Global businesses are still reeling from the plunge in crude
oil prices at the onset of 2016. In the light of specialty chemicals market and
dependent verticals, this eventually turned tables in its favor. The raw
material prices skyrocketed for the commodity chemicals segment, while a
slowdown in oil and gas rigs indicated lower prices for oilfield chemicals. On
the other hand, market players now shift their focus towards specialty chemicals
expecting extended market shares by reducing margins, being the value-addition
segment it is for diverse verticals.
Any mention of specialty chemicals might draw a broad
picture of industrial applications with extremely complex compounds. A true
milieu of the demand segments, however, scales over lesser complex chemicals
that are basic to most products put to daily use. These chemicals may be base
compounds or specified formulations. User-specific formulations are produced
using batch processing methods, depending on their performance or function. Concentration
lies upon producing stable chemical complexes that are explicitly typical to
their application segment.
Based upon the end consumption market, specialty chemicals
can be classified under construction, housing, automotive, and industrial
segments. Concrete additives and asphalt modifiers in construction;
architectural, coal and wood coatings, chemicals, and advanced materials in
housing; motor oil, adhesives, sealants, and lithium-based products in automotive;
while, demulsifiers and corrosion inhibitors are required in oilfields.
A simple market overview in itself is evidentiary of the
constant dips and hikes in Specialty Chemicals Market segment. Despite all the
possibilities, investment interests from new entrants seem undeterred over the
time. This positive outlook of the stakeholders, casts incremental influence on
the growth projections for the market in the upcoming years. In order to
maintain stable growth, industry majors need to outline certain business
strategies with context to the current market structure.
The inability of the manufacturers in dynamically adjusting
their prices, along with the fluctuations in cost of raw materials and pipeline
products, is one major issue that needs attention. Talking along similar lines,
companies need to refrain from exchanging goods as commodities, and set
differential pricing structure both for upstream complexes and downstream
products. Eventually, this shall simplify the pricing structure and help extract
greater profit margins in the cyclical industry. Emerging competition from
e-vendors is shaping consumer’s expectation and buying tendency differently. In
order to keep up with the upcoming consumption trends, the existing players are
obliged to work on their sales strategies inclusive of innovative options to
choose from, competitive pricing, and optimized availability as per purchase
requirements.
Opportunity pockets are showing up in emerging regional
markets across the globe. Investors need to pay close attention to regional
market and manufacturing activities. Offshore investments for major players to
expand their operations should be accountable of labor as well as manufacturing
costs. Added to that, there are other inhibitors such as governmental and
organizational regulations. Much is
expected out of the upcoming SOCMA’s 9th
Annual Washington Fly-In, during April 11 – 12, 2016 which might hold promising
regulatory concepts for its participating members. Overall, the industry is
expecting enough accommodation for global expansion and investment pockets in
specialty chemicals in the latter half of this decade. Allied Market Research
has added a report titled “World Specialty Chemicals Market - Opportunities andForecast, 2014 – 2020” predicting Asia-Pacific as the fastest growing market
with a CAGR of 5.4% during the forecast period. The report holds quantitative
and qualitative analysis of the global market structure, key drivers as well as
restraints, major participants, their financial strategies and ratios, plus
market analysis by geographies for the sake of corporate reference.
