Key factors driving the specialty chemical products market
Driven by the expansion of application base of special chemical products, increasing demand for crop quality and rapid industrialization, the market of special chemicals will accelerate growth at a compound annual growth rate of 5.5% in the forecast period (2020-2030).
Demand for these chemicals will be driven by growth in the automotive, textile, food and beverage industries, especially in developing countries.
Special chemical products are used as additives to produce the desired effect in the substance and final product. These chemicals have different characteristics and are compatible with other chemicals. Because of these characteristics, they have been widely used in various end-use industries. For example, the automotive industry uses special chemicals as fuel additives to improve fuel performance. Similarly, methyl oleate, a special chemical substance, is used as an active ingredient in many kinds of creams and lotions.
One of the key factors driving the market for specialty chemical products is the strong industrialization and urbanization of emerging economies such as China, Brazil and India. Due to rapid urbanization, the living standards of the people in these countries have been greatly improved. This in turn stimulates the consumption of cosmetics, packaged foods and medicines. In addition, the expansion of China and India's auto industry has also contributed to market growth due to the increase in disposable income.
The market for special chemical products is subdivided into lubricants and oilfield chemicals, pesticides, adhesives and sealants, construction chemicals, surfactants, polymer additives, cleaning chemicals, special coatings, food additives, electronic chemicals, paper and textile chemicals and plastic additives. Among them, due to the increase of shale gas production, the lubricant and oilfield chemicals will show the fastest growth in the forecast period. In addition, the increase in construction and automotive production activities will support the growth of this category in the coming years.
From a geographical perspective, the Asia Pacific (APAC) specialty chemical products market is expected to have the largest share in the forecast period. This can be attributed to the surge in demand for these chemicals in the electrical and electronic, pharmaceutical, automotive, agricultural and personal care and cosmetics industries in India and China. In addition, the rapid expansion of the construction industry, the extensive research and development (R & D) of major market participants, the increase of water treatment system installation, and the growing demand for plastics and adhesives in the packaging industry will promote the market growth in the next few years.
The presence of many companies, such as Evonik industries AG, BASF se, China Petroleum and Chemical Corporation, Dow Inc., Henkel Ag & Co. KGaA, Akzo Nobel N.V., mitsuishi Chemical Corporation, Huntsman Corporation, and Clariant International Limited, has made the market of special chemicals appear to be decentralized.
These companies are expanding the capacity of their production facilities to gain competitive advantage. For example, in december2019, BASF announced plans to expand its factory in Jiangmen, Guangdong Province, China, and invest in its paint business in Asia.
Therefore, the development of end-use industry and the wide application basis of special chemicals in developing countries will promote the development of special chemicals market in the next few years.