Markets and Industries

The content of this page is limited to two segments: The chemical industry and the life science industries. Both industries can be characterized by a dominance of business-to-business (B2B) relationships, both on the supplier and on the customer side. Furthermore, in the past large parts of the life science industries like the pharmaceutical industry as well as the biotechnology industry were mainly part of the chemical industry. In fact, even today exist several multinational companies with business segments in both industries, e.g., the Bayer AG, the Merck KGaA, the Tokuyama Corporation or the Otsuka Holdings Corporation. However, industry classifications of real businesses are often rather ambiguous, depending on the perspective on companies. MSCI and S&P Dow Jones Indices developed for example the Global Industry Classification Standard (GICS) to provide investors with consistent and exhaustive industry definitions. The well-established standard in its 2023 edition comprises 11 sectors, 25 industry groups, 74 industries and 163 sub-industries. The chemical industry is here part of the materials sector and industry group and itself divided into several sub-industries.

Chemical industry in the Global Industry Classification Standard
Chemical industry in the Global Industry Classification Standard
Figure based on the GICS published by MSCI, avaliable at https://www.msci.com/our-solutions/indexes/gics.

The life science industries on the other hand are considered part of the health sector:

Life science industries in the Global Industry Classification Standard
Life science industries in the Global Industry Classification Standard
Figure based on the GICS published by MSCI, avaliable at https://www.msci.com/our-solutions/indexes/gics.

While this seems reasonable from an application or distribution perspective for the pharmaceutical and medical device industry, it is more questionable for the sub-industry of biotechnology with its applications in chemical transformations and even materials. For example, the majority of all lactic acid used for production of the bio-polymer polylactic acid (PLA) is produced biotechnologically.[1] In the International Patent Classification system biotechnology is viewed from a technological transformation perspective and considered part of the chemical industry. This website follows the manufacturer perspective rather than the purely technological view and considers the biotechnology industry as part of the chemical industry if the primary use is chemical transformation or material production and companies using biotechnology for production of drugs or medical devices as part of the life-science industries.

Footnotes

  1. Balla, E., Daniilidis, V., Karlioti, G., Kalamas, T., Stefanidou, M., Bikiaris, N. D., Vlachopoulos, A., Koumentakou, I., & Bikiaris, D. N. (2021). Poly(lactic Acid): A Versatile Biobased Polymer for the Future with Multifunctional Properties—From Monomer Synthesis, Polymerization Techniques and Molecular Weight Increase to PLA Applications. Polymers, 13, Article 11. https://doi.org/10.3390/polym13111822.