Team:Alberta-North-RBI E/SpecialtyChemicals

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Fine chemicals is the largest segment of the specialty chemical market, representing 28.9% of the market's total value <html><a href="https://static.igem.org/mediawiki/2012e/f/fb/Global_Specialty_Chemicals_Profile.pdf">[1]</a></html>. They are used as starting materials for pharmaceuticals, biopharmaceuticals, agrochemicals, as well flavors, fragrances, food and food additives. Paints, coatings and surface treatments also account for a significant portion of the market segment. The figure below represents the specialty chemical market category segmentation for 2011:
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Fine chemicals is the largest segment of the specialty chemical market, representing 28.9% of the market's total value [https://static.igem.org/mediawiki/2012e/f/fb/Global_Specialty_Chemicals_Profile.pdf"]. They are used as starting materials for pharmaceuticals, biopharmaceuticals, agrochemicals, as well flavors, fragrances, food and food additives. Paints, coatings and surface treatments also account for a significant portion of the market segment. The figure below represents the specialty chemical market category segmentation for 2011:
    
    
    
    

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Specialty Chemicals

Specialty chemicals are formulations of chemicals containing one or more complex, pure chemicals as active ingredients. They are used in the manufacturing of a wide variety of products including, but not limited to, adhesives, cosmetic additives, elastomers, flavours, fragrances, polymers, surfactants, and textile auxiliaries. They are produced in limited quantities using a variety of key technologies such as chemical synthesis, biotechnology, extraction, and hydrolysis of proteins. Specialty chemicals are formulated to custom specifications, often varying from one customer to another even within the same industry. Formulations also vary with application, function, and operating conditions. They are sold for high prices according to exacting specifications used for further processing within the chemical industry. The profitability of the speciality chemical industry makes it an extremely attractive business opportunity. They are low volume, high priced chemicals targeted at highly differentiated processes making entering the marketplace easier for new companies.



According to the 2012 Global Specialty Chemicals MarketLine Industry Profile, the global market for specialty chemicals had a total revenue of $767.5 billion in 2011, representing a compound annual growth rate (CAGR) of 2.7% between 2007 and 2011 [1]The market is further projected to reach $980 billion by the end of 2016 [2]. The specialty chemical industry focuses on the development of chemicals based on function and market value. The importance is not on the empirical structure of these chemicals, but rather on how they may be used by end-user markets. Additionally, the growth of the specialty chemical industry is tied to exploring functions and applications for both new and existing chemicals. These chemicals may serve traditional and niche markets, as well as expand to new geographic and application markets.


Fine chemicals is the largest segment of the specialty chemical market, representing 28.9% of the market's total value ". They are used as starting materials for pharmaceuticals, biopharmaceuticals, agrochemicals, as well flavors, fragrances, food and food additives. Paints, coatings and surface treatments also account for a significant portion of the market segment. The figure below represents the specialty chemical market category segmentation for 2011:



The current specialty chemical global market can be analyzed using a five force analysis including: degree of rivalry, new entrants, substitutes, supplier power, and buyer power. There is a respectable number of chemical manufacturers in the market, however, players may operate in a diverse range of markets making rivalry a moderate force. The threat to new entrants is dependent on the market they intend to target. Many specialty chemicals are produced in large quantities making small-scale market entry unlikely. On the other hand, certain specialty chemicals are not strongly differentiated and buyers may be attracted away from current players if a better price is offered. Substitution is a weak force as buyers of specialty chemicals often require specific formulations. Supplier power is increased by the added value of specialty chemicals in addition to the few alternatives that buyers have. Lastly, buyer power is weakened by the fact that there are no direct substitutes and buyers have no choice but to purchase the chemical as a key ingredient to their manufacturing process.





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