The global specialty chemicals market size is expected to reach USD 844.2 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.7 percent over the forecast period. Higher performance achieved by the application of specialty chemicals when compared to their conventional counterparts is expected to be one of the prime market growth factors.
Increasing Usage in Multiple Industries Boosts Specialty Chemicals Market
Increasing disposable income, growing awareness, healthcare spending, construction spending, infrastructural development, and population growth are factors likely to increase the product sales across end-use industries such as coatings, construction, personal care, and cosmetics, pharmaceutical and nutraceuticals, food, automotive, and electronics.
It is further expected to be accelerated by the growing consumer demand for energy that has driven the product consumption in oil and gas end-use. Participation in R&D along with new and innovative product launches is one of the factors driving intense competition among the players. Compliance with the national and international norms for sustainable manufacturing and distribution along with acquiring certifications such as USDA and GMP is one of the major concerns among the manufacturers involved in domestic as well as offshore businesses.
However, trade halts, supply chain disruptions, and industrial shutdowns caused by the impact of COVID-19 in some of the major economies such as the U.S., Iran, and China are likely to add on to the industry challenge in 2020.
Specialty Chemicals Market Report Highlights
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Production capacity expansion among the manufacturers along with their focus towards the adoption of high-performance ingredients are expected to be the key market growth factors
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Asia Pacific is anticipated to remain one of the prominent markets, holding a value share of 46.8 percent for electrical and electronics products owing to the dominance of China in terms of production capacity
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Significant growth opportunities are expected to be witnessed in nutraceuticals, flavors and fragrances product segments
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Rising awareness regarding healthy lifestyle and the benefits of natural and plant-based ingredients are the factors expected to foster the demand for pharmaceutical and nutraceutical additives
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The customized product offering for target customer is expected to expand the product portfolio of the manufacturers
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Business strategies including R&D investment, innovation, and strategic alliance with other players in order to increase product penetration and profit margins are likely to be witnessed more during the forecast period
Source: Grand View Research