Specialty and Fine Chemicals

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.

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Specialty and Fine Chemicals Published Insights

Coherent Market Insights Fumaric Acid Market

Published Date : Sep 2023

Fumeric acid is a chemical compound that occurs in a wide range of nature and has a fruity taste.  Fumeric acid and its salts are also known as fumarates or fumarate esters. The name "fumarate" may also refer to a C2 compound. Fumeric acid is used in baking and d... View more

Coherent Market Insights Dolomite Market

Published Date : Aug 2023

Dolomite is an anhydrous carbonate mineral composed of calcium magnesium carbonate. An alternate name used for dolomite is dolomitic rock or dolostone. Dolomite has a wide range of applications in various industries but the primary application is found in the steel &a... View more

Coherent Market Insights Fluorspar Market

Published Date : Aug 2023

Fluorspar, a naturally occurring mineral that is composed of fluoride, is found in areas of recent volcanic activity or hydrothermal fluids. It often has a pastel color, due to the presence of iron.  Although a small amount of fluorspar still makes its way into o... View more

Coherent Market Insights Polyethyleneimine Market

Published Date : Aug 2023

Polyethyleneimine (PEI) is a three-membered ring. Two corners of the molecule consist of -CH2 linkages, while the third corner contains a secondary amine group, =NH. It is processed into highly branched polymers containing up to 25% primary and 50% secondary amine gro... View more

Coherent Market Insights Pyridine Market

Published Date : Jul 2023

Pyridine is widely used as a fungicide and solvent, as well as in the production of various pharmaceuticals. It is also used to produce products such as medicines, vitamins, food flavorings, pesticides, paints, dyes, rubber products, adhesives, and waterproofing for f... View more

Coherent Market Insights Humic Acid Market

Published Date : Jul 2023

Humic acid is a mixture of organic compounds obtained by the microbiological and chemical process of debris formation of living organisms into refractory organic compounds. Humic substances mainly account for 50-80% of organic carbon from the soil, bottom sediments &a... View more

Coherent Market Insights Sodium Acetate Market

Published Date : Jul 2023

Sodium acetate is one of the most common plasticizers that is used in the U.S., and around the world. It issued to extend or add colour, other qualities to a wide range of products from plastic containers to pharmaceuticals and even metal. The most common is the blue ... View more

Coherent Market Insights Carboxymethyl Cellulose Market

Published Date : Jul 2023

Carboxymethyl cellulose is cellulose gum that is extracted from wood pulp and pure cotton. Cellulose gum is widely used across various industries including oil & gas, agriculture, cosmetics & personal care, paint, paper processing, pharmaceutical, food &&n... View more

Coherent Market Insights Fatty Acid Ester Market

Published Date : Jul 2023

The Global fatty acid ester market is accounted for US$ 2,505.2 MN in terms of value by the end of 2022. Fatty acid esters is produced via the reaction between alcohol & fatty acid. It is derived from vegetable oils & animal tallow. Fatty acid esters are ester... View more

Coherent Market Insights Mining Chemicals Market

Published Date : Jul 2023

Mining chemicals are widely used across mining industries for various process such as wastewater treatment, minerals processes, and drilling water. They are used to extract metals such as copper, platinum, and gold. Mining chemicals are broadly classified into&nb... View more

Coherent Market Insights Hydrazine Hhydrate Market

Published Date : Jul 2023

Hydrazine hydrate is highly soluble in water and can reduce itself to form nitrogen and water. Moreover, it protects the boiler tubes from corrosion by reacting with soft hematite layers to form a hard magnetic layer. Hence, it is an important component in boiler wate... View more

Coherent Market Insights Railway Coatings Market

Published Date : Jul 2023

Multiple factors, such as stray currents, salt, water, and moisture, cause the corrosion of rails. Corrosion creates a high risk of damage to the rail parts. Moreover, rail corrosion weakens the foot of the rails as well. Railway coatings protect the rails from corros... View more

Coherent Market Insights Glutathione Market

Published Date : Jul 2023

Glutathione is a natural antioxidant that is found in plants, animals, fungi, and some bacteria. This antioxidant helps in preventing damage to cellular components caused by reactive oxygen compounds such as free radicals, peroxides, lipid peroxides, and heavy metals.... View more

Coherent Market Insights Phenoxyethanol Preservatives Market

Published Date : Jul 2023

Phenoxyethanol is a clear liquid that is used in the formulation of cosmetic products such as sunscreen and skin creams. In addition to this, phenoxyethanol preservatives are used in various applications such as drugs, cosmetics, and pharmaceutical products for enhanc... View more

Coherent Market Insights Industrial Coatings Market

Published Date : Jul 2023

The global industrial coatings market has diverse end users and is tied to multiple industries. The drivers of the global industrial coatings market are population growth, improved standard of living, infrastructure growth, global Growth Domestic Product growth, and g... View more

Coherent Market Insights Esters Market

Published Date : Jul 2023

Esters are component of lubricant formulation. Esters have low volatility, thermal stability, oxidative stability, and good lubricating qualities. Cosmetics, paints and coatings, plastics, food and beverage, Lubricant, biofuel, resins, explosives, and surfactants are ... View more

Coherent Market Insights Chitosan Market

Published Date : Jul 2023

Chitosan is extracted from shells of aquatic species such as lobsters, shrimps, and crabs and is derived from chitin. Chitosan is widely used in dietary supplements as it inhibits lipid absorption in the gastrointestinal tract. It is also used in various healthcare ap... View more

Coherent Market Insights Far East And Baltic Countries Ammonium Sulfate Market

Published Date : Jul 2023

Ammonium sulfate is an inorganic salt that is prepared by treating heated ammonia with sulfuric acid. It has high content of sulfur that makes it ideal for alkaline soil as it gets absorbed by plants easily. Food additives, flame retardants, purifying protein, and amm... View more

Coherent Market Insights Industrial And Institutional Cleaning Chemicals Market

Published Date : Jul 2023

Industrial and Institutional Cleaning Chemicals are being used for the removal of dirt such as dust, stains, and clutter on surfaces, and also for treating bad odors. These are manufactured using numerous raw materials such as chlor- alkalis, surfactants, solvents, ph... View more

Coherent Market Insights Chondroitin Sulfate Market

Published Date : Jul 2023

Chondroitin sulfate is an important molecule that plays a key role in promoting healthy cartilage, bones, and connective tissues. It is used in the treatment of various skeletal conditions, such as osteoarthritis. Osteoarthritis is a painful condition, which leads to ... View more

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