Market Size (2015)
2015
$640.46B
Vertical: CNMBase Year: 201812 Sections
Market Size (2015)
2015
$640.46B
Projected (2025)
2025
$1165.97B
CAGR (2015–2025)
6.2%
6.2%Key Players
114+
Specialty chemicals, also known as effect chemicals or specialties, are a group of particular chemical products, which provide a wide range of applications, usage, and effects to serve highly dependent industry sectors such as chemicals, paints & coatings, plastics, automotive, construction, textile, and food & beverages among others. The specialty chemicals are broadly categorized into agrichemicals, cosmetic additives, cleaning materials, adhesives, construction chemicals, elastomers, fragrances, flavors & food additives, industrial gases, polymers, lubricants, surfactants, and textile auxiliaries. Specialty chemicals are also called performance chemicals as they are chosen on the basis of their performance or function. These types of chemicals are either unique or virgin molecules or a blend or reactive mixtures of different molecules, which are known as a formulation.
In terms of value, the global specialty chemicals market was pegged at USD 751.52 billion in 2018 and is projected to reach USD 1,165.97 billion by 2025 at a healthy CAGR of 6.44% over the forecast period. On the other hand, in terms of volume, the global market was valued at 1457.1 million tons in 2018 and is estimated to grow at a significant CAGR of 5.57% during the forecast period to attain the mark of 2,134.9 million tons by the end of 2025. During the last two decades, the global demand for overall specialty chemical has witnessed a positive outlook. In the coming years, this trend is likely to continue, and the market is set to grow at robust growth rate due to a considerable rise in the demand from the major end-use industries such as building & construction, paints & coatings, cosmetics & personal care, agrochemicals, automotive, consumer goods, and other industrial applications.
The protuberant factors responsible for this market growth are diverse and wide application scope of specialty chemicals, slow yet steady and continuous shift from commodity to specialty chemicals, and favorable trends in automotive industry, which is one of the largest consumers of specialty chemicals. Additionally, rapid industrialization and growing urbanization have significantly influenced the trade and dynamics of the major economies across the globe. On the other hand, consistent rise in population and consequent increase in dependency on textile, food additive, consumer goods, and infrastructure are ensuring demand for specialty chemicals to some extent. Moreover, major end users are switching from the bulky commodity chemicals to the high value and low volume specialty chemicals to bring about the more economic rise in production. However, the market is not barred from the bottlenecks. The fluctuations in crude oil prices are likely to hamper the growth momentum of the market in the longer run. Crude oil has been witnessing frequent fluctuations since 2011 when the prices hit an all-time high of USD 100 per barrel and then drastic fall in 2014 to less than USD 45 per barrel. Thereafter, there is an oil cut from OPEC (Organization of the Petroleum Export Countries), which again triggered the price rise in the global market.
According to Wantstats, the global specialty chemicals market is segmented on the basis of source, type, and region. By source, the market is segmented into crude oil, naphtha, ethane, propane, butane, wood, and others; naphtha segment accounted for the largest share of the market. It is estimated to reach USD 842.87 billion at a healthy CAGR of 6.20% by the end of the forecast period. Based on the type, the market is broadly classified into agrochemicals, flavors ingredients, fragrances ingredients, dyes & pigments, personal care active ingredients, water treatment chemicals, construction chemicals, surfactants, textile chemicals, polymer additives, bio-based chemicals, and others. The agrochemicals segment remained dominant with the market share of 33.20% in 2018 and is projected to reach USD 339.32 billion by the end of the year 2025.
Geographically, during 1970-1990, Europe and North America were the prominent consumers of the specialty chemicals due to early industrialization and technological advancements. After the emergence of major industries in Central and South Asian economies, the market has become the leading consumers of the specialty chemicals. Asia-Pacific dominated the global specialty chemicals market by holding 52.9% share of the global market in 2018. This is mainly attributed to surging demand from the well-spread textile and agrochemicals industry, government policies favoring the growth of the construction sector, and dynamic economic scenario in emerging countries such as India, China, South Korea, Thailand, Indonesia, and Myanmar among others. Moreover, improving standards of living and increasing disposable income of the people are driving the demand for the product. The market in Asia-Pacific is estimated to reach USD 675.01 billion at a CAGR of 7.80% by the end of 2025.
The Specialty Chemicals Market market is projected to grow at a CAGR of 6.2% from 2015 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansMarket Size (USD Mn)
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View Subscription PlansSpecialty chemicals, also called effect chemicals or specialties, are the group of particular chemical products which provide a wide range of applications, usage, and effects to serve the highly dependent industry sectors such as chemicals, paints & coatings, plastics, automotive, construction, textile, and food & beverages among others. The specialty chemicals are broadly categorized into agrichemicals, cosmetic additives, cleaning materials, adhesives, construction chemicals, elastomers, fragrances, flavors & food additives, industrial gases, polymers, lubricants, surfactants, and textile auxiliaries. Specialty chemicals are also called performance chemicals as they are chosen on the basis of their performance or function. These types of chemical can either be unique or virgin molecules or a blend or reactive mixtures of different molecules which is known as a formulation
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View Subscription PlansResearch Process
Wantstats research is conducted by industry experts who offer insight into industry structure, market segmentations, technology assessment, competitive landscape (CL), penetration, as well as on emerging trends. Besides primary interviews (~ 80%) and secondary research (~ 20%), their analysis is based on their years of professional expertise in respective industries. Our analysts also predict where the market will be headed in the next five to ten years, by analyzing historical trends and current market positions. Furthermore, the varying trends of segments & categories geographically presented are studied and are estimated based on primary & secondary research.
Primary Research
Extensive primary research was conducted to gain a deeper insight of the market and the industry performance. In this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players who are active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed, over the next five to ten years.
Secondary Research
Secondary research was mainly used to collect and identify information useful for extensive, technical, market-oriented, and commercial study of the Specialty Chemicals Market. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, & developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, SEC filings, journals, white papers, corporate presentations, company web sites, international organization of chemical manufacturers, some paid databases and many others.
Market Size Estimation
Both, top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent submarkets of the overall Specialty Chemicals market. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market have been covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and added with detailed inputs and analysis from Wantstats and has been presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study
Base Year
2018
Historical Period
2015 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2015–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThreat of New Entrants
Considering the past and present global specialty chemical market scenario, the target market is estimated to have medium threat of new entrants, owing to the high capital intensive nature of the industry and high cost of raw materials. However, over the forecast period, the demand for specialty chemical is expected to grow in water treatment, construction and bio-based segments due to a wide variety of end uses. This in turn will lead to supply deficit in future. Thus, in future it is anticipated that new entrants might enter into the specialty chemical market owing to the foreseen demand from the latter.
Threat of Rivalry
The specialty chemical market is likely to witness low to moderate threat of rivalry, as the market is segmented in significant number of Tier 1 manufacturers and small yet impactful medium-scale manufacturers from Asia Pacific region. Additionally, there is a low rivalry observed among the existing players, mainly due to established consumer base in each region with efficient distribution network to cater to the demand of end users. Moreover, the competition in this market is mostly based on the quality and price of the coating.
Threat of Substitute
Threat of substitutes for specialty chemical in the market is anticipated to be low in the current scenario. Currently, there are no potential specialty chemical substitutes available in the global market which serves the purpose of these specialty chemicals in the end user industries without jeopardizing its performance. However, some companies are involved in constant development of specialty chemicals and high performance substitutes for its use in agrochemical, flavor and fragrance, and water treatment segment. Thus, over time, and with the ongoing research and development, substitutes for specialty chemical in the world is expected to emerge.
Bargaining Power of Supplier
The bargaining power of supplier is estimated to be medium, although there are more number of suppliers present in the market. The reason for medium bargaining power of supplier is that, there is no other potential alternative present in the global market for specialty chemicals based on the corresponding functional applications. The prices for synthetic and natural based chemicals that are used as feedstock in manufacturing of specialty chemicals, varies sharply which could impact margins for manufacturers and suppliers adversely is also the reason that the bargaining power is medium among them.
Additionally, there is no other potential alternative present in the global market for buyers to switch and hence the bargaining power of the supplier is estimated to be medium.
Bargaining Power of Buyer
The bargaining power of a buyer is estimated to be low as there are few choices available for the buyer to switch. Also, buyers in the specialty chemical market are more price sensitive as most of the end user applications are in agrochemicals, water treatment chemicals, construction chemicals, surfactants and dyes & pigments among others.
Market estimates by geography (2025)
InsightAsia Pacific leads with $675.00B by 2025.
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View Subscription Plans| REGION | 2015 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Middle East and Africa | $25.30B | $35.74B | $51.48B | 7.4% | 4% |
| North America | $78.79B | $96.29B | $120.00B | 4.3% | 10% |
| Asia Pacific | $324.75B | $463.67B | $675.00B | 7.6% | 58% |
| Europe | $172.21B | $202.74B | $243.36B | 3.5% | 21% |
| South America | $39.42B | $54.26B | $76.13B | 6.8% | 7% |
| Total | $640.46B | $852.70B | $1165.97B | 6.2% | 100% |
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View Subscription PlansTotal Market Size
$1165.97B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Naphtha | $842.87B | 6.2% | 72% |
| Crude Oil | $151.08B | 6.2% | 60% |
| Others | $73.77B | 6.2% | 53% |
| Ethane | $28.32B | 6.2% | 53% |
| Propane | $27.54B | 6.2% | 72% |
| Wood | $26.79B | 6.2% | 77% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Specialty Chemicals Market covering market dynamics, competitive landscape, and strategic outlook.
The Specialty Chemicals Market market is projected to reach $1165.97B by 2025, growing at 6.2% CAGR. The Naphtha segment holds the largest share.
The global specialty chemical market is diverse in nature and includes a range of chemicals. It also represents great numbers in terms of global consumption and is likely to expand at a CAGR of 6.44%. As it comprises a range of chemicals, the growth of this market belongs to various industries including construction, automotive, polymer, agriculture, and electronics & electrical. The growth of the investment-centric industries is driven by favorable trends and policies, which are supporting the demand for specialty chemicals. On the other hand, shifting industrial focus to Asia Pacific and the Middle East is likely to offer lucrative growth opportunities for specialty chemicals over the assessment period.
Personal care and cosmetics industries are being recognized as emerging application area for specialty chemicals. The industry accounted for the substantial global share, which is increasing significantly year by year. Personal care and cosmetic industries are booming, and the use of specialty chemicals that do not harm the appearance of a person is gaining swift popularity. This factor establishing the use of specialty chemicals in hair care, cosmetics, body care, hygiene products and consequently driving the demand for the same. It is well known that manufacturers are teaming up with chemical providers to strengthen their business operations and outsource chemicals for the use of several products. In Japan, for instance, Nikkol Group and Amyris together have formed equivalent (50:50) joint venture to expand the customer base in personal care ingredient segment. Both companies are allowed to utilize each other’s existing innovative technologies, marketing strategies and established distribution channel to cater the growth served by the market. South East Asian market is generating massive demand for personal care and cosmetics products, and the above-mentioned venture is formed to exploit the same.
As per Wantstats analysis, increasing number of market alliances to offer lucrative growth opportunities over the assessment period.
Raw material required for specialty chemicals varies with the applications. Some of the raw material used to produce specialty chemicals are fragrance products, non-fragrance products, petrochemical derivatives, linear alkyl benzene, ethyl oxide alcohol, base chemicals, and minerals among others. Crude oil prices have drastically changed in 2014 and have created a strong impact on the oil & gas industry, thereby disturbing manufacturing of organic and inorganic chemical production chain. Crude oil prices have started to recover steadily and are in a better position than 2014. This increment in the crude oil price is surging the prices of petrochemical derivatives, which are used in a range of chemicals such as agrochemicals, dyes & pigments, construction chemicals, textile chemicals and polymer additives. Therefore, the rise in prices of petrochemical derivatives has raised the prices of final products further, which limits its demand. As compared to synthetic chemical, cost of raw material used in the bio-based specialty chemicals is higher, which may restrain the market growth during the forecast period.
Considerable product segment of specialty chemicals is produced from crude oil using as various raw materials such as polymer additive, high-performance coatings, dyes & pigments, water treatment chemicals, textile chemicals, and others. However, these raw materials are solvent based and are harmful to the environment as they emit high VOC and strict environmental policies are regulated by various regional governments. Therefore, the demand for eco-friendly products has been increased among consumers. These policies are altogether challenging the global demand for specialty chemical products and are expected to challenge global growth further. To overcome this scenario, manufacturers have to produce eco–friendly products, which do not put any adverse effect on environment.
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 114 companies operating in the Specialty Chemicals Market market, including revenue, employee count, and market positioning where available.
Showing 114 of 114 companies
Croda International Inc.
Company Headquarters: Snaith, UK Founded: 1925 Workforce: ~6037 Company Working: Croda International Plc (Croda) is a holding company for a group of companies that manufactures a diverse range of chemicals and chemical products, including oleochemicals and industrial chemicals. It supplies products to companies specializing in personal care, pharmaceutical, plastics, food processing, nutrition, fire prevention, engineering, and automotive industries. The company's adaptable structure enables it to create and supply novel, long-lasting chemicals that consumers can rely on in personal care, health care, lubricants, polymer additives, coatings & polymers, crop care, geotech, and home care, as well as industrial specialties. The company has a presence in more than 37 countries and works with 500 innovation partners.
ExxonMobil Corporation
Company Headquarters: Texas, United States Founded: 1999 Workforce: ~63,000 Company Working: ExxonMobil Corporation (ExxonMobil) is an American multinational oil & gas corporation. It performs crude oil refinement, makes lube base stocks and finished lubricants, transports, trades, and sells petroleum products. Additionally, the business produces and sells a wide range of specialty goods in addition to commodity petrochemicals such as olefins, aromatics, polyethylene, and polypropylene plastics. High-performance fuels and lubricant products made by ExxonMobil power global transportation, increase efficiency and lower the entire life-cycle emissions of our clients. It runs through a network of production facilities, transit hubs, and distribution facilities. North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa are all operational regions for the company.
Ashland Inc
Company Headquarters: Kentucky, US Founded: 1924 Workforce: ~6,000 Company Working: Ashland is one of the leading providers of specialty chemical solutions, products, and resources across the globe. It serves a wide range of consumers and industries, such as energy, food and beverage, adhesives, architectural coatings, automotive, construction, personal care, nutraceuticals, and pharmaceutical. The company operates through three business units—intermediates and solvents, composites, and specialty ingredients unit. The company offers hydrate inhibitors under the specialty ingredients segment. These products are low-dose kinetic hydrate and can be used as an alternative to thermodynamic hydrate inhibitors (THI) or boosters to THI methods in other scenarios across the oil and gas industry. It has a vast geographical presence with over 100 offices across North America, Latin America, Asia-Pacific, Europe, and the rest of the world.
AkzoNobel NV
Company Headquarters: Amsterdam Founded: 1994 Workforce: ~46,000 Company Working: Akzo Nobel is one of the leading manufacturers of paints, coatings, and specialty chemicals. It operates through three core segments, namely performance coatings, decorative paints, and specialty chemicals. Specialty chemicals segment delivers adhesion promoters, emulsifiers, warm mix additives, and technical support for road construction and maintenance industry. Performance coatings segment offers coatings for aerospace, automotive, and marine industries to enhance and protect aircraft, cars and ships among others. However, in 2018, the formerAkzoNobel specialty chemicals was relaunched as Nouryon. Nouryon offers various corrosion inhibitors such as ARMOHIB CI-41 and ARQUID SV-50, which are used in various applications.
Henkel AG & Co. KGaA
Company Headquarters: Germany Founded: 1876 Workforce: ~52,450 Company Working: Henkel AG & Co. KGaA (Henkel) is engaged in the business of manufacturing and selling products globally. The company operates through three segments: adhesive technologies, beauty care, and laundry & home care. Some of the products offered by the company include sealants, adhesives, cleaners, degreasers, coatings, and lubricants for industrial as well as commercial applications. Furthermore, the company offers its products for its application in a wide range of industries such as aerospace, electronics, healthcare, paper & pulp, and manufacturing. The company operates in the US, the UK, Canada, Mexico, Brazil, Argentina, Denmark, France, Germany, Italy, Norway, Russia, Spain, China, India, Japan, South Korea, Saudi Arabia, the UAE, and South Africa. Molecule Corp., Aislantes Nacionales S.A., eSalon.com, LLC, and DEVA Parent Holding Inc. are few of its subsidiaries.
BASF SE
Company Headquarters: Germany Founded: 1865 Workforce: ~111,047 Company Working: BASF SE (BASF) is a chemical enterprise that engages in the manufacturing, promotion and distribution of various products, such as chemicals, plastics, crop protection and performance products. BASF SE is a German multinational chemical company that operates in six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The company is committed to sustainability and has set ambitious targets to reduce its environmental impact, including reducing greenhouse gas emissions, increasing energy efficiency, and promoting a circular economy. BASF SE offers a wide range of chemical products, including plastics, performance products, functional solutions, and agricultural solutions, among others. The company has a strong global presence with production sites in over 80 countries and a customer base that spans various industries, including automotive, construction, agriculture, and consumer goods. The company's product line encompasses a wide array of offerings, such as solvents, adhesives, dyes, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides. BASF serves an extensive range of industries including construction, furniture and wood, agriculture, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, and other related sectors. Additionally, BASF collaborates with global customers, scientists, and partners to carry out research and development initiatives. The company operates through a network of manufacturing facilities located worldwide, with a presence in Europe, Asia Pacific, South America, Africa, the Middle East, and North America. BASF and DIC had reached an agreement on the acquisition of BASF’s global pigments business with about 2,600 employees on August 29, 2019
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Specialty Chemicals Market