Specialty compounds and commercial compounds are mainly used in general end-use industries, such as textiles, automobiles and transportation, and industrial manufacturing. Other special applications of some specialty chemicals include agriculture and pharmaceuticals, while commercial products are specifically used in downstream sectors.
In 2020, the chemical industry will dominate the market with a revenue share of more than 17.6%(there are some chemical news). Worrying pollution levels in the United States and China have spurred innovation in building materials and led to the development of smog prevention products. Boral Roofing Company is one such company. They have introduced an innovative anti-haze tile that uses a photocatalyst titanium dioxide to remove nitrogen oxides (NOx) to improve air quality. In addition, the increase in construction spending of emerging economies in the Asia-Pacific region is expected to drive the demand for specialty chemicals in a variety of applications.
In 2020, the consumption of downstream commodity chemicals will dominate the market, accounting for 35.6% of revenue. Downstream industries include the refining and processing of petroleum and crude oil and the purification of raw natural gas. In addition, it also includes the sale and distribution of various petroleum-derived products.
Regional insights
The Asia-Pacific region has become the leading regional market, accounting for 59.2% of total revenue in 2020. During the forecast period, increasing manufacturing activity and significant growth in per capita disposable income are expected to drive demand. The automobile, construction, electronics, and electronics industries in China, India, Malaysia, Vietnam, Thailand and other countries are expanding rapidly.
In addition, chemical production in the region will grow at an alarming rate, and major players will shift their focus to markets with high opportunities. It is expected that commodity compounds will continue to be the dominant field in the Asia-Pacific region. From 2020 to 2028, the compound annual growth rate of specialty chemicals will be even higher at 6.4%.
The North American chemical industry is one of the most consolidated markets. In 2019, the three major distributors Brenntag, Univar and IMCD together accounted for 30% to 40% of the market. However, due to the continuous upgrading of the labor market, the easy availability of credit and the abundance of raw materials, international chemical manufacturers are expected to accelerate their capital investment in this market.
In recent years, major North American chemical companies have continued to expand their production capacity and promoted a shift in the trend towards third-party distributors, using them as a growth platform for expansion into undeveloped regional markets. However, due to fluctuations in crude oil prices, weakness in Latin America's gross domestic product (GDP), and economic recession, the petrochemical industry in North America has slowed down in the past few years. Petrochemical production capacity may increase in the next few years because several facilities planned on the US Gulf Coast, including Natgasoline and South Louisiana Methanol, are expected to produce 1.75 million/MT and 1.8 million/MT/year, respectively.
Key company and market share insights
The acquisition of small distributors by leading global distributor companies such as MilliporeSigma, Brenntag AG and Univar Solutions has affected the realization of economies of scale and focused on specialized sales channel strategies, rationalized their distributor base, and strengthened their supply chain network.
Mergers and acquisitions and capacity expansion are the company's main strategies to achieve product diversification and increase market share on a global scale. Major companies are consolidating growth by expanding the range of existing products to include specialty products. In the chemical distribution market, some well-known companies include:
Univar AG)
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Brenntag AG)
Azelis Holdings
IMCD Group
BASF SE
Biesterfeld AG)
