Global Specialty Chemicals Market Worth USD 915 Billion With a CAGR of 4.5%

Introduction

Specialty chemicals are frequently referred to as performance chemicals or impact chemicals. Some notable examples are essential oils, gelatin, castor oil, and collagen, among several others. These chemicals are referred to be specialties as they are manufactured in fewer amounts and cater to a few applications, unlike the remainder of the fine and commodity chemicals (according to the European Chemical Industry Council (CEFIC).

The increasing need for high-performance and function-specific chemicals in end-use industries such as oil & gas, pulp & paper, personal care & cosmetics, among others, is anticipated to be one of the key market growth factors. As the market is primarily consumer-driven, innovation and R&D are among the core growth opportunities. Manufacturers' commitment to providing unique and custom-made product offerings for target applications and to meet the demand of specific customers has encouraged research and development expenditure and, therefore, spurred the development of innovative chemicals and increased the market product portfolio.

Market Dynamics

Improved Demand in the Consumer Industry Spur the Global Specialty Chemicals Market

Consumer-driven industries such as electronics chemicals, personal electronics, and pharmaceuticals, among others, are driving the expansion. The market for flavoring compounds has been fueled by the growing demand for processed foods and beverages in developed nations. Increasing customer preference for innovative flavors and perfumes in food products is anticipated to boost the market for specialty chemicals over the forecast period.

In the production of industrial and institutional cleaners, chemicals such as sodium hypochlorite, hydrochloric acid, and others are commonly utilized. Over the projected period, the increasing use of these cleaners in various industries is anticipated to impact the market favorably. The rise of the industrial & institutional cleaners market in key regions such as Asia-Pacific, North America, and Europe due to the rising need for disinfection and cleaning solutions to combat COVID-19 is anticipated to drive the global market for specialty chemicals over the projection period.

Pharmaceutical additives impart specific properties to Over-the-Counter (OTC) medicine formulations and other pharmaceutical items. They have applications in numerous end-use industries, including personal care goods and cosmetics. The continual expansion of these industries is anticipated to benefit industry members.

Rising Innovation and Increasing Demand for Safe Chemicals Create Opportunities for the Global Specialty Chemicals Market

The need for safe chemicals and rising environmental concerns have spurred innovation in specialty chemicals in several application categories, such as consumer products, printing, and textiles. The manufacturing industry is substantially investing in R&D. It focuses on sustaining product portfolios with unique and improved items that are cost-effective and safe and provide enhanced functionality or performance.

Most specialty chemicals and polymers assist the United Nations Development Program's sustainable development goals (UNDP). Adoption of new environmental regulations and product requirements has the potential to stimulate market growth for specialty chemicals. For instance, in wastewater treatment, rising water shortage concerns and demand for clean water are among the most significant trends driving the use and market for water treatment chemicals.The need for bio-based specialty chemicals and polymers has been fueled by growing oil prices, the desire for ecologically friendly products, the depletion of nonrenewable resources, and population expansion.

Regional Insights

Asia-Pacific is the most dominant region, growing at a CAGR of 7.7% during the forecast period. The increasing population in India and China, along with an increase in wealth and purchasing power parity, has increased the demand for specialty chemicals. In addition, a fast-expanding number of food and beverage start-ups, particularly across India, is anticipated to increase the need for specialty chemicals in various industries throughout the projection period. The market for cosmetic chemicals used in cosmetics and personal care is also expected to have considerable expansion during the projected period, with the rapidly expanding FMCG industry in emerging economies such as China and India set to fuel demand for specialized chemicals.

Europe emerged as the second-largest market for specialty chemicals, growing at a CAGR of 5% during the forecast period. The region comprises various developed nations, including Germany, France, the United Kingdom, the Netherlands, Switzerland, and Russia. The regional growth of specialty polymers, electronic chemicals, rubber processing chemicals, flavors & fragrances, adhesives, coatings, plastic additives, and food additives has been fueled by developments in the manufacturing sector, particularly automotive & transportation, chemicals, and food.

North America is the third largest region. Most corrosion inhibitors, printing inks, surfactants, food additives, biocides, cosmetic chemicals, industrial and institutional cleaners, lubricating oil additives, and oil field chemicals are consumed in North America. Consumption of these products in developed nations will likely pave the way for the specialty chemicals market in North America in the near future. It is anticipated that the expansion of the electronics & electrical and building industries in the region will raise the demand for electronic and construction chemicals, hence fueling the demand for specialty chemicals in the coming years.

Key Highlights

• The global specialty chemicals market was worth USD 615 billion in 2021 and is expected to reach USD 915 billion by 2030, growing at a CAGR of 4.5% during the forecast period (2022–2030). 

• By product, the global specialty chemicals market is segmented into Specialty Polymers, Institutional & Industrial Cleaners, Electronic Chemicals, Rubber Processing Chemicals, Flavors & Fragrances, Construction Chemicals, Food & Feed Additives, Cosmetic Chemicals, Oilfield Chemicals, Mining Chemicals, Pharmaceutical & Nutraceuticals Additives, Plastic Additives, Printing Inks, CASE (Coatings, Adhesives, Sealants & Elastomers), Specialty Pulp & Paper Chemicals, Specialty Textile Chemicals, Catalysts, Water Treatment Chemicals, Corrosion Inhibitors, Flame Retardants, and Others. The Construction Chemicals segment dominates the market, growing at a CAGR of 6.5% during the forecast period.
• By region, the global specialty chemicals market is segmented into North America, Europe, Asia Pacific, and LAMEA. Asia-Pacific surpasses the rest of the world.

Competitive Players

1. Solvay
2. Evonik Industries AG
3. Clariant
4. Akzo Nobel N.V.
5. DuPont de Nemours, Inc.
6. BASF SE
7. Kemira
8. LANXESS
9. Croda International Plc
10. Huntsman International LLC
11. Lubrizol Corporation
12. Albemarle and Corporation

Recent Developments

Recent Developments

• In January 2023, With plans to expand in North America, Solvay introduces bio-circular silica in Europe.
• In January 2023, Evonik introduced IN VIVO BIOTICSTM, a line of synbiotic products backed by science.
• In December 2022, Clariant will increase the size of the Care Chemicals factory in Huizhou, China.
• In January 2023, AkzoNobel used only renewable energy for electricity in North America.

Segmentation

1. By Product
   1. Specialty Polymers
   2. Institutional & Industrial Cleaners
   3. Electronic Chemicals
   4. Rubber Processing Chemicals
   5. Flavors & Fragrances
   6. Construction Chemicals
   7. Food & Feed Additives
   8. Cosmetic Chemicals
   9. Oilfield Chemicals
   10. Mining Chemicals
   11. Pharmaceutical & Nutraceuticals Additives
   12. Plastic Additives
   13. Printing Inks
   14. CASE (Coatings, Adhesives, Sealants & Elastomers)
   15. Specialty Pulp & Paper Chemicals
   16. Specialty Textile Chemicals
   17. Catalysts
   18. Water Treatment Chemicals
   19. Corrosion Inhibitors
   20. Flame Retardants
   21. Others