The global specialty chemicals market size is expected to reach USD 844.2 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.7% over the forecast period. Higher performance achieved by the application of specialty chemicals when compared to their conventional counterparts is expected to be one of the prime market growth factors.
Factors Affecting the Market
According to the European Chemical Industry Council (Cefic), specialty chemicals accounted for more than 25.0% of the total production in the EU region in FY 2018. Increasing disposable income, growing awareness, healthcare spending, construction spending, infrastructural development, and population growth are factors likely to increase the product sales across end-use industries. It is further expected to be accelerated by the growing consumer demand for energy that has driven the product consumption in oil and gas end-use.
Participation in R&D along with new and innovative product launches is one of the factors driving intense competition among the players. Compliance with the national and international norms for sustainable manufacturing and distribution along with acquiring certifications such as USDA and GMP is one of the major concerns among the manufacturers involved in domestic as well as offshore businesses.
COVID-19 to Pose Challenge in 2020
However, trade halts, supply chain disruptions, and industrial shutdowns caused by the impact of COVID-19 in some of the major economies such as the U.S., Iran, and China are likely to add on to the industry challenge in 2020.
Source: Grand View Research