The chemicals industry is one of manufacturing’s oldest sectors. It contributes greatly to a country’s industrial and economic growth, in addition to playing a critical part in addressing the daily requirements of the average person.
One of the industrial industry’s fastest-growing segments is the worldwide chemical business, which is worth an estimated $2.4 trillion. Additionally, it transported chemicals worth 3.4 billion dollars globally and across continents in 2009.
In the past few years, the global chemical industry has undergone a significant structural change as a result of shifting manufacturing to Asian nations; new emerging growth markets; new technology; and the all-encompassing effects of the global economic crisis, which has combined with rising raw material costs. The commodity/bulk industry has had a two-year and the specialty chemicals segments have undergone sharp declines in demand and margin as a result of the global economic crisis.
Although less significant than Asian demand, chemical demand is anticipated to return in Western markets. All of the main chemical companies anticipate that rising markets like China, India, Brazil, and Korea will drive faster sales growth for their chemical products. Given its significant potential advantage in low-cost hydrocarbon feedstock, which is primarily supported by close access to crude oil, the Middle East has seen a surge in investments, mergers and acquisitions, and the attraction of additional capacity.
This is mostly caused by increased GDP growth rates linked to regional economic expansion and new application development areas. The global chemical sector will continue to place a strong emphasis on minimizing operating costs, managing cash flow, and sourcing raw supplies internationally. Key obstacles still exist.
The focus areas of some of MarketsandMarkets’ syndicated reports include petrochemicals, specialty chemicals, agrochemicals, renewable chemicals, traditional and biodegradable plastics, resins, paints & coatings, and water treatment chemicals, and a variety of other chemical categories that are related. Chemical analysts also examine developments in relevant downstream markets with the goal of determining how these trends may affect the use of chemicals. By working together with Fortune 500 clients to provide specialized consulting projects inside the client’s product line, we have demonstrated our expertise.
Specialty Chemicals Market Outlook – 2027
The global specialty chemicals market was valued at $711.0 billion in 2019 and is projected to reach $953.9 billion by 2027, growing at a CAGR of 5.0% from 2020 to 2027.
Specialty chemicals are specific chemical products used in a range of industries, including textile, ink additives, construction, oil & gas, cosmetics, and food. Specialty chemicals might be single-chemical formulations or groups of substances whose makeup significantly affects how well a customer’s product works. Depending on how well they perform, these compounds are used. In this sector, ongoing R&D has made it easier to develop items with top-notch and cutting-edge characteristics. This is one of the key elements fueling the expansion of this market.
There has been an increase in demand from Asian nations like China and India as a result of increasing industrialization. In Asia-Pacific, investments in building and infrastructure development projects have increased. Asia-Pacific is so regarded as a favorable destination for specialty chemical manufacturers; thereby, boosting the market growth. Whereas, variations in raw material cost and stringent regulations by the government are estimated to hamper the growth of the global specialty chemicals market
Additionally, it is anticipated that agrochemicals will hold a one-eighth market share. Agrochemicals are increasingly necessary for better crop protection and production due to the growing population base and increased food consumption, which is fueling the expansion of the specialized chemicals industry during the next years. The market is expanding as a result of farmers’ increasing awareness of the use of agrochemicals in farming. Growing need for agrochemicals to boost crop production per acre of land results from a decline in agricultural land due to increased urbanization and industrialization, which is what is causing the rise of the specialty chemicals market throughout the course of the forecast period.
A recent development is the creation of bio-based and renewable chemicals. These materials are probably going to deal with environmental problems connected to the chemical industry. The requirements that the sector must meet in order to overcome growth barriers over the long term include environmental protection, social responsibility, and economic growth.
However, creating sustainable growth objectives will be difficult given the industry’s continued struggle with soaring raw material prices. Long-term growth sustainability will be difficult given these constraints. The sector is also threatened by worries about hazardous material emissions and strict rules that are in place to limit the usage of specific chemicals. Because there is little room for product uniqueness, businesses in this sector need robust business strategies to achieve growth objectives.
Government subsidies and high returns on investment (ROI) are luring small businesses to this market. Most emerging economies are experiencing pressure to pursue feasible growth goals due to mounting economic and social pressures, where the trend is most prevalent.”