SelectUSA Chemicals Industry
Industry Overview
The chemicals industry is one of United States’ largest manufacturing industries, serving both a sizable domestic market and an expanding global market. The industry includes subsectors such as agricultural chemicals, basic chemicals, specialty chemicals, and consumer products.
The industry converts raw materials into more than 70,000 diverse products, supporting the production of almost all commercial and household goods, and is essential to economic growth. In 2024, the chemical industry accounted for roughly 20 percent of the total U.S. manufacturing GDP.
In addition to its significant contribution to manufacturing GDP, the industry’s impact extends to the workforce, supporting jobs across the nation. According to SelectUSA’s Cluster Mapping dashboard, SelectUSA’s interactive, and data-driven tool designed for investors, companies, and economic development organizations to identify industry concentrations across the United States at the state and county level, the downstream chemical products industry cluster employs more than 280,000 individuals. California, Illinois, Ohio, Pennsylvania, and Texas have a high employment share and a high concentration of employees compared to the nation as a whole in the downstream chemical products industry cluster. Meanwhile, the upstream chemical products industry cluster employs more than 190,000 individuals. California, Kentucky, Louisiana, New Jersey, and Texas have a high employment share and a high concentration of employees compared to the nation as a whole in the upstream chemical products industry cluster.
The industry’s influence extends beyond employment, serving as a major catalyst for innovation in products and technologies. The chemicals industry accounted for the largest share of domestic manufacturing research and development (R&D) conducted by U.S. businesses. In 2024, the chemicals industry in the United States invested $14.8 billion in R&D. Chemical companies typically allocated 2 to 3 percent of their annual sales to R&D, though some invested as much as 8 to 9 percent to drive innovation and technological advancement.
The industry also plays a major role in international trade. Chemicals rank as one of the top exporting industries in the United States. In 2024, U.S. chemical exports were valued at $323 billion, accounting for about 16 percent of total U.S. exports. Overall, the U.S. chemicals industry remains a critical driver of innovation, economic growth, and global competitiveness
Explore the impact of foreign direct investment on U.S. jobs, exports, and innovation in the chemicals industry.
The Investor Guide is a high-level view of everything from taxes to immigration and workforce to business structures.
SelectUSA has created several dashboards to help analyze key FDI data from a variety of sources.