Specialty chemicals market growing at 6.17% CAGR

Rising demand for highly functional, naturally derived chemicals from several end-use industries is expected to drive the Specialty Chemicals Market.

The global specialty chemicals market size was valued at USD 588.2 billion in 2020 and is projected to reach USD 894.14 billion by 2028, growing at a CAGR of 6.17% from 2021 to 2028 says a report by Verified Market Research.

The market is anticipated to witness tremendous growth over the forecast period. The market growth can be attributed to rising demand from end-use industries such as agriculture, pulp and paper, pharmaceuticals, and personal care & cosmetics among others. Agrochemicals are anticipated to register high growth owing to their increased demand across the glow especially in agriculturally driven countries such as India which is one of the major agrochemical producers after the U.S., and China. Globally, herbicides constitute the largest part of the specialty chemicals market, accounting for ~ 45% of the total consumption.

This segment is largely driven by the significant focus on the production of high-value crops in global markets. Glyphosate is the largest selling herbicide in the world and is a part of a key emerging trend.

Apart from agrochemicals, specialty chemicals are also being used in the pharmaceutical industry. Specialty chemical firms are actively looking at the pharmaceutical sector as their next growth opportunity.

They are seeing a surge in demand for intermediates or raw materials used for producing active pharmaceutical ingredients, following the coronavirus pandemic. Furthermore, the Covid-19 pandemic has also augmented demand for sanitizing and disinfecting products, thereby propelling the consumption of specialty chemicals such as Alcohol ethoxylates and Sulfosuccinates among others. However, high R&D expense, as well as capital investment, is anticipated to restrain the market growth.