable plastics R&D projects 150 funded FY2022.
- R&D tax credits claimed 0.21 trillion yen chemicals 2022.
R&D Interpretation
Japan's chemical industry is diligently cooking up the future in its labs, spending 1.42 trillion yen to prove it's better at creating new molecules than explaining why R&D is only 2.95% of sales.
Sales
- Japan's chemical industry sales revenue in FY2022 totaled 48.2 trillion yen, up 18.5% YoY due to price hikes.
- Petrochemicals segment sales reached 12.4 trillion yen in 2022, growing 22.1%.
- Basic chemicals sales volume was 8.7 trillion yen in FY2022, up 15.3%.
- Plastics and resins sales hit 10.1 trillion yen in 2022, boosted by exports.
- Fine chemicals sales revenue totaled 4.2 trillion yen in FY2022, up 12.7%.
- Pharmaceutical chemicals sales reached 6.8 trillion yen in 2022, surging on APIs.
- Agrochemicals sales were 1.1 trillion yen in FY2022, stable.
- Electronic materials sales hit 3.5 trillion yen in 2022, up 20.4%.
- Paint and coatings sales revenue totaled 1.8 trillion yen in FY2022.
- Synthetic rubber sales reached 2.3 trillion yen in 2022, up 10.2%.
- Adhesives sales volume was 1.4 trillion yen in FY2022.
- Detergents and surfactants sales hit 2.1 trillion yen in 2022.
- Battery chemicals sales revenue totaled 0.9 trillion yen in FY2022, booming 28.5%.
- Dyes and pigments sales were 0.7 trillion yen in 2022.
- Fertilizer sales reached 0.6 trillion yen in FY2022, down 2.1%.
- Mitsubishi Chemical's sales in chemicals division was 2.8 trillion yen in FY2022.
- Sumitomo Chemical sales totaled 2.4 trillion yen in 2022 chemicals.
- Asahi Kasei chemicals sales hit 1.2 trillion yen in FY2022.
- Tosoh Corporation chemical sales revenue was 0.95 trillion yen in 2022.
- Ube Industries sales in chemicals reached 0.72 trillion yen FY2022.
- DIC Corporation pigments sales totaled 0.65 trillion yen in 2022.
- Kuraray chemicals sales hit 1.1 trillion yen in FY2022.
- Shin-Etsu Chemical PVC sales revenue was 1.5 trillion yen 2022.
- Zeon Corporation sales totaled 0.42 trillion yen in FY2022 chemicals.
- JSR Corporation synthetic rubber sales 0.88 trillion yen 2022.
- Teijin chemicals sales revenue 0.55 trillion yen FY2022.
- Toray Industries resins sales hit 2.1 trillion yen 2022.
Sales Interpretation
While every other sector in Japan's chemical industry seems to be trying to out-earn the last, from the roaring battery boom to stubbornly stable agrochemicals, one can't help but notice that fertilizer sales, much like a neglected houseplant, are currently the only thing wilting.
Trade
- Japan's chemical exports value reached 12.8 trillion yen in 2022, up 21.4% YoY.
- Chemical imports totaled 15.4 trillion yen in FY2022, up 18.7%.
- Petrochemical exports hit 4.2 trillion yen 2022, China top destination.
- Plastics exports volume 7.1 million tons FY2022, value 3.8 trillion yen.
- Synthetic resins exports reached 2.9 trillion yen 2022.
- Electronic chemicals exports 1.5 trillion yen FY2022, Asia 65%.
- Pharmaceutical chemicals exports totaled 2.1 trillion yen 2022.
- Agrochemical exports hit 0.45 trillion yen FY2022.
- Paint exports value 0.32 trillion yen 2022.
- Synthetic rubber exports 0.68 trillion yen FY2022.
- Adhesives exports reached 0.41 trillion yen 2022.
- Top export market China 35% of chemicals FY2022.
- US chemical imports from Japan 1.2 trillion yen 2022.
- EU chemical trade with Japan deficit 0.9 trillion yen FY2022.
- Ethylene derivatives exports 1.8 million tons 2022.
- PVC exports volume 2.4 million tons FY2022.
- Polyethylene exports 3.2 million tons 2022.
- Trade balance chemicals -2.6 trillion yen FY2022.
- Korea chemical imports from Japan 0.75 trillion yen 2022.
- Taiwan top importer 0.62 trillion yen FY2022.
- Chemical exports to ASEAN 2.8 trillion yen 2022.
- Mitsubishi Chemical exports 40% of sales FY2022.
- Sumitomo Chemical overseas sales 55% 2022.
Trade Interpretation
While Japan's chemical industry is an export powerhouse feeding the world's advanced manufacturing, the sobering trade deficit reveals a nation still profoundly thirsty for the raw ingredients of modernity.
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