Specialty Chemicals Market

Specialty Chemicals Market Outlook - 2027

The global specialty chemicals market was valued at $711.0 billion in 2019, and is projected to reach $953.9 billion by 2027, growing at a CAGR of 5.0% from 2020 to 2027.

Report Key Highlighters:

• The Specialty chemicals market study covers 20 countries. The research includes a segment analysis of each country in terms of both value ($million) for the projected period 2020-2027.
• The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
• Over 3,700 product literature, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
• The Specialty chemicals market is highly fragmented, with several players including BASF SE, Dow, Inc., Bayer AG, Evonik Industries AG, Lanxess AG, Solvay SA, Clariant AG, Huntsman International LLC, Albemarle Corporation, Nouryon, Sumitomo Chemical Company, and Ashland LLC. Also tracked key strategies such as acquisitions, product launches, mergers, expansion etc. of the players operating in the UV Curable ink market.

Specialty chemicals are particular chemical products that help in providing variety of effects to various industries that they cater to such as textile, ink additives, construction, oil & gas, cosmetics, and food. Specialty chemicals can be single-chemical formulations or entities whose composition greatly influences the performance of the customers’ product. These chemicals are used on the basis of their function and performance. Continuous R&D in this market has facilitated development of products with optimum and advanced features. This is one of the major factors that drives the growth of this market.

Technological advancement, innovation, focus on sustainability and environmental regulations expected boost growth rate of Specialty Chemicals in near future

Advances in technology and innovation play a significant role in driving the specialty chemicals market. New and improved chemical formulations and processes enhance the performance and efficiency of specialty chemicals, making them more attractive to end-users. Technological advancements also enable the development of environmentally friendly and sustainable specialty chemicals, which align with the growing demand for green solutions. Specialty chemicals that offer environmentally friendly and sustainable solutions are witnessing high demand. These chemicals help reduce energy consumption, minimize waste, and address environmental concerns, thereby driving their adoption in various industries.

Sustainability has become a crucial consideration for both consumers and businesses. Specialty chemicals that offer environmentally friendly and sustainable solutions are witnessing high demand. These chemicals help reduce energy consumption, minimize waste, and address environmental concerns, thereby driving their adoption in various industries. Additionally, stringent environmental regulations and standards influence the market, promoting the use of specialty chemicals that comply with sustainability requirements.

There is a growing need for high-performance materials in several industries, such as electronics, aerospace, and healthcare. Specialty chemicals play a vital role in the development of these materials, including advanced polymers, composites, and coatings. The increasing demand for lightweight materials, improved durability, and enhanced functionality drives the growth of the specialty chemicals market.

The personal care and cosmetics industry has witnessed significant growth in recent years, driving the demand for specialty chemicals. Specialty chemicals are used in various personal care products such as skincare, haircare, and fragrances. As consumer preferences shift towards organic and natural products, there is a rising demand for specialty chemicals that meet these requirements.

The global population continues to grow, leading to increased urbanization and infrastructure development. This creates a demand for specialty chemicals used in construction materials, paints and coatings, adhesives, and other applications. As more people move to urban areas, the demand for specialty chemicals is expected to rise further.

With rapid industrialization, noticeable demand from Asian countries such as India and China have arisen. There has been rise in investments in construction and infrastructure development projects in Asia-Pacific. Therefore, Asia-Pacific is considered as a favorable destination for the specialty chemical manufacturers; thereby, boosting the market growth. Whereas, variations in raw material cost and stringent regulations by the government are estimated to hamper the growth of the global specialty chemicals market.

Specialty chemicals often rely on specific raw materials that may experience price volatility due to factors like supply-demand imbalances, geopolitical issues, and natural disasters. Fluctuating raw material prices can increase manufacturing costs and disrupt the supply chain, affecting the profitability of specialty chemical manufacturers and potentially leading to price fluctuations for end-users. The fluctuating raw material prices may hinder the growth of the specialty chemicals market in the near future.

However, The digital transformation of industries, often referred to as Industry 4.0, presents opportunities for the specialty chemicals market. Integration of technologies like artificial intelligence (AI), big data analytics, internet of things (IoT), and automation can optimize manufacturing processes, improve product quality, and enhance supply chain management. Specialty chemical companies can leverage these technologies to streamline operations, develop smart products, and offer value-added services to customers.  Increasing consumer demand for personalized and customized products provides an opportunity for specialty chemical manufacturers. Companies that can offer tailor-made solutions, such as colorants, additives, and performance enhancers, can cater to the specific needs and preferences of customers. Customization capabilities can be especially advantageous in industries like cosmetics, personal care, and food and beverages.

The healthcare and pharmaceutical sectors offer significant growth opportunities for specialty chemical manufacturers. Specialty chemicals are essential in drug formulation, medical devices, diagnostics, and healthcare applications. With the aging population, advancements in medical treatments, and the demand for novel drug delivery systems, there is a growing need for specialty chemicals in these sectors.

The global specialty chemicals market is segmented on the basis of type and region. Depending on type, the market is divided into agrochemicals, flavor ingredients, fragrances ingredients, dyes & pigments, personal care active ingredients, water treatment chemicals, construction chemicals, surfactants, textile chemicals, bio-based chemicals, polymer additives, oil field chemicals, paper & pulp chemicals, electronic chemicals, specialty polymers, pharmaceutical ingredients, and others. Region wise, the specialty chemicals market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players operating in the global specialty chemicals market are BASF SE, Dow, Inc., Bayer AG, Evonik Industries AG, Lanxess AG, Solvay SA, Clariant AG, Huntsman International LLC, Albemarle Corporation, Nouryon, Sumitomo Chemical Company, and Ashland LLC. Other companies in accordance with specialty chemicals market are Henkel Ag & Co. KGAA, Merck & Co., Inc. Sasol Limited, Koninklijke DSM N.V., PPG Industries Inc., 3M, H.B. Fuller, and others

Collaboration and partnerships among specialty chemical manufacturers, research institutions, and other industry players foster innovation and drive market growth. Joint ventures, licensing agreements, and strategic alliances enable companies to access new technologies, expand their product portfolios, and enter new markets.

Impact Of Covid-19 On The Global Specialty Chemicals Market

• The COVID-19 pandemic has caused huge losses of lives and the economy around the globe, leading to uncertainty in the automotive, construction, electronics, agriculture, textile manufacturing, and other sectors.
• According to a report published by SIAM in April 2020, sale of passenger vehicles, commercial vehicles and two-wheeler vehicles has declined by 51%, 88% and 40% respectively in March 2020.
• Several automobile manufacturing companies have either shutdown or shrank their operations due to the risk of infections among the workforces. This has temporarily hampered the demand for UV curable ink market.
• During COVID-19 pandemic the healthcare and pharmaceutical sector grown tremendously due to which demand for specialty chemicals increased from these sectors during pandemic as it plays important role in these sectors. Specialty chemicals are used for various applications such as drug formulations, medical devices, and diagnostics.

By type, the pharmaceutical ingredients accounted for the largest specialty chemicals market share in 2019, and is anticipated to continue this trend during the forecast period. This is attributed to the numerous applications across the pharmaceutical industry such as manufacturing drugs for cardiovascular diseases, skin disorders, and Hughes syndrome. Pharmaceutical ingredients are basically active ingredients that are present in medicine products. They are manufactured from basic chemical compounds in large reactors in different manufacturing plants. After the base or chemical compound is processed it turns into an intermediate, which finally forms the pharmaceutical ingredient. Based on the production of specific pharmaceutical ingredient the number of intermediates varies from 1 to 10.

Moreover, agrochemical is expected to account for around one-eight market share. Increase in population base along with rise in demand for food is further demanding agrochemicals for the better crop production and protection, which further drives the growth of the specialty chemicals market during the forecast period. Furthermore, growing awareness among farmers toward the use of agrochemicals in farming fuels the growth of the market. With increase in urbanization and industrialization there is decrease in agriculture land, which leads to growth in demand for agrochemicals to increase the crop yield per acre of land; thereby, driving the growth of the specialty chemicals market during the forecast period

On the basis of region, Asia-Pacific valued for 36.0% market share, holding the largest market share across all regions. This is attributed to the presence of key developing economies such as China, India, and Japan in this region, which registered the highest market share in the specialty chemicals market in 2017. Specialty chemicals are used in the Asia-Pacific region in various applications such as paints & coatings, water treatment, personal care ingredients & cosmetics, electronics, agriculture, and others. These regions offer lucrative investment opportunities for overseas players.

In 2019, China was the largest market of specialty chemicals in Asia, accounting for around 38.9% share of the overall market. It was followed by India with 23.1% share of the overall market. The specialty chemical market, especially in India, is expected to exhibit dynamic growth during the forecast period. The Indian specialty chemicals industry is highly fragmented and comprises mainly small- to medium-scale companies. Moreover, the unprecedented increase in the use of water treatment chemicals has fueled the growth of the specialty chemicals industry in India.

Furthermore, improving standards of living in most of the developing countries, trade liberalization, growing demand for electronics, and advancements in process technology are the major factors that boost the growth of the specialty chemical industry. Moreover, rise in urbanization and industrialization in the countries such as China, India, and Japan drives the demand for paints & coatings, which further fuels the demand for construction chemicals, which in turn drives the specialty chemicals market during the forecast period. In addition, the demand for water treatment chemicals in Asia-Pacific region, especially in China and India, owing to rise in need for potable water in domestic and industrial applications due to increasing population is expected to fuel the demand for specialty chemicals market.

Key Benefits for Stakeholders:

• The report provides an in-depth analysis of the specialty chemicals market forecast along with the current and future market trends.
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
• Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the global specialty chemicals industry for strategy building.
• A comprehensive specialty chemicals market analysis covers factors that drive and restrain market growth.
• The qualitative data in this report aims on market dynamics, trends, and developments.

 Specialty Chemicals Market Report Highlights