Speciality & Fine Chemicals

Speciality & Fine Chemicals Market Analysis

Specialty chemicals are a range of compounds that are produced in smaller quantities as compared to bulk chemicals. These chemical products play a key role as raw materials in other processes, i.e. they are majorly intermediate chemical products. Some of the main categories of specialty chemicals include fuel additives, cosmetic additives, adhesives, etc. They have widespread applications across several industries including food, agriculture, cosmetics, aerospace, textile, etc.

These chemicals are majorly employed based on their functionality. Hence, they are also known as effect chemicals. Specialty chemicals are in the form of unique formulations which hereby help differentiate between the function of each chemical. The confluence of the physical and chemical properties of the elements used to create this formulation affects the performance of this compound. In terms of commercial applications, producers within the specialty chemicals sector cater to the needs of their customers on an individual level. This is one of the key differentiating factors between specialty chemicals and other clusters within the chemical industry.

On the contrary, fine chemicals are single, complex, and pure chemical substances. They are produced in limited quantities (< 1000 mtpa) within multipurpose plants. These facilities make use of multi-step batch processing techniques to produce their end product. The use of drugs like biosimilars as well as biologicals has been rampant owing to the rapid spread of chronic illnesses. Biotechnology is hereby used to synthesize medicines as well. Both Life science chemicals and specialty chemicals are used to design products that can increase the healthy life expectancy of the population worldwide. The fine chemicals and specialty chemicals that are used to design drugs are used in precise measurements. Fine chemicals are also known as active ingredients or advanced intermediates.

Due to the product specifications and the cumbersome process involved in the production- these materials are very often sold at very high prices. Fine chemicals serve as starting materials for the production of specialty chemicals. Some of the key areas of application for this product include pharmaceuticals, biopharmaceuticals as well as agrochemicals. Custom manufacturing for life science industries plays a key role within this market. Although, large players of this market make use of in-house manufacturing facilities in order to reduce imports. This segment also covers green chemicals as well as recycled chemicals based on their formulations.

The Chemical Market Forecast specializes in the derivation of the value chain analysis based on the products generated within this segment. The reports focus on providing a holistic perspective of the changing market scenario based on the current trends. The Specialty and Fine Chemicals Market Research reports will provide an in-depth analysis based on innovation in the treatment and therapeutics segment. A combination of both industrial and technical knowledge of this sector will be covered through this forum.

North America Speciality & Fine Chemicals Market

The North American specialty chemicals market ranks second in terms of value associated with the product. The specialty chemicals as well as the fine chemicals market is dependent on the chemistry market. The North American Chemistry sector has been expanding. The growth associated with this market supports the specialty and fine chemicals sector.

The growth in employment rate in addition to a surge in the trade influx further boosts the economy of North America. The chemicals sector has played an early role in the supply chain for NA. The manufactured goods market consumes roughly 96% of the products generated from the chemicals industry. Factors like the rising disposable income of the population have led to a rise in the purchasing power of the North American population. The increased purchase of products like cosmetics, fragrances as well as processed food hereafter increases the sales linked with specialty chemicals. Moreover, since specialty chemicals serve as active intermediate products- they are also used in industries like mining, construction, and electronics.

Automotive also form a key part of the value chain for the specialty chemicals sector. These formulations are used as fuel additives paints, etc. The economic downturn in 2020 has caused automotive sales to reduce by 20-22 percent. This decrease in sales affects the specialty chemicals market. In terms of technology, specialty chemical companies catering to the automotive sector are restructuring their product portfolio to meet new trends such as light-weight and low-emission products.

According to the specialty chemicals and fine chemicals report, the North American market within this sector thrives in areas like the U.S as well as California. Additionally, North America is the leading region in terms of the fine chemicals market. In the year 2018, NA fine chemicals market contributed to 24% of the total revenue generated by the chemical industry. The market amounted to a value of USD 36.17 Billion approximately.

From a holistic perspective for the year 2020, the capital spending for the chemical industry is expected to reduce to a value of USD 29 Billion. The production within the U.S is expected to increase by roughly 0.4%. The U.S based chemical sector is anticipated to decline by 6.0%. In the coming year, the market is expected to bounce back with a growth value of roughly 4-5.5 percent. The market is anticipated to follow a V-shaped trend. The government-imposed lockdowns that have caused a decline in economic activity within this region. The U.S Chemical sector is poised to achieve an increase in production value by 14% approximately in the year 2021.

DowDupont is one of the leading companies in terms of chemical products globally. The company generated an estimated revenue of around USD 86 Billion in the year 2018. In the year 2018, the company surpassed BASF as the leading producer of chemistry-based products in terms of revenue. This reign is expected to be short-lived since DowDupont has currently split into three companies. The largest amongst these three-segmented companies are Dow which is headquartered in Michigan. The company is focused on the production of polymers and petrochemical-based products.

Ontario is one of the biggest manufacturing sectors situated within the U.S. Canada has chemical shipments worth USD 19 Billion. The Chemical industry situated in Canada caters to exports worth USD 13 Billion. The value accounts for 3 quarters of the overall global sales value. According to AICHE, the area is currently home to 700 manufacturing firms and it employs 29,000 people through both direct as well as indirect jobs. The Canadian chemical sector accounts for roughly 40% of the total production. The United States is a dominant export partner since it is the destination for 76% of exports.

Europe Speciality & Fine Chemicals Market Analysis

The European Chemical sector accounts for a cumulative value of USD 667.99 Billion in 2018. Specialty chemicals contribute to 27.2% of the overall revenue generated by this market for the year 2018. Germany and France are two of the largest chemical manufacturers present within this region followed by Italy and the Netherlands. In the year 2018, the countries accounted for 63.3% of the EU sales generated. On including Spain, Belgium as well as the United Kingdom, the shares rise to 83.6%.

The UK’s chemical sales value accounted for USD 45.64 Billion approximately. The country recorded an export value of USD 27.64 Billion. The imports from the U.K amounted to USD 24 Billion in the year 2018. Therefore, the United Kingdom’s decision to exit Europe provides an economical as well as a political challenge to the EU’s manufacturing sector.

The European chemical industry acts as a key pillar for the sustainable economy present within this region. The industrial sector provides employment to 1.2 million people in Europe. It helps with sustainable development challenges such as energy and climate, transport, health, food, hygiene, housing, among others. According to chemical market research reports, more than 56% of the EU’s manufactured chemical products are sold to downstream users. The remainder goes to other branches of the global economy such as health and social work, agriculture, and services. The overall sales generated by the EU are segmented as Home sales, Intra-sales, and Extra-Sales. The home sales value accounted for 13% of the chemical sales revenue generated by the EU.

The value of Intra-sales has increased from a value of 48% (2008) to a value of 58% (2018) over the past 10 years. Extra-EU sales accounted for 29% of the chemical revenue generated. The value has increased by 9% as compared to 2008. The three primary markets for EU chemical exports are Asia, the neighbouring EU countries, and the NAFTA trade bloc.

Evonik Industries created a revenue worth USD 17.8 Billion in the year 2018. The company currently focuses on the production of specialty chemicals. The company came upon the decision of selling its Methacrylate business to Advent International for toughly USD 3.4 Billion. The firm purchased Air Products’ specialty chemical business in the year 2017. Post this strategic move, Evonik agreed to purchase Air Products’ Trexlertown, Pennsylvania, campus, which houses R&D labs. The corporation plans on investing USD 50 Billion into the site. Evonik also plans on expanding its segments into the 3D printing business. The enterprise introduced a line of 3-D printing filaments for bioresorbable medical implants.

Solvay based in Belgium is also becoming increasingly interested in the Specialty chemicals sector. The company generated a revenue of USD 13.4 Billion in the year 2018. The France based company Arkema decided to acquire the Florida-based surfactant maker ArrMaz in 2018. The purchase was made via the private equity firm Golden Gate Capital for USD 570 million. In the year 2017, Arkema bought Afinitica, which has a patented process for making cyanoacrylate monomers for instant adhesives. The objective of this company is to combine Afinitica with its Bostik adhesives business.

Asia Pacific Speciality & Fine Chemicals Market Analysis

The rising population and the rapidly growing industrialization within this region have been accounting for the growth of APAC. Moreover, the middle-class population has also been increasing. Additionally, the specialty chemicals and fine chemicals market forecast states that the people with purchasing power have also increased within this geographic spread. In the year 2019, China accounted for the largest market share within APAC. China contributed to 38.9% of the overall market revenue generated followed by India which accounted for 23.1% of the total market share. The specialty chemicals market is expected to flourish within this region. The rapid growth of downstream industries and end-users within emerging countries has been promoting the growth of the APAC market.

The growth in the geriatric population within this segment accounts for the growth of the pharmaceutical industry within this sector. The use of fine chemical therapeutics to treat the aging population acts as one of the key factors for the aggradation of this market. Additionally, owing to the growth in population-the agricultural sector has also been expanding. Specialty chemicals and fine chemicals are widely used in the production of synthetic fertilizers as well as pesticides thus augmenting the growth of this market positively.

The use of construction chemicals in residential projects has also been increasing the applications of this market. Several players within the construction sector are making use of construction chemicals like concrete mixtures, adhesive & sealants, and flame retardants in order to expand their consumer base and presence in the global markets. The automobile sector also acts as one of the key regions that promote the growth associated with this market.

The regulations imposed on the production of chemicals within this region acts as a key restraint for this market. In the year 2015, The Chinese Ministry of Environmental Protection enforced strict penalties on the manufacturing of chemicals. This act led to many specialty chemical manufacturing facilities in the country to cease operations.

Countries like China, Japan, and India are some of the major automotive end-users. Specialty chemicals such as paints, adhesives, sealants, and fibers are extensively used within the Automotive sector.  Due to the economic downturn (2020), the sales for Automotive vehicles are expected to reduce by roughly 5% on an annual basis. The supply chain disruption caused due to the pandemic is expected to be one of the key reasons for the reduction in vehicle sales. This decrease has been affecting the specialty and fine chemicals market negatively.

The chemical sales for Toshosh increased by a value of approximately 5% in the year 2018. The firm experienced a loss of roughly 20% in the year 2018. This loss is due to the softening of the automotive sales and the petrochemical industry within APAC. This factor has also been having an impact on the company’s profit is the Chlor-alkali business. Despite having endured a loss, the company reported a profit in its specialty chemicals segment. In 2018, the company acquired a 33% stake in Semba Biosciences, a Madison, Wisconsin–based manufacturer of biomolecule-purification instruments. The enterprise Toshosh generated revenue worth USD 587 Billion in the year 2018. The chemical capital investment accounted for 64.1% of the overall revenue.  

The Japanese based company DIC generated revenue worth USD 7.3 Billion in the year 2018. The Japanese chemical maker formerly known as Dainippon Ink and Chemicals acquired Ideal Chemi Plast.

Rest of the World Speciality & Fine Chemicals Market Analysis