According to the report of the American Chemical Industry Council (ACC), the output of consumer products and drugs will continue to maintain a good momentum of increase in 2012, which will drive the growth of demand for specialty chemicals. Demand grew by 3.5% last year, and global demand for specialty chemicals is expected to continue to grow at a 3.7% rate this year. The demand for specialty chemicals will continue to grow faster than bulk chemicals in the next two years.
IHS Chemical Company predicts that from 2010 to 2015, the overall market for specialty chemicals will increase at an average annual growth rate of approximately 3.5%, during which time China’s average annual growth rate reaches 8%, and the average annual growth rate of the United States, Western Europe, and Japan About 1.8%. As some end markets mature and competition intensifies, specialty chemical manufacturers will continue to face low growth and low profit margins.
Ten years ago, the gross profit rate of specialty chemicals including additives, pigments, and personal care products was still quite high, attracting many companies and even many large chemical companies to actively participate in them. However, in the past year, the profit rate of the specialty chemicals industry has dropped to a historical low. Faced with the pressure of increasing market competition, some manufacturers are trying to increase their market share and actively expand and develop new application areas. At the same time, mergers and acquisitions between companies have also become more active. For example, bulk transactions completed last year included DuPont’s $6 billion acquisition of Dennisco, Solvay’s $5 billion acquisition of Rhodia, and Ecolab’s $8 billion purchase of Nalco. .
According to the head of Frost & Sullivan’s chemicals and materials business, in the specialty chemicals industry, the personal care and water treatment chemicals market will continue to grow strongly. In North America and Europe, the demand for natural personal care products will accelerate and the growth rate will remain at 6% to 8% or higher. In Asia and emerging regions, with the rapid economic development, people’s health awareness continues to increase, and the demand for personal care and home care products is also growing rapidly. The growth rate of these markets will be as high as 10% to 15%.
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