In this article, we will discuss the 10 High Growth Chemical Stocks to Buy.
One of the key pillars of global manufacturing is the chemical industry. It supports a wide range of industries, including paints, coatings, plastics, specialty chemicals, petrochemicals, and agricultural chemicals. According to The Business Research Company, the chemical industry was valued at $5.6 trillion in 2024, projected to reach $6.16 trillion by 2025 at a compound annual growth rate (CAGR) of 9.7%. The primary drivers of its expansion are technological developments and the growing need for sustainable solutions, particularly in the fields of clean energy and digital transformation.
In 2024, the chemical industry showed signs of recovery as production growth surpassed 2023 levels, with demand steadily rebounding. According to Deloitte’s 2025 Chemical Industry Outlook report, this growing production trend is expected to continue into 2025. Despite the recovering production, the effects of 2023’s downturn are still being felt throughout the industry. Therefore, to counter lower revenues and margins, companies implemented cost-cutting programs in early 2024, which led to significant profit improvements.
Moreover, the chemical industry is seeing a rise in merger and acquisition (M&A) activity. A recent Insider Monkey article, citing a PwC report, stated that the value and volume of chemical M&A deals picked up in the second half of 2024. These deals were influenced by central bank rate cuts and a decrease in inflation. The momentum is expected to continue in 2025 as political and economic instability subsides.
Moving forward, cost-efficiency measures will remain a top priority, with strategies such as plant closures, workforce reductions, and asset rationalization expected to extend through 2025 and 2026. Even though major challenges persist, the industry’s efficiency strategies and resilience have set it up for a more stable future. Facing uneven market conditions, chemical companies are strategically shifting their focus toward high-growth sectors to sustain revenue and long-term growth. Accordingly, industries such as semiconductors, clean energy, and advanced materials are emerging as key priorities, offering strong demand and innovation opportunities.
As evident from the discussion above, the global chemical market is on a steady growth trajectory. This is evident through the projections that see it growing to $8.58 trillion by 2034. Furthermore, it is evident from our discussion that the companies that have been adopting cost-efficiency measures, sustainability initiatives, and strategic investments in high-demand sectors are the ones best positioned for long-term success.
With this, let’s now move on to our discussion on the 10 High Growth Chemical Stocks to Buy.
A close up view of a specialized chemical compound in the lab.
Our Methodology
To compile our list of the 10 High Growth Chemical Stocks to Buy, we used the Finviz stock screener to identify publicly traded chemical companies with a market capitalization of $10 billion or higher, ensuring that only well-established industry leaders were considered.
Next, we extracted each company’s revenue for the recently completed five years. We then calculated their Compound Annual Growth Rate (CAGR) over this period, a key indicator of consistent financial performance and growth potential. Finally, we ranked the companies based on their 5-year CAGR and selected the top 10 companies with the highest growth rates.
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10. Element Solutions Inc (NYSE:ESI)
Revenue CAGR: 5.50%
Market Capitalization: $6.33 billion
Element Solutions Inc (NYSE:ESI) is a global specialty chemicals company that serves the electronics, automotive, aerospace, and industrial sectors. The company mainly operates through two segments: Electronics and Industrial & Specialty.
For the year ended December 31, 2024, Element Solutions Inc. (NYSE:ESI) reported net sales of $2.46 billion, which marked 5% year-over-year growth. Net income, on the other hand, more than doubled, rising from $118 million in 2023 to $245 million in 2024. During the same period, adjusted EBITDA surged 11% to a record $535 million, while free cash flow climbed to $294 million. This growth was driven by improved margins and operational efficiencies.
Moreover, Element Solutions Inc (NYSE:ESI) announced the sale of its Graphics segment. This $325 million deal, which is expected to be finalized in the first quarter of 2025, will allow the company to refocus on its core business. Beyond structural changes, the company also prioritized shareholder returns, distributing a substantial $78.2 million in cash dividends during the year. Furthermore, a quarterly dividend of $0.08 per share has been declared for March 2025, indicating continued growth momentum.
Looking forward, Element Solutions Inc. (NYSE:ESI) expects adjusted EBITDA to range between $520 million and $540 million due to the $30 million impact from the Graphics business sale and a $15 million foreign exchange effect. While the pace of industrial recovery remains uncertain, the company is expected to grow due to increasing demand for high-performance computing, electric vehicles, and semiconductors, securing Element Solutions Inc. a place on our list of the 10 High Growth Chemical Stocks to Buy.
9. RPM International Inc. (NYSE:RPM)
Revenue CAGR: 6.10%
Market Capitalization: $15.87 billion
RPM International Inc. (NYSE:RPM) is a leading company in the specialty coatings, sealants, and adhesives sector, serving the industrial, construction, and consumer markets. It provides essential solutions for waterproofing, corrosion control, concrete protection, and restoration.
The company reported record sales of $1.85 billion for Q2 2025, which ended on November 30, 2024, showcasing its strong strategy execution. This impressive revenue growth was aided by volume growth across all segments. Adjusted EBIT rose 7.7%, while adjusted EPS rose 13.9% to $1.39, highlighting operational efficiency. Furthermore, the company’s operational cash flow, which stood at $279 million, was the second-highest in the company’s history.
RPM International Inc. (NYSE:RPM)’s financial and operational success can be attributed to its MAP 2025 strategy. The program is designed to drive structural cost improvements and operational efficiencies. This strategy has significantly improved the company’s working capital management, resulting in $1.5 billion in liquidity. Besides the MAP 2025 strategy, high-performance construction products, particularly turnkey roofing systems, remain key growth drivers for RPM.
Looking ahead, RPM International Inc. (NYSE:RPM) has forecast its 2025 sales to grow at a low single-digit rate. This would translate to a range of approximately $7.33 billion to $7.55 billion in sales, given that 2024 sales were approximately $7.26 billion and low single-digit growth typically indicates 1%-4%.
Despite the growth projections, macroeconomic challenges like foreign exchange headwinds, seasonal slowdowns, and potential tariff-related uncertainties could impact the company’s inventory levels and raw material costs.
8. Ecolab Inc. (NYSE:ECL)
Revenue CAGR: 6.80%
Market Capitalization: $70.33 billion
As a global leader in water treatment, hygiene, and infection prevention solutions, Ecolab Inc. (NYSE:ECL) helps various industries operate safely and efficiently. The company operates through its three key segments which include Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences.
The company reported strong financials for the fourth quarter ended December 31, 2024, highlighting its operational excellence and commitment to innovation. Despite high bad debt, Ecolab Inc. (NYSE:ECL) was able to achieve adjusted net income and adjusted diluted EPS growth of 16% and 17%, respectively. Record sales of $4 billion (up 2% YoY), earnings, and free cash flow resulted from steady volume growth and value-based pricing, particularly in the United States. As a result, Ecolab repurchased $1 billion in stock and increased its quarterly dividend by 14% to $0.65 per share, indicating improved liquidity. However, reported sales and adjusted earnings per share are projected to decline by 3% and 4%, respectively, in 2025 due to foreign currency exchange rates.
Beyond short-term hurdles, the company is investing in high-growth markets, including data centers and microelectronics. Ecolab Inc. (NYSE:ECL) is also working on expanding its AI-driven solutions and enhancing its digital sales reporting in 2025, as part of its digital transformation.
Thus, with its expansion into high-margin industries and strong financial health, Ecolab Inc. (NYSE:ECL) remains one of the fastest-growing chemical stocks to watch.
7. Air Products and Chemicals, Inc. (NYSE:APD)
Revenue CAGR: 6.80%
Market Capitalization: $70.33 billion
Air Products and Chemicals, Inc. (NYSE:APD) is a global supplier of atmospheric and process gases. It serves sectors such as manufacturing, chemicals, electronics, and refining. The company also designs and manufactures equipment for gas separation and liquefaction.
For the fourth quarter ended September 30, 2024, Air Products and Chemicals, Inc. (NYSE:APD) reported EPS of $8.81, which represents a 186% increase YoY. This growth was primarily due to an after-tax profit of $1.2 billion from the sale of the company’s LNG business. Similarly, adjusted EBITDA grew 12% year-over-year to $1.4 billion, while adjusted EPS increased 13% YoY to $3.56.
Throughout the year 2024, the company took strategic steps to improve its industrial gas business. It concluded the $1.81 billion sale of its LNG business to Honeywell, allowing it to shift focus toward its core activities. Furthermore, a capital investment of $70 million was made in gas separation and purification equipment, as well as the construction of air-separation machinery in Georgia and North Carolina.
Air Products and Chemicals, Inc. (NYSE:APD) also secured a 15-year contract with TotalEnergies, a petroleum and multi-energy entity, to supply 70,000 tons of green hydrogen annually. Furthermore, the company has announced plans to construct multimodal hydrogen refueling stations in California, Canada, and Europe. With higher demand for hydrogen expected in the coming years and a consistently strong core business in industrial gases, the company is on a growth trajectory.
Therefore, for 2025, Air Products and Chemicals, Inc. (NYSE:APD) aims for an adjusted EPS between $12.70 and $13.00, while capital expenditures are projected to be between $4.5 billion and $5.0 billion, primarily focused on renewable energy and hydrogen infrastructure. Thus, Air Products remains a solid option for investors seeking high-growth chemical stocks, given its strong growth prospects.
6. Axalta Coating Systems Ltd. (NYSE:AXTA)
Revenue CAGR: 6.90%
Market Capitalization: $8.11 billion
Axalta Coating Systems Ltd. (NYSE:AXTA) is a globally renowned company that manufactures high-performance liquid and powder coatings for automotive, industrial, and commercial applications. The company serves OEMs, body shops, and various industries globally through its Performance Coatings and Mobility Coatings segments.
In the fourth quarter ended December 31, 2024, Axalta Coating Systems Ltd. (NYSE:AXTA) achieved record net sales of $1.3 billion. This marked its 10th consecutive quarter of growth. Although Performance Coatings’ sales fell 1% YoY to $843 million, primarily due to lower demand in North America, its Mobility Coatings segment saw a 4% YoY increase in revenue to $468 million. This growth was majorly driven by market share gains in China and Latin America. Accordingly, adjusted EBITDA grew 10% to $275 million, with EBITDA margin improving by 170 basis points YoY to 21%. Furthermore, through cost reductions and strategic pricing, adjusted diluted EPS increased 30% to $0.60.
Axalta Coating Systems Ltd. (NYSE:AXTA) also made significant progress in expanding its international presence in 2024. It surpassed its yearly goal of adding 2,800 new body shops while strengthening collaborations with manufacturers of internal combustion engines and electric vehicles (EVs). The company was able to achieve remarkable sales growth in China. Furthermore, by launching low-VOC coatings and digital color-matching solutions, the company facilitated its sustainability initiatives.
Moreover, Axalta Coating Systems Ltd. (NYSE:AXTA) has partnered with Dürr Systems to improve OEM automotive applications and has acquired CoverFlexx to strengthen its industrial coatings division. With demonstrations already in progress, this collaboration combines Dürr’s robotics and Axalta’s NextJetTM technology to achieve accurate, low-waste painting.
Axalta Coating Systems Ltd. (NYSE:AXTA) anticipates a 3% to 5% increase in revenue by 2025, predominantly driven by the expanding use of motor insulation and battery coatings, as well as the ongoing demand for Performance Coatings. Accordingly, its stock has risen 8.8% year-to-date as of the time of writing.
Although the company is expected to face challenges from rising raw material costs, tariffs, and currency headwinds, Axalta is well-positioned for future growth, making it one of the best High Growth Chemical Stocks to Buy.
5. NewMarket Corporation (NYSE:NEU)
Revenue CAGR: 7.10%
Market Capitalization: $5.17 billion
NewMarket Corporation (NYSE:NEU) is a key player in the petroleum additives market. It supplies lubricant and fuel additives for the automotive, industrial, and commercial sectors globally. The company provides critical components for hydraulic fluids, engine oils, and biofuels.
NewMarket reported a net income of $462 million in 2024, up from $389 million in 2023, driven by operational efficiency and lower raw material costs. Furthermore, petroleum additives’ sales reached $2.6 billion, slightly below the $2.7 billion recorded in 2023. However, due to cost reductions, operating profit increased from $514 million to $592 million on a YoY basis.
NewMarket Corporation (NYSE:NEU) made improvements in its financial position, repaying $373 million in debt and reducing its net debt-to-EBITDA ratio from 1.9x to 1.2x. It also gave $128 million back to shareholders in the form of dividends and share buybacks.
With an emphasis on supply chain efficiency and technology investment, NewMarket Corporation (NYSE:NEU) is setting itself up for long-term success. The company took a groundbreaking step with the January 2024 acquisition of American Pacific Corporation. It boosted the company’s Specialty Materials segment by generating $141 million in sales and $17.5 million in operating profit.
Looking forward, NewMarket Corporation (NYSE:NEU) anticipates growth in specialty materials, fueled by AMPAC and steady demand for petroleum additives. Thus, the company is in a great position for sustained profitability and long-term value in the additives sector due to cost control and strategic investments.
4. LyondellBasell Industries NV (NYSE:LYB)
Revenue CAGR: 7.30%
Market Capitalization: $24.85 billion
LyondellBasell Industries NV (NYSE:LYB) is a leading global chemical manufacturer. It is one of the largest licensors of polypropylene and polyethylene manufacturing technologies. It has operations in North America, Europe, and Asia, generating over half of its output in North America. The company plays a major role in the global petrochemical supply chain.
LyondellBasell Industries NV (NYSE:LYB) generated $3.8 billion in cash from operations in 2024, achieving a 90% cash conversion ratio. The company paid $1.9 billion back to shareholders through dividends and share repurchases. The Value Enhancement Program, which is a cost-efficient strategy program, also exceeded expectations, adding $600 million to EBITDA. Additionally, its successful Circular and Low Carbon Solutions segment grew its volume by 65% and it is projected to contribute a $1 billion EBITDA boost by 2030 through an annual production of 2 million tons.
Despite these advancements, LyondellBasell Industries NV (NYSE:LYB) faced significant setbacks in 2024 with Q4 industry margins at just 60% of the historical average. The company’s Olefins and Polyolefins segment in Europe, Asia, and the international markets reported a $146 million EBITDA loss due to the seasonal shift in demand for olefins and polyolefins. Moreover, due to lower automotive demand, the Advanced Polymer Solutions segment only generated $15 million in Q4 EBITDA, while the Refining sector posted a loss of $24 million due to lower gasoline crack spreads.
Looking ahead, LyondellBasell Industries NV (NYSE:LYB) anticipates near-term pressures from rising ethane and natural gas costs in Q1 2025. It remains optimistic about demand for polyethylene and polypropylene in North America, which grew by 4% year-over-year. The company is also investing in sustainability, including a new 50,000-ton chemical recycling facility in Cologne by 2026 and a larger project in Houston.
Thus, given its strong future prospects, analysts are projecting a 12-month price target of $94.97 per share, which represents a potential 26% upside, making LyondellBasell one of the top high growth chemical stocks to invest in.
3. Cabot Corporation (NYSE:CBT)
Revenue CAGR: 8.40%
Market Capitalization: $4.70 billion
Another leading global player in the chemical sector is Cabot Corporation (NYSE:CBT). The company primarily supplies specialty chemicals and performance materials. The company operates in two primary sectors: Reinforcement Materials and Performance Chemicals.
In Q1 2025 ended December 31, 2024, Cabot Corporation (NYSE:CBT) delivered impressive financial results. It announced a 13% YoY increase in adjusted EPS, raising it to $1.76. The Performance Chemicals sector experienced notable growth, with EBIT surging 32% year-over-year, driven by higher volumes and stable demand. Meanwhile, the Reinforcement Materials sector saw a modest 1% increase in EBIT, reflecting challenges in the global tire industry. The company generated $124 million in operating cash flow, allotting $77 million to capital expenditures. With a net debt-to-EBITDA ratio of 1.3x, Cabot maintains a stable financial position with around $1.3 billion in liquidity.
Accordingly, Cabot Corporation (NYSE:CBT) continues to invest in its future growth. The company is expanding its manufacturing of reinforcement materials in Indonesia and stepping up battery materials production in China to capture rising demand. Looking ahead, it expects continued growth in its Performance Chemicals sector. An 8% volume increase is predicted across key product lines.
Furthermore, the new plant start-up in Indonesia will also prove to be a major growth driver by the second half of 2025. While the full effects of this expansion won’t be felt until 2026, it is expected to enhance the overall performance of the company’s Reinforcement Materials segment. As a result, Cabot has maintained its adjusted EPS outlook for fiscal 2025 at approximately $7.40 to $7.80 per share, demonstrating confidence in its long-term strategy with these investments.
However, the way forward is not without hurdles due to economic instability, tariffs, and foreign exchange fluctuations. Despite this, Cabot Corporation (NYSE:CBT) remains well-positioned to overcome these challenges with its strategic investment and healthy cash generation. It is anticipated that the company’s proactive pricing adjustments and strategic investments in Reinforcement Materials will reduce margin pressures. This will ensure that the company stays a major competitor in the chemical industry in the future. Thus, Cabot is included in our list of the top high growth chemical stocks to invest in.
2. Westlake Corporation (NYSE:WLK)
Revenue CAGR: 9.70%
Market Capitalization: $14.84 billion
Westlake Corporation (NYSE:WLK) is a key producer of petrochemicals, polymers, and building products globally. The company’s Performance and Essential Materials (PEM) segment develops essential chemical products, including polyethylene, polyvinyl chloride, and chlor-alkali. On the other hand, its Housing and Infrastructure Products segment provides sustainable materials for infrastructure.
Westlake Corporation (NYSE:WLK) suffered from production outages during the latest quarter. As a result, the company reported net sales of $3.1 billion (down 3% YoY) for Q3 ended September 30, 2024, while EBITDA fell by $164 million to $580 million. Net income remained stable at $183 million with a stable cash flow of $254 million during the period.
Although the production outage led to a decline in financial performance, results (excluding its impact) reflect improving market conditions in North America, a sustained recovery in Asia, and a gradual improvement in Europe. Looking ahead, Westlake Corporation (NYSE:WLK) aims to enhance its Housing and Infrastructure segment with the latest digital solutions and anticipates an improvement in its full-year EBITDA margin guidance to 22%.
Furthermore, the launch of nature-inspired roofing colors and interactive contractor tools support the company’s strategy to expand its high-value product offerings. These initiatives are expected to support improved revenue stability and margins that are being challenged due to short-term pricing pressures for polyethylene and PVC. With overall improvements anticipated, the company makes it to our list of the top high growth chemical stocks to buy.
1. International Flavors & Fragrances Inc. (NYSE:IFF)
Revenue CAGR: 17.20%
Market Capitalization: $21.88 billion
International Flavors & Fragrances Inc. (NYSE:IFF) produces and sells ingredients for food, beverages, personal care, and pharmaceuticals. There are four main segments the company operates through: Nourish, Health & Biosciences, Scent, and Pharma Solutions.
For the full year ended December 31, 2024, International Flavors & Fragrances Inc. (NYSE:IFF) reported $11.48 billion in net sales, which remained flat year-over-year. However, on a constant exchange rate basis, due to the stable performance of Scent and Health & Biosciences, sales increased by 6%. The adjusted operating EBITDA increased by 16% to $2.21 billion, driven by cost efficiencies and volume gains. As a result, the free cash flow net of capital expenditures reached $607 million, strengthening its balance sheet.
Looking forward, International Flavors & Fragrances Inc. (NYSE:IFF) predicts $10.6 billion to $10.9 billion in sales for 2025. This represents a projected growth of 1% to 4% at constant exchange rates. Adjusted operating EBITDA is expected to range from $2 billion to $2.15 billion, reflecting a 5% to 10% improvement on a YoY basis.
However, the company expects challenges from foreign exchange fluctuations and the planned divestiture of Pharma Solutions by June 30, 2025. Nevertheless, the company remains focused on driving volume growth, improving margins, and optimizing the portfolio. Thus, International Flavors & Fragrances Inc. (NYSE:IFF) makes it to our list of the top high growth chemical stocks to buy.
Overall, Flavors & Fragrances Inc. (NYSE:IFF) ranks first on our list of the high growth chemical stocks to buy. While we acknowledge the potential of IFF, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IFF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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