The specialty chemicals market has emerged as one of the most crucial chemicals segment across the globe. It has seen a steady increase from 2015 to 2020 mainly due to the growth in the end-user industries, increasing scope of applications, and focus on innovations, to produce efficient and safe chemicals.
Largest Segments
In 2020, the world’s five-largest specialty chemicals segments—specialty polymers, electronic chemicals, industrial and institutional cleaners, surfactants, and flavors and fragrances—had a market share of nearly 40%. Each specialty chemicals business segment comprises several subsegments, each with individualized product, market, and competitive profiles.
The Largest Consumers of Specialty Chemicals
Mainland China and North America are the largest consumers of specialty chemicals. They are used for advanced ceramic materials, construction chemicals, electronic chemicals, food additives, mining chemicals, oilfield chemicals, pesticides, plastic additives, printing inks, rubber processing chemicals, specialty paper chemicals, textile chemicals, specialty surfactants, specialty polymers, and water management chemicals. The market was projected to reach 470 billion in 2020.
About Specialty Chemical Pricing
In the past, specialty chemical companies sold their products on value. Their products represented only a small portion of the cost structure of their customers’ products. Advances in supply-chain management, strategic sourcing, and e-commerce have increased transparency and customer awareness. As a result, the specialty chemicals industry is becoming more commodity-like in some areas as companies sell certain products on price rather than on performance. The specialty chemicals industry is now trying to improve its margins by implementing price increases to compensate for higher R&D, energy, and raw material costs.
If you would like to learn more about the services and offerings of one of the leading specialty chemical distributors in Los Angeles, contact A.G. Layne, Inc. at aglayne.com.