Specialty and Fine Chemicals

Enquiry IconContact Us

Specialty chemicals, performance chemicals, and fine chemicals are terms that are often used interchangeably. Specialty chemicals improve the performance of an end product or manufacturing process. End products include adhesives, cleaning materials, agricultural, food additives, lubricants, surfactants, textile auxiliaries, elastomers, and flavors. Specialty and fine chemicals find wide application across various end-use industries such as aerospace, automobiles, cosmetics, construction, textile, polymers, and food. Increasing industrialization and urbanization have led to revival of the economy and flourishing trade. Population explosion, especially in Asia Pacific, is fueling demand for consumer goods, food, and infrastructure. A variety of specialty chemicals are used for production of agrochemicals, construction chemicals, cosmetic products, food additives, textile, polymers, and plastics, among others. Moreover, emerging economies in Asia Pacific are characterized by rapid growth of end-use industries which is fueling growth of the specialty and fine chemicals market. The growth of specialty chemicals is largely driven by growth of agricultural, construction and automobiles industries. Moreover, development of environment friendly products such as TERGITOL L Series surfactants by The Dow Chemicals Company are favoring demand for specialty and fine chemicals.

Surge in Pharmaceuticals, Agrochemicals and Construction Activities Augmenting Market Growth

The pharmaceuticals industry is expected to be one of the major end users of specialty chemicals. The rapidly growing population, especially the geriatric population which is characterized by high susceptibility to various diseases, is fuelling growth of the global pharmaceuticals industry. This creates a highly conducive environment for the growth of the specialty and fine chemicals market.

Furthermore, positive growth of end-user industries such as agrochemicals, construction, and automobiles is facilitating the market growth. Growing preference among consumers across the globe for eco-friendly products is influencing manufacturers to develop bio-based chemicals. These are especially preferred in agrochemicals and fertilizers for increasing crop yield. The agricultural sector is growing continuously in order to keep up with the population growth. Specialty and fine chemicals find a range of applications in fertilizers and pest control products, which is augmenting growth of the market.

Construction chemicals are used in activities such as residential project, commercial complex and industrial applications. Construction chemicals minimize the quantity of cement and water used in construction activities. Asia Pacific is one of the lucrative markets for specialty chemicals due to presence of rapidly expanding economies and urbanization, which is fueling demand for advanced and modern infrastructure in the region. Moreover, several players operating in the construction industry are utilizing various construction chemicals such as concrete admixtures, adhesive & sealants, and flame retardants in order to expand their consumer base and presence in the global markets. Polymer is the basic raw material used by in the construction industry.

The automobile industry is one of the lucrative sectors for specialty chemicals. Polymers, paints, plastics, adhesives, fibers, and sealants are extensively used in the automobile industry. China, Japan, India, and the U.S. are major automotive hubs, which is likely to drive demand for specialty and fine chemicals from these markets. Asia Pacific is positioned to be a major revenue contributor in the global market due to presence of emerging economies such as India and China, and supportive government initiatives in the region. For instance, the Government of India, highlights the Auto Mission Plan (AMP) in its Make in India initiative to increase its passenger vehicle market by 2026 to 9.4 million units. India also witnessed US$ 15.79 billion Foreign Direct Investment (FDI) from 2000 to 2016 as per the Department of Industrial Policy and Promotion (DIPP). This creates a highly conducive environment for growth of the global specialty and fine chemicals market.

Challenges – Strict Environmental Regulation

The synthetics based specialty and fine chemicals have a negative impact on the environment, which affects the ecosystem and life. Various environmental protection agencies have enforced numerous environmental regulations on use of chemicals in various industries. This may hinder growth of the specialty chemicals market during the forecast period. In October 2003, the European Union banned use of atrazine due to its ubiquitous and unpreventable water contamination. Stringent environmental regulations are forcing end-use industries to opt for bio-based chemicals, which is expected to restrict the growth of the specialty and fine chemical market due to major shift in technology involved. Moreover, the Chinese Ministry of Environmental Protection imposes penalties for high carbon emissions, which has led many chemicals manufacturing units in the country to shut down.

Specialty and Fine Chemicals – Regulatory Scenario:

  • 2016, the Russian government and National Parliament, State Duma, planned to enforce a new federal law primarily focused on regulating the in-house specialty chemicals. The new law will regulate around 800 specialty chemicals in Russia.
  • On June 22, 2016, Frank R. Lautenberg Chemical safety for the 21st Century Act strengthened and modernized the Toxic Substances Control Act (TSCA). This act requires the EPA to evaluate chemicals on its benefits, health risk, and exposure limit, among others.
  • January, 2015, The Chinese Ministry of Environmental Protection enforces strict penalties on manufacturing of chemicals which has led many specialty chemicals manufacturing facilities in the country to cease operations.

Key players in the market include Akzo Nobel N.V., BASF SE, Ashland Inc., Clariant AG, Evonik Industries, The Dow Chemical Company, Huntsman Corporation, DuPont, Arkema S.A., Bayer AG, Chevron Philips Chemical Company, Syngenta AG, Albemarle Corporation, Chaitra Corporation, Eastman Chemical Company, Solvay, and INEOS Group AG among others. Key players in the market are also focusing on strategic mergers and acquisitions to enhance their profitability. For instance, in March, 2017, The Dow Chemical Company and DuPont merged as part of a US$ 62 billion deal. The companies would subsequently break into three separate publicly traded companies that would focus on agriculture, material science, and specialty chemicals.

View More

Specialty and Fine Chemicals Published Insights

Coherent Market Insights

Heptanoic Acid Market, by Grade (Industrial Grade, Pharmaceutical Grade, and Food Grade), by Application (Cosmetics, Flavours & Fragrances, chemical Synthesis, Pharmaceutical Ingredients, Lubricants, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published Date : May 2022

Enanthic acid, also called heptanoic acid, is an organic compound composed of a seven-carbon chain terminating in a carboxylic acid functional group. It is an oily liquid with an unpleasant, rancid odor. It contributes to the odor for som... View more

Coherent Market Insights

Tetrabromobisphenol A Market, by Product Type (Industrial Grade and Industrial Grade), by Application (Flame Retardant, Plastic Additives, and Others (plasticizer, etc.)), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : May 2022

TBBPA stands for tetrabromobisphenol A, which is a brominated flame retardant. Although commercial samples appear yellow, the chemical is a white solid (not colorless). It is among the most widely used fire extinguishers. TBBPA is produced when bromine reacts with Bis... View more

Coherent Market Insights

Bromobenzene Market, By Product Type (Phenylmagnesium Bromide, Phencyclidine, and Others), By Application (Grignard Reagent, Solvents, Organic Chemical Synthesis, Additives, Pharmaceutical Intermediate, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Mar 2022

Bromobenzene is an aryl halide with the formula C6H5Br. Older samples may appear yellow, while the liquid is colorless. It is a reagent used in organic synthesis. Bromobenzene is mostly used to make phenylmagnesium bromide, a Grignard reagent that can be used to make ... View more

Coherent Market Insights

Microfibrillated Cellulose Market, by Manufacturing Process (Mechanical, Chemical, and Biological), By Distribution Channel (Paper, Packaging, Pharmaceuticals, Paints and Coatings, Personal Care & Cosmetics, and Others (Home Care & Food & Beverages), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Mar 2022

Microfibrillated cellulose (MFC) is a renewable commodity and has various applications includes paper, packaging, pharmaceuticals, paints and coatings, personal care & cosmetics. MFC fiber plays a major role in bolstering paper-based products. It is increasingly g... View more

Coherent Market Insights

Dolomite Market, by Product (Agglomerates, Calcined, and Sintered), by End-use (Iron & Steel, Construction Materials, Glass & Ceramics, Water Treatment, Agriculture, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Jan 2022

Dolomite is a type of limestone, a type of sedimentary rock that contains a high percentage of the mineral dolomite. Calcium magnesium carbonate along with calcite and aragonite dolomite makes up approximately 2% of the earth’s crust. Dolomite crystals are color... View more

Coherent Market Insights

South America Specialty Pulp and Paper Chemicals Market, By Type (Bleaching chemicals, Process chemicals , Functional chemicals, Basic chemicals) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Dec 2021

Definition of Market/Industry: Specialty pulp and paper chemicals are used in the production of paper for bleaching and improving the properties of the paper. Specialty chemicals are derived from acids, alcohols,... View more

Coherent Market Insights

Azelaic Acid Market, by Product Type (Polymer Grade, Pharma Grade, and Technical Grade), by Application (Pharmaceutical, Adhesives, Plastics, Lubricants, Personal Care & Cosmetics, and Others (Plasticizers, etc.)), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Dec 2021

Azelaic acid is an organic compound with molecular formula C9H16O4 saturated dicarboxylic acid and it exits as a powder. The azelaic acid has significant biological activities and is found in daily food products such as, barley, wheat, and rye. Azelaic acid is an inhi... View more

Coherent Market Insights

Pelargonic Acid Market, by Grade (Natural Grade and Synthetic Grade), by Application (Detergents, Lubricants, Lacquer & Coatings, Herbicide, Food Additives, and Others (Personal Care & Cosmetics, etc.)), and by Region (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027

Published Date : Dec 2021

Pelargonic acid is a saturated, nine-carbon fatty acid found naturally as esters in the essential oil of pelargonium spp (perennial plants). It can also be extracted from plant tissues. Pelargonic acid, in combination with its salts and ... View more

Coherent Market Insights

Pyridine Market, by Product Type (Pyridine N-oxide, Alpha Picoline, Beta Picoline, Gamma Picoline & 2-Methyl-5-Ethylpyridine (MEP)) by Application (Pharmaceutical, Agrochemicals, Food, Chemicals (Solvent and Denaturant), and Others (Dyestuffs, Alcohol)), and by Region (North America, Latin America, Europe, Asia-Pacific, Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Nov 2021

Pyridine is a liquid chemical compound that appears colorless and has a nauseating odor. It has a chemical compound formula C5H5N and has a structure similar to benzene. It is miscible in most of the organic solvents and produced by crude coal tar or is derived from c... View more

Coherent Market Insights

Sodium Acetate Trihydrate & Sodium Acetate Anhydrous Market, By Product Type (Sodium Acetate Trihydrate, Sodium Acetate Anhydrous), By End Use (Leather & textile, Food, Medical & Pharmaceuticals, Others), By Region (North America, Europe, Asia Pacific, RoW) - Size, Share, Outlook, and Opportunity Analysis, 2021 - 2028

Published Date : Mar 2022

Sodium acetate is produced by reacting acetic acid with sodium carbonate. Sodium acetate trihydrate is granular crystalline powder and has acetic odor.  Medical & pharmaceutical, leather & textiles, plastic, water, agriculture, and food are some of the ke... View more

Coherent Market Insights

Lignin Market, By Product (Lignosulfonates, Kraft Lignin, and Others), By Application (Concrete Additive, Animal Feed, Dye Stuff, and Others), By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027

Published Date : Jul 2021

Lignin, also referred as monolignols, is a class of complex polymer and are widely used across industries such as construction, oil drilling, pulp & paper, and agriculture. They are a key ingredient used in the concrete admixtures in order to enhance the shel... View more

Coherent Market Insights

Humic Acid Market, by Application (Agriculture, Animal Feed, Ecological Remediation, Dietary Supplements, Pharmaceuticals, and Others) and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027

Published Date : Jul 2021

Humic acid is an ingredient obtained from the biodegradation of organic substances such as soil/ humus, peat, and coal. It is a complex mixture of various acids from phenolate and carboxyl groups that can be widely used to provide required nourishment to crops/ plants... View more

Coherent Market Insights

Glutathione Market, by Product Type (Reduced Glutathione and Oxidized Glutathione), by Application (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027

Published Date : Jul 2021

Glutathione is a tripeptide compound, which is made from amino acids such as glycine, cysteine, and glutamic acid. Glutathione helps in preventing damage to important cellular components of human body, caused by reactive oxygen species such as free radicals, peroxides... View more

Subscribe Newsletter

Kindly subscribe for our latest news & articles.