Press Release
The middle-class population in developing countries including Brazil, China, and India has grown significantly in the past few years. In addition to this, the disposable income of people has also increased, which is why the requirement for electronics, food, textile, cosmetics, agriculture, and several other products is growing. This has further resulted in the rising need for raw materials. In 2014, the government of India launched ‘Make in India’ initiative, which has enhanced the competitiveness of the chemical sector in the country. The initiative permitted 100% foreign direct investment and de-licensing the manufacturing of most chemicals. These factors are resulting in the growing demand for specialty chemicals.
Specialty chemicals are utilized as raw materials for enhancing the quality of products in several industries. As per a P&S Intelligent, in 2017, the global specialty chemicals market reached a value of $582.3 billion and is expected to generate a revenue of $782.2 billion by 2023, advancing at a 5.1% CAGR during the forecast period (2018–2023). When geographic scenario is taken into consideration, Asia-Pacific (APAC) created the largest demand for specialty chemicals in the past and is further expected to make the most use of these chemicals during the forecast period. This is because of the rising requirement for specialty chemicals from end use industries.
In addition to this, the increasing requirement from the construction sector, which is ascribed to the growing demand for commercial and residential buildings and surging urban population, is also resulting in the growth of the specialty chemicals market. In APAC, China is projected to create the largest demand for specialty chemicals during the forecast period. Apart from this, several companies in the domain are shifting their production base to APAC, which is ascribed to the strict environmental norms in North America, Europe, and other regions, reducing profit margins, expensive labor cost, and the fact that APAC is a hub of chemical manufacturing units.
Different types of specialty chemicals are lubricant & oilfield chemicals, adhesives & sealants, paper & textile chemicals, plastic additives, cleaning chemicals, electronic chemicals, polymer additives, food additives, surfactants, specialty coatings, construction chemicals, and agrochemicals. Among all these, the largest demand in 2017 was created for agrochemicals and the situation is projected to remain the same in the coming years as well. The reason for this is the rising consumption of food across the globe on account of the surging population and the growing need for crop protection to meet the rising requirement for food products.
