Specialty Chemical Market Overview and Analysis :
The specialty chemical market is expected to register a CAGR of 5% over the forecast period 2023-2030.
The COVID-19 pandemic had declined the demand for specialty chemicals, thereby the growth of the studied market was impacted. For instance, an article published by Springer Nature in December 2022, reported that owing to the pandemic scenario, several countries went into lockdown, which led to supply chain disruptions, work stoppages, and labor shortages, as a result, the demand for specialty chemicals got decreased, thereby impacting the growth of the studied market. However, in the current after the decrease in COVID-19 cases, the sector is recovering well since restrictions were lifted. An increase in house sales and new project launches have led to a rise in the demand for paints, coatings, and construction chemicals. The increasing demand for various chemicals led to a market recovery over the last two years.
The factors driving the growth of the studied market are increasing demand for end-user industries and the development of green and sustainable specialty chemicals.
Specialty Chemical Market Scope of the Study
As per the scope of the report, specialty chemicals are either single-chemical entities or mixtures of various chemical ingredients that are designed for specific applications and sometimes for specific customers. They are sold based on their performance or function rather than their composition.
The Global Speciality Chemical Market is Segmented
By Chemical Type :
- Water Treatment Chemicals
- Electronic Chemicals
- Rubber Additives
- Lubricating Oil Adhesives
- Cosmetic Ingredients
- North America
- Middle East
- South America
The report offers the value (in USD million) for the above segments.
Speciality Chemicals Market Trends And Demand
Specialty Chemical Market Agrochemicals Segment to Dominate the Market Demand. The agrochemicals segment dominated the share in the specialty chemicals market. The segment's growth is extensively driven by the decreasing per capita arable land and increasing demand for food worldwide. The global population is increasing rapidly. This growing population is adding to the food demand. Supplying food to this ever-increasing population is becoming a threat. On the other hand, arable land is declining due to industrialization and urbanization. Fertilizers have been used for a long time to increase crop productivity, thus, enhancing agrochemicals demand over the forecast period.
With the increasing per capita income and growing population, food and cash crops demand is estimated to increase globally. For instance, as per the FAO, the food demand in the United States is expected to increase by 50-90% by 2050.
The Food and Agriculture Organization of the United Nations (FAO) and the International Food Policy Research Institute (IFPRI) have published projections of an increase in global food demand by 2050. The FAO projections indicate that world food demand may increase by 70% by 2050, with much of the projected increase in global food demand expected to come from rising consumer incomes in Asia-Pacific, Eastern Europe, and Latin America.
Furthermore, owing to the growing concerns about nutrient efficiency uptake by plants and the growing regulatory health and environmental concerns, micronutrient fertilizers, bio-based fertilizers, and specialty fertilizers (like liquid fertilizers) are gaining popularity. Bio-herbicides that use microbes as biological weed control agents are also gaining popularity in integrated pest management techniques, along with synthetic herbicides. Although the segment constitutes only a tiny part of the industry, it is expected to grow significantly.
Geography Trends Asia-Pacific Region to Dominate the Specialty Chemical Market
The Asia-Pacific region dominated the specialty chemicals market. It is likely to retain its position during the forecast period due to robust growth of the construction sector, increasing cosmetic products demand, growing investment and production in the increasing electrical and electronics industry output, increasing demand for adhesives and plastics from the packaging industry, and increasing installations of water treatment systems from the industries in the region. The growing population in the region, especially in countries such as China and India, is increasing the demand for food. It is expected to drive the agrochemical market and consequently help the specialty polymers market grow over the forecast period.
The growth of the Asia-Pacific construction sector is majorly driven by the service sector expansion, leading to an increase in the demand for office spaces, an increase in residential construction projects, and an inflow of investments from multinational companies to set up an industrial base in the region. Such factors will likely increase the demand for paints and coatings, adhesives and sealants, construction chemicals, and specialty polymers in the area during the forecast period. According to the National Bureau of Statistics of China, in 2021, the value added of construction enterprises in China was CNY 8,013.8 billion (~USD 1151.61 billion), up by 2.15% over the previous year.
Competitive Landscape of global specialty chemical market
specialty chemical market is partially consolidated, with a few major players dominating a significant portion of the market.
Some Major Companies :
- BASF SE
- DOW Inc.
- LANXESS AG
- Evonik Industry AG
- Huntsman Corporation
- Convestro AG
- December 2022: Clariant AG announced to strengthen its position in China and expand its care chemicals facility in the country, including pharmaceutical, personal care, home care, and industrial applications. The company provides care chemicals under its specialty segment.
- April 2022: Evonik invested in increasing production capacity for isobutene derivatives at its Marl location by 50%5. The isobutene part of the C4 production network produces the petrochemical specialties Tertiary Butanol (TBA), Di- isobutene (DiB), and 3,5,5 Trimethylhexanal (TMH). Tertiary Butanol is a unique solvent and tablet coating for the pharmaceutical industry.
Study Assumptions and Market Definition
Scope of the Study
Increasing Demand for End-users Industries
Development in Green and Sustainable Speciality Chemicals
Government and Environment Regulations
Porter's Five Force Analysis
Threat of New Entrants
Bargaining Power of Buyers/Consumers
Bargaining Power of Suppliers
Threat of Substitute Products
Intensity of Competitive Rivalry
MARKET SEGMENTATION (Market Size by Value - USD million)
Water Treatment Chemicals
Lubricating Oil Additives
Rest of Europe
Rest of Asia-Pacific
Middle East and Africa
Rest of Middle East and Africa
Rest of South America
Evonik Industry AG
MARKET OPPORTUNITIES AND FUTURE TRENDS