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The specialty chemicals market size is forecast to increase by USD 368.2 billion, at a CAGR of 6.78% between 2023 and 2028. The market experiences robust growth due to the rising demand from various industries. In the agrochemical sector, the increasing usage of specialty chemicals as inputs for producing high-performance pesticides and fertilizers fuels market expansion. Furthermore, the recycling industry's growing reliance on specialty chemicals for processing recycled plastics is another significant driver. Additionally, the construction industry's escalating demand for specialty chemicals as additives and performance enhancers in concrete and other building materials contributes to market growth. These factors collectively create a favorable environment for the market's continued expansion.
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The specialty chemicals market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The agrochemicals segment is estimated to witness significant growth during the forecast period. These are engineered chemical or biological formulations used for improvements in the quality and yield of crops. Two categories of these are generally classified as fertilizers and pesticides.
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The agrochemicals segment was the largest segment and was valued at USD 167.30 billion in 2018. In addition to producing healthy crops, they are responsible for ensuring the safety of crops against pests. The growth of modern-day cultivation, such as floriculture and greenhouse horticulture, increasing literacy among farmers, and the rising awareness about the use of pesticides and fertilizers in major agriculture-focused countries are driving the growth of the segment.
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APAC is estimated to contribute 59% to the growth of the global specialty chemicals market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is expected to grow significantly during the forecast period. The growth of the market will be driven by countries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. China, Japan, South Korea, and India are the major markets in APAC, owing to rapid industrialization and the increasing demand for plastic additives, food additives, and adhesives and sealants in the region. In this region, the demand for plastic additives is expected to increase with the rising production of consumer goods. Such factors will fuel specialty chemicals market growth in this region during the forecast period.
The market is a diverse and dynamic sector encompassing a wide range of industries and applications. From rubber additives to cosmetic ingredients, lubricating oil additives to water treatment chemicals, they play a crucial role in enhancing the performance and functionality of various products and processes. With advancements in process technology, the market continues to evolve to meet the growing demands of industries such as electronics, textiles, and construction. Trade liberalization has opened up new opportunities for expansion and collaboration, while innovations in flavors and fragrances drive consumer preferences in food and beverages. Antioxidants, biocides, and other functional products ensure the quality and safety of end products, highlighting the real difference these make in various business segments. The oil field chemicals industry encompasses a wide range of sectors, including specialty oilfield, construction, electronics chemicals, and chemicals used in the processed food and beverages and water treatment industry, highlighting both overlap and strategic aspects to ensure convenience and efficiency.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
The increasing demand for specialty chemicals from the agrochemical industry is driving specialty chemicals market growth. The agriculture industry is under threat from the rising global population and shrinking arable land. Therefore, the limited availability of arable land is leading to an increase in the focus on raising crop yields to support the rapidly growing world population.
However, the demand for these agrochemicals is rising, which is driving the growth of the market. The increase in demand for food, and the decreasing amount of land used to grow vegetables, especially in developing countries, will propel the use for the improvement of farm yields and the reduction of crop loss which will drive the market in focus growth during the forecast period.
The growing demand for bio-based chemicals is a key trend in the specialty chemicals market. As alternatives to petroleum lubricants and plastics, bioplastics have been developed such as bio-based lubricants and biodegradable plastics. Bio-based lubricants are produced from renewable feedstocks such as plant-based oil and sugar and involve fermentation, ultrafiltration, and crystallization techniques.
In addition, the demand for biodegradable plastics is increasing steadily in the everyday application of consumer goods, especially in the packaging industry. The increasing preference for environment-friendly bio-based chemicals is expected to fuel the growth of the global specialty chemicals market during the forecast period.
The commoditization of specialty chemicals is a major challenge to specialty chemicals market growth. The rapid conversion of these will have a detrimental effect on manufacturers' profit margins. Rapid product innovation will limit the commoditization of specialty chemicals. The manufacturers must focus on products for niche applications.
However, manufacturers are struggling to develop innovative products that provide additional value to end-users so that manufacturers can differentiate themselves. The accessibility of production technology in the field of chemicals and the rapid expansion of capacity are driving commoditization, slowing down the growth of the market in focus during the forecast period.
The specialty chemicals market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the specialty chemicals market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The specialty chemicals market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The specialty chemicals market is a multifaceted landscape, encompassing diverse sectors such as oilfield chemicals, electronic chemicals, and textile chemicals. In an era dominated by e-commerce platforms and environmental regulations, the industry faces challenges and opportunities alike. Fluctuations in raw material prices impact production costs, while innovations in areas like PVC-based pipes and UV rays protection drive market demand. Furthermore, with the rise of urbanization and the increasing needs of automotive manufacturers, they find applications across various sectors, including construction, electronics, and food and feed additives. Companies like General Mills and Kraft Foods lead the charge in delivering novel flavors and fragrances, while advancements in water treatment and detergent chemicals ensure a sustainable future. In this dynamic landscape, strategic sourcing and customer awareness play vital roles in navigating energy-intensive production processes and managing raw material costs.
Additionally, the market is driven by diverse applications, including specialty oilfield chemicals for the oil industry, and essential chemicals for the medical industry. The operational plant efficiency and labor costs significantly influence chemical production. Construction chemicals are crucial for building infrastructure, while detergents and cleaning products play vital roles in daily hygiene. Crop protection chemicals ensure agricultural productivity. The market is also impacted by fluctuating oil costs and end-user concentration, affecting demand dynamics. Surfactants are key components in many formulations, enhancing performance across various applications. As the industry evolves, the focus remains on innovative solutions to meet the specific needs of different sectors, ensuring sustainability and efficiency in chemical production and application.
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Market Scope |
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Report Coverage |
Details |
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Page number |
198 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market Growth 2024-2028 |
USD 368.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 59% |
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Key countries |
China, US, Japan, Germany, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Albemarle Corp., Ashland Inc., BASF SE, Beardow and Adams Adhesives Ltd., Clariant International Ltd., Danimer Scientific Inc., Dow Chemical Co., Dymax Corp., Evonik Industries AG, Exxon Mobil Corp., H.B. Fuller Co., Henkel AG and Co. KGaA, Huntsman International LLC, Lanxess AG, Nouryon Chemicals Holding BV, PPG Industries Inc., Prince International Corp., Saudi Arabian Oil Co., Shree Ganesh Remedies Ltd., and Solvay SA |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our specialty chemicals market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this specialty chemicals market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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