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:
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.
Esters are produced from organic or inorganic acids by dehydration with the alcohol process. It contains a carbonyl group adjacent to the ether linkage. Nitrate esters, acid ... View more
Industrial & institutional cleaning products are cleaning chemicals that are widely used for routine cleaning across various industries such as warehouses, research & development laboratories, p... View more
Grignard reagents are highly reactive compound with chemical formula R-Mg-X. It belongs to the organometallic compounds and finds extensive applications in the synthesis of various chemicals. Moreover, in the pharmaceutical industry, it is used to produce various drug... View more
Solvents are chemicals used in the manufacturing of the drugs. They also act as a reaction medium and used in the extraction and purification process. They can be inorganic and organic which are also useful in the production of active pharmaceutical ingredients. Moreo... View more
Refrigeration oil can be derived from either synthetic or mineral oil. It has excellent thermal and chemical stability and is completely contamination-free. It is used in the refrigeration system to lubricate the moving parts and reduce the friction of the metal compo... View more
Sulfur coated urea is primarily used in the agriculture industry for reducing the negative effects of fertilizers such as crop burn. They are basically a controlled released of fertilizers that are manufactured by coatings hot urea by using molten sulfur polyurethane ... View more
Pigging is an advanced technique in which devices called pigs are attached to the pipelines in order to perform inspection and cleansing activities. Intelligent pigging is an inspection device used to gather important data such as to identify the presence of corrosion... View more
Electrolytic iron is the purest form of iron and consists of over 99% of iron content. It is manufactured by using the electro deposition process. This process is performed under controlled conditions. This pure electrolytic iron is used in various end-use application... View more
N-Methyl-2-Pyrrolidone is a chemical compound with a high boiling point and excellent solvency for a wide range of organic and inorganic chemical compounds. It has high thermal and chemical stability which makes it ideal for use in coating resins and engineering polym... View more
Emulsifiers are used as a stabilizing agent across cosmetic, food &beverage, pharmaceutical, and personal care industry where it helps to stabilize the two or immiscible liquid. In the food industry, it is also used to preserve the sensitive feature of food such a... View more
Low-density poly ethylene is a type of thermoplastic polymer of ethylene which is produced by using a free radical polymerization the process at high pressure. They have low tensile strength but high flexibility and offer superior resistance property to chemical ... View more
De-aromatic solvents are hydrocarbon solvents that have low aromatic content around (<2%). They consist of iso-paraffinic, naphthene, and paraffinic compounds attached to them. ... View more
Dimethylolpropionic acid is a free-flowing crystalline that is beneficial for the manufacturing and processing of water-soluble resins. It is widely used in the aqueous urethane dispersions for pr... View more
Isostearyl alcohol is branched-chain alcohol with the chemical formula C18H38O. It is also referred to as isooctadecanol or isooctadecyl alcohol and is insoluble in water and miscible in most of the waxes and oil. Isostearyl alcohol is widely used in the manufact... View more
Non-convertible binders are binders, which are composed of organic materials such as varnishes, resins containing fatty acids from natural oils, and other synthetic polymers. The non-convertible binders do n... View more
Dispersion adhesives are water-based adhesive, which consists of solid adhesives dispersed in an aqueous phase. These adhesives forms bond through physical hardening, when the water evaporates. The bonding effect is offered by a polymer component, which forms a film w... View more
Mannosylerythritol Lipids Market 2017–2027 Mannosylerythritol lipids are biosurfactant that belongs to the class of glycolipid and possess excellent interfacial and biochemical properties. They are extr... View more
Flotation is a process which is mainly used to concentrate and separate the ores by modifying the surface properties. Flotation chemicals are used for the froth flotation process and these chemicals include pH regulators, conditioning agents, slime dispersants,&n... View more