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 Global Textile Enzymes Market

Published Date : Jan 2024

The textile industry has witnessed significant growth over the past few decades. With rising demand for improved functionality, durability, and appearance of textile fabrics, enzymes have emerged as promising agents in textile processing. Textile enzymes help enhance ... View more

Coherent Market Insights Expanded Perlite Market

Published Date : Jan 2024

Expanded perlite is a versatile material that finds applications across various industries including construction, horticulture, filtration, and insulation. It is derived from volcanic glass and undergoes a process of heating and expansion, resulting in a lightweight ... View more

Coherent Market Insights Castor Oil Derivatives Market

Published Date : Dec 2023

Castor oil is a versatile vegetable oil derived from the seeds of the castor bean plant (Ricinus communis) and is known for its various industrial and pharmaceutical applications. Castor oil derivatives are the derivatives obtained from castor oil through various chem... View more

Coherent Market Insights Calcium Sulphate Market

Published Date : Dec 2023

Calcium sulphate, also known as gypsum, is a widely used mineral compound that is highly versatile and finds applications in various industries such as Construction, Agriculture, Pharmaceuticals and cosmetics, Water treatment. It is a natural mineral composed of calci... View more

Coherent Market Insights Pharmaceutical Solvents Market

Published Date : Dec 2023

Pharmaceutical solvents, such as isopropanol, propylene glycol, ethanol, and propanol, are the chemicals which can be easily suspended, dissolved into, and extracted in other materials without any alteration to other materials. These solvents provide molecules for dru... View more

Coherent Market Insights Nafta And Europe Grignard Reagents Market

Published Date : Dec 2023

Grignard reagents belong to organometallic compounds with standard formula R-Mg-X, in which, R is an organic group whereas X belongs to the halogen group. These have a strong negative charge at the carbon atom, and thus, are highly attracted to the positively charged ... View more

Coherent Market Insights Fine Hydrate Market

Published Date : Dec 2023

Fine hydrate is a form of silicon dioxide that possess a variable quantity of water in the chemical formula. Fine hydrate is commonly known as silicic acid, when it is dissolved in water. It can be naturally found in form of opal and mined as a gem... View more

Coherent Market Insights Methanethiol Market

Published Date : Nov 2023

Methanethiol, also known as methyl mercaptan, is a volatile organic compound characterized by its distinct sulfur-like odor. It is commonly used as a flavoring agent in the food and beverage industry, a fragrance ingredient in perfumes and personal care products, a pr... View more

Coherent Market Insights Argentite Market

Published Date : Nov 2023

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Coherent Market Insights Digital Oilfield Market

Published Date : Nov 2023

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Coherent Market Insights Bisphenol A Market

Published Date : Oct 2023

Bisphenol A is a high-performance thermoplastic widely used in a variety of industrial applications. Some of the primary markets for Bisphenol A are the construction industry and the automotive sector. It is present in many consumer products, including plastic bottles... View more

Coherent Market Insights Polyphenol Market

Published Date : Oct 2023

Polyphenols are known for their health benefits and can be obtained from a variety of food sources. They can improve blood flow and lower the risk of chronic diseases. They are naturally occurring compounds with antioxidant properties that are found in many plants. Th... View more

Coherent Market Insights Pelargonic Acid Market

Published Date : Oct 2023

Pelargonic acid is a specialized organic chemical molecule that is produced both naturally and chemically as esters. Pelargonic acid, is a white liquid chemical with a foul stench. Pelargonic acid is slightly soluble in water, but miscible in a variety of organic solv... View more

Coherent Market Insights Homecare Ingredients Market

Published Date : Sep 2023

The growth of the homecare ingredients market is attributed to rising living standards, growing disposable income, rapid urbanization, and substantial investment by the governments. Moreover, the home care industry is governed by regulatory agencies, with increasing d... View more

Coherent Market Insights Lignin Market

Published Date : Sep 2023

The Global Lignin Market is accounted for US$ 872.2 Mn in terms of value by the end of 2019. Lignin is also known as monolignols. Lignin products are widely used in vanillin, phenol, carbon fibers, biofuels, bitumen, and bio-... View more

Coherent Market Insights Wood Paints And Coatings Market

Published Date : Sep 2023

Wood paints & coatings is applied after the wood surface is stained and prepared. The process of applying coating to a finished wood product is known as wood finishing. Finishing is the last step of the production process and provides desirable characteristics suc... View more

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

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