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Impact of Coronavirus (Covid-19) Pandemic on the Specialty Chemicals Industry

The specialty & fine chemicals have application in various industries including biocides, catalysts, mining, paints, construction, textiles, and pharmaceutical. Except for its application in the pharmaceutical industry, Covid-19 has reduced the demand for specialty & fine chemicals across other industry verticals. According to Coherent Market Insights (CMI), the global demand for specialty chemicals fell by over 5% in the month of May 2020 amid COVID-19 crisis. The lowest demand has been estimated from the mining, foundry, and paints industry verticals. The demand for specialty chemicals such as amino acids, salicylic acid, paracetamol, ibuprofen, diclofenac, and dicalcium phosphate is analyzed to increase form South-east Asia and India in the near future, as the world identifies an alternative of API supplier to China. In order to capitalize this opportunity, on March 26, 2020 the Government of India announced US$ 1.2 Billion as a subsidy for the production of active pharmaceutical ingredients (APIs). This will certainly act as a morale booster for the biggest players in generics drugs, to commence domestic manufacturing of APIs, and become self-reliant. In addition to this, the Government of India has also announced to provide incremental incentives to 53 Key Starting Materials (KSMs – Building Blocks for APIs) to further accelerate the API production in India. Coherent Market Insights estimates over 15% growth in the sales of specialty chemicals, to the South-east Asia market in 2020, as compared to 2019.

Comparative Analysis - 1

Pre-Covid-19 Vs Post Covid-19 - Market Estimates, 2020 – 2021 (US$ Bn)

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Source: Coherent Market Insights

Comparative Analysis - 2

Top Gainers Vs Top Losers

Top Gainers
  • Active Pharmaceutical Ingredients (API's)
    • Amino Acid
    • Salicylic Acid
    • Paracetamol
    • Ibuprofen, etc.
Top Losers
  • Specialty Mining & Foundry Chemicals
  • Specialty Paints & Coatings
Source: Coherent Market Insights
Expected recovery : Q1 2021
Coherent Experts Corner
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Tejes Shah

Team Lead CMFE Research

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Abhishek Baheti

Consultant Level 1 CMFE Research

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  • The global demand for specialty chemicals fell by over 5% in the month of May 2020 amid COVID-19 crisis.
  • Except for its application in the pharmaceutical industry, Covid-19 has reduced the demand for specialty & fine chemicals across other industry verticals.
  • Coherent Market Insights estimates over 15% growth in the sales of specialty chemicals, to the South-east Asia market in 2020, as compared to 2019.

Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

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