HC Chemical Network News: According to “2017 Specialty Chemical Industry Overview” published recently by IHS Markit industry report , in 2016 the total value of global special chemicals market reached $ 556 billion, with a slight decrease compared with 2015, decreased by 0.2%. Vice president of specialty chemicals of IHS Markit and the lead author of the report, Aida Jebens, said the specialty market is closely related to the pace of economic growth. The next five years, with the economic development, especially under the guidance of China ,the global specialty products market will grow at an average annual growth rate of 3%.


The market value of each region changes rapidly

IHS Markit reported that according to the global market, electronic chemicals, industrial and public facilities, cleaners and specialty polymers each accounts for 7% to 8% of the total market, In 2016 market value is of 40 billion to 45 billion US dollars . The Surfactants, building chemicals, fragrances , catalysts, specialty coatings and water-soluble polymers have a market value of about $ 30 billion and a food additive market value of about $ 25 billion. Consumer demand for specialty chemicals (such as electronic chemicals) is big; oil prices are sluggish in terms of crude oil prices, which account for only 4% of the total, and the 2013- 2015 market for oilfield chemicals share is of about 6%.

Jebens said that from the regional market, the value of North America, Western Europe and Japan specialization market is nearly 270 billion US dollars, accounting for half of the global market. Chinese share of world market of specialized products continued to grow, reaching 23%, essentially flat with the North American market, North America accounted for about 24% of the world share. Jebens further pointed out that this is quite different from the situation a few years ago. In 2012, China’s specialty products market share was less than 20%, while the North American market share was 25%. In addition,in the past few years, Western Europe and Japan’s specialty products market share have also been declining. For example, the share of global market of Western Europe for specialty products dropped from 21% in 2012 to 17% in 2016, while Japan’s market share dropped from 12% in 2012 to 8%.

China will exceed North America in 2021

From the end-use industry, nearly 55% of the global specialty products market in 2016 concentrated in four end-use industries – soap, cleaning and cosmetics, food and beverage, electrical and electronics  and construction,of which about 20%  were soap and cleaning products, food and beverages accounted for 14%, electrical and electronic products accounted for 12%, construction accounted for 9%. Other important specialties end-use industries include motor vehicles, paper and pulp, plastic products, printing and publishing industry and oil and gas industry.

IHS Markit pointed out that the next five years the global specialty products market will continue to grow at an average annual rate of 3%. In North America, Western Europe and Japan, the consumption of specialty products will be lower than the world average. In contrast, the Chinese market will grow as fast as possible. Because the Chinese economy is although into the new normal, but is  still at about 6% rate of steady growth. IHS Markit predicts that by 2021 China’s specialty products market share will exceed North America.

From the sub-category growth rate, some special products such as nutritional supplements, electronic chemicals, flavors and spices, special paint demand growth will be higher than the world average, mainly in the corresponding end-use prospects.

BASF ranks the world’s largest

“Specialty chemical products require more complex formulation and customization than general chemicals (eg, ethylene or polyethylene), so they often provide manufacturers with more competitive market advantages and better Profit margins, so these products are the most important product composition of chemical manufacturers. “Jebens said:” Many chemical companies are constantly turning the product portfolio to specialty  chemical products to establish its business advantage. “

BASF is the world’s largest specialty chemicals company, the annual sales of its specialty chemical products are about 43 billion US dollars. In all major specialty chemical markets, BASF has one of the leaders in the market of catalysts, building chemicals and plastics additives. In addition, BASF  ranked the top three chemicals in the fungicide, food additives, nutrition and health care products and cosmetics market.

Jebens said that over the years Dow Chemical and DuPont have ranked second and third in the global specialty chemical markets. The merger of the two companies has been completed and the future market ranking will change. Subsequently, Dow DuPont will be split into three independent listed companies, one of which will be specialized in special medical products business. Given the current level of participation of Dow Chemical and DuPont in the specialty industry, there is no doubt that the future of new specialty medical products companies will certainly be located in the top ten in the world.

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