Which Are Most-Widely Consumed Specialty Chemicals?

Chemicals produced to suit a particular purpose are generally referred to as specialty chemicals. Thus, with the growth in a range of industries, the demand for such products is increasing too. For instance, with the burgeoning environmental concerns, countries around the world are formulating stringent emission control regulations. As a result, the demand for fuel additives, including diesel exhaust fluid, also called AdBlue, is rising. Other common specialty chemicals used in the automotive and transportation industry are pour point depressants, coolants, friction modifiers, and octane boosters.

Thus, with the growth in the automotive industry, the specialty chemicals market size will increase to $980,423.7 million by 2030 from $639,935.8 million in 2019, at a 5.5% CAGR during 2020–2030 (forecast period). Other types of specialty chemicals are agrochemicals, specialty coatings, construction chemicals, surfactants, polymer additives, food additives, electronic chemicals, plastic additives, cleaning chemicals, paper & textile chemicals, lubricant & oilfield chemicals, adhesives & sealants, advanced ceramic materials, water treatment chemicals, rubber processing chemicals, and mining chemicals.

Among these, agrochemicals account for the highest consumption due to the growing demand for food. With the population of the world set to touch 10.9 billion in 2050 from 7.7 billion in 2019, according to the United Nations (UN), the pressure on the farming community is increasing constantly. Moreover, with the rapid pace of urbanization, the farming area is reducing, which is impelling farmers to use new techniques that can help them make the most of the fields they have. As a result, the usage of agrochemicals, including fertilizers, pesticides, and insecticides, is rising.

Under the type segment, the highest specialty chemicals market CAGR during the forecast period will be witnessed by the lubricants & oilfield chemicals category, as per P&S Intelligence. This is attributed to the increasing exploration and production (E&P) activities around the world, to meet the growing demand for energy. The hydraulic fractures made in the rock bed to retrieve oil and gas are kept open with proppants, a kind of oilfield chemical. Similarly, a variety of fracking liquids are used in mature wells to increase the production of oil.

As a result, the biggest trend in the specialty chemicals market presently is the shift in the production of such materials to the region. Encouraged by the vast sales opportunities here, chemical companies based in North America and Europe are setting up plants in APAC countries, including India, Vietnam, and China. Moreover, these countries have less-stringent environmental regulations than the Western world, which offers more peace of mind to chemical companies. Similarly, raw materials and labor can be sourced cost-effectively in APAC, which allows market players to save on operational costs.

Thus, with the growth of the end-use sectors, the consumption of various types of specialty chemicals will boom.

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