The global specialty chemicals market is estimated to grow at a rate of around 5% during the forecast period. Specialty chemicals are used by various industries like the agricultural, construction, and transportation industry, among others. In cement production, specialty chemicals are used as a combustion agent, fuels, gypsum, and set controller. In concrete, these are used to prepare chemical admixture and superplasticizers such as RMC, SCC, and RPC. As corrosion inhibitors, they are used as, retarders, and freeze-thaw agents.
Specialty chemicals are useful for the automotive industry as they are essential for the smooth functioning of vehicles. Increasing population coupled with the growing demand for foods across the globe are some of the major factors surging the demand for food additives and in turn, driving the growth of the global specialty chemicals market. Additionally, rising demand for high-performance and function-specific chemicals across end use sectors such as oil and gas, pulp and paper, and personal care and cosmetics are other market growth factors. However, variation in raw materials and strict regulations by the government are the key restraints of the specialty chemicals market.
Construction chemicals are anticipated to dominate the market
On the basis of product type, the market is segmented into Agrochemicals, Cleaning Chemicals, Construction Chemicals, Electronic Chemicals, Adhesives & Sealants, Polymer & Plastic Additives, and Textile Chemicals among others. The construction chemicals segment is estimated to contribute a prominent market share in the global market over the forecast period owing to the increasing use of specialty chemicals in the construction industry.
Moreover, with the shifting focus of chemical manufacturing companies from commodity to specialty chemicals is also supporting the segmental growth of construction chemicals in the global specialty chemical market. Agrochemical is another major segment contributing to the growth of the specialty chemicals market owing to the high awareness among farmers towards the use of agrochemicals for better crop production and its protection. In addition, due to the increase in urbanization and industrialization, there is a decrease in agricultural land which leads to growth in demand for agrochemicals to increase the crop yield per acre of land.
An increase in Investment in construction and infrastructure development led the Asia Pacific to outpace other regions
The demand for specialty chemicals has increased in Asian countries like India and China on account of industrialization. In Asia-Pacific, there has been an increase in investments in construction and infrastructure development projects which has surged the demand for chemicals and other commodities. As a result, Asia-Pacific is viewed as a desirable location for specialized chemical manufacturers, resulting in market growth.
China and India, together, hold more than half of the market share of the Asia-Pacific specialty chemicals market. The rapid rise in the use of water treatment chemicals is one of the primary factors driving the demand for specialty chemicals in India.
In Europe and North America, the market is expected to grow at a steady rate on the back of significant construction and agricultural activites. According to the European Chemical Industry Council, more than 27% of the total chemical sales in the EU were represented by specialty chemicals in 2018. Additionally, North America is a major consumer of biocides, cosmetic chemicals, corrosion inhibitors, institutional cleaners, lubricating oil additives, and synthetic lubricants which account for a sizable portion of the market.
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Market structure and Competitive Landscape
The global specialty chemicals market is highly fragmented in nature with the presence of a large number of manufacturers in the market including Albemarle Corporation, Ashland LLC, BASF SE, Bayer AG, Clariant AG, Huntsman International LLC, 3M Company, Sumitomo Chemical Company, and Solvay SA, Mitsubishi Chemical Corporation, Vink Chemicals GmbH & Co. KG, and DuPont de Nemours Inc. among others.
These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players. Some of the key developments in the global specialty chemicals market include
- In July 2021, Platinum Equity acquired Solenis, Dubilier & Rice, and BASF for a value of US$ 5.2 billion and merged them with Sigura Water.
- In July 2021, two specialty chemicals business lines of H20 Innovation Inc., PWT and Genesys joined together to form the H20 Innovation Specialty Chemicals Group.
- In May 2021, SK Capital acquired Canadian coating company Canlak Inc. and the US-based Valentus Specialty Chemicals.
Key Market Segmentation
RationalStat has segmented the global specialty chemicals market on the basis of type, function, and region.
- By Type
- Cleaning Chemicals
- Construction Chemicals
- Electronic Chemicals
- Adhesives & Sealants
- Polymer & Plastic Additives
- Textile Chemicals
- Others (Paper Chemicals, etc.)
- By Function
- Special Enzymes
- Specialty Coatings
- Specialty Pigments
- Others (Demulsifiers etc.)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs and company documents Gulf Petrochemicals and Chemicals Association (GPCA).
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for specialty chemical manufacturers, raw material suppliers, distributors, end-user industry, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global specialty chemicals market is expected to grow at a CAGR of approximately 5% during the forecast period 2022-2028.
Asia Pacific holds a prominent share of the market.
The global market for specialty chemicals was US$ 800 Billion in 2021.
The use of specialty chemicals in various industries and demand for eco-friendly products are the major factors driving the growth of the global specialty chemicals market.
Major companies operating in the global specialty chemicals market are Albemarle Corporation, Ashland LLC, BASF SE, Bayer AG, Clariant AG, Huntsman International LLC, 3M Company, Sumitomo Chemical Company, and Solvay SA, Mitsubishi Chemical Corporation, Vink Chemicals GmbH & Co. KG, and DuPont de Nemours Inc. among others.