The global specialty chemicals market is segmented based on region and type. Based on type, this market is divided into dyes, pharmaceuticals, construction chemicals, surfactants, etc. Regionally, the industry is analyzed across Europe, North America, LAMEA, and the Asia-Pacific region. The demand for these chemical products has increased globally due to rapid industrialization. There have been significant investments in infrastructure and construction developments. Also, the growth of oil exploration and production activities lead to the advancement of this segment of the chemical industry. However, variation in costs of raw materials and stringent regulations by the government may hamper the growth of the global specialty chemicals market.
The pharmaceutical industry accounted for the largest segment of this industry vertical in 2019. This is due to the numerous applications across this sector including drugs for cardiovascular diseases, skin disorders, etc. Pharmaceutical ingredients are active ingredients present in medicinal products. These active ingredients are manufactured from basic chemicals in large reactors in various manufacturing units. Intermediate substances are formed after processing the basic chemicals, which are finally converted into pharmaceutical products.
The agrochemicals sector accounts for a nearly one-eighth market share of the specialty chemicals segments. The increase in population base along with growing food demand leads to increased crop protection and production. Also, the increasing awareness among farmers towards the use of agrochemicals in farming fuels the growth of this market. The agricultural land has decreased over the years due to urbanization and industrialization. As a result, it has become important to increase the crop yield per acre of land, thereby driving the growth of the this market. The demand for agrochemicals has been increasing in countries like the United States, India, and China. This increase in demand is likely to boost the specialty chemicals market revenue.
The North American specialty chemicals market is likely to grow at a compound annual growth rate of 3% in the coming years. The major reason for this growth is the rising production of light vehicles in this region. This increases the demand for lubricants, paints, coatings, polymers, and additives. Another important factor driving the specialty chemicals market is the development in the food and beverage business in the U.S. This sector is expected to exceed a revenue of USD 8 billion by 2024. The rise in the food and beverage demand is likely to increase the demand for food additives.
The United States is the second-largest global producer of coatings and paints. The growing infrastructure in the country is the major consumer of architectural coatings and is driving the market. High-performance coatings are used to improve corrosion and thermal resistance. The coating is used in automotive, paper, mining, marine, and architecture industries. The United States is expected to increase the investment in the power sector in the coming years. The power sector fuels the demand for the high-performance coating market, in turn driving the production of this market.
The global specialty chemicals market outlook was adversely affected during the first quarter of 2020 due to COVID-19 induced lockdowns and disruptions. Increased export demand for segments like surfactants and agrochemicals have decreased the COVID-19 influence on this market segment. The surging effect on several other sectors that are reliant on specialty chemicals has also been amplified during this year. The pandemic has had a varied impact on specialty chemical producers. Reduced crude prices and raw material costs helped manufacturers to fill the void and increase order intakes. Chemical Market Forecast provides an overview of the chemical market with comprehensive research reports.
The application spectrum of this product has continued to drive its global sales. Specialty chemicals are seeing an enormous demand surge from several large-scale manufacturing sectors. Concerns about the damaging effects of conventional chemicals on the environment and humans have encouraged the need for eco-friendly specialty chemicals. Consequently, more than a few players’ focus has shifted towards developing and selling specialty chemicals to edge out from the conventional fine and commodity chemical manufacturers. The key players operating in the global specialty chemicals market are BASF, Bayer, Dow, Evonik, Clariant, Henkel, among many others. The presence of various companies has resulted in a fragmented market structure. The companies involved in the specialty chemicals sector use various distribution channels to market these chemical products.