The global specialty chemicals market size was valued at 846.86 billion in 2020 and is expected to reach USD 1,174.10 billion by 2026, growing at a CAGR of 5.60% during the period 2020-2026. The market is experiencing rapid change due to the growing end-use applications, demand for efficient and safe chemicals, and environmental awareness.
Specialty chemicals are a niche segment that offers special ingredients to improve the performance of several end-users, including construction, automotive, cosmetic, textile, and agricultural industries. An increase in the population, a decrease in the arable land, and expansion of horticulture industries are a few major factors contributing to the growth of the agrochemical & fertilizer market. India, China, Japan, Germany, France, and the UK are the major market for agrochemicals. Water treatment chemicals are the second-largest end-use of the specialty chemical market. These substances are used to disinfect water so that it can be reused in the environment. The factors contributing to the growth of water treatment chemicals are the rising population globally, increasing the demand for potable water. Construction chemicals have the high potential to propel in the forthcoming years due to the robust growth in the construction industry. Rapid urbanization, increasing population, and substantial investment by government agencies to boost the housing sector are stimulating the growth of the construction sector, which, in turn, is driving the market for construction chemicals.
- North America expects to witness significant growth during the forecast period due to the increasing application demand in industries, including aerospace, automotive, agriculture, textile, personal care, food & beverages.
- The water treatment chemical segment expects to reach USD 157.42 billion by 2026 because of the growing population worldwide and the increasing awareness of hygiene, driving municipalities and industrial plants to spend on water treatment.
- The APAC specialty chemicals market expects to reach USD 580.34 billion by 2026 owing to the changing living standard in several developing countries, liberalization of trade, and the high demand for electronics and agrochemical products.
- In 2020, Europe accounted for 22.98% of the specialty chemicals market share, growing at a CAGR of 4.69% during the forecast period.
GLOBAL SPECIALTY CHEMICALS MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY END-USERS
The global agrochemical market expects to reach USD 314.32 billion by 2026. The increased focus on digital tools such as farmer applications and dealer management systems for better decision-making is likely to increase the demand for specialty agrochemicals. To curb the harmful effects of chemical-based products, the application of agrochemicals is growing. India, China, Japan, Germany, France, and the UK are the primary market for agrochemicals. Currently, China is the largest producer and consumer of fertilizers and leads the agrochemical market.
Impact of COVID-19
The COVID-19 pandemic has affected agrochemicals' global production and supply chain due to the unavailability of labor, transportation barriers, movement restrictions, and shortage of raw materials in several production units. Agrochemical raw material importers faced a severe drawback as a few manufacturing units shut down for several months due to lockdowns.
The global construction chemicals market will likely grow at a CAGR of 6.22% from 2020 to 2026. Global infrastructure investments are expected to reach USD 94.4 trillion by 2040, with USD 3.6 trillion earmarked for sustainable development goals. The APAC region is likely to witness the largest investments during the forecast period. Its share in infrastructure investments increased from 54% in 2010 to nearly 57% in 2015, estimated to reach 55% by 2040. The increasing demand for earthquake-resistant buildings around the ring of fire in APAC and the East Coast of North America and Latin America is likely to increase the demand for construction chemicals.
Impact of COVID-19
With the outbreak of the COVID-19 pandemic, the construction segment has contracted. The pandemic and the disruption of the global supply chain have severely affected construction activities. As there was a shortage of raw material due to the temporary shutdown of manufacturing units, workers and contractors migrated to their hometowns due to the nation lockdown. The impact of the pandemic has varied mainly by location and project types.
Water Treatment Chemicals
The global water treatment chemicals market is likely to reach USD 157.42 billion by 2026, growing at a CAGR of 5.79%. Coagulants and flocculants are the most widely used chemicals, followed by biocides & disinfectants due to the increased application of these substances in municipal and wastewater treatment plants in several industries, including power, oil & gas, chemical, and petrochemical. Biocides and disinfectants account for the second-largest product segment as they ensure the safety of manufacturing systems and operational efficiency by preventing the growth of microbes. North America and Europe are the mature markets for water chemicals. Stringent government regulations proposed for monitoring the disposal and production of wastewater are a significant driver influencing the growth of water treatment chemicals. However, APAC is the largest and fastest-growing region, driven by the growing oil & gas, mining, and chemical industries, strong economic growth, increased municipal and industrial spending on water treatment, and improved living standards.
Impact of COVID-19
The COVID-19 pandemic has negatively affected the water treatment chemical industry. Water treatment chemicals are used to disinfect water released from industries, commercial, and households. Due to nationwide lockdown, several end-users such as textile, food, personal care products, cosmetics, and paper and pulp industries shut down their operations.
INSIGHTS BY GEOGRAPHY
The Asia Pacific region dominated the global specialty chemicals market with a 44.78% share in 2020 and is expected to grow during the coming years. India, China, and Japan are the major consumers of specialty chemicals in APAC, accounting for USD 379.22 billion of the total revenue in 2020. The APAC specialty chemicals market is likely to reach USD 580.34 billion by 2026. The demand for specialty chemicals has grown due to rapid urbanization, rising disposable incomes, and increasing industrialization of food, agriculture, cosmetics, textile, electronics, and other manufacturing sectors in APAC. The increasing demand for cosmetic products, the high demand for electronics products, the growing demand for adhesives and plastics from the packaging industry, and increasing installations of water treatment systems fuel the demand for specialty chemicals.
France and Italy lead the specialty chemicals market in Europe. Europe is the second-largest chemical producer globally and produces a diverse range of products such as petrochemicals, specialty polymers, basic inorganics, specialties, and consumer chemicals. North America is the fastest-growing market for specialty chemicals and expects to increase demand in the coming years. Owing to the increasing demand from construction, automotive, aerospace, furniture, personal care products, agriculture, textile, and flavors and fragrance industry, the demand for specialty chemicals in North America is growing.
INSIGHTS BY VENDORS
The global specialty chemicals market is highly competitive and has a presence of both significant and regional players. Vendors focus on developing innovative products to support sustainability and expanding their product portfolio. Although established players dominate the market, growth opportunities for small players and new entrants also exist. They focus on capitalizing on the product portfolio that best suits the domestic requirement. Due to the outbreak of the COVID-19 pandemic, the chemical companies has negatively been affected. With the spread of the coronavirus, several production facilities, including automobile, construction, textile, and other industrial products, were suspended temporarily. Therefore, the demand for chemicals has experienced a sharp decline. To survive the intensive competitive environment, manufacturers need to introduce new or improved coating additives products to adapt to the constantly evolving market.
The global specialty chemicals market research report includes in-depth coverage of the industry analysis with revenue, growth rate, and forecast insights for the following segments:
- Construction Chemicals
- Water Treatment Chemicals
- Textile Chemicals
- Flavors & Fragrance Ingredient
- Personal Care Ingredient
- Electronic Chemicals
- Dyes & Pigments
- Paints & Coating
- Food Additives
- Home Care Ingredients
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa