Specialty Chemicals Market Size, Share, Opportunities, And Trends By Type (Specialty Polymers, Construction Chemicals, Specialty Coating, Plastic Additives, Others), By End-User (Pharmaceutical, Electronics, Automotive, Construction, Others), And By Geography - Forecasts From 2024 To 2029

  • Published : Mar 2024
  • Report Code : KSI061611562
  • Pages : 114

The speciality chemicals market is anticipated to grow at a compound annual growth rate (CAGR) of 4.92% over the forecast period to reach US$996.867 billion by 2029, increasing from US$712.246 billion in 2022.

Speciality chemicals, occasionally referred to as effect chemicals, are chemical products that are used in many different industries. These sectors include those which produce adhesives, agrichemicals, cleaning supplies, colors, elastomers, flavours, food additives, fragrances, industrial gases, lubricants, paints, polymers, surfactants, and textile auxiliaries. These chemicals are produced in smaller quantities and are designed to meet the unique requirements of specific industries or processes. They are also referred to as "performance" chemicals or "formulation" chemicals, and their physical and chemical characteristics influence the performance end product.

In commercial applications, companies providing these products often provide targeted customer service and innovative technical solutions. The speciality chemicals market is crucial in various industries, including pharmaceuticals, agrochemicals, construction, electronics, automotive, and oil and gas. Driven by technological advancements, high-performance materials, and sustainability, it supports various sectors of the global economy and adapts to evolving needs. Nonetheless, fluctuations in the cost of raw materials may impede market expansion.

Market Drivers:

  • Growing consumer demand for personal care supplies is expected to boost the growth of the speciality chemicals market.

The demand for personal care products is increasing due to changing consumer preferences, grooming awareness, and lifestyle trends. Speciality chemicals are crucial in formulating and producing these products, including cosmetics, skincare, haircare, and hygiene products. High-performance ingredients, bio-based and sustainable, are essential for moisturization, anti-ageing properties, and sun protection. Customization is necessary for diverse skin and hair types, and rising disposable income levels positively impact the demand for high-quality ingredients.

Speciality chemicals are being incorporated into personal care products to address environmental pollution and wellness concerns. The intersection of cosmetics and pharmaceuticals, known as cosmeceuticals, is gaining traction, contributing to functional products with added health benefits. The rise of e-commerce and direct-to-consumer channels has expanded the reach of personal care products, enabling formulations that meet diverse consumer needs.

The market for cosmetic chemicals is thriving due to the increasing demand for surfactants and personal care chemicals among older individuals suffering from advanced age and health conditions like hair loss and skin deterioration. As per a UN report, the global population of individuals aged 60 or above is predicted to double by 2050 and triple by 2100, from 962 million in 2017 to 2.1 billion in the year 2050 and 3.1 billion in the year 2100.

  • A substantial rise in the agrochemical industry is anticipated to propel the speciality chemicals market.

The global population is increasing, leading to a growing need for improved agricultural productivity. Agrochemicals, such as fertilizers, pesticides, and herbicides, are crucial for crop yield improvement and food security. Modern agriculture relies on advanced technologies, and speciality chemicals provide innovative solutions like biopesticides, precision agriculture products, and customized fertilizers. Agrochemicals protect crops from pests, diseases, and weeds, driving growth in the agrochemicals segment.

Changes in farming practices, such as precision farming and sustainable agriculture, have increased demand for specialized agrochemical products. The agrochemicals segment dominates the specialty chemicals market, driven by decreasing per capita arable land and increasing global food demand. The increasing per capita income and growing population are increasing the demand for food and cash crops globally, making agrochemicals a crucial component of the industry. As per data of the Food and Agricultural Organization, the world population is projected to increase by 2.3 billion people between 2009 and 2050, necessitating a 70% increase in overall food production between 2005/07 and 2050 to meet the projected 9.1 billion people

Market Restraint:

  • Enforcement of strict environmental regulations could hinder the specialty chemicals market.

Speciality chemicals face stringent environmental standards, requiring significant investments in technology and infrastructure. Compliance with emissions, waste disposal, and hazardous substance use can be costly and time-consuming. The harmonization of chemical regulations adds complexity. There may be fines, penalties, and legal repercussions for noncompliance. As sustainability becomes more important, manufacturers must adopt green practices and develop eco-friendly alternatives. Despite challenges, compliance drives innovation and encourages sustainable practices in the environmentally conscious market.

Asia Pacific region is projected to grow steadily. 

The Asia-Pacific region, including China and India, is a global manufacturing hub due to its robust manufacturing capabilities and strong demand for speciality chemicals. The region's diverse industries, including pharmaceuticals, agriculture, electronics, automotive, and construction, rely on these chemicals for various applications. The rising middle-class population has led to increased demand for high-quality, specialized products, including personal care, healthcare, and consumer goods. Agriculture is a significant industry, with a high demand for agrochemicals, a category of specialty chemicals.

The pharmaceutical and healthcare industries have also seen substantial growth, with speciality chemicals playing a crucial role in formulation. Governments in the region are actively promoting industrial development and innovation through investments in research, infrastructure projects, and technology adoption. For instance, the Union Budget 2023-24 announces a 66% increase in PM Awas Yojana commitment of Rs. 79,000 crores ($9.64 billion), including Rs. 75,000 crores for 100 critical transport infrastructure projects and Rs. 15,000 crores from private sources. The investment aims to build digital public infrastructure for agriculture, enabling inclusive farmer-centric solutions and supporting Agri-tech industry growth.

Key Developments:

  • March 2024- Evonik and Desktop Metal have partnered to qualify INFINAM® ST 6100 L photopolymer for use on ETEC Xtreme 8K and Pro XL 3D printers. INFINAM® ST 6100 L is a high-strength photopolymer resin with high temperature, water, chemical, and UV resistance. The ETEC Pro XL is a high-speed, precision DLP printing system with an extra-large build area, and the ETEC Xtreme 8K is the largest production-grade DLP printer in the world for high-volume tooling and end-use parts. The partnership aims to improve the production of molds, models, tooling, and end-use parts in the aerospace, automotive, and electronics industries.
  • February 2023- ADM has opened a $30 million state-of-the-art production facility in Valencia, Spain, to meet global demand for probiotics and postbiotics. The facility represents an investment of over $30 million and increases ADM's production capacity by five times to 50 metric tons per year. The facility will supply growing markets in the U.S., Asia-Pacific, and Europe. ADM expects its customer base to triple over the next five years as people recognize the connection between gut microbiome and health.
  • December 2022- Clariant has invested CHF 80 million to enlarge its Care Chemicals facility in Daya Bay, Huizhou, China, to better serve clients in the pharmaceutical, personal care, home care, and industrial sectors. The CHF 80 million investment will increase capacity for existing products and introduce new ones by the end of 2024. The facility will also become the first API manufacturer in China with certified polyethylene glycol Polyglykol 3350. The investment will also increase production capacity for sustainable ingredients, such as EcoTain®-labelled Hostapon® mild surfactant.


The specialty chemicals market has been analyzed through the following segments:

  • By Type
    • Specialty Polymers
    • Construction Chemicals
    • Specialty Coating
    • Plastic Additives
    • Others
  • By End-User
    • Pharmaceutical
    • Electronics
    • Automotive
    • Construction
    • Others
  • By Geography
    • North America
      • US
      • Canada
      • Mexico
      • Others
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Others

Frequently Asked Questions (FAQs)

Specialty Chemicals Market was valued at US$712.246 billion in 2022.
The specialty chemicals market is expected to reach a market size of US$996.867 billion by 2029.
The global specialty chemicals market is expected to grow at a CAGR of 4.92% during the forecast period.
The Asia Pacific region is anticipated to hold a significant share of the specialty chemicals market.
Growing consumer demand for personal care supplies is expected to boost the growth of the specialty chemicals market.


1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the Stakeholder


2.1. Research Design

2.2. Research Processes


3.1. Key Findings

3.2. Analyst View


4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View


5.1. Introduction

5.2. Specialty Polymers

5.2.1. Market Opportunities and Trends

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Construction Chemicals

5.3.1. Market Opportunities and Trends

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. Specialty Coating

5.4.1. Market Opportunities and Trends

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

5.5. Plastic Additives

5.5.1. Market Opportunities and Trends

5.5.2. Growth Prospects

5.5.3. Geographic Lucrativeness

5.6. Others

5.6.1. Market Opportunities and Trends

5.6.2. Growth Prospects

5.6.3. Geographic Lucrativeness


6.1. Introduction

6.2. Pharmaceutical

6.2.1. Market Opportunities and Trends

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Electronics

6.3.1. Market Opportunities and Trends

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

6.4. Automotive

6.4.1. Market Opportunities and Trends

6.4.2. Growth Prospects

6.4.3. Geographic Lucrativeness

6.5. Construction

6.5.1. Market Opportunities and Trends

6.5.2. Growth Prospects

6.5.3. Geographic Lucrativeness

6.6. Others

6.6.1. Market Opportunities and Trends

6.6.2. Growth Prospects

6.6.3. Geographic Lucrativeness


7.1. Introduction

7.2. North America

7.2.1. By Type

7.2.2. By End-User

7.2.3. By Country US Market Opportunities and Trends Growth Prospects Canada Market Opportunities and Trends Growth Prospects Mexico Market Opportunities and Trends Growth Prospects Others Market Opportunities and Trends Growth Prospects

7.3. South America

7.3.1. By Type

7.3.2. By End-User

7.3.3. By Country Brazil Market Opportunities and Trends Growth Prospects Argentina Market Opportunities and Trends Growth Prospects Others Market Opportunities and Trends Growth Prospects

7.4. Europe

7.4.1. By Type

7.4.2. By End-User

7.4.3. By Country Germany Market Opportunities and Trends Growth Prospects France Market Opportunities and Trends Growth Prospects United Kingdom Market Opportunities and Trends Growth Prospects Spain Market Opportunities and Trends Growth Prospects Others Market Opportunities and Trends Growth Prospects

7.5. Middle East and Africa

7.5.1. By Type

7.5.2. By End-User

7.5.3. By Country Saudi Arabia Market Opportunities and Trends Growth Prospects Israel Market Opportunities and Trends Growth Prospects Others Market Opportunities and Trends Growth Prospects

7.6. Asia Pacific

7.6.1. By Type

7.6.2. By End-User

7.6.3. By Country China Market Opportunities and Trends Growth Prospects Japan Market Opportunities and Trends Growth Prospects South Korea Market Opportunities and Trends Growth Prospects India Market Opportunities and Trends Growth Prospects Others Market Opportunities and Trends Growth Prospects


8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard


9.1. BASF SE

9.2. Akzo Nobel N.V

9.3. Evonik

9.4. PPG Industries Ltd

9.5. Mitsibushi Chemical Corporation

9.6. RBP Chemical Technology, Inc.

9.7. Brenntag Specialties, Inc.


9.9. Lanxess india private limited


Akzo Nobel N.V


PPG Industries Ltd

Mitsibushi Chemical Corporation

RBP Chemical Technology, Inc.

Brenntag Specialties, Inc.


Lanxess india private limited