North America Specialty Chemicals Market Size, Trends and Growth Analysis by 2027

The specialty chemicals market in North America was valued at approximately US$240.28 million in 2018 and is anticipated to grow to around US$370.23 million by 2027, reflecting a compound annual growth rate (CAGR) of 5.1% from 2019 to 2027.

Specialty chemicals, also known as performance chemicals, play a crucial role in the production of finished goods by enhancing manufacturing processes. These chemicals find applications across various sectors, including automotive, construction, agriculture, industrial manufacturing, and consumer products, tailored to their specific functions and performance characteristics. They are utilized in small quantities in the creation of adhesives, inks, plastics, coatings, cosmetics, and cleaning agents, significantly improving the efficacy of these products. In the construction industry, specialty chemicals are employed in diverse applications to provide additional protection against environmental threats, minimize the use of water and cement during construction, and extend the durability of construction materials.

In 2018, the United States held the largest share of the North American specialty chemicals market. The rapid pace of industrial growth, along with technological advancements in various sectors, is a primary driver of the specialty chemicals market in the region. Additionally, the increasing demand for advanced products is encouraging companies within the US chemical sector to pivot towards the innovation and development of new specialty chemicals. Producers in the US are likely to adapt their product lines to align with evolving market needs. Innovations in agrochemicals, electronics, automotive, and energy sectors are expected to significantly influence this market evolution. For instance, companies supplying specialty chemicals to the automotive industry are focusing on revamping their offerings to align with trends favoring lightweight and low-emission vehicles.

The specialty chemicals market is categorized by type into several segments, including specialty mining chemicals, water treatment chemicals, adhesives, electronic chemicals, specialty paper chemicals, pesticides, rubber processing chemicals, advanced ceramic materials, plastic additives, and others. Among these, the electronic chemicals segment is projected to experience the highest CAGR during the period from 2019 to 2027. Specialty chemicals are integral to the manufacturing of electronic components, silicon wafers, integrated circuits, packaging, printed circuit boards (PCBs), compound semiconductors, optoelectronics, and flat panel display technologies. Consequently, the rising demand for semiconductors, flat panel displays, and photolithographic printing materials is expected to drive growth in the specialty chemicals market throughout the forecast period.

Key players in the North American specialty chemicals market include HENKEL AG AND CO. KGAA, Akzo Nobel N.V., BASF SE, Lanxess, The Dow Chemical Company, Koninklijke DSM N.V., Ashland Global Holdings Inc, Albemarle Corporation, SOLVAY S.A., and Evonik Industries AG. These companies supply specialty chemicals for a wide array of industrial applications and maintain production facilities across various countries, enabling them to cater to a broader customer base. They are committed to developing high-quality and innovative products.

The COVID-19 pandemic, which was first reported in Wuhan, China, in December 2019, has rapidly spread across the globe, significantly impacting economies and industries due to lockdowns, travel restrictions, and business closures mandated by governments. Specialty chemicals are essential in the production of numerous everyday products. During the COVID-19 crisis, the demand for chemicals across various end-user sectors has declined. Global supply chains have been disrupted, leading to unprecedented declines in the stock prices of chemical companies. The lockdowns have caused breaks in supply chains and resulted in manufacturing and office closures, adversely affecting both the production and demand for specialty chemicals. The automotive, transportation, and consumer goods sectors have been particularly hard hit, further diminishing the demand for specialty chemicals.

The size of the North American specialty chemicals market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants in this research typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the specialty chemicals sector.