Four trends in the development of specialty chemical products industry

The specialty chemical products industry operates in a unique space, with exciting opportunities and more and more challenges. It’s not enough just to produce chemicals that meet the functional requirements. In order to remain competitive in specialty chemicals, producers need to drive or at least keep up with industry trends. The field of specialty chemical products is also highly sensitive to global events. In 2016, the strong US dollar, brexit and stagnant economic growth seriously affected the health of the industry. These are just examples.

Among the main trends affecting the specialty chemical industry, we will briefly discuss the factors that affect your choice of chemical production process.

  1. There is also growth in the field of special chemical products

A considerable number of producers of specialty chemical products continue to benefit from growing demand. As production increases, customers often want lower prices, which in turn drives manufacturers to look for cheaper and more efficient production methods. In recent years, specialty chemicals manufacturers have benefited from cheaper energy products and industrial inputs in the production process. The rest of the cost reduction will need to come from innovation and more efficient production processes.

  1. Simplify business portfolio

Are you used to exploring in many different products? Due to the growing demand and increasingly fierce competition from low-cost competitors, companies in the specialty chemicals industry are turning to focus on specific product lines. In the past, companies could use the advantages of their specialized products to drive demand for other product lines with similar functions and / or production processes. Therefore, the company can produce, sell and sell a variety of products at the same time, and enjoy the increased sales and profits. However, as other low-cost suppliers enter the market and begin to supply these products more efficiently, multi product companies begin to re-establish strategies and direct resources to the products with the highest competitive advantage. The performance and quality of the product and the efficiency of the production process are the key factors of your competitive advantage, which is more important than ever.

  1. Using new technology

Another hot trend in the industry is that more and more companies are adopting open innovation mode to obtain technology improvement faster. Companies specializing in chemistry have always believed that they need to develop their own technology, but now they realize that using the technology of innovative newcomers can greatly help them achieve their internal goals of reducing costs and deploying more efficient production processes. For example, technology developers are reducing the threshold and risk of adopting new technologies, and assisting producers from the basic feasibility and pilot scale testing stage when adopting innovative production processes.

  1. Sustainable chemical processes

In today’s most industries, going green is a very important trend, and the special chemicals industry is no exception. In fact, more than two-thirds of manufacturers of specialty chemicals are currently implementing sustainable development programs. Common practices include the use of biological alternatives, off the shelf chemicals, and more selective and energy-efficient separation methods, such as crystallization. Today, the demand for green or bio based chemicals is increasing, and manufacturers of bio based chemicals compete directly with their fossil based predecessors. Just look at the cosmetics industry, the demand for non cruel skin care products will soar. Specialty chemicals are steadily developing in the same direction, so don’t fall behind. The sooner you invest in new ways to better integrate sustainable inputs into the production process, the better!

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