Specialty Chemicals Market Size to Expand USD 1151.32 BN by 2030
Precedence Research
Updated 9 min read
Precedence Research
The global specialty chemicals market size is estimated to reach USD 1151.32 billion by the year 2030 and expanding at a compound annual growth rate (CAGR) of 4.1% from 2022 to 2030.
Tokyo, June 20, 2023 (GLOBE NEWSWIRE) -- According to Precedence Research, the specialty chemicals market size was valued at USD 836.94 billion in 2022. Low-volume, high-value, ultra-high purity chemicals are what are known as specialty chemicals and are used by a variety of end users. A wide variety of products and uses for specialty chemicals are available. Based on their functionality and performance, specialty chemical compounds are used. These substances, sometimes known as performance chemicals, are used to speed up production processes as well as to add functionality to finished goods. Furthermore, these substances are sometimes referred to as formulation substances.
Formulations are the specific chemicals and chemical combinations that make up an object. The performance of the finished product is influenced by the physical and chemical characteristics of the individual molecules, the mixtures of molecules created, and the makeup of the combinations.
Growing demand for chemicals used in building, water treatment, and electronics, as well as improvements in process technology and trade liberalization, are all cited as causes of this. The rise in demand for pharmaceuticals, food and feed additives, as well as flavors and perfumes, among other industries, is another factor contributing to the expansion of specialty chemicals. As processed foods and beverages have gained popularity in developed countries, there has been an increase in the demand for flavoring compounds. Additionally, increased consumer taste for unusual flavors and scents in food products is predicted to support industry expansion.
Market Growth
Increased demand for green or bio-based specialty chemicals, rising demand from the pharmaceutical sector, rising demand from the personal care products business, and rising demand from the construction and building industry are just a few of the key reasons fueling the expansion of this market.
One of the trends in specialty chemicals is the increasing use of open innovation models by market players to gain quick access to technological advancements. Companies in this industry have developed the mindset that they must create their own technologies, but they must now realize that utilizing technologies from innovative newcomers can greatly help them understand their internal goal of reducing costs as well as deploying more efficient and structured production processes. The primary driver of market expansion is increased research and development of specialized chemical products with cutting-edge and ideal features. The demand for specialized chemicals has increased from ASEAN nations like China and India because of their fast industrialization.
Regional Analysis
In 2022, the Asia Pacific region held the biggest revenue share, with 48.6%. This is ascribed to elements including advancing economic conditions, industrialization, and expansion of significant end-use industries. The two biggest nations boosting the Asia Pacific market for specialty chemicals are China and India. Food and beverage production, personal care and cosmetics products, and medicinal uses all have an impact on the demand for additives in the area. The main manufacturing nations in the region are China, India, and Japan. China is the world leader in manufacturing, which also stimulates the expansion of the product market.
By 2032, the markets in the Middle East and Africa are anticipated to grow at a CAGR of 3.8%. This increase is linked to the rising demand for cosmetics in nations like the United Arab Emirates, Kuwait, and Saudi Arabia, which is seen to be stimulating the industry's penetration. Over the course of the projection period, a young, active population with strong spending power is anticipated to support market expansion.
GLOBAL SPECIALTY CHEMICALS MARKET, BY REGION, 2021-2030 ($BILLION)
Region
2021
2022
2030
CAGR
North America
185.85
193.70
277.30
4.6
%
Europe
217.77
224.92
299.65
3.7
%
APAC
329.31
342.17
478.29
4.3
%
LAMEA
74.13
76.13
96.06
2.9
%
Competitive Landscape
Solvay, Evonik Industries AG, Clariant, Akzo Nobel N.V., DuPont de Nemours, Inc., BASF SE, Kemira, LANXESS, Croda International Plc, Huntsman International LLC, Lubrizol Corporation, Albemarle Chemical Corporation are some of the major competitors in the global specialty chemicals market.
Market Dynamics of the Specialty Chemicals Market
Market Drivers: Improved Consumer Industry Demand Drives the Global Specialty
The expansion is being driven by consumer-oriented businesses including medicines, personal electronics, and electronics chemicals, among others. The market for flavoring substances has been stimulated by the rise in processed food and beverage consumption in industrialized countries. Over the forecast period, the market for specialty chemicals is expected to grow as consumers' preferences for novel flavors and fragrances in food products increase. Over the coming years, the market for specialty chemicals in the United States is expected to expand significantly. Numerous end-use industries, including water treatment, automotive, and electronics, are thought to present the items with significant growth potential. The demand for specialized chemicals is anticipated to increase during the upcoming years as a result of growth in these industries.
Market Restraints: Strict government requirements and fluctuating raw material prices
Over the past few years, construction and infrastructure projects have increased dramatically across the Asia Pacific region. This makes the area the top choice for specialty chemical makers, which fuels the expansion of the market. While rigid government regulations and changes in the price of raw materials are expected to impede the expansion of the specialty chemical market. The global value chain for specialty chemicals has been disrupted as a result of the Covid-19 pandemic epidemic. Worldwide temporary shutdowns of chemical manufacturing facilities and restrictions on the flow of commodities for the first and second quarters of 2020 were indicators of a decline in both chemical production and demand.
Market Opportunities: Growing Demand for Safe Chemicals and Rising Innovation Create
Innovation in specialized chemicals has been sparked by the demand for safe chemicals and growing environmental concerns in a number of application areas, including consumer goods, printing, and textiles. R&D expenditure in the manufacturing sector are high. It is concentrated on maintaining product portfolios with distinctive and enhanced products that are affordable and secure and offer greater functionality or performance. Most specialized chemicals and polymers support the sustainable development goals of the UNDP (UNDP). The market for specialized chemicals may grow as a result of new environmental rules and product specifications. For instance, among the most important factors influencing the use and market for water treatment chemicals in wastewater treatment are growing worries about water scarcity and the desire for clean water. The need for bio-based specialty chemicals and polymers has increased as a result of rising oil prices, consumer demand for environmentally friendly goods, resource depletion, and population growth.
Report Segmentations of the Specialty Chemicals Market
Application Insights
Pharmaceutical ingredients held a commanding revenue share in 2022 and are anticipated to hold that position throughout the projected period. The numerous pharmaceutical sector applications, such as the production of medications for skin disorders, cardiovascular diseases, and Hughes syndrome, are the main causes of the noticeable segment expansion. In medicinal products, these are typically the active components. Large reactors with simple chemical components are used to make pharmaceutical ingredients. Chemical compounds or chemical bases are processed into intermediates, which are then converted into medicinal ingredients.
The production of a certain kind of pharmaceutical ingredient depends on the number of intermediates. Between 1 and 10 intermediates are present. On the other side, it is anticipated that in 2022, the global market for specialty chemicals would be dominated by agrochemicals, with a revenue share of roughly 14–17%. Population growth and the desire for high-quality food are driving up the global demand for agrochemicals. The primary industry trend influencing the agrochemicals market is crop protection and high-yield products. Farmers' growing awareness of the use of agrochemicals on their farms is expected to propel the market's expansion in the near future.
GLOBAL SPECIALTY CHEMICALS MARKET, BY APPLICATION (USD Billion)
Application
2021
2022
2030
CAGR
Pharmaceutical Ingredients
149.218
154.275
207.184
3.8
%
Agrochemicals
103.935
109.397
169.525
5.6
%
Bio-based Chemicals
92.028
96.292
142.30
5
%
Polymer Additive
72.128
74.124
94.85
3.1
%
Specialty Polymers
64.190
67.518
97.14
5.3
%
Electronics Chemicals
54.081
55.535
67.54
2.8
%
Dyes & Pigments
58.360
60.293
76.50
3.4
%
Recent Development
In July 2022, TEGO® Disperse 658, a brand-new sustainable dispersing additive, was introduced by Evonik. While providing formulators with a similar high-performance profile to other comparable Evonik solutions, the newest TEGO® dispersion agent in the portfolio is easily biodegradable and increases the sustainability of pigment and colored coatings manufacturing.
In July 2022, Evonik Venture Capital made investments in Chrysalix Venture Capital's Carbon Neutrality Fund and Azolla Ventures I, two sustainability funds. Both businesses are looking for ways to reduce CO2 emissions, with Chrysalix focusing on a worldwide level and Azolla on North America. The new €150 million Sustainability Tech Fund has been used to make this, the venture capital division of Evonik's first investment.
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