The global specialty chemical market is anticipated to grow at a CAGR of 5.30% over the forecast period of 2019-2027. The market revenue is expected to grow from $XX million in 2018 to $XX million by 2027. The major drivers for the growth of this market are the increasing popularity of eco-friendly products, economic growth in the APAC regions, growing focus on sustainability and surge in research & development expenditure of specialty chemicals. The rising awareness regarding environmental concerns all over the word is also aiding to shift the consumer preference towards environmentally friendly products.
The multi-specific offerings, namely, the industry-specific offerings and generic offerings, by the vendors of the specialty chemicals market are opening new doors for the market. The production of specialty chemicals incurs high-cost, which leads to lower demand in the market. Most of the specialty chemicals are manufactured using petroleum-based commodity chemicals, and the fluctuations in crude oil prices have significantly impacted the initial expenses for the specialty chemicals market. Although the application segment of the global specialty chemicals industry is quite profitable, the market is still facing some challenges as well. Some of them are due to the need for large monetary investments in R&D for new chemicals. Other factors like increase in regulatory challenges, the high cost of raw materials, lack of skilled professionals and increasing competition among vendors are also hindering the market growth.
The global specialty chemicals market can be divided into four regions. They are North America, Asia-Pacific, Europe and the Rest of World. The Asia Pacific region which includes countries like China, Japan, India, Australia, and South Korea is anticipated to hold the largest share of the market by the year 2025. This is because the demand for specialty chemicals like construction chemicals, plastic additives, pharmaceutical ingredients, and agrochemicals is increasing in this region. As a result, there is a possibility for increased industrialization and growth in the manufacturing sector in the coming years for this region, which would, in turn, propel the specialty chemicals market growth.
The major market players in the global specialty chemicals market are PPG Industries Inc., Merck & Co., Inc., Bayer AG, Koninklijke DSM N.V., BASF SE, Huntsman Corporation, Ashland Inc., Clariant SE, Sasol Limited, AkzoNobel N.V., DowDuPont and Solvay S.A.