Report Overview

India Specialty Chemicals Market is flourishing owing to the increasing demand for high-performance and function-specific chemicals in industries such as oil and gas, pulp and paper, and personal care and cosmetics...

India Specialty Chemicals Market - Industry Trends & Forecast Report 2028

India Specialty Chemicals Market is predicted to grow at a CAGR of 19.4% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the expanding specialty chemicals market in India as a result of consolidated demand from a variety of industries, including textile, real estate, packaged food, personal care, household care, cars, and consumer durables, and construction. Moreover, a sizable need for goods that can support improved performance with less maintenance has been generated by the growing usage of rechargeable, downsized, and sustainable electronic components. This has caused the demand for specialty chemicals from the electrical and electronics industries to increase significantly. Additionally, as environmental concerns have grown, many chemical businesses in China have been forced to close. As a result of this, to assure a steady supply on the market, India increased the production of specialized chemicals. Furthermore, the large number of highly skilled workers in India contributes to the growth of the country's specialty chemicals market.

Specialty Chemicals - Overview

Performance chemicals and effect chemicals are other names for specialty chemicals. Collagen, gelatin, castor oil, and essential oils are a few well-known examples. These chemicals are referred to as specialties since they are produced in smaller quantities and serve only a limited number of applications in contrast to the other fine and commodity chemicals. Moreover, adhesives, agrichemicals, cleaning supplies, colors, cosmetic additives, construction chemicals, elastomers, flavors, food additives, perfumes, industrial gases, lubricants, paints, polymers, surfactants, and textile auxiliaries are a few of the categories of specialty chemicals. These items are heavily reliant on other industrial sectors like textiles, food, cosmetics, agriculture, automotive, and aerospace.

India Specialty Chemicals Market Forecast and Trends

Growth Drivers

Increasing Research and Developments Investments

Given that the market is mostly consumer-driven, innovation and R&D are some of the significant growth potentials. Innovative specialty chemicals have been developed as a result of manufacturers' emphasis on providing novel and tailored product offers for target applications and meeting the demands of particular clients. This has increased the variety of products available on the market. Moreover, the desire for user- and environment-friendly specialty chemicals has been driven by worries about the negative impact of conventional chemicals on the environment and people. Therefore, to compete with the traditional fine and commodity chemical makers, some firms' attention has turned to the creation and marketing of specialty chemicals.

Increased Demand for Personal Care Products Fuels Market Growth

Leading manufacturers are noticing a noticeably increased demand for hygiene items like hand sanitizers, liquid soaps, disinfectant sprays, and germ-protecting wipes as the COVID-19 pandemic's effects spread across the nation. Chemical businesses have observed an increase in the use of specialty goods. Now that they have evaluated their production strategies in light of the current situation, they are accelerating the scaling up and streamlining of their manufacturing capabilities. Therefore, the market has been quietly boosted by the growing acceptance of cleaners and disinfectants. There were also 104 million individuals aged 60 and older in 2011, and the figure is further projected to increase to 13.1% by 2031, according to the census 2011. These older people experience aging, and health issues such as hair loss and skin regeneration, which further encourage the use of cosmetic chemicals and benefit the industry. The demand for surfactants and personal care chemicals has increased significantly as a result of this factor, propelling the market's expansion.

Strong Demand from the Construction Sector to Accelerate Market Growth

The increasing number of development projects around the world drives the sector's growth rate. According to the Indian Construction Review Survey, the global construction industry is expected to be worth USD 14.2 trillion by 2030. This is because these chemicals help to improve a building's structural and decorative properties while also extending its life. They also help concrete structures retain their strength and reduce the need for repairs. Surface treatment chemicals, foaming agents, and coatings, for example, are some of the most important components of the construction process. As a result, they control a significant portion of this market.

Restraints

Fluctuations in Raw Materials

It is predicted that changes in the price of raw materials and strict government regulations impede the expansion of the Indian market for specialty chemicals. Also, the technicalities of their small-scale production, particularly for those produced through bio-refineries such as collagen, pose significant challenges to the industry. Furthermore, competition from less expensive conventional counterparts of specialty chemicals adds to the industry's difficulty. All these factors hamper the growth of the India Specialty Chemicals Market

Impact of COVID-19 on India Specialty Chemicals Market

The COVID-19 pandemic-induced lockdown and economic crisis have affected several original equipment manufacturers. Many suppliers experienced substantial resource constraints in their material supply and logistics chains throughout the year, which had a notable negative impact on their operations. Furthermore, supply chain disruptions have a significant impact on the India Specialty Chemicals Market. However, the market, on the other hand, is improving and is likely to return to normal as the government's assistance grows. During the forecast period (2022-2028), the market is expected to rise due to the quickest recovery rates in some regions and rising specialty chemicals sales. Which in turn anticipated to fuel the growth of the India Specialty Chemicals Market.

India Specialty Chemicals Market - By Type

Based on the type, the India Specialty Chemicals Market is segmented into Agrochemicals, Dyes and Pigments, Construction Chemicals, Specialty Polymers, Textile Chemicals, Base Ingredients, Surfactants, Functional Ingredients, Water Treatment, and Others. Among these, agrochemicals account for the largest share in the India Specialty Chemicals Market. Agrochemicals are increasingly necessary for better crop protection and production due to the growing population base and increased food consumption, which is fueling the expansion of the specialized chemicals industry during the next years. The market is expanding as a result of farmers' increasing awareness of the use of agrochemicals in farming. Growing need for agrochemicals to boost crop production per acre of land results from a decline in agricultural land due to increased urbanization and industrialization, which is what is causing the rise of the specialty chemicals market.

Moreover, water treatment is expected to dominate the market share during the forecast period (2022-2028). This is due to their expanding use in municipal and wastewater treatment facilities across a variety of industries, including power, oil & gas, chemical, and petrochemical, coagulants, and flocculants are the most extensively used chemicals, followed by biocides & disinfectants. The second-largest product category is made up of biocides and disinfectants, which guarantee the operational effectiveness and safety of manufacturing systems by inhibiting the growth of germs.

Competitive Landscape

The leading market players in the India Specialty Chemicals Market are Aarti Industries Limited, Atul Limited, Alkyl Amines Chemicals Limited, Navin Fluorine International Limited, Vinati Organics Limited, and other prominent players.

The India Specialty Chemicals Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Scope of the Report

     By Type

• Agrochemicals
• Dyes and Pigments
• Construction Chemicals
• Specialty Polymers
• Textile Chemicals
• Base Ingredients
• Surfactants
• Functional Ingredients
• Water Treatment
• Others