Specialty Chemicals Market Trends

Global Specialty Chemicals Market Overview

Specialty Chemicals Market Size was valued at USD 600 Billion in 2022. The Specialty Chemicals industry is projected to grow from USD 650 Billion in 2023 to USD 900 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.00% during the forecast period (2023 - 2030). The specialty chemicals market is likely to bounce back after the pandemic with good growth and demand as there has been a robust growth of the constriction activities in the APAC, and the Middle East and Africa regions are the key market drivers enhancing market growth.

   Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Specialty Chemicals Market Trends

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  Favorable Trend In The Automotive Industry to boost market growth

  
  

The automotive industry is a major driver of the specialty chemicals market. Specialty chemicals are used in a wide range of applications in the automotive industry, including in the production of coatings, adhesives, sealants, lubricants, and plastics. As the demand for automobiles continues to increase worldwide, driven by factors such as rising population, urbanization, and growing disposable incomes, the specialty chemicals market is also expected to grow. One favorable trend in the automotive industry that is driving the specialty chemicals market is the increasing demand for lightweight materials. Automakers are under pressure to reduce the weight of their vehicles to improve fuel efficiency and meet regulatory requirements for lower emissions. This has led to a growing demand for specialty chemicals that can be used to produce lightweight materials, such as composites and plastics.

Another trend that is driving the specialty chemicals market in the automotive industry is the increasing demand for electric vehicles (EVs). EVs require specialized components and materials that are different from those used in traditional gasoline-powered vehicles. This has created a growing market for specialty chemicals that can be used in the production of EV components, such as batteries and power electronics. Overall, the automotive industry is a key driver of the specialty chemicals market, and favorable trends in the industry, such as the demand for lightweight materials and the growth of the EV market, are expected to continue to drive demand for specialty chemicals in the coming years. Therefore, such factors related to Specialty Chemicals have enhanced the Specialty Chemicals market CAGR across the globe in recent years.

Specialty Chemicals Market Segment Insights

Specialty Chemicals Source Insights

The  Specialty Chemicals Market segmentation, based on source, includes Crude Oil, Naphtha, Ethane, Propane, Butane, Wood, and Others. The Crude Oil segment held the majority share in 2022 of the  Specialty Chemicals Market revenue. Crude oil is a major source of feedstock for the production of specialty chemicals. It is refined into a variety of chemicals that are used in a wide range of applications, including in the production of plastics, adhesives, coatings, and other specialty chemicals. The availability and price of crude oil can have a significant impact on the production and pricing of specialty chemicals.

Specialty Chemicals Type Insights

Based on type, the  Specialty Chemicals Market segmentation includes Agrochemicals, Flavors Ingredients, Fragrances Ingredients, Dyes & Pigments, Personal Care Active Ingredients, Water Treatment Chemicals, Construction Chemicals, Surfactants, Textile Chemicals, Polymer Additives, Bio-Based Chemicals, and Others. The Agrochemicals segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. The agrochemicals segment includes specialty chemicals used in the agricultural industry, such as pesticides, herbicides, and fertilizers. This segment has historically been one of the largest and most important segments of the specialty chemicals market, driven by the global demand for food and increasing concerns about crop protection. These all factors for Specialty Chemicals positively impact the market growth.

Figure 2:  Specialty Chemicals Market, by Source, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Specialty Chemicals Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific (APAC) region is expected to dominate the  Specialty Chemicals Market in terms of both revenue and growth rate. This is due to several factors, including the increasing demand for specialty chemicals in the region's rapidly growing industrial sectors, such as automotive, electronics, and construction.

Additionally, the rising population and increasing urbanization in countries like China and India are driving demand for a range of products that utilize specialty chemicals, including personal care products, food and beverages, and household products. The region is also home to several large specialty chemical manufacturers, which contributes to the growth of the market.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil

Figure 3:  SPECIALTY CHEMICALS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s Specialty Chemicals market accounts for the third-largest market share. The region has a well-established chemical industry and is home to many major specialty chemical manufacturers. The demand for specialty chemicals in Europe is driven by several end-use industries, including automotive, construction, healthcare, and food and beverage. In addition, the region has strong regulatory frameworks for chemical production and usage, which has led to a high level of innovation in specialty chemical products. The European Union's REACH regulation, for example, has encouraged the development of more sustainable and environmentally-friendly specialty chemical products. Further, the Germany Specialty Chemicals market held the largest market share, and the UK Specialty Chemicals market was the fastest-growing market in the European region.

North America, Specialty Chemicals market, is expected to grow at the fastest CAGR from 2023 to 2030. The United States is the largest market for specialty chemicals in North America, followed by Canada and Mexico. The demand for specialty chemicals in the region is also driven by factors such as the increasing use of high-performance materials, growing environmental awareness, and innovation in product development. Moreover, the U.S. Specialty Chemicals market held the largest market share, and the Canada Specialty Chemicals market was the fastest-growing market in the North American region.

Specialty Chemicals Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Specialty Chemicals market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Specialty Chemicals industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Specialty Chemicals. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Specialty Chemicals industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Specialty Chemicals industry to benefit customers and expand the market sector. Major Specialty Chemicals market players, including Evonik Industries AG, Henkel AG & Co, ExxonMobil Corporation, Clariant AG, AkzoNobel NV, Lenzing AG, BHS Specialty Chemicals, Lanxess AG, BASF SE, Ashland Inc., Solvay SA, KGaA, DowDuPont, and others, are attempting to increase market demand by funding R&D initiatives.

Evonik Industries AG is a German specialty chemicals companies that produces a wide range of products, including specialty chemicals, animal nutrition, and performance materials. The company operates in four segments: Nutrition & Care, Resource Efficiency, Performance Materials, and Services. Some of Evonik's key products include amino acids, hydrogen peroxide, and high-performance polymers. The company has a strong focus on sustainability and has set ambitious targets to reduce its carbon emissions and improve the sustainability of its products.

Henkel AG & Co is a German chemical and consumer goods company that operates in three business areas: Adhesive Technologies, Beauty Care, and Laundry & Home Care. The company's Adhesive Technologies segment produces a wide range of adhesive products for industrial and consumer applications, including automotive, packaging, and construction. Henkel's Beauty Care segment produces hair care, skincare, and beauty products, while its Laundry & Home Care segment produces laundry detergents, household cleaners, and other related products. The company has a strong focus on sustainability and has set ambitious targets to reduce its carbon emissions and improve the sustainability of its products.

Key Companies in the Specialty Chemicals market includes

• Evonik Industries AG


• Henkel AG & Co


• ExxonMobil Corporation


• Clariant AG


• AkzoNobel NV


• Lenzing AG


• BHS Specialty Chemicals


• Lanxess AG


• BASF SE


• Ashland Inc.


• Solvay SA, KGaA


• DowDuPont among others

Specialty Chemicals Industry Developments

In April 2022, Evonik has increased production capacity of isobutene derivatives in Marl location by 50%.5 Isobutene is a part of the C4 production network and manufactures the petrochemical specialties such as Tert Butanol (TBA), Di-isobutene (DiB), and trimethylhexanal (TMH). Tertiary Butanol is a specialised solvent and tablet coating agent for the pharmaceutical industry.

In April 2021, Evonik Industries AG took over the study of the high-performance polymer VESTAKEEP PEEK for structural prosthesis systems. In the case of prostheses made from this polymer there is an advantage of clinical experience for the latter on performance of implant polymer for medical science. In this respect, the company is making use of medical experts from the famous center for knee and hip replacements in Massachusetts General Hospital (USA). If this innovation has prospective, the joint prosthesis VESTAKEEP-based life delivery could be greatly improved, thus eliminating the need for surgery days of pain therapy.

In January 2021, Huntsman revealed it has finalized the acquisition of Gabriel Performance Products a North American enterprise that specializes in manufacturing specialty additives and epoxy curing agents for the purpose of diversification of its product offerings.

In January 2021, LANXESS advanced its strategies when it signed an agreement with the French biocide company INTACE SAS for the expansion of its market and to strengthen itself as one of the leading manufacturers of antimicrobial biocides and fungicides in the packaging industry.

In May 2020, BASF, at a conference, first introduced the Melyra fungicide to its customers in China. Melyra is a product line based on BASF’s innovative fungicide Revysol. There has never been anything like it before, Making it the first of its kind to be developed. Melyra combines the latest fungicide technology from BASF with the well-known active ingredient F500 from this company. It is an exciting new solution for farmers to help them improve their commercially attractive crop output.

Specialty Chemicals Market Segmentation

Specialty Chemicals Source Outlook

• Crude Oil


• Naphtha, Ethane & Propane


• Butane & Wood


• Others

Specialty Chemicals Type Outlook

• Agrochemicals


• Flavors, Fragrances & Personal Care Active Ingredients,


• Dyes & Pigments


• Water Treatment, Bio-Based, Construction & Textile Chemicals


• Surfactants & Polymer Additives


• Others

Specialty Chemicals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America