2016 - 2026
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The Specialty Chemicals Market was estimated at around USD 900 billion in 2020 and the market is projected to register a CAGR of over 4% during the forecast period (2021-2026).
The market was negatively impacted by COVID-19 outbreak in 2020. Owing to pandemic scenario, several countries went into lockdown, which led to supply chain disruptions, work stoppages, and labour shortages. This negatively impacted various industries like construction, mining, automotive, cosmetics, food and beverages, and others. According to OICA, in 2020, the global automotive production, in first quarter was about 17.9 million units, in second quarter was 31.1 million units and in third quarter was 52.1 units, declining about 23.1%, 32.4% and 22.9% respectively, from the previous year at the same time. The car sales for the first ten months of 2020, in major global car markets of Europe, United States, Japan, Brazil, India, and China were down by 27.3%, 17%, 14.7%, 30.9%, 24.6%, 10%, respectively in comparison to the previous year. Similarly, several industries were severely affected. However, the condition is expected to recover in 2021, thereby driving the market's growth over the forecast period.
- Over the short term, the major factors driving the growth of the market studied are the robust growth of construction activities, especially in the Asia-Pacific and the Middle East & African regions.
- On the flip side, increasing environmental regulations, decreasing fossil fuel reserves, and negative impact of COVID-19 pandemic are the restraints hampering the growth of the market studied.
- Agrochemicals dominated the specialty chemicals market, and is expected to grow during the forecast period, which is majorly driven by the increasing population and growth in the demand for food across the world.
- Growing R&D for developing new products is likely to provide an opportunity for the market studied, over the forecast period.
- Asia-Pacific dominated the market across the world, owing to the huge customer base, leading to high demand for specialty chemicals, increasing industrial production, and robust growth of the construction sector in the region.
Scope of the Report
Specialty chemicals are the chemical products, on which many other industries such as construction chemicals, paints and coatings, textile chemicals, mining chemicals, plastic additives, and others rely on. The Specialty Chemicals market is segmented by Paints and Coatings - Application; Catalysts - Function; Construction Chemicals - Application; Cosmetic Chemicals - Application; Dyes, Inks, and Pigments - Type; Electronic Chemicals - Application; Water Treatment Chemicals - Function; Food Additives - Type; Agrochemicals - Type; Industrial and Institutional Cleaners - Application; Lubricant Additives - Product Type; Mining Chemicals - Function; Oilfield Chemicals - Application; Adhesives and Sealants - Technology; Plastic Additives - Plastic Type; Rubber Processing Chemicals - Application; Specialty Polymers; Textile Chemicals - Application. The report also offers market size and forecasts for 16 countries across major regions. For all the segments, the market sizing and forecasts have been done on the basis of value (USD million).
|Paints and Coatings|
|Dyes, Inks, and Pigments|
|Water Treatment Chemicals|
|Industrial and Institutional Cleaners|
|Adhesives and Sealants|
|Rubber Processing Chemicals|
Key Market Trends
Agrochemicals Segment to Dominate the Market Demand
- The agrochemicals segment dominated the share in the specialty chemicals market. The growth of the segment is extensively driven by the decreasing per capita arable land and increasing demand for food, across the world.
- Global population is increasing at a rapid rate. This growing population is adding to the food demand. Supplying food to this growing population has become a threat. On the other hand, arable land is declining, due to industrialization and urbanization. Fertilizers have been used for a long time to increase productivity of crops, thus enhancing the demand for agrochemicals over the forecast period.
- With the increasing per capita income and growing population level, the demand for food crops and cash crops is estimated to increase, globally. For instance, as per the FAO, the food demand in the United States is expected to increase by 50-90% by 2050.
- Food and Agriculture Organization of the United Nations (FAO) and the International Food Policy Research Institute (IFPRI) have published projections of an increase in global food demand out to 2050. The FAO projections indicate that world food demand may increase by 70% by 2050, with much of the projected increase in global food demand expected to come from rising consumer incomes in regions such as Asia-Pacific, Eastern Europe and Latin America.
- Furthermore, owing to the growing concerns about nutrient efficiency uptake by plants and the growing regulatory health and environment concerns, micronutrient fertilizers, bio-based fertilizers, and specialty fertilizers (like liquid fertilizers) are gaining popularity.
- Bio-herbicides, that use microbes as biological weed control agents, are also gaining popularity in integrated pest management techniques, along with the synthetic herbicides. Although the segment constitutes only a small part of industry, it is expected to grow at significant growth rate.
- Moreover, contracting agricultural land, and the loss of crops, owing to the incidence of pests and diseases, are the significant factors driving the market for insecticides.
- Hence, all such favorable trends are expected to drive the demand for the agrochemicals market, during the forecast period. This is expected to drive the demand for specialty chemicals.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the specialty chemicals market, and is likely to retain its position during the forecast period, due to robust growth of the construction sector, increasing demand for cosmetic products, growing investment and production in the increasing electrical and electronics industry output, increasing demand for adhesives and plastics from the packaging industry, and increasing installations of water treatment systems from the industries in the region.
- The growing population in the region, specially in countries such as China and India, is increasing the demand for food. This is expected to drive the market for agrochemicals, and consequently help the specialty polymers market to grow over the forecast period.
- The growth of the Asia-Pacific construction sector is majorly driven by the expansion of the service sector, leading to an increase in the demand for office spaces, an increase in residential construction projects, and inflow of investments from multi-national companies to set up industrial base in the region. Such factors are likely to increase the demand for paints and coatings, adhesives and sealants, construction chemicals, and specialty polymers in the region, during the forecast period.
- The increase in population in China and India, is expected to boost the construction industry. The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities, over the next ten years creating a major scope for the market studied.
- India is also likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, where the country is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise around 70% by 2025, in India. Besides, the Indian government's ‘Housing for All by 2022’ is also a major game changer for the industry.
- The cosmetic industry is also witnessing strong growth in demand in the region, which is fueled by the increased usage of cosmetic products, due to rising demand for anti-aging cosmetic products from baby boomers and X generation, western culture influence on youth, increased women employment, and continuous innovation of products attracting the masses. This is increasing cosmetic production in the region, leading to a rise in demand for cosmetic chemicals.
- Hence, all such favorable trends are collectively likely to drive the growth of the specialty chemicals market in the region, during the forecast period.
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The specialty chemicals market is highly fragmented, with numerous players holding a significant share of the market. Some of the noticeable players in the market include 3M, BASF SE, H.B. Fuller, Huntsman International LLC, and Henkel AG & Co. KGaA, among others.
- In Nov 2019, Axalta, a leading global supplier of liquid and powder coatings, announced that it completed the acquisition of Capital Paints LLC, a UAE-based thermosetting powder coatings manufacturer.
- In Aug 2019, PPG completed its acquisition of Dexmet Corporation, a manufacturer of specialty materials for surfaces in aerospace, automotive, and industrial applications.
- In Jul 2019, Arkema completed the acquisition of ArrMaz, a global leader in specialty surfactants for crop nutrition, mining, and infrastructure markets.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Industry Value Chain Analysis
4.2 Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products and Services
4.2.5 Degree of Competition
4.3 Raw Material Analysis
5. MARKET SEGMENTATION
5.1 Paints and Coatings
126.96.36.199 Other Applications
188.8.131.52 Chemical Synthesis Catalysts
184.108.40.206 Petroleum Refining Catalysts
220.127.116.11 Polymerization Catalysts
5.3 Construction Chemicals
18.104.22.168 Public Space
5.4 Cosmetic Chemicals
22.214.171.124 Hair Care
126.96.36.199 Skin Care
188.8.131.52 Oral Care
184.108.40.206 Personal Hygiene
220.127.116.11 Other Applications
5.5 Dyes, Inks, and Pigments
18.104.22.168 Organic Pigments
22.214.171.124 Inorganic Pigments
5.6 Electronic Chemicals
126.96.36.199 Semiconductors and Integrated Circuits
188.8.131.52 Printed Circuit Boards
5.7 Water Treatment Chemicals
184.108.40.206 Biocides and Disinfectants
220.127.116.11 Defoamers and Defoaming Agents
18.104.22.168 pH Adjusters and Softeners
22.214.171.124 Other Functions
5.8 Food Additives
126.96.36.199 Natural Additives
188.8.131.52 Synthetic Additives
184.108.40.206 Other Crop Protection Chemicals
5.10 Industrial and Institutional Cleaners
220.127.116.11 General Purpose Cleaners
18.104.22.168 Disinfectants and Sanitizers
22.214.171.124 Laundry Care Products
126.96.36.199 Vehicle Wash Products
5.11 Lubricant Additives
5.11.2 Product Type
188.8.131.52 Dispersants and Emulsifiers
184.108.40.206 Oxidation Inhibitors
220.127.116.11 Extreme-pressure Additives and Anti-wear Additives
18.104.22.168 Viscosity Index Modifiers
22.214.171.124 Friction Modifiers
126.96.36.199 Corrosion Inhibitors
188.8.131.52 Other Product Types
5.12 Mining Chemicals
184.108.40.206 Flotation Chemicals
220.127.116.11 Extraction Chemicals
18.104.22.168 Grinding Aids
5.13 Oilfield Chemicals
22.214.171.124 Drilling and Cementing
126.96.36.199 Workover and Completion
188.8.131.52 Well Stimulation
184.108.40.206 Enhanced Oil Recovery
5.14 Adhesives and Sealants
220.127.116.11 Water-borne Adhesives
18.104.22.168 Solvent-borne Adhesives
22.214.171.124 Hot-melt Adhesives
126.96.36.199 Reactive Adhesives
188.8.131.52 Other Adhesives
5.15 Plastic Additives
5.15.2 Plastic Type
184.108.40.206 Polyethylene (PE)
220.127.116.11 Polystyrene (PS)
18.104.22.168 Polypropylene (PP)
22.214.171.124 Polyamide (PA)
126.96.36.199 Polyethylene Terephthalate (PET)
188.8.131.52 Polyvinyl Chloride (PVC)
184.108.40.206 Polycarbonate (PC)
220.127.116.11 Other Plastic Types
5.16 Rubber Processing Chemicals
5.17 Specialty Polymers
5.18 Textile Chemicals
18.104.22.168 Coating and Sizing Chemicals
22.214.171.124 Colorants and Auxiliaries
126.96.36.199 Finishing Agents
188.8.131.52 Desizing Agents
184.108.40.206 South Korea
220.127.116.11 ASEAN Countries
18.104.22.168 Rest of Asia-Pacific
5.19.2 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.19.4 South America
220.127.116.11 Rest of South America
5.19.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis
6.2.1 Adhesives and Sealants
6.2.3 Construction Chemicals
6.2.4 Lubricant Additives
6.2.5 Mining Chemicals
6.2.6 Oilfield Chemicals
6.2.7 Paints and Coatings
6.2.8 Specialty Polymers
6.2.9 Water Treatment Chemicals
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.3 Afton Chemical
6.4.4 Akzo Nobel N.V.
6.4.5 Albemarle Corporation
6.4.8 Arkema Group
6.4.10 asian paints
6.4.11 Axalta Coating Systems
6.4.12 Baker Hughes Company
6.4.13 BASF SE
6.4.14 Berger Paints India Limited
6.4.16 Chevron Corporation
6.4.19 Covestro AG
6.4.20 DIC Corporation
6.4.24 Eastman Chemical Company
6.4.26 Evonik Industries AG
6.4.27 Exxon Mobil Corporation
6.4.28 Ferro Corporation
6.4.29 Flint Group
6.4.30 FMC Corporation
6.4.31 GCP Applied Technologies Inc.
6.4.32 H.B. Fuller Company
6.4.34 Henkel AG & Co. KGaA
6.4.35 Hexcel Corporation
6.4.36 Huntsman International LLC
6.4.37 Infineum International Limited
6.4.39 KRONOS Worldwide, Inc.
6.4.40 Kurita Water Industries Ltd.
6.4.44 MAPEI S.p.A.
6.4.45 Merck KGaA
6.4.46 NIPSEA GROUP
6.4.48 Nutrien Ltd.
6.4.49 Pidilite Industries Ltd
6.4.50 PPG Industries Inc.
6.4.51 Procter & Gamble
6.4.52 RPM International Inc.
6.4.54 Schlumberger Limited
6.4.55 Sika AG
6.4.59 The Chemours Company
6.4.60 The Lubrizol Corporation
6.4.61 The Sherwin-Williams Company
6.4.62 Venator Materials PLC
6.4.64 W. R. Grace & Co.
6.4.65 Wacker Chemie AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Specialty Chemicals Market market is studied from 2016 - 2026.
What is the growth rate of Specialty Chemicals Market?
The Specialty Chemicals Market is growing at a CAGR of >4% over the next 5 years.
Which region has highest growth rate in Specialty Chemicals Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Specialty Chemicals Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Specialty Chemicals Market?
- H.B. Fuller
- Henkel AG & Co. KGaA
- BASF SE
- Huntsman International LLC
Are the major companies operating in Specialty Chemicals Market.