Chemical industry is very important in the development of industry and agriculture in a country. It provides basic materials for some downstream industries, such as papermaking, painting, textile, soap, detergent, etc.
Covering more than 80000 products, it serves many terminal application industries. It is estimated that the industry employs more than two million people in India. Top professional chemical companies are committed to sustainable development and green chemistry, such as reducing carbon footprint and improving raw material supply.
The market for specialty chemical products is growing in a variety of applications, which helps to drive the overall market in multiple regions. The main factor driving the market growth is the growing demand of end-user industries such as food, textile and automobile.
Understanding special chemicals
Special chemical is a kind of special chemical products, it has a variety of functions, many other industrial sectors rely on it. These industries that rely heavily on information technology include automobile, aerospace, food, cosmetics, agriculture, manufacturing and textile. They can be a formula or a single chemical entity whose chemical composition affects the final product.
Special chemicals are widely researched and developed, which is the main difference between special chemicals and ordinary chemicals. They have only one or two core applications, unlike commercial chemicals, which have dozens of different applications.
Now professional manufacturers can be divided into three categories:
Special chemical products can be further subdivided into personal care ingredients, dyes and pigments, agricultural chemicals, polymer additives, water chemicals, textile chemicals and application driven areas according to their use in the end-user industry.
They are the largest component of the specialty chemicals industry, accounting for more than 80% of the specialty chemicals industry.
Global chemical industry
The industry is in a bull market, and the global chemical market is expected to reach about US $4 trillion in 2019. Commercial chemicals account for 80% of the global chemical industry, and the remaining 20% are specialty chemicals. Special chemicals are different from ordinary chemicals because they involve a wide range of product R & D and innovation, which often translate into better profit margin, profit margin and lower capital expenditure intensity.
Overview of global special chemicals
Globally, the compound annual growth rate of special chemical products industry in recent five years is 5.7%, reaching US $805 billion in 2019. It is estimated that it will grow by 6.4% in the next five years and reach 1.2 trillion US dollars by 2025. Over the past few decades, chemical manufacturing has shifted from Europe and North America to Asia.
One of the most significant trends in the global chemical industry is the rise of China as a leading player. This is reflected in China’s share of the global chemical industry rising from 6% in 2000 to about 25% in 2020.
Trade flows of special chemicals
The past few decades have been good for the Asian market, especially in the area of specialty chemicals, due to the paradigm shift in manufacturing activities and the growth in consumption. Asia has become a net exporter of a range of specialty chemicals previously imported from the European Union and North America.
China has become one of the main suppliers of professional chemical products in the world. However, as China experiences economic recession and the US China trade war, India is becoming an important player in this field.