Specialty chemicals are manufactured based on their performance or function, rather than their chemical composition.
Constant focus on research and development activities has led to the development of advanced specialty chemicals; thereby, driving market growth.
Furthermore, the Asia-Pacific region is the largest market for specialty chemicals. The Asia-Pacific specialty chemical market has witnessed dynamic growth in recent years. There has been a notable demand from emerging economies, such as India and China, due to rapid industrialization. This is one of the major factors, which is responsible for driving the world specialty chemicals market.
Furthermore, advancements in the major electronics producing countries, such as Japan, South Korea, Taiwan and China, have fostered the consumption of specialty chemicals in this region. Changing consumer lifestyles has led to an increase in the demand for cosmetic products. Moreover, increasing investments in construction and infrastructure development projects in the emerging economies, such as India and China, have fueled the adoption of specialty chemicals in this region.
Moreover, heavy investment in construction & infrastructure projects and changing the lifestyle of consumers boost the consumption of specialty chemicals, such as construction chemicals and food additives, in the emerging economies. However, the fluctuating cost of raw materials and stringent government regulations are expected to restrain the specialty chemicals market growth. The production of specialty chemicals incurs high-cost, which leads to lower demand in the market. Most of the specialty chemicals are manufactured using petroleum-based commodity chemicals. Fluctuations in crude oil prices have significantly impacted the input costs of specialty chemicals, thereby, decreasing the profitability of market players. Moreover, chemical manufacturers strive to reduce the costs of the end products, so the elevated costs passed on the buyers.
"Growing urbanization and a rising number of construction projects have fostered the consumption of specialty chemicals. The ink additives segment is anticipated to grow at the highest CAGR of 5.8% during the forecast period," said Eswara Prasad, manager, Materials and Chemicals at Allied Market Research. "Increasing sales of UV, free radical, and cationic inks for commercial and publications printing applications have fuelled the consumption of ink additives in the market. The other specialty chemicals included in this report are food additives, cosmetic chemicals, water treatment chemicals, paper and pulp chemicals, textile chemicals, and oil field chemicals."