Why Is Construction Industry in APAC Using Specialty Chemicals in Abundance?

Specialty chemicals or performance chemicals are used in the production of numerous goods in several end-use industries. Such chemicals are directed toward specific services and consumer needs, rather than general use. These chemical products add significant value to a wide range of products, such as detergents, electronics, paints, and petroleum products. For example, automakers use such chemicals as fuel additives to enhance fuel properties. Likewise, the pharmaceutical industry uses specialty chemicals as active ingredients in numerous creams and lotions. 

The escalating industrialization rate in Asia-Pacific (APAC) countries, owing to the booming middle-class population and mounting disposable income of people, will fuel the APAC specialty chemicals market at a CAGR of 5.7% during 2018–2023. According to P&S Intelligence, the market was valued at $259.6 billion in 2017 and it is expected to reach $361.0 billion revenue by 2023. The surging number of manufacturing units in the  food and beverage, cosmetics, and agriculture industries will create a huge requirement for specialty chemicals in the in the region in the foreseeable future.

In recent years, China has emerged as the leader of the APAC specialty chemicals market, due to the burgeoning domestic demand for commercial and residential buildings, on account of the surging in the country. Moreover, the presence of a large manufacturing base in China, owing to the availability of cheap labor and abundant raw materials, will also fuel the consumption of specialty chemicals in the country in the coming years. Additionally, the expansion of the automotive industry is also fueling the demand for performance chemicals in this APAC region.

Whereas, India is expected to adopt specialty chemicals at the highest rate in APAC in the coming years, as per P&S Intelligence. This can be primarily credited to the accelerating urbanization rate, mounting disposable income of people, and burgeoning demand for improved aesthetics in residential infrastructure in the country. Moreover, the automotive, personal care, electronics, and food and beverage industries in India are also expected to adopt a significant volume of specialty chemicals in the forthcoming years. 

Thus, the rising industrialization rate and the flourishing construction industry will fuel the adoption of specialty chemicals in APAC in the foreseeable future. 

Source: www.psmarketresearch.com

Why Is Demand for Specialty Chemicals Tied to Booming Population?

Any non-food powder or liquid (excluding certain ingredients) can be vaguely termed a ‘chemical’, which gives an idea of how vast the concept and the number of substances classified as chemicals are. So, wherever there is industry, some or the other chemical would be in use. In turn, chemicals that are formulated for a specific purpose are generally called specialty chemicals. The concept includes 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.

P&S Intelligence considers such a wide application area of such products as the key factor that will drive the specialty chemicals market size to $980,423.7 million by 2030 from $639,935.8 million in 2019, at a 5.5% CAGR during 2020–2030 (forecast period). Even within specific industries, these chemicals have a wide range of applications. For instance, a large quantity of paper chemicals is consumed for packaging, printing, and labeling purposes. Overall, agrochemicals account for the heaviest consumption due to the booming population, which continues to push up the demand for food.

The specialty chemicals market has a fragmented nature, and its competitive landscape is characterized by an array of strategic measures, such as mergers, acquisitions, facility expansions, extensive research and development (R&D), product launches, partnerships, agreements, and collaborations. Key players in the market are Evonik Industries AG, Eastman Chemical Company, Ashland Global Holdings Inc., Akzo Nobel N.V., LOTTE Fine Chemical Co. Ltd., Mitsui Chemicals Inc., BASF SE, Huntsman Corporation, Mitsubishi Chemical Corporation, Clariant International Ltd., Dow Inc., China Petroleum & Chemical Corporation, Sadara Chemical Company, AECI Ltd., Saudi Basic Industries Corporation, and Thebe Unico.

Therefore, the burgeoning population will keep driving the consumption of a wide variety of specialty chemicals across an equally wide variety of industries.

Source: www.psmarketresearch.com

Middle East and Africa Specialty Chemicals Market Being Driven by Increasing Specialty Chemicals Utilization in Oilfields

The Middle East and Africa specialty chemicals market will grow at a CAGR of 5.3% during the forecast period (2018–2023), owing to the surging use of agrochemicals in African countries and increasing construction activities for the establishment of new commercial centers, industrial plants, and housing units. Moreover, the revival of the oil and gas industry will facilitate the market growth in the foreseeable future. According to P&S Intelligence, the market was valued at $11,406.4 million in 2017 and it is projected to reach $15,491.2 million by 2023.

Agriculture is the dominant industry in most of the African countries and there has been a substantial development in this sector, in recent years. Advancements in agricultural practices have encouraged the African farmers to shift toward modern agricultural practices like usage of fertilizers, fungicides, pesticides, and insecticides. Increasing use of these products will boost the demand for specialty chemicals during the forecast period. These agrochemicals are utilized during different stages of farming to enhance soil fertility and avoid crop damage, due to pests, environmental factors, and weed growth.

The type segment of the MEA specialty chemicals market is divided into agrochemicals, specialty coatings, food additives, electronic chemicals, plastic adhesives, adhesives and sealants, surfactants, construction chemicals, polymer additives, cleaning chemicals, paper and textile chemicals, lubricant and oilfield chemicals, and others. Among these, the lubricant and oilfield chemicals division accounts for the largest market share, because of their comprehensive use in the production of crude oil. The surging demand for crude oil from major oil importing countries will boost the demand for these chemicals in the future.

Moreover, on the basis of country, Saudi Arabia is the leader in the MEA specialty chemicals market, as the country is one of the leading producers of crude oil and is home to rapidly growing construction and automotive industries, which are major end users of performance chemicals. These industries along with the agriculture sector procure specialty chemicals from players like Saudi Basic Industries Corporation (SABIC), DowDuPont Inc., Saudi Speciality Chemical Industries Co. Ltd., Akzo Nobel N.V., Sadara Chemical Company, BASF SE, and Clariant AG.

Thus, the growth of the agriculture, construction, automobile, and oil and gas sectors in MEA will boost the adoption of specialty chemicals for different purposes, in the coming years.

Source: www.psmarketresearch.com