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 Middle East Bio Chemicals Market

Published Date : Apr 2023

Bio-chemicals or bio-based chemicals are manufactured from bio-based renewable materials such as sugar, vegetable oils, starch, and others. The conversion of these bio-materials into bio-chemicals is carried out by fermentation or enzyme reaction.    &n... View more

Coherent Market Insights Flexographic Printing Inks Market

Published Date : Apr 2023

Flexographic printing inks are inks transferred by the process of flexography, which finds wide applications in various printing of packing materials such as corrugated cardboard, cardboard box, plastic & paper bags, newspapers, food packaging, and catalogs. This ... View more

Coherent Market Insights Construction Paints And Coatings Market

Published Date : Apr 2023

Paints and coatings are widely used in industries for protecting machines and equipment from rusting and corrosion, whereas decorative paints and coatings are used applied on interior and exterior walls of residential and corporate buildings. Rising population and dis... View more

Coherent Market Insights Specialty Adhesives Market

Published Date : Apr 2023

Specialty adhesives are used in numerous industries and applications to join components together. They are also used to seal and protect products from corrosion, leaks, or contaminates, or to prevent deterioration. They are formulated from polyvinyl acetate, polyureth... View more

Coherent Market Insights Conformal Coating Stripper Market

Published Date : Apr 2023

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Coherent Market Insights Polyurethane Prepolymer Market

Published Date : Apr 2023

Polyurethane prepolymers are formed by reacting polyol components and diisocyanate, which are common to polyurethane adhesives. The most common isocyanate used is toluene diisocyanate (TDI) or diphenylmethane diisocyanate (MDI). The other isolates used are aliphatic a... View more

Coherent Market Insights Viscose Staple Fiber Market

Published Date : Mar 2023

Viscose staple fiber is a type of man-made fiber that is used to produce various types of textiles and apparel. It has a higher resistance to flow and is often used in the production of clothes that wick moisture away from the skin, helping to keep the wearer cool and... View more

Coherent Market Insights High Performance Pigment Market

Published Date : Mar 2023

High performance pigments (HPPs) are inorganic and organic pigments with excellent effectiveness that include superior ease of dispersion, high tinting strength, and other properties. These has a broad range of applications such as printing ink for outdoor sinage, non... View more

Coherent Market Insights Termite Control Market

Published Date : Mar 2023

Termites are insects that are commonly known as white ants. They form highly organized colonies of several hundred thousand to million termites and mostly feast upon wood and damage it from the inside out. Despite the fact that termites do not transmit diseases to peo... View more

Coherent Market Insights Methyl Myristate Market

Published Date : Mar 2023

A myristic acid is a fatty acid that occurs naturally in foods as a flavor ingredients. Purified myristic acid appears to be white, yellow-white, hard, glossy, and crystalline solid. The free fatty acids, mainly myristic acid is present at maximum concentration of 1.5... View more

Coherent Market Insights Bromine Derivatives Market

Published Date : Mar 2023

Bromine is chemical compound with similar properties that of iodine and chlorine. Bromine derivatives find its applications in chemical synthesis, completion fluids and oil & gas well drilling, beef and poultry processing, paper manufacturing, water purification, ... View more

Coherent Market Insights Crude Oil Flow Improvers Market

Published Date : Mar 2023

Ability to transfer crude oil through pipelines from wellhead to refinery without any complication is important during transportation and extraction. Crude oil deposits is  found during these procedures, and leads to several problems. Hence, crude oil flow improv... View more

Coherent Market Insights India Fluorinated Organic Compounds Market

Published Date : Feb 2023

metals and active metals owing to the presence of a very weak F-F bond. However, fluorinated organic compounds comprise strong bonds between C-C, C-F, and C-H which provides oxidative and thermal stability to the compounds. Moreover, fluorinated organic compound plays... View more

Coherent Market Insights Aroma Chemicals Market

Published Date : Feb 2023

Aroma Chemicals are compounds that are primarily used for incorporation of fragrance in variety of End-use products. The major source of these chemicals is from essential oil isolates and from the petrochemical industry. The various use of aroma chemicals in the end-u... View more

Coherent Market Insights Tin Chemicals Market

Published Date : Jan 2023

Global demand for tin chemicals has been on the rise due to their application in various industries such as chemical, automotive, construction, packaging, and electronics. Increasing use of tin chemicals in electroplating applications among various industries for prot... View more

Coherent Market Insights Chloroacetic Acid Market

Published Date : Dec 2022

Chloroacetic acid is used for the production of carboxymethyl-cellulose, herbicides, thioglycolic acids, and cellulose ethers. Monochloroacetic acid (MCA) and sodium monochloroacetate (SMCA) are used in the synthesis of various agrochemicals such as herbicides and pes... View more

Coherent Market Insights Drilling Chemicals Market

Published Date : Dec 2022

Drilling chemicals are also called drilling muds which are heavy, viscous fluid mixture that is used in oil and gas drilling operations to carry rock cuttings to the surface and also to lubricate and cool the drill bit. Drilling chemicals find application in simpler b... View more

Coherent Market Insights Sodium Cyanide Market

Published Date : Dec 2022

Sodium cyanide is an inorganic, white, and water soluble solid. It is a highly poisonous compound widely used in chemical and mining industries. It is also used for electroplating and as an important precursor to many useful organic and inorganic chemicals, including ... View more

Coherent Market Insights Methionine Market

Published Date : Dec 2022

Among the amino acids, methionine is a critical molecule in the body. It plays a key role in making new proteins. It also has important roles in other chemical reactions in the body. It is a sulfur-containing molecule that is critical for normal functions. It particip... View more

Coherent Market Insights Polycarboxylate Ether Market

Published Date : Dec 2022

Polycarboxylate ether (PCE) is composed of methoxy-polyethylene glycol copolymer (side chain) grafted with methacrylic acid copolymer (main chain). It is commonly used in the construction industries, especially as superplasticizer in cement and concrete. Superplastici... View more

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