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 Wood Preservatives Market

Published Date : Jun 2022

Wood preservatives are the chemicals that aid in extending the life of wood, engineered wood, and wood structures by protecting them from fungal rot or decay, molds, insects, and sapstain. Wood preservatives are used in residential as well as industrial applications. ... View more

Coherent Market Insights Tetrabromobisphenol A Market

Published Date : May 2022

Tetrabromobisphenol A (TBBPA) is a brominated flame retardant used in 90% of epoxy-coated circuit boards. Tetrabromobisphenol A is used as an intermediate in epoxy resins as a reactive brominated flame retardant. This epoxy resins is used for the manufacturing of prin... View more

Coherent Market Insights Heptanoic Acid Market

Published Date : May 2022

Heptanoic acid is a colorless liquid with a pungent odor, and is less dense than water and poorly soluble in water. Heptanoic acid finds its two major uses that is vinyl plasticizers that are used in automotive industry and other is synthetic lubricants which is used ... View more

Coherent Market Insights Fatty Acid Methyl Esters Market

Published Date : Apr 2022

FAME (fatty acid methyl ester) is a form of fatty acid ester produced by transesterifying fats with methanol. The primary molecules in biodiesel are FAME, which are obtained by transesterification from vegetable oils. When base chemicals like sodium methoxide, potassi... View more

Coherent Market Insights Bromobenzene Market

Published Date : Mar 2022

Bromobenzene, also known as monobromobenzene and phenyl bromide, is a colorless, heavy liquid with a pungent odor. It is used to make synthetic intermediate phenylmagnesium bromide, as well as motor oil additive and crystallizing solvent. Unreacted bromobenzene, biphe... View more

Coherent Market Insights Microfibrillated Cellulose Market

Published Date : Mar 2022

Microfibrillated cellulose is produced by mechanical treatment with or without enzymatic or chemical pre-treatment. The Microfibrillated cellulose consists of long and thin fibers, which form a three-dimensional network. MFC has high viscosity and yield stress, it is ... View more

Coherent Market Insights 4 Tert Amylphenol Market

Published Date : Feb 2022

4-tert-amyl phenol is used in various applications such as disinfectants, oil drilling, as a vulcanizing agent in the rubber industry, etc. The spread of the COVID-19 globally resulted in measures such as lockdown and cease in economic activities, which has severely i... View more

Coherent Market Insights South America Specialty Pulp And Paper Chemicals Market

Published Date : Dec 2021

In the paper and pulp manufacturing industry, two main categories of chemicals are involved - pigments and bleaches. The pigments include alkyds (colors), which are liquid dyes that react with binding agents to form different colors, and alphahydroxy acids, which are ... View more

Coherent Market Insights Elemental Fluorine Market

Published Date : Dec 2021

Fluorine is a silicate and fluorite mixture that reacts to either chlorine or fluorine. The reactions that lead to Fluorine occur when the two chemicals meet at a point called a quaternary interface, where a known amount of Fluorine ions have an available pathway to r... View more

Coherent Market Insights Tallow Fatty Acids Market

Published Date : Sep 2020

The global tallow fatty acids market is growing at substantial rate, owing to the rising demand from various applications such as rubber, plastics, personal care products, among others across the globe. ... View more

Coherent Market Insights Pigments Market

Published Date : Jul 2020

Pigments are colorants which are extensively used in the printing, textile, and automotive industries. Pigment is organic or inorganic powdered solid which is insoluble. Pigments offer excellent characteristics such as good baking stability, excellent solvent resistan... View more

Coherent Market Insights Disinfectants Market

Published Date : Jun 2020

Disinfectants are chemical substances used for the destruction of harmful viruses and microbes such as fungi and bacteria. Owing to its distinctive features of microbiological sterilization, disinfectants are widely used in various end-use industries such as healthcar... View more

Coherent Market Insights Dimethylolpropionic Acid Market

Published Date : Apr 2020

Dimethylolpropionic acid is a crystalline solid with white appearance and flowing nature. It has chemical composition with one carboxylic group and two hydroxyl groups. The carboxylic group of free acid enhances the solubility of resin water and lightens the polar gro... View more

Coherent Market Insights Membrane Chemicals Market

Published Date : Mar 2020

Membrane chemicals are used for treating the water by removing impurities and bacteria. Membrane chemicals are specialty chemicals that are used to treat a wide range of RO/UF/NF/MF membrane scalants and foulants. These chemicals are used across oil & gas, electri... View more

Coherent Market Insights Sodium Metal Market

Published Date : Feb 2020

Sodium is a chemical element with a symbol Na and atomic number 11. Sodium is a soft and silvery-white metal that belongs to the alkali group of metals and is kept in oil as it is extremely reactive. Moreover, sodium metal is used in production of dye, pharmaceutical ... View more

Coherent Market Insights Sodium Sulfide Market

Published Date : Feb 2020

Sodium sulfide is the chemical compound with formula Na2S, or NA2 S.9H2O. The product is colorless water soluble salt and it is belongs to alkaline solutions. Moreover, sodium sulfide is used in the pulp & paper industry... View more

Coherent Market Insights Wood Preservative Chemicals And Coatings Active Ingredient Market

Published Date : Feb 2020

Wood preservative chemicals and coatings are the products that are used to control degradation of wood which is caused due to different factors such as decay, fungal rotting, sapstain, parasites, and wood destroying insects. Companies involved in manufacturing of the ... View more

Coherent Market Insights Chromatographic Silica Resin Market

Published Date : Jan 2020

Chromatography is the process of separating the components of a mixture by distributing different proportions of different solutes in a moving fluid stream. The mixture which is to be separated, is dissolved in the mobile phase whereas chromatography silica resins are... View more

Coherent Market Insights Sack Kraft Paper Market

Published Date : Nov 2017

Sack kraft is used for packaging products and has high tensile energy absorption (TEA), high porosity, high stiffness, and excellent printability as compared to conventional packaging materials. Increasing demand for biodegradable packaging materials in various applic... View more

Coherent Market Insights Oil And Gas Chemicals Market

Published Date : Sep 2017

Oil and gas chemicals are used in major oilfield operations such as drilling, completion, production, stimulation, enhanced oil recovery, and cementing. Therefore, oilfield operation and production activities are completely dependent on oil and gas chemicals for smoot... View more

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