NEW YORK, Aug. 13, 2024 /PRNewswire/ — The global specialty chemicals market size is estimated to grow by USD 368.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.78% during the forecast period. Increasing demand for specialty chemicals from agrochemical industry is driving market growth, with a trend towards growing demand for bio-based chemicals. However, stringent regulations and policies towards specialty chemicals poses a challenge. Key market players include Albemarle Corp., Ashland Inc., BASF SE, Beardow and Adams Adhesives Ltd., Clariant International Ltd., Danimer Scientific Inc., Dow Chemical Co., Dymax Corp., Evonik Industries AG, Exxon Mobil Corp., H.B. Fuller Co., Henkel AG and Co. KGaA, Huntsman International LLC, Lanxess AG, Nouryon Chemicals Holding BV, PPG Industries Inc., Prince International Corp., Saudi Arabian Oil Co., Shree Ganesh Remedies Ltd., and Solvay SA.
Technavio has announced its latest market research report titled Global specialty chemicals market 2024-2028
Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report
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Specialty Chemicals Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 368.2 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
6.23 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 59% |
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Key countries |
China, US, Japan, Germany, and South Korea |
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Key companies profiled |
Albemarle Corp., Ashland Inc., BASF SE, Beardow and Adams Adhesives Ltd., Clariant International Ltd., Danimer Scientific Inc., Dow Chemical Co., Dymax Corp., Evonik Industries AG, Exxon Mobil Corp., H.B. Fuller Co., Henkel AG and Co. KGaA, Huntsman International LLC, Lanxess AG, Nouryon Chemicals Holding BV, PPG Industries Inc., Prince International Corp., Saudi Arabian Oil Co., Shree Ganesh Remedies Ltd., and Solvay SA |
Market Driver
The specialty chemicals market is witnessing significant growth due to the increasing preference for environment-friendly bio-based chemicals. Bio-based lubricants, produced from renewable feedstocks like plant-based oil and sugar, are gaining popularity as alternatives to petroleum-based lubricants. These eco-friendly lubricants help reduce volatile organic compounds (VOCs) and toxic gases, maintaining the ecological balance. Countries like Canada, the US, and Germany are focusing on their development. Similarly, bio-based resins, manufactured from renewable sources such as sugarcane, wood pulp, and soybean, are increasingly used in plastic additives for packaging materials, furniture, and carpets. The use of bio-based resins instead of petroleum-based ones leads to a 70% reduction in emissions and carbon footprint. The demand for biodegradable plastics, especially in the packaging industry, is driving the growth of the bio-based resins industry. The growing need for waste management further fuels this trend. The European Union aims to increase the use of biofuels to 20% by 2020, contributing to the market’s growth. Overall, the shift towards sustainable and eco-friendly chemicals is expected to continue driving the global specialty chemicals market.
Specialty chemicals market encompasses a wide range of products including water management chemicals, corrosion inhibitors, food additives, printing inks, and more. Specialty chemical companies focus on meeting specific customer needs, offering service-oriented solutions and support services. Trends include strategic sourcing through e-commerce platforms, customer awareness, and the shift from commodity-like products to higher-margin solutions. Industries like automotive coatings, pharmaceuticals, and water treatment rely heavily on specialty chemicals. Key players provide expert insights into industry dynamics, trade economics, and raw material prices. Barriers to entry are high due to the complex nature of these chemicals and the need for specialized knowledge. Products include water treatment chemicals, plastic and rubber additives, adhesives, cosmetic ingredients, lubricating oil additives, specialty oilfield chemicals, electronic chemicals, textile chemicals, and more. Price and margins are influenced by energy costs, raw material prices, and environmental regulations. Leading representatives in this sector include BASF, DuPont, Dow, and Evonik. Portfolios span various industries, from automotive to medical, and e-commerce platforms facilitate B2B transactions. Overall, the specialty chemicals market is a critical component of numerous industries, driving innovation and growth.
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Market Challenges
The global specialty chemicals market, particularly in sectors such as specialty paints and coatings, adhesives, and sealants, faces significant challenges due to stringent regulations on volatile organic compound (VOC) content. In the US, the Environmental Protection Agency (EPA) and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) impose regulations that limit VOC content. For instance, the Massachusetts Department of Environmental Protection (MassDEP) imposed strict guidelines in August 2013, and the US regulation 310 CMR 7.18(30) sets VOC limits for adhesives. California has established 13 Air Pollution Control Districts (APCDs) or Air Quality Management Districts (AQMDs) with varying VOC limits for adhesives and sealants. In Europe, EU No. 10/2011 regulates plastic materials and articles, including adhesives in indirect food additives. These regulations and policies are likely to hinder the growth of the global specialty chemicals market during the forecast period. Specialty chemicals vendors must comply with these standards to meet VOC requirements.
Specialty chemicals market faces challenges from various sectors. UV rays require advanced solutions for suncare and construction chemicals. Urbanization drives demand for water treatment chemicals, detergents, and surfactants. Automotive manufacturers seek synthetic lubricants and functional products like antioxidants and flame retardants. Operational plants grapple with labor costs and process technology. Trade liberalization intensifies competition, while end-user concentration affects pricing. Business segments like electronics chemicals, oil field chemicals, and flavors & fragrances witness unique challenges. Single-chemical entities must differentiate through formulations, composition, and performance. Companies like General Mills and Kraft Foods use specialty chemicals in their products. PGM catalyst market, oil costs, and biocides are other significant factors. Overlap between business segments requires strategic aspects, and convenience is a key consumer trend. Specialty polymers, water-soluble polymers, and individualized products cater to diverse industries.
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Segment Overview
This specialty chemicals market report extensively covers market segmentation by
End-user
1.1 Agrochemicals
1.2 Lubricant and oilfield chemicals
1.3 Adhesives and sealants
1.4 Industrial and institutional cleaners
1.5 Others
Type
2.1 Plasticizers
2.2 water-based
2.3 Coagulants and flocculants
2.4 Scale inhibitors
Geography
3.1 APAC
3.2 North America
3.3 Europe
3.4 South America
3.5 Middle East and Africa
1.1 Agrochemicals- Agrochemicals are essential formulations used in agriculture to enhance crop quality and yield. This market is segmented into two main categories: fertilizers and pesticides. Fertilizers are further divided into nitrogenous, potassic, phosphatic, and others. Pesticides consist of insecticides, herbicides, bio-pesticides, and others. The agrochemicals market is projected to grow moderately due to the expansion of modern farming practices like floriculture and horticulture, rising farmer education, and increasing awareness of agrochemical usage in major agricultural economies. Agrochemicals contribute significantly to the agriculture industry by improving crop production. However, excessive usage of agrochemicals may lead to water pollution and environmental harm, which could hinder market growth during the forecast period.
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Research Analysis
The Specialty Chemicals market encompasses a wide range of chemical products used in various industries to enhance the performance, functionality, and durability of final products. This market includes segments such as Plastic Additives, Rubber Additives, Adhesives, Cosmetic Ingredients, Lubricating Oil Additives, Specialty Oilfield Chemicals, Water Treatment Chemicals, Electronic Chemicals, Textile Chemicals, Construction Chemicals, and Electronics Chemicals. Process technology plays a crucial role in the production of these chemicals. Trade liberalization has led to increased competition and convenience for consumers, but also presents strategic challenges for businesses. Overlap between different business segments can lead to innovation and synergy, while functional products such as Antioxidants and Biocides are essential additives in many applications. The real difference lies in the unique properties and applications of these specialty chemicals, which enable advancements in various industries.
Market Research Overview
Specialty chemicals refer to a diverse range of chemicals designed for specific applications in various industries. These include plastic additives that enhance the properties of plastics, rubber additives for improving rubber performance, adhesives for bonding different materials, cosmetic ingredients for personal care products, lubricating oil additives for engine performance, and specialty oilfield chemicals for oil and gas production. Other sectors include water treatment chemicals for industrial and municipal applications, electronic chemicals for electronics manufacturing, textile chemicals for textile processing, and construction chemicals for construction industry. E-commerce platforms have disrupted traditional sales channels, while the medical industry, environmental regulations, raw material prices, and urbanization influence market dynamics. Plasticizers, PVC-based pipes, UV rays, and automotive manufacturers are key end-users. Operational plants, labor costs, and trade liberalization impact production costs. Functional products like antioxidants, biocides, and corrosion inhibitors offer performance advantages. Strategic sourcing, customer awareness, and service-oriented business models differentiate specialty chemical companies. Specialty polymers, water-soluble polymers, and individualized product formulations cater to specific customer needs. Flame retardants, paper chemicals, printing inks, and food additives are other significant business segments. Energy, raw material costs, and barriers to entry are key challenges. The real difference lies in the unique composition, processing, and performance of specialty chemicals.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
End-user
Agrochemicals
Lubricant And Oilfield Chemicals
Adhesives And Sealants
Industrial And Institutional Cleaners
Others
Type
Plasticizers
Water-based
Coagulants And Flocculants
Scale Inhibitors
Geography
APAC
North America
Europe
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio