Global Specialty Chemicals Market by Product (Flavor & Fragrances, Food & Feed Additives, Institutional & Industrial Cleaners) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global specialty chemicals market value was USD 586.5 billion at 2020. It is expected to grow at a compound anual growth rate (CAGR of 4.3%) between 2020 and 2028. The market's main growth driver is likely to be the growing demand for high-performance, function-specific chemicals in the end-use markets such as oil and natural gas, pulp and papers, personal care and cosmetics. Also known as effect chemicals and performance chemicals, specialty chemicals can also be called speciality chemicals. Essential oils, gelatin and castor oil are some of the most popular examples. These chemicals are called specialties because they are made in smaller quantities and have a limited range of applications, unlike fine and commodity chemicals.

R&D and innovation are key growth opportunities in a market that is largely consumer-driven. Manufacturers' focus on providing unique and customized product offerings for specific applications and to meet the needs of specific customers has driven research and development investment. This has led to the development of innovative specialty chemicals, and an expanded market product portfolio.

There are many concerns about the adverse effects of traditional chemicals on humans and the environment. This has led to a demand for environmentally-friendly specialty chemicals. To compete with the traditional fine and commodity chemical producers, many players have shifted their focus to the marketing and development of specialty chemicals. The industry faces significant challenges due to the technicalities involved in small-scale production, particularly for those made via bio-refineries like colla. The industry is also challenged by the increased competition from conventional specialty chemicals that are more affordable.

There is a growing demand for products that provide enhanced performance and require less maintenance due to the increasing adoption of small, rechargeable, and sustainable electronic parts. This has resulted in a significant increase in demand for specialty chemicals used in electronics and electrical end-use.

Automotive is expected to continue to grow as a profitable segment. There will be a high demand for adhesives, oils, paints and coatings that can reduce weight and save money. Consumers are more aware of the benefits of living a healthier lifestyle and have increased their demand for pharmaceuticals and nutraceuticals. Consumers are increasingly focusing on personal care, which is likely to increase the demand for cosmetics and personal care products.

Product Insights

The largest market share was 9.8% in 2020. It is expected to grow at 4.6% between 2020 and 2028. CASE, which includes coatings, adhesives and sealants, as well as Elastomers, has been a profitable segment, accounting for 4.9% of the total value in 2020. Many technological advances and product innovations have allowed specialty chemicals to improve their performance and have helped boost the market's growth over the years.

Construction chemical is expected to be a prominent product segment with significant growth projections for 2020-2027. In the construction and building industries, there is a lot of demand for specialty water-proofing products, repair and renovating compounds, joint fillers, adhesives for tile fixing, and other similar products.

Segment growth has been aided by infrastructural development in emerging economies like India, China, Brazil. This segment growth is not limited to South America and the Asia Pacific. According to the U.S. Department of Commerce, the construction value in the United States was greater than USD 1,369 trillion in January 2020. This demonstrates the enormous demand for specialty chemicals in North America.

In the last few years, the demand for products in the oil-and-gas end-use sector has increased due to the rapid growth of refining capacities and shale oil/gas drilling activities. The significant increase in oil refinery output across all geographies is another factor. The BP Statistical Review of World Energy report of 2019 shows that refining throughput in countries like China, Colombia and Vietnam grew by 6.7% and 7.6%, respectively, over the past year.

Regional Insights

In 2020, Asia Pacific was responsible for 46.8% of the global market for specialty chemicals. China is a major manufacturing center for many industries, including pharmaceuticals and nutraceuticals as well as personal care and cosmetics. This has made Asia Pacific one of the fastest-growing markets for specialty chemical products. The market for specialty chemicals will be able to reap the benefits of diversification and industrialization in countries like India, Thailand, Malaysia, Thailand, and Singapore.

Europe is expected be one of the most stable markets for the product. The European Chemical Industry Council (Cefic) estimates that specialty chemicals accounted for more than 27.0% in EU chemical sales in FY 2018. It holds around one-third the total 2018 chemical exports and is one of the most important exporting sectors in the region. Due to the presence of oil and gas companies within the Middle East, the Middle East and Africa are expected to be the largest markets for oilfield chemicals. The market for specialty chemicals will benefit from the rapid growth of the construction activities in GCC, Oman and Qatar.

The pandemic COVID-19 (Corona Virus), which quickly spread from China to France and Iran by February 2020, is causing severe economic disruptions in the future. This is likely to have a significant impact on the markets in all regions.

Market Share Insights & Key Companies

The market players have a number of prominent operational strategies. These include strategic alliances, R&D intensive for sustainable and efficient product development and the adoption of new technologies. R&D in bio-based specialty chemicals has seen significant growth over the last few years due to favorable regulatory mandates and changing perceptions of end-users.

To keep up with industry trends and drive the market for specialty chemical, product manufacturers are members of associations like the British Association for Chemical Specialties and Society of Chemical Manufacturers and Affiliates.

To gain market traction, manufacturers are focusing their efforts on increasing capacity and technological advancement in manufacturing facilities. To ensure stability, manufacturers also maintain long-term supply contracts with raw material suppliers and end-users. The following are some of the most prominent players in specialty chemicals market:

• Solvay AG

• Evonik Industries AG

• Clariant AG

• Akzo Nobel N.V.

• BASF SE

• Kemira Oyj

• LANXESS AG

• Croda International Plc

• Huntsman International LLC

• The Lubrizol Corporation

• Albemarle Corporation

Up Market Research published a new report titled “Specialty Chemicals Market research report which is segmented by Product (Flavor & Fragrances, Food & Feed Additives, Institutional & Industrial Cleaners), By Players/Companies Kemira Oyj, Clariant AG, Albemarle Corporation, BASF SE, Croda International Plc, Akzo Nobel NV, Huntsman International LLC, Evonik Industries AG, Solvay AG, The Lubrizol Corporation, LANXESS AG”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Specialty Chemicals Market Report Segments:

The market is segmented by Product (Flavor & Fragrances, Food & Feed Additives, Institutional & Industrial Cleaners).

Specialty Chemicals Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Specialty Chemicals Market

Overview of the regional outlook of the Specialty Chemicals Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Specialty Chemicals Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Specialty Chemicals Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Flavor & Fragrances

                2. Food & Feed Additives

                3. Institutional & Industrial Cleaners

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Specialty Chemicals Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
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Reasons to Purchase the Specialty Chemicals Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.