Specialty Chemicals Market

Updated on : November 25, 2024

Specialty Chemicals Market

The global specialty chemicals market was valued at USD 285.4 billion in 2023 and is projected to reach USD 364.8 billion by 2028, growing at 5.0% cagr from 2023 to 2028. Specialty chemicals is a whole ecosystem consisting of multiple chemicals within the category. In this report we have considered different specialty chemicals such as plastic additives, rubber additives, adhesives, cosmetic ingredients, lubricating oil additives, specialty oilfield chemicals, water treatment chemicals, electronic chemicals, textile chemicals, and advanced ceramic chemicals. Packaging industry is one of the major consumer of specialty chemicals, especially for food and cosmetic packaging application. This growth is driven by the emergence of e-commerce platforms.

Specialty Chemicals Market Forecast & Trends

To know about the assumptions considered for the study, Request for Free Sample Report

Specialty Chemicals Market Dynamics

Driver: Increasing demand from end-use industries

Due to the expansion of different end-use industries, including automotive, electronics, construction, medical, and packaging, the demand for specialty chemicals has been rising recently. One of the biggest consumers of specialty chemicals is the automotive industry. Specialty chemicals are used in the manufacturing of a few automobile parts, including tires, coatings, and adhesives inorder to enhance their performance and durability. The demand for specialty chemicals is expected to grow further as these sectors develop and innovate, presenting potential for producers in the specialty chemicals market.

Restraints: Government and environmental regulations

The regulatory framework in which the specialty chemicals industry operates frequently puts strict rules on the companies. To protect workers, customers, and the environment, these rules are implemented by government organizations and environmental authorities. Although these laws are essential for safeguarding the public's health and reducing their negative effects on the environment, they can be difficult for the companies to comply with. To satisfy the required standards, they must spend a lot of money on testing, research and development, and documentation.

Opportunities: Green & sustainable specialty chemicals 

Specialty chemicals that provide eco-friendly and sustainable solutions now have a lot of opportunities because of rising environmental concerns and standards around sustainability. The need for specialty chemicals that support these initiatives is rising as the companies work to minimize their environmental impact and implement more eco-friendly practices. These specialty chemicals are essential for lowering emissions, increasing energy effectiveness, and promoting sustainability in a variety of industries, including consumer goods, construction, and the automobile industry.

Challenges: Volatility in raw material prices

The specialty chemicals manufacturing process includes the use of various raw materials.  Specialty chemicals often depend on specific raw materials, and any changes in their prices can have a major impact on manufacturing costs and profit margins. The cost of producing specialty chemicals can be directly impacted by changes in the price of these raw ingredients. If the prices of key raw materials increase significantly, it can result in higher production costs for plastic additive, rubber additives, adhesives and other specialty chemicals manufacturer. When the cost of raw materials used in specialty chemicals rises, manufacturers may face challenges in maintaining competitive pricing. Specialty chemicals may be more expensive and less appealing to consumers if they are unable to bear the extra costs.

Specialty Chemicals Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of specialty chemicals. These companies have been in business for a while and have a broad range of products, cutting-edge technologies, and robust international sales and marketing networks. Prominent companies in this market include BASF SE (Germany), DOW Inc. (US), Nouryon (The Netherlands), LANXESS AG (Germany), Evonik Industries AG (Germany), Huntsman Corporation (US), Covestro AG (Germany), Clariant AG (Switzerland), Solvay S.A. (Belgium), and Arkema (France).

Based on type, plasticizers was the largest segment for plastic additives market, in terms of value, in 2022.

The development of new plasticizer formulations and manufacturing processes has expanded the range of applications for plasticizers. This includes the development of bio-based and non-phthalate plasticizers, which have gained popularity because of their safe and non-toxic attributes. Also the growing construction industries fuels the demand for plasticizers as they are used in the manufacturing of PVC-based pipes, cables, and other construction materials.

Based on application, consumer goods was the second-largest segment for plastic additives market, in terms of value, in 2022.

The consumer goods segment accounted for the second-largest market share in the plastic additives market in terms of value, in 2022. There is a significant demand for plastic additives in the consumer goods application to protect goods from the damaging by UV rays while being stored and transported, improve durability, and enhance performance . Overall, the need for product protection, consumer expectations, regulatory requirements, and technological developments in plastic additives formulations are all projected to drive up demand for plastic additives in consumer goods application.

“Asia Pacific accounted for the largest market share for plastic additives market, in terms of value, in 2022”

Asia Pacific is home to some of the fastest-growing economies, such as China, India, and Southeast Asian countries. The economic growth in these countries leads to the growth of construction activities, infrastructure development, and urbanization, which drives the demand for specialty chemicals. Specialty chemicals are used in finished products as ingerdients to enhance their performance, durability, and protect from damaging. Also the rising disposable income in this region contributes to an increased infrastructure and construction activities. Asia Pacific countries such as India and China have low cost labor which attract major automotive manufacturers to set up their operational plant in these countries. All these factors are driving the market for specialty chemicals in Asia Pacific region majorly in automotive, construction, medical, packaging, and consumer goods applications.

Note: For illustration, largest type, application, region is provided for plastic additives similar information is provided for all the ten chemicals in the report.

To know about the assumptions considered for the study, download the pdf brochure

Specialty Chemicals Market Players

The players profiled in the report include BASF SE (Germany), Evonik Industries AG (Germany),  Clariant AG (Switzerland), Solvay S.A. (Belgium), DOW Inc. (US), Nouryon (The Netherlands), LANXESS AG (Germany), Huntsman Corporation (US), Covestro AG (Germany), and Arkema (France). Unitechem Group (China), and Everlight Chemical Industrial Corporation (Taiwan) among others, these are the key manufacturers that secured major market share in the last few years.

Read More: Specialty Chemicals Companies

Specialty Chemicals Market Report Scope

This report categorizes the global specialty chemicals market based on type, application, and region.

On the basis of type, the specialty chemicals market has been segmented as follows:

• Adhesives
  • Water-based
  • Solvent-based
  • Hot-Melt
  • Reactive & Others
• Water Treatment Chemical
  • Coagulants & Flocculants
  • Scale Inhibitors
  • Corrosion Inhibitors
  • Biocides & Disinfectants
  • Chelating Agents
  • Others
• Electronic Chemicals
  • Silicon Wafers
  • PCB Laminates
  • Specialty Gases
  • Conductive Polymers
  • Photoresist & Photoresist Ancillaries
  • Others
• Rubber Additives
  • Antidegradants
  • Accelerators
  • Others
• Lubricating Oil Additives
  • Viscosity Index Improvers
  • Dispersants
  • Detergents
  • Antioxidants
  • Extreme Pressure Additives
  • Others
• Cosmetic Ingredients
  • Emollients
  • Surfactants
  • Conditioning Polymers
  • Rheology Modifiers
  • Emulsifiers
  • Others
• Advanced Ceramic Materials
  • Alumina Ceramics
  • Silicon Carbide Ceramics
  • Titanate Ceramics
  • Zirconia Ceramics
  • Others
• Plastic Additives
  • Plasticizers
  • Flame Retardants
  • Stabilizers
  • Impact Modifiers
  • Nucleating Agent
  • Others
• Specialty Oilfield Chemicals
  • Demulsifers
  • Inhibitors & Scavengers
  • Rheology Modifiers
  • Friction Modifiers
  • Specialty Biocides
  • Others
• Textile Chemicals
  • Coating & Sizing Agents
  • Colorants & Auxiliaries
  • Finishing Agents
  • Surfactants
  • Desizing Agents
  • Others

On the basis of application, the specialty chemicals market has been segmented as follows:

• Adhesives
  • Paper & Packaging
  • Building & Construction
  • Medical
  • Automotive & Transportation
  • Electronic
  • Others
• Water Treatment Chemical
  • Residential
  • Commercial
  • Industrial
• Electronic Chemicals
  • Semiconductor
  • Others
• Rubber Additives
  • Tire
  • Non-Tire
• Lubricating Oil Additives
  • Automotive
  • Industrial
• Cosmetic Ingredients
  • Skin Care
  • Hair Care
  • Oral Care
  • Make-Up
  • Others
• Advanced Ceramic Materials
  • Electronics & Electricals
  • Transportation
  • Medical
  • Environmental
  • Chemical
  • Others
• Plastic Additives
  • Packaging
  • Consumer Goods
  • Construction
  • Automotive
  • Others
• Specialty Oilfield Chemicals
  • Production
  • Well Stimulation
  • Drilling Fluids
  • Enhanced Oil Recovery
  • Cementing
  • Others
• Textile Chemicals
  • Apparel
  • Home Textile
  • Technical Textile
  • Others

On the basis of region, the specialty chemicals market has been segmented as follows:

• Asia Pacific
• North America
• Europe
• Middle East & Arica
• South America

Recent Developments

• In June 2021, BASF SE introduced VALERAS to its plastic additives’ portfolio with high sustainability value. This new product portfolio allows its customers gain access to a range of innovative solutions that empower them to effectively pursue their sustainability objectives..
• In December 2022, Dow has introduced the SILASTIC SA 994X Liquid Silicone Rubber (LSR) series, demonstrating the company's ongoing commitment to developing intelligent, secure, and environmentally friendly technologies for the mobility and transportation sector. The SILASTIC SA 994X LSR series comprises a collection of primerless, self-adhesive, general-purpose, and self-lubricating LSRs with a one-to-one mix ratio.
• In February 2021, Dow introduced DOWSIL IE-8749, a new generation durable water repellent finish for fabrics based on the silicone chemistry. Studies conducted on a variety of textiles substrates based on DOWSIL IE-8749 Emulsion treatment demonstrated improved fabric retention in comparison to standard silicone finishes..
• In June 2022, Nouryon launched Expancel HP92 microspheres, revolutionizing the use of thermoplastic microsphere fillers in high-pressure manufacturing applications for the automotive industry. With the growing emphasis on lightweight materials to comply with stringent emission standards and meet consumer demands for fuel-efficient vehicles without compromising performance or passenger comfort, the introduction of Expancel HP92 microspheres marks a significant advancement.
• In August 2022,  Nouryon entered into an exclusive partnership with Brenntag Specialties, appointing them as the sole distributor of Nouryon's innovative LumaTreat® tagged polymers in the United States and Canada. This agreement covers a diverse range of Nouryon's specialty polymers and aims to provide professionals in the water treatment industry with enhanced availability of essential ingredients for industrial and commercial cooling and heating systems.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst