China's emergence as a key supplier in the specialty chemicals segment is not a coincidence. Over the last few years, China's dominance in the Chemical industry was paving the path for its success in the specialty chemical market. China's share in the global chemical industry jumped to 38% in 2018 from 24% in 2010. But strict pollution norms imposed by the Chinese government have slowed down chemical production in China. Many Chinese companies are either being shifted to areas that are remote from cities and dedicated to production or restrictions are being placed on production altogether. Despite these China still a major exporter and consumer of specialty chemicals in the world.

What are specialty chemicals?

Specialty chemicals which are also known as performance chemicals are distinguished and often technologically advanced products. Specialty chemicals are manufactured in smaller volumes than regular chemicals and are used for a specific objective for example as a functional ingredient or as processing aids in the manufacture of a diverse range of products. To achieve the desired product-performance requirements, manufacturers/suppliers of specialty chemicals should have the fundamental knowledge of the performance aspects that are responsible for the end products’ ultimate performance.

What are the different types of specialty chemicals? ⁽¹⁾

Specialty chemicals can be divided into two broad segments polymeric or nonpolymeric additives used in chemical products.

• Polymers may function as thickeners or viscosity modifiers, emulsion stabilizers, binders for fibers such as paper or glass, suspending agents. Specialty polymers also include silicones that can be used to improve the strength or feel of materials, coatings for backings such as self-adhesive stamps or labels.
• Nonpolymeric specialty chemicals include surfactants, fragrance ingredients, and food additives. This includes surfactants used for emulsification and emulsion stability, foaming, cleaning or dirt removal, texture control in food and cosmetics, and film-formation in coatings.

What is the market size of Specialty chemicals?

In 2019, the global specialty chemicals market was USD 586.1 billion and is expected to reach USD 684 billion by 2024, with a CAGR of 3.14%. In 2019, electronic chemicals, industrial and public facility cleaners, and specialty polymers each accounted for 7% to 8% of the total output of the specialty chemicals market. Surfactants, construction chemicals, flavors and fragrances, catalysts, special coatings, and water-soluble polymers each account for 5% to 6% of the total output of the specialty chemicals market.

This market report provides analyses, information, industry statistics, and insights into the global specialty chemicals market. The updated report helps you track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product developments, and research and developments in the global Speciality Chemicals market.

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What are the popular specialty chemical categories? ⁽²⁾

• Adhesives and Sealants: Adhesives are used to bond two surfaces together, while sealants are used to fill a gap between two objects. Major markets for these products are automotive, building and construction, nonwovens, office supplies, and packaging.
• Catalysts: Catalysts are specialty chemicals that affect the speed of a chemical reaction without changing chemically, or being consumed. Catalysts are used in oil refining, chemical processing, and automotive emission controls.
• Coatings: Coatings are materials applied to surfaces to protect and/or decorate. Included are alkyd, enamel, latex, oil-based, and powder; other coatings used in architectural, automotive, and original equipment manufacturer (OEM) applications; and stains, varnishes, lacquers, removers, and thinners.
• Cosmetic Additives: Cosmetic additives are functional chemicals used to impart special properties (such as improved performance) in personal care products such as cosmetics, deodorants, perfume, skincare, sun care, and toiletries.
• Electronic Chemicals: Electronic chemicals are essential in the manufacture of semiconductors, PCB, and other microelectronic devices. Among them are cleaners, developers, dopants, encapsulants, etchants, photoresists, specialty polymers, plating solutions, and strippers.
• Fine Chemicals: Fine chemicals are undifferentiated intermediate, medicinal, and aroma chemicals that are produced in low volumes—but with very high purity standards—for a small number of customers. 
• Flavors and Fragrances: These natural and synthetic additives are used to impart flavor and fragrance in finished food and personal care products
• Food Additives: Food additives are used to impart flavor and/or color and other properties (e.g., nutrient value, texture) in finished food products, as well as facilitate food and beverage processing.
• Functional Fuel and Lubricant Additives: These functional chemicals are added to lubricating oils to impart special properties and to enhance combustion and/or reduce emissions of pollutants.
• Institutional and Industrial Cleaners: As the name implies, institutional and industrial cleaners are used to clean and sanitize surfaces, equipment and other applications in institutional and industrial settings, such as food and beverage processing plants, restaurants, schools, hospitals, lodging, and laundries.
• Oilfield Chemicals: These functional chemicals—which are used to enhance oil recovery and production—include a variety of acids, biocides, corrosion inhibitors, defoamers, dispersants, emulsions, polymers, surfactants, thickeners, etc.
• Paper Additives: Paper additives are functional chemicals used to facilitate paper manufacture or to enhance the properties of the final paper product. Examples include biocides, coagulants, defoamers, dispersants, flocculants, etc.
• Plastics Additives: These functional chemicals are added to the plastic resin to aid or facilitate in processing or to enhance, extend, or modify the final properties of plastic products.
• Plastics compounding: This is the physical mixing of resins with performance-enhancing additives (see above) to produce a compounded or formulated plastic mixture that is preferable to the base resin(s) alone.
• Rubber Processing Chemicals: These functional chemicals are used to facilitate processing or to improve the properties of the final rubber product. They include accelerators, activators, anti-ozonants, antioxidants, stabilizers, and vulcanizing agents, among others.
• Water Management Chemicals: Formulated and proprietary chemicals are used in the treatment of cooling and boiler water to prevent corrosion and the build-up of scale and also to prevent the disease from drinking water.

Who are the top 5 key players in the specialty chemicals market?