Specialty Chemicals Market Forecasts to 2028 – Global Analysis By Type (Printing Inks, Food Additives, Textile Chemicals), Function (Surfactant, Specialty Pigments, Specialty Enzymes) and By Geography
According to Stratistics MRC, the Global Specialty Chemicals Market is accounted for $871.00 billion in 2022 and is expected to reach $1,307.14 billion by 2028 growing at a CAGR of 7.0% during the forecast period. Specialty chemicals are applicable in industry-specific requirements. These chemicals impart a variety of features to the products, have a high degree of value addition and are produced in small volumes. Specialty chemicals, also called as effect chemicals, these are chemicals which provide different effect when added to different chemical or substances. Speciality chemicals are resources used on the basis of their performance or purpose.
The Indian government has set up a 2034 vision for the chemicals and petrochemicals sector to explore opportunities to improve domestic production, reduce imports and attract investments in the sector. The government plans to implement a production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters. The initiative will positively contribute to the growth of the Specialty Chemicals Market in India. 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 out to 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 regions such as Asia-Pacific, Eastern Europe, and Latin America.
Rising demand for personal care products
Over the past 12-18 months, chemical companies have noticed an expansion in the consumption of specialty items. They have now evaluated their production plans in light of present situations and are promptly mounting up and reorganizing their production abilities. Hence, this growing implementation of cleaners and disinfectants has given a quiet boost to the market. Moreover, the older folks suffer from advanced age and health conditions such as hair loss and skin deterioration, which will fuel the acceptance of cosmetic chemicals, favoring the market. This factor has led to considerable growth in the demand for surfactants and personal care chemicals, driving the growth of the market.
Unstable raw material costs
Constant fluctuations in the prices of raw materials are anticipated to hamper market growth in the coming years. Many specialty chemicals are produced using petroleum-based commodity chemicals. Instabilities in the cost of crude oil affect the input price of specialty chemicals, therefore reducing the profitability of market players. The COVID-19 outbreak in 2020 hurt the market revenue. Several countries were in lockdown. As per the OICA, the global automotive production reduced to 31.1 million units in the second quarter followed by falling to 52.1 units in the third quarter. The car sales in prominent countries like China and Europe were also very low. These factors are restraining the market from growing during the forecast period.
Increasing demand from Automotive Industry
Automotive manufacturing industry is one of the important end-users of a market. The high demand for adhesives, paints, lubricants, and coatings for weight reduction and to advance the performance of the vehicles is estimated to propel the market growth. Lightweight automotive components such as energy absorbers, fenders and instrument panels are manufactured using specialty chemicals as a raw material thereby creating ample opportunity for the market growth.
The majority of specialty chemicals are synthetic, which can adversely affect the environment and therefore affect chemicals of flora and fauna. Because of their toxic nature, environmental protection authorities have placed several environmental restrictions on the use of synthetic chemicals, which can impede the size of the market over the timeframe forecast.
The market was negatively impacted by the COVID-19 outbreak. Owing to the pandemic scenario, several countries went into lockdown, which led to supply chain disruptions, work stoppages, and labor shortages. This negatively impacted various industries, like construction, mining, automotive, cosmetics, food and beverages, and other industries.
The agrochemicals segment is expected to be the largest during the forecast period
The agrochemicals segment is expected to be the largest during the forecast period. The growing population base, combined with the rising food demand, is increasing the adoption of agrochemicals for improved crop production and protection, fuelling the growth of the market. Moreover, rising consciousness amongst farmers about the use of agrochemicals in agricultural fields also fuels the market’s growth. Furthermore, as urbanization and industrial development speed up, agricultural land decreases, leading to a higher demand for agrochemicals to significantly raise crop yield per acre of land, thereby propelling the growth of the market.
The Construction Chemicals segment is expected to have the highest CAGR during the forecast period
The Construction Chemicals segment is expected to have the highest CAGR during the forecast period, owing to rising demand for specialized repair and renovation compounds, tile fixing adhesives, water-proofing compounds, and joint fillers, and is motivating the segment growth.
Region with highest share:
North America is projected to hold the largest market share during the forecast period, as North America is a chief user of cosmetic chemicals, biocides, inhibitors, corrosion, institutional cleaners, lubricating oil additives, and synthetic lubricants, which account for a large share of the market. The increasing demand for construction chemicals from the U.S. and Canada on account of an upsurge in investments in infrastructure projects has also aided North America to secure constructive market growth. As a result, this province is regarded as a promising destination for specialty chemical manufacturers owing to the profitable investment opportunities provided to foreign players.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period. The Asia Pacific is the major revenue contributor to the market throughout the forecast period. The increasing industrial activities in agriculture, food, cosmetics, and other manufacturing sectors in countries like China and India, will contribute significantly to the growth of the market in the province.
Key players in the market
Some of the key players profiled in the Specialty Chemicals Market include BASF SE, The DOW Chemical Company, Solvay SA, PPG Industries, Novozymes, LANXESS, Huntsman Corporation, Henkel AG & Co. KGAA, Ferro Corporation, Evonik Industries AG , ESpecialty Chemicalson Mobil Corporation, Clariant AG, Chevron Phillips Chemical Company , Bayer AG, Ashland Inc., Albemarle Corporation, Akzonobel N.V.
In January 2021: Huntsman Corporation announced that it successfully completed the takeover of Gabriel Performance Products, an Ohio-based manufacturer of epoxy curing agents and specialty additives, for USD 250 million from Audax Private Equity.
In August 2019: PPG completed its acquisition of Dexmet Corporation, a manufacturer of specialty materials for surfaces in aerospace, automotive, and industrial applications.
In September 2020: Henkel AG & Co. KGaA announced to invest $23 million to expand its liquid hand soap and hand sanitizer manufacturing facilities in Geneva (Switzerland) and New York and Pennsylvania (U.S.), to meet the increasing demand for cleaning chemicals amid the COVID-19 pandemic.
• Specialty Pigments
• Specialty Enzymes
• Specialty Coatings
• Separation Membranes
• Specialty Polymers
• Printing Inks
• Food Additives
• Textile Chemicals
• Specialty Paper Chemicals
• Specialty Oilfields Chemicals
• Rubber Processing Chemicals
• Plastic Additives
• Electronic Chemicals
• Construction Chemicals
• Advanced Ceramic Materials
• Water Treatment Chemicals
• Specialty Mining Chemicals
• North America
Rest of Europe
• Asia Pacific
Rest of Asia Pacific
• South America
Rest of South America
• Middle East & Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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