Specialty chemicals in the logical sense are chemical products sold based on their function and not composition and are produced by a complex, interlinked industry.
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Specialty chemicals in the logical sense are chemical products sold based on their function and not composition and are produced by a complex, interlinked industry. These can be both single-chemical entities and formulations where the composition greatly influences the processing and performance of the product. Hence, the products and services under the umbrella of the specialty chemicals industry need a great deal of knowledge and ongoing R&D.
The specialized features of these compounds lend a significant advantage in comparison with commodity products since they are formulated on the basis of unique performance characteristics for specific applications in the construction, automotive, electronics, agriculture and other sectors. A specific trend being observed in this industry is the globalization of value chain and increasing investments in construction and infrastructure development projects.
The business of specialty chemicals continues to undergo transition. The main players in the business still belong to North America, Western Europe and Japan, though their share in the market is gradually decreasing. With the liberalization of trade, spread of process technology, breakdown of economic barriers, rising growth trajectories of industrial Asian economies and rise in living standards, the focal point of the global chemical industry is gradually shifting towards the Middle East (due to the availability of cheap petrochemical feedstock) and Asia (due to low labor costs and high economic growth).