The Fine Chemical Catalyst Market size is forecasted to grow at a CAGR of 6.1% during the forecast period 2022-2027. Fine chemical catalysts can be categorized into various types of materials such as platinum, palladium, vanadium oxide, proline, rhodium and more. They are used in a wide range of industries which include pharmaceuticals, paints & coatings, agriculture, rubber and other industries. The expansion of fine chemical catalysts is primarily driven by their usage in the cosmetic & personal care industry. In 2020, the surge in the COVID-19 pandemic negatively impacted cosmetic production activities, thus, temporarily affecting the growth of the fine chemical catalyst industry. However, a steady recovery in cosmetic production has been witnessed since 2021, which in turn, is driving the demand for fine chemical catalysts. For instance, according to the European Trade Association for the Cosmetics and Personal Care Industry, the total sales of the cosmetics and personal care industry in Europe was valued at EUR 80 billion (US$ 94.6) in 2021, an increase of 4.3% as compared to EUR 76.7 billion (US$ 87.6) in 2020, indicating an increase in demand and production from the sector. An increase in the production of cosmetic & personal care products along with the surging demand from the rubber industry is expected to drive the growth of the fine chemical catalyst market size in the coming years. On the other hand, high costs of raw materials may confine the growth of the market.
Fine Chemical Catalyst Market Report Coverage
The "Fine Chemical Catalyst Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Fine Chemical Catalyst Market.
By Material Type: Platinum, Palladium, Vanadium Oxide, Proline, Rhodium, Ruthenium, Iridium, Others.
By Application: Flavors and Fragrances, Agrochemicals, Pigments and Dyes, Active Pharmaceutical Ingredients, Plastic Additives, Rubber Additives, Others.
By End-Use Industry: <span lang="EN-US" times="" new="" roman";mso-bidi-font-family:="" "dubai="" light";color:black;mso-themecolor:text1"="" style="box-sizing: border-box;">Pharmaceuticals, Paints & Coatings, Agriculture, Rubber, Textile, Cosmetics & Personal Care (Skin Care, Hair Care, Fragrances), Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World (the Middle East and Africa).
Key Takeaways
- Active pharmaceutical ingredients application held a significant share in Fine Chemical Catalyst Market in 2021. The ability of fine chemical catalysts to increase the speed of chemical reactions makes it ideal for use in the production of active pharmaceutical ingredients, whose demand is driven by their usage in the pharmaceutical industry.
- Pharmaceutical industry held the largest share in Fine Chemical Catalyst Market in 2021, owing to the increasing demand for fine chemical catalysts from the pharmaceutical sector across the world. For instance, according to the Brazilian Chemical Industry Association, the production of the pharmaceutical industry in Brazil was valued at US$16.1 billion in 2021, an increase of 2.6% from US$ 15.7 billion in 2020.
- Asia-Pacific dominated the Fine Chemical Catalyst Market in 2021, owing to its increasing demand from the pharmaceutical sector of the region.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Fine Chemical Catalyst Market Report.
Figure: Asia-Pacific Fine Chemical Catalyst Market Revenue, 2021-2027 (US$ Million)
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Fine Chemical Catalyst Market Segment Analysis – by Application
The active pharmaceutical ingredients application segment held a significant Fine Chemical Catalyst Market share in 2021. Fine chemical catalysts composed of platinum, palladium, vanadium oxide, proline and more, are primarily used during the production of active pharmaceutical ingredients, owing to their ability to speed up chemical reactions and synthesis. Moreover, active pharmaceutical ingredients are the most important component of any medical drug, as they are responsible for fulfilling the purpose of the medication. Hence, an increase in pharmaceutical production is expected to drive the demand for fine chemical catalysts for the production of active ingredients utilized in the industry. For instance, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the total production of pharmaceuticals including capsules, tablets and other products in Europe was valued at EUR 310,000 million (approx. US$ 354,080.76 million) in 2020. Thus, such increasing production from the pharmaceutical sector is expected to increase the demand for fine chemical catalysts for the production of active pharmaceutical ingredients utilized in the industry. This is expected to drive the growth of the market during the forecast period.
Fine Chemical Catalyst Market Segment Analysis – by End-Use Industry
The pharmaceutical industry held the largest Fine Chemical Catalyst Market share of over 25% in 2021. The ability of fine chemical catalysts to increase the speed of chemical reactions and synthesis makes it ideal for use during the production of active pharmaceutical ingredients utilized in the pharmaceutical industry. For instance, according to the Government of Japan Ministry of Health, Labor and Welfare (MHLW), the production of pharmaceuticals in Japan was valued at US$ 87.03 million in 2019, an increase of 39% in comparison to the previous year. Moreover, recent insights from the International Trade Administration state that the total production of pharmaceutical products in Mexico was valued at US$ 11.1 billion in 2020, representing an increase of 2.8% from US$ 10.8 billion in 2019. Thus, such increasing production from the pharmaceutical sector is expected to increase the demand for fine chemical catalysts, owing to its above-mentioned properties. This is expected to expand the fine chemical catalyst market size during the forecast period.
Fine Chemical Catalyst Market Segment Analysis – by Geography
Asia-Pacific held a dominant Fine Chemical Catalyst Market share of around 31% in the year 2021. The consumption of fine chemical catalysts is particularly high in this region due to its increasing demand from the pharmaceutical sector. For instance, according to the General Statistics Office of Vietnam, the total pharmaceutical production in Vietnam was valued at US$3484.5 million in 2020, an increase of around 7% from US$ 3255.6 million in 2019. According to Vietnam’s Ministry of Health, the pharmaceutical industry is expected to grow at a rate of 10% per year from 2017 to 2028, owing to an increase in pharmaceutical production and sales in the country. Furthermore, India Brand Equity Foundation (IBEF), India ranked 3rd in terms of pharmaceutical production by volume in 2021. It further states that the domestic pharmaceutical industry in India includes around 3,000 drug companies and approx. 10,500 manufacturing units.
In this way, such increasing production from pharmaceutical sectors in the region is expected to increase the demand for fine chemical catalysts composed of platinum, palladium, vanadium oxide, proline and more for use in the production of active pharmaceutical ingredients utilized in the industry. This is expected to accelerate the growth of the market during the forecast period.
Fine Chemical Catalyst Market Drivers
An increase in the production of cosmetic & personal care products
Fine chemical catalysts are primarily used in the production of preservatives, additives and fragrances utilized in cosmetics & personal care products. The use of fine chemical catalysts during the production process of cosmetics & personal care products ensures the highest process yields and efficiencies. According to the International Trade Administration (ITA), South Korea accounts for one of the world's top ten beauty industries, responsible for about 2.8% of global sales in 2019. The industry was valued at US$ 9.4 billion in 2019, with total local production increasing by 4.9% in comparison to the previous year. Moreover, according to a study published on Fashion Network, skin care and sun care products produced an average annual growth of 5.6% in 2020. Hence, such surging production of cosmetics and personal care products is expected to increase the demand for fine chemical catalysts, owing to their above-mentioned usage. This is expected to fuel the growth of the market in the upcoming years.
Surging demand from the rubber industry
Fine chemical catalysts are primarily in the rubber industry during its production in order to polymerize the monomers into controlled structures with the aim of achieving the rubber’s required performance objectives in their applications. For instance, according to the Gulf Petrochemicals and Chemicals Association (GPCA), the synthetic rubber industry is expected to grow by 5.5% by the end of 2022. It further states that the demand for synthetic rubber from industrial and consumer applications is expected to remain high in 2022. In 2019, the government of India launched its National Rubber (NR) Policy 2019. Which aims at meeting the demand for 2 million tons of rubber production by 2030. Furthermore, recent insights from the European Tyre & Rubber Manufacturers Association (ETRMA) states that the major countries that produced synthetic rubber in 2020 were China with a share of 22%, followed Europe with 14% and the USA with 13% respectively. In this way, an increase in production from the rubber industry is expected to increase the demand for fine chemical catalysts for use in rubber additives utilized during the production of rubber. This is expected to accelerate the growth of the fine chemical catalyst market in the upcoming years.
Fine Chemical Catalyst Market Challenges
High cost of raw materials
The primary materials used in fine chemical catalysts such as platinum, palladium, rhodium and more are usually associated with a high cost, which in turn, may restrain the growth of the market. For instance, according to Monex Precious Metals, the price of palladium in 2022, reached up to US$ 63,303.35/kg, representing an increase of US$ 482.25 in comparison to 2021. Likewise, the price of platinum reached up to US$ 28,032/kg in July 2022, depicting an incline of 5.64% in comparison to the previous week. Furthermore, in 2022, the price of rhodium reached US$ 435,642.62/kg. Thus, such high costs associated with primary materials used in fine chemical catalysts may limit the growth of the fine chemical catalyst industry during the forecast period
