Dublin, Aug. 15, 2024 (GLOBE NEWSWIRE) -- The "Specialty Chemicals Market - Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The global specialty chemicals market is expected to grow from $800 billion in 2023, to reach $1040.9 billion in 2029, at a CAGR of 4.48%.
MARKET TRENDS & DRIVERS
Increasing Demand for Green Chemistry
Sustainability and green chemistry are becoming among the most common practices in the global specialty chemicals market. This trend has led to innovation, efficiency, and responsibility in product development, manufacturing, and operations. Green chemistry has become significant due to the environmental challenges and to ensure a sustainable future. One of the aspects of green chemistry includes renewable feedstocks. The manufacturers of specialty chemicals are shifting towards renewable feedstocks derived from biomass, such as plant oils, agricultural residues, and algae, which are alternatives to fossil-based raw materials.
For example, Solazyme, now known as TerraVia, developed a process to produce specialty oils and ingredients from microalgae, offering sustainable alternatives to traditional oils in cosmetics, personal care products, and nutrition supplements. Further, bio-based polymers are alternatives to petroleum-based plastics. For example, NatureWorks has developed bio-based polymers, such as IngeoT PLA (polylactic acid), which can be used in packaging, textiles, and personal care products. These polymers are biodegradable and compostable, reducing environmental impact at end-of-life.
Enablers of Sustainable Development
Sustainability has become an important topic in all aspects of life, be it in manufacturing, farming, pharmaceutical, power generation, automotive, and lifestyle, among many others. Multiple sectors are encouraging the development of sustainable practices across industries. The specialty chemicals market plays an important role across many such sectors to ensure smooth and proper operation. For example, in the power generation industry, renewable energy sources such as water, air, and sun are used to generate power as they are sustainable and clean energy sources.
Furthermore, most water resources, including water from a pristine mountain reservoir, would require treatment before being suitable for human consumption or industrial use. Used water also requires treatment to be reused or returned to nature. Specialty chemicals are important in a range of water treatment processes. These processes include drinking water production, wastewater, and industrial water treatment.
Rising Investments in the Construction Industry
The growth in the construction market is fueled by increasing populations and urbanization in emerging nations, leading to a heightened demand for infrastructure and residential construction. Furthermore, emerging regions such as APAC and MEA observed the highest growth in construction output compared to other regions due to the rise in population and rapid pace of urbanization. The specialty chemicals market in construction is used as concrete admixtures such as plasticizers, superplasticizers, accelerators, and retarders. These chemicals are added to concrete mixes to change their properties, such as workability, strength, durability, and setting time, which are crucial for strong and durable structures. Specialty chemicals are also used in the construction of buildings for applications such as waterproofing, sealing, lubricating, and surface finishing. The chemicals are added to concrete, mortar, and asphalt formulations to improve workability, reduce cracking, and enhance durability.
SEGMENTATION INSIGHTS
INSIGHTS BY APPLICATION TYPE
The agrochemicals application type segment holds the most significant global specialty chemicals market share. Various specialty chemicals are used across the agricultural sector as these products help enhance the soil quality and control diseases, weeds, and other insects that might affect the growth and quality of the crop. Specialty chemicals in pesticides include insecticides used for controlling insects, herbicides for controlling weeds, fungicides used for controlling fungal diseases, and bactericides used for controlling bacterial diseases. With the demand for food increasing continuously across the globe, fertilizers and pesticides, which use many of these specialty chemicals, will have a higher market demand.
Furthermore, performance chemicals are specialty chemicals designed and formulated to meet specific performance requirements across various industrial and consumer applications. Performance chemicals are customized to enhance functionality, efficiency, and value for specific applications. They are used in various applications, such as detergents, personal care products, paints, and agrochemical formulations. Also, specialty chemicals in the construction industry are essential as they enhance building materials, construction processes, and overall infrastructure durability. Advancements in construction techniques and materials have enabled specialty chemicals to empower engineers and architects to design and build structures that meet stringent performance standards while minimizing environmental impact.
The specialty chemicals market in the home & personnel care segment is witnessing significant growth. Specialty chemicals are essential ingredients in formulating home and personal care products. These chemicals enhance their effectiveness, safety, and sensory attributes. These chemicals help cleanse, moisturize, preserve, and beautify. This enables the product to meet consumer expectations for performance and quality. Surfactants, emollients, and moisturizers are key components in skincare and haircare products, and they provide gentle cleansing, hydration, and skin conditioning. Furthermore, the food additives in the specialty chemicals industry contribute to the quality, safety, and shelf life of food products. These additives are highly formulated and regulated in the food and beverage sector to ensure they meet stringent food safety and consumer health standards.
INSIGHTS BY DISTRIBUTION CHANNEL
The entry of specialty chemicals into the chemical market has increased sales through stores, such as outlets and distributors. Although the number of these chemicals sold online has increased, a significant share of specialty chemicals distribution occurs through stores. Specialty chemicals producers sell in stores and through distributors due to the availability of customized specialty chemicals and customer services.
In 2023, the offline distribution channel held the most dominant share of the global specialty chemicals market due to high customer preference, human interaction, the human aspect of the entire process of buying and selling, and the quality and properties of the product before making the final purchase. Moreover, since specialty chemicals have high costs, the preference for offline channels is high to minimize the risk of receiving duplicate products.
GEOGRAPHICAL ANALYSIS
APAC holds the most significant share of the global specialty chemicals market, valued at over USD 384 billion in 2023. APAC is the largest specialty chemical market as the cosmetics, pharmaceutical, automotive, and agriculture sectors are increasing significantly due to continuous industrialization, low-cost labor, and availability of raw materials, thereby indirectly fueling the demand for specialty chemical markets in the region. The region is home to various developing countries, such as India, China, South Korea, and Indonesia.
Governments of these developing countries introduced policies that attract foreign investment to promote industrial development. Furthermore, Europe holds a significant share of the global specialty chemicals market. Countries such as the UK, Germany, Spain, and France are some developed countries that drive the market due to the availability of skilled labor. In addition, sports and luxury car manufacturers, such as Rolls-Royce (UK), Alpha Romeo (Italy), Maserati (Italy), Aston Martin (UK), Dodge (US), and Mosler (US), are the major contributors to the automotive market as the purchasing power of customers in these regions is high when compared with emerging economies, thereby driving the demand for specialty chemicals market.
COMPETITIVE LANDSCAPE
The global specialty chemicals market is characterized by low market concentration, with high competition among the players. The present scenario drives vendors to alter and refine their unique value proposition to achieve a strong market presence. Currently, the specialty chemicals market is moderately fragmented and dominated by vendors. All these major vendors have a global presence in three major geographical regions: North America, APAC, and Europe.
Furthermore, there is intense competition in the market as players compete to gain market share. Due to the intensely competitive landscape, the specialty chemicals market will likely witness increased consolidation. These factors make it imperative for vendors to distinguish their products and service offerings through a clear and unique value proposition. Otherwise, they will not survive in a highly competitive environment. In addition, they must develop high functionalities and continue upgrading their products to keep pace with the latest technological developments, failing which they might lose relevance in the market.
Key Company Profiles
- Bayer
- BASF
- Dow
- Novozymes
Other Prominent Vendors
- 1,4Group
- Albemarle Corporation
- ALTANA AG
- 3M
- African Explosives and Chemical Industries
- Afton Chemical
- Akzo Nobel
- Archroma
- Cytec Solvay Group
- Cabot Corporation
- Stepan Company
- Covestro
- Henkel
- Noah Chemicals
- PPG Industries, Inc.
- W.R. Grace & Co.
- Evonik Industries
- Atul LTD
- Deepak Nitrite Limited
- Vinati Organics Limited
- Alkyl Amines Chemicals
- The Lubrizol Corporation
- Clariant
- Huntsman
- Exxon Mobil
- Syngenta AG
- Chevron Phillips Chemical Company
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 317 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $800 Billion |
| Forecasted Market Value (USD) by 2029 | $1040.9 Billion |
| Compound Annual Growth Rate | 4.4% |
| Regions Covered | Global |
Key Topics Covered:
Market Opportunities & Trends
- Dependence of Cosmetic Industry on Specialty Chemicals
- Empowering Sustainable Growth Across Industries
- Increasing Demand for Green Chemistry
Market Growth Enablers
- Rising Investments in Construction Industry
- Expansion of Pharmaceutical Sector
- Surge in Food Demand
- Growing Demand from End-users
Market Restraints
- Availability of Inexpensive Fertilizers
- Growing Raw Material Prices
- Environmental Impact of Manufacturing Specialty Chemicals
- Increasing Efforts to Use Sustainable Products in Agriculture Sector
Segmentation by Application Type
- Agrochemicals
- Performance Chemicals
- Construction Chemicals
- Home & Personal Care
- Electronic Chemicals
- Dyes & Pigment
- Flavours & Fragrances
- Polymer & Plastic Additives
- Food Additives
- Pharma Intermediates
- Textile Chemicals
- Specialty Coatings
- Oilfield Chemicals
- Other Chemicals
Segmentation by Distribution Channel
- Offline
- Online
For more information about this report visit https://www.researchandmarkets.com/r/aivbep
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