Companies operating in the specialty chemicals market would be seen improving their product quality as well as organizational efficiency.
Tata Strategic Management, changed opinions of eminent industry leaders when it announced that the specialty chemicals market will generate $25 billion in 2014. Officials at the company reveal that the industry will cross $100 billion by 2024 in India. Today, the demand in the specialty chemicals market is driven by the recent improvements in local consumption, say research analysts at Allied Market Research. Industry experts gauging the size and share, trends, growth and demands in the Specialty chemicals market outline that softening of trade activities in China has improved the market performance in several Asian countries, including India.
Researchers highlight that world specialty chemicals is projected to generate about $233.5 billion by 2020. Moreover, the specialty chemicals market is expected to register a CAGR of 5.4% during the assessment period. Ink additives, which has emerged by the fastest growing category is projected to register a CAGR of 5.8% between 2014 – 2020.
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Demand for Specialty Chemicals in Food Grows
The food chemical segment observed an increased demand between 2009 – 2013. During the assessment period, the sector had generated about $29.94 billion to $36.45 billion, according to a 2014 study by Leatherhead. The growth value of which is more apparent in the hydrocolloids segment, is projected to be over 10% annually. Other categories of the specialty food chemicals have also performed over the past five to six ears.
In addition, the annual growth observed with the flavor and emulsifier industry is projected to be between 5% to 10% per year highlights Jonathan Thomas at Leatherhead Food Research. Another key market driver for food chemicals is associated with the expansion of the processed food industry in less explored market. The food & beverage sector in the regions including North America and Europe is mature. So manufacturers active in the specialty chemicals market are seen exploring new markets.
Water Treatment Chemical Prices On Constant Rise
Association of Metropolitan Water Agencies had conducted a survey on the utilities of drinking water in 2008. The study was carried out to understand the specifies of the water, chemicals such as their price changes. The chemicals that showed an increase in price included phosphoric acid, caustic soda, and flurosilicic acid. While phosphoric acid showed an average increase of 80% from 25 utilities, the phosphoric acid showed about 223% increase from 12 utilities.
In addition, 41 utilities reported using fluoride. The global market of water treatment chemicals was valued at about $11,006.6 million in 2013. Industry leaders at Allied Market Research estimate the sector to garner $18,824.0 million by 2020 and register a CAGR of 7.6% from 2014 to 2020. The surfactant sector is believed to be the fastest growing industry, registering a CAGR of 8.6% during the forecast period. Besides this, LAMEA is one of the fastest growing regions that is growing a CAGR of 9.3% during the assessment period. This will create new opportunities for specialty chemicals market in the region.
Big Brands Strengthen Competitive Landscape in Construction Chemical Category
Big Brands have now identified the huge potential of establishing their construction chemicals plants in the Asian countries. In a recent incident, BASF has inaugurated its sixth construction, chemical factory in India. With the new unit, the company hopes to serve the growing need for high quality products, particularly in the eastern part of India. Commenting on the recent development Christian Mombaur, the senior vice president, at BASF Asia -Pacific construction chemicals said “Asia-Pacific is one of the fastest growing markets globally, and India is a strategic growth engine of this market. Mombaur explained “The Kharagpur plant will help us better serve the growing demand for durable and energy efficient.” Officials at Tata Strategic Management outline that the construction chemicals sector in India is projected to generate approximately Rs. 7,000 Crore by 2019.
Another company based in Switzerland, called Clariant has established a new production unit for preparing water – based pigment in Mexico. Nuberg made headlines when it won $76 million project in the United Arab Emirates from a chemical factory of the Saif Al Khaili Group. In a statement, the United Arab Emirates company outlines The $76 million project envisions to set up a 150 TPD Chlor Alkali / Caustic Chlorine plant in Khalifa Industrial Zone Abu Dhabi (KIZAD), UAE, which will produce caustic soda and other chlorine derivatives such as Caustic Soda, Chlorine, Sodium Hypochlorite and Hydrochloric Acid." Echoing his sentiments Louai Kasem, chief operating officer at Emirates Chemical Factory said "We are delighted to have Nuberg on board... Nuberg will definitely add value to our endeavour with its excellent turnkey project engineering capabilities and quality services coupled with highly competitive costs.”
Green Oilfield Chemicals Are Trending
New manufacturing plants are being opened to support the industry’s efforts to manufacture green products. Huge investments are made on technical centers to develop products that are especially based on stabilized alkali metal platform. SiGNa Chemistry has made a bold move in this direction by inaugurating its new plant that produces materials uses for a wide range of improved oil recovery activities throughout North America. This fast – developing start-up is said to be nearing its plant capacity and is planning on setting up a second manufacturing unit. Earlier, Dorf Ketal had made a huge investment in a United States based make of oilfield chemical, Flowchem. The acquisition of Flowchem includes 2 blending units in the United States, thus offering Dorf Ketal an opportunity to strengthen its hold in the oil and gas upstream industry. Commenting on the acquisition David Johnson, the president of the Dorf Ketal Oilfield Chemicals said “Flowchem’s portfolio of oilfield production and drilling products will be combined with Dorf Ketal’s products currently servicing offshore fields in Brazil to improve capabilities of both entities.”
Considering significant changes in the different segment it becomes evident that improving the productivity and organizational efficiency would top the list of many companies in 2016.