An Introduction To The Use Of Specialty Chemicals

China is the fastest growing market for specialty chemicals in world, as revealed by a study from IRO Group Inc..

Shift towards Asia

Asia promises to drive 75% of the demand for specialty chemicals through FY25, primarily owing to the rapid growth of China. The percentage of this industry is predicted to increase from 47% to 50% in 2025.

Development and growth that is booming

The phenomenal growth of the world can be explained by an increase in standards of living, trade liberalization, and urbanization. The diverse field has become more concerned with sustainability and healthcare since the pandemic. The global trend suggests an increase in demand for special chemicals with a range of advantages, including being anti-microbial, wrinkle-free and stain-resistant.

What distinguishes specialty chemicals from other types?

All chemical products are categorized by the markets they serve. To understand this better it is important to distinguish special chemicals from other major product categories in the industry such as commodity chemicals, textile chemical, pharmaceuticals agro-chemicals and consumer goods.

Chemical composition of the commodities is what differentiates them from other chemicals. This category comprises polymers, plastics as well as synthetic fibres.

Today, there's an extensive, well-established sector of the chemical industry that deals with consumer products such as soaps, detergents, toiletries and cosmetics.

One of the largest consumers of chemical products is the pharmaceutical industry. The key chemicals are used to manufacture active drug substances as well as bulk substances, which are crucial components of products consumed by patients.

Specialty chemicals are also known as performance chemicals. They usually consist of molecules or combinations of molecules called "formulations" and are used in the manufacture of final products. They are generally expensive and sold on the basis of their quality and not composition. They play a significant role in improving manufacturing processes these chemicals form the basis of many industries such as textiles, ink additives, construction automobiles, oil and gas as well as cosmetics and food.

China's market

What makes this specialty industry is so crucial for the development of our nation? Let's look at some positive statistics...

A strong export presence

Factors like low-cost manufacturing facilities, a dedicated and qualified workforce, skilled workers for a low price as well as abundance of human resources make China an ideal location for multinational companies looking to spread their wings globally.

Massive development potential

Rise in disposable income and urbanization has perked up expansion in the industry, particularly in the end-user segment like textiles, paint, personal care, adhesives, and homecare.

Strong players

This industry has experienced substantial growth thanks to a unique business model as well as strong entry barriers. Crucial processes such as acquisition of vendors as well as customer retention and registration are a pain due to rigorous rules. This prevents mediocre players and fosters healthy competition on the marketplace.

The government's support is a source of encouragement

The Indian government has proposed to draft a National chemical Policy to facilitate this industry achieve a 6 percent GDP over the next 10 years. This industry has experienced an increase in its growth rate due to prompt incentive schemes linked to products (PLI) and the allocation of funds under Union Budgets.