Specialty chemicals or performance chemicals are used in the production of numerous goods in several end-use industries. Such chemicals are directed toward specific services and consumer needs, rather than general use. These chemical products add significant value to a wide range of products, such as detergents, electronics, paints, and petroleum products. For example, automakers use such chemicals as fuel additives to enhance fuel properties. Likewise, the pharmaceutical industry uses specialty chemicals as active ingredients in numerous creams and lotions.

Additionally, the booming construction sector will also fuel the adoption of specialty chemicals in in APAC in the coming years. APAC countries, such as India and China, are constructing a large number of residential and commercial buildings, schools, shopping complexes, hospitals, malls, warehouses, roads, highways, manufacturing facilities, and railroads to improve their infrastructure. Specialty chemicals are used in this sector in the form of pigments, resins, coatings, surfactants, paints, adhesives, varnishes, sealants, and additives. With the development of smart cities in India and China, the usage of performance chemicals will amplify in the coming years.  

In recent years, specialty chemicals producing companies, such as China Petroleum & Chemical Corporation, Mitsui Chemicals Inc., Ashland Global Holdings Inc., Huntsman Corporation, LOTTE Fine Chemical, DowDuPont Inc., Clariant AG, Eastman Chemical Company, BASF SE, Akzo Nobel N. V., Mitsubishi Chemical Corporation, and Evonik Industries AG, have been offering agrochemicals, surfactants, construction chemicals, electronic chemicals, cleaning chemicals, paper and textile chemicals, lubricant and oilfield chemicals, polymer additives, food additives, plastic adhesives, and adhesives and sealants to several end-use sectors in APAC.

In recent years, China has emerged as the leader of the APAC specialty chemicals market, due to the burgeoning domestic demand for commercial and residential buildings, on account of the surging in the country. Moreover, the presence of a large manufacturing base in China, owing to the availability of cheap labor and abundant raw materials, will also fuel the consumption of specialty chemicals in the country in the coming years. Additionally, the expansion of the automotive industry is also fueling the demand for performance chemicals in this APAC region. 

Whereas, India is expected to adopt specialty chemicals at the highest rate in APAC in the coming years, as per P&S Intelligence. This can be primarily credited to the accelerating urbanization rate, mounting disposable income of people, and burgeoning demand for improved aesthetics in residential infrastructure in the country. Moreover, the automotive, personal care, electronics, and food and beverage industries in India are also expected to adopt a significant volume of specialty chemicals in the forthcoming years. 

Thus, the rising industrialization rate and the flourishing construction industry will fuel the adoption of specialty chemicals in APAC in the foreseeable future.