Specialty Chemicals Market Size, Share & Trends Analysis Report By Product (Institutional & Industrial Cleaners, Flavor & Fragrances, Food & Feed Additives), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global specialty chemicals market size was valued at USD 616.2 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.1% from 2023 to 2030. This is attributed to growing demand for construction, water treatment, and electronics chemicals, along with advancements in process technology and trade liberalization. The growth of specialty chemicals is also attributed to the growing demand from pharmaceuticals, food and feed additives, and flavors and fragrances, among others. The demand for flavoring agents has increased as processed food and beverages have become more popular in developed nations. Further, rising customer preference for novel flavors and fragrances in food products is estimated to contribute to the market growth.

In U.S., the market for specialty chemicals is anticipated to witness notable growth over the forecast period. High opportunities for the products are suspected from various end-use industries, including water treatment, automobile and electronics. Growth in these industries is expected to have a positive impact on the specialty chemicals demand over the coming years. Furthermore, rising demand for personal care products, detergents, as well as crop protection chemicals and cleaning products will fuel specialty chemicals demand over the forecast period.

The outbreak of Covid-19 pandemic has led to disruptions in the overall specialty chemicals value chain worldwide. Temporary shutdown of chemicals production plants globally coupled with restricted movement of goods for the first and second quarter of 2020 reflected downfall in chemical production as well as demand. The consumption and production of specialty chemicals are highly prejudiced by its demand from end-use industries.

The European geopolitical conflict caused an increase in oil costs, which affected the price of producing chemicals. The market for specialty chemicals is projected to be significantly impacted by rising oil prices. From the manufacturer’s viewpoint, the impact of rising energy prices resulted in higher chemical prices and has somewhat eroded profits. The import and export of raw materials across regions, particularly in the European region, were impacted by supply interruptions, which in turn had an impact on the specialty chemical market as a whole.

Product Insights

The others product segment dominated the market with the highest revenue share of 26.7% in 2022. Others segment includes other specialty chemicals such as lubricating oil additives and surfactants, to name a few. The segment growth can be primarily attributed to the increasing awareness regarding the benefits of specialty chemicals among consumers. In addition, the growth of end-use industries is expected to further accelerate the market growth over the forecast period.

Specialty surfactants are used with commodity surfactants as surfactants, which are essential ingredients in a wide range of domestic and industrial products. Fast-growing niche applications for specialty surfactants include high-performance, small-volume products such as alkyl polyglycosides, sulfosuccinates, and others wherein they act as surfactants along with commodity surfactants. The growth of automotive, metalworking, and other end-use industries is expected to drive the demand for lubricating oil additives, which, in turn, is expected to augment the segment growth over the forecast period.

The institutional and industrial cleaners segment is expected to register growth over the forecast period. These cleaners are the largest industrial consumer of surfactants. They are the key components used in general-purpose cleaning, commercial floor, surface, and where ease and efficiency, hygiene, technical performance, and food safety are important characteristics.

Industrial and institutional cleaning sector is rapidly growing and diversifying owing to the recurring nature of the regulatory requirements, products, and services for cleanliness and hygiene. The major driver for industrial and institutional cleaning products is the requirement for eco-friendly, effective, and less labor-intensive cleaning products, wherein surfactants act as wetting agents, detergents, foaming agents, dispersants, and emulsifiers.

Regional Insights

Asia Pacific region dominated the market with the highest revenue share of 48.5% in 2022. This is attributed to factors such as economic progress, industrialization, and growth of major end-use sectors. China and India are the major countries contributing to the growth of specialty chemicals market in Asia Pacific. The demand for additives in the region is influenced by food and beverages, personal care and cosmetics, and pharmaceutical applications. China, India, and Japan are the key manufacturing countries in the region, with China as the global manufacturing leader which also leads to product market growth.

In Middle East & Africa region, the market is estimated to expand at a CAGR of 3.6% by 2030. This growth is attributed to the increasing demand for cosmetic Chemicals in the cosmetic industry in countries including the U.A.E., Kuwait, and Saudi Arabia are estimated to stimulate its industry penetration. A young and dynamic population along with high purchasing power is expected to contribute to the market growth over the forecast period.

Additionally, the food and beverage sector in the Middle East region has been ripe with several growth opportunities for international investors. Reliance on food trade, international tastes, changing consumer preferences and lifestyles, strategic geographic position, and gulf food programs have substantially contributed to the development of the food and beverages industry in the region, which is further estimated to trigger the demand for specialty chemicals over the predicted years.

The presence of major manufacturer such as Cargill, Incorporated, General Mills, and Kraft Foods is expected to surge the demand for specialty chemicals in the Latin America region over the forecast period. Automotive, transportation, chemical processing, and construction are expected to be the other key consumers of specialty polymers, coatings, adhesives, sealants, plastic additives, lubricants, and others. Major manufacturers of synthetic lubricants in Latin America are Exxon Mobil Corporation, Royal Dutch Shell plc, Petrobras, and YPF.

Key Companies & Market Share Insights

The manufacturing companies offer their specialty chemical products via suppliers and distributors directly to end-use industries such as oil and mining, catalysts, consumer chemicals, and others. These chemicals are either manufactured using the batch process in batch chemical plants directly used by end-use industries to produce product as per defined quantities and specifications.

Companies such as Saudi Arabian Oil Co., SABIC, Farabi Petrochemicals Co., Total, and Chevron Corporation are the key end users of specialty chemical products across regions including Asia Pacific, Europe, and North America. These finished products are supplied to major end-use markets such as automotive, construction, electronics and electrical, pulp and paper, water treatment, pharmaceuticals, and consumer products at both regional as well as national levels. Some of the prominent players in the specialty chemicals market include:

• Solvay

• Evonik Industries AG

• Clariant AG

• Akzo Nobel N.V.

• DuPont

• Kemira Oyj

• Lanxess

• Croda International Plc

• Huntsman International LL

• The Lubrizol Corporation

• Albemarle Corporation 

Specialty Chemicals Market Report Scope

Global Specialty Chemicals Market Segmentation 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global specialty chemicals market report on the basis of application and region:

• Product Outlook (Revenue, USD Billion, 2017 - 2030)

  • Specialty Polymers

  • Institutional & Industrial Cleaners

  • Electronic Chemicals

  • Rubber Processing Chemicals

  • Flavors & Fragrances

  • Construction Chemicals

  • Food & Feed Additives

  • Cosmetic Chemicals

  • Oilfield Chemicals

  • Mining Chemicals

  • Pharmaceutical & Nutraceutical Additives

  • Plastic Additives

  • Printing Inks

  • CASE (Coatings, Adhesives, Sealants & Elastomers)

  • Specialty Pulp & Paper Chemicals

  • Specialty Textile Chemicals

  • Catalysts

  • Water Treatment Chemicals

  • Corrosion Inhibitors

  • Flame Retardants

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • South Africa