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 Electrolytic Iron Market

Published Date : Jul 2023

Electrolytic iron is defined as high purity iron that is produced by electrolysis of scrap steel in an aqueous solution of iron sulfate. The highest purity of iron makes it suitable for applications in various industries, such as electronic components, pharmaceuticals... View more

Coherent Market Insights N Methyl 2 Pyrrolidone Market

Published Date : Jun 2023

N-Methyl-2-Pyrrolidone has a wide range of applications in a range of industries, such as pharmaceuticals, industrial cleaning, electronics, agrochemicals, and paints & coatings, petrochemical. N-Methyl-2-Pyrrolidone is characterized by a high flame point and low ... View more

Coherent Market Insights Mannosylerythritol Lipids Market

Published Date : Jun 2023

Mannosylerythritol lipids are natural biosurfactant that possess superior biochemical, emulsification and dispersing properties. They are extracted from fungal and yeast extracts.  Moreover, Oilfield chemicals, personal care, industrial, agricultural chemicals, i... View more

Coherent Market Insights Isostearyl Alcohol Market

Published Date : Jun 2023

Isostearyl alcohol is mainly utilized as an ingredient for the formulation of personal care products and cosmetics products. This is owing to its properties of boosting viscosity. Isostearyl alcohol is also predominantly used for preventing the formation of crystals i... View more

Coherent Market Insights India De Aromatic Solvents Market

Published Date : Jun 2023

De-aromatic solvents are categorized under hydrocarbon solvents or ultra-low aromatic solvents that have iso-paraffinic, paraffinic, and naphthenic components attached to them. They have very low aromatic content around (<2%) and are widely used across printing ink... View more

Coherent Market Insights Low Density Poly Ethylene Ldpe Market

Published Date : Jun 2023

Low-density Polyethylene (LDPE) is a non-toxic and non-contaminating component which is resistant against moisture, chemicals, wear & tear, external impact, and stress cracks. Low-density poly ethylene (LDPE) is predominantly used in the manufacturing of packaging... View more

Coherent Market Insights Industrial Adhesives Market

Published Date : Jun 2023

Industrial adhesives help companies of all sizes and sectors to secure the bonding of plastics, metals, wood, and ceramics. An alternative to mechanical fasteners and welding, these adhesives provide quick, reliable and durable joining solutions. They also reduce the ... View more

Coherent Market Insights Industrial Alcohol Market

Published Date : Jun 2023

Industrial alcohols are a variety of distillates that are used for a wide range of purposes in industries like cosmetics, pharmaceuticals, and paints & coatings. Ethyl alcohol, which is a key ingredient of these products, is derived from a variety of sources. For ... View more

Coherent Market Insights Oleochemicals Market

Published Date : Jun 2023

Oleochemicals are a broad group of chemical compounds derived from natural fats and oils. They are considered biodegradable and have low toxicity. This is in contrast to petrochemicals which are made from petroleum. They are used in many applications and industries in... View more

Coherent Market Insights Polyvinyl Chloride Market

Published Date : Jun 2023

Polyvinyl chloride (PVC) is a thermoplastic resin that is manufactured by reacting vinyl chloride monomers with divalent metal ions in an emulsion. PVC is available in rigid and flexible forms depending on the type of stabilizers that are used. Rigid PVC is characteri... View more

Coherent Market Insights Lactic Acid Market

Published Date : Jun 2023

Lactic acid is the mildest of all AHAs and works very well on the skin. It is also a natural antibacterial, which makes it great for acne and blemish-prone skin. It also encourages cell turnover and helps fade hyperpigmentation spots like sunspots, making it a true he... View more

Coherent Market Insights Mining Floatation Chemicals Market

Published Date : May 2023

Mining flotation chemicals are the type of chemicals that are used to extract minerals from sulphide and non-sulphide-based ores. These chemicals help in the floatation of minerals out of their rock surfaces with their respective surface flotation properties. The mini... View more

Coherent Market Insights De Aromatic Solvents Market

Published Date : May 2023

De-aromatic solvents belongs to the class of hydrocarbon solvents, which are categorized by iso-paraffinic, paraffinic and naphthetic components with low aromatic property. The de-aromatic solvents are safe, eco-friendly, due to its less Volatile organic compounds (VO... View more

Coherent Market Insights Pearl Pigment Market

Published Date : May 2023

Global pearlescent pigment market has witness a growth in recent few years, owing to rising demand for pearlescent pigments in automotive industry. These pigments can withstand high temperatures, and have a high resistance capacity against acids, and thus, these are e... View more

Coherent Market Insights Non Halogenated Flame Retardant Market

Published Date : May 2023

Non-halogenated flame retardants induce flame retardant properties to the various manufactured products, largely polymers and textiles. Flame retardants emit less heat & smoke and are used to control spread the flames to prevent spread of massive fire. Non halogen... View more

Coherent Market Insights Sustainable Aviation Fuel Market

Published Date : May 2023

Sustainable aviation fuel (SAF) is a sustainable fuel that reduces the carbon footprint of aircraft operations, including transportation, combustion, and distribution. Its life cycle CO2 emissions are around 80% lower than fossil fuels. Its transport, manufacturing, a... View more

Coherent Market Insights Uv Coatings Market

Published Date : May 2023

UV coatings is an eco-friendly compound that is mainly used to inhibit harmful UV rays coming from the sun. The UV rays degrade the color quality of paper and plastics and hence, UV coating on paper, wood, and plastics material provides the required protection and glo... View more

Coherent Market Insights Iron Oxide Market

Published Date : Apr 2023

Iron oxide is a widely used chemical compound which is composed of iron and oxygen and is also known as ferric oxide. It can be obtained by both natural and synthetic methods. Iron oxide is mainly used as pigment and catalysts for various applications. Iron oxide poss... View more

Coherent Market Insights Potassium Sulphate Market

Published Date : Apr 2023

Global Potassium sulphate is amongst the widely used chemical fertilizers, globally along with urea and phosphate fertilizers. Amongst the major End User industry, global potassium sulphate market is segmented into agriculture, industrial, pharmaceuticals, cosmetics, ... View more

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

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