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# Specialty Chemicals Market: What to Know
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In the chemical industry, there are specialty chemicals that are intended to do ‘special’ tasks. Unlike the common chemical, these chemicals are designed with a specific purpose. Like a specialty doctor or a specialty degree, this chemical is made for specific niche, for example specialty coatings. These coatings include lubricants or paints that are utilized in various applications, from windows rails to seat tracks. The specialty chemicals can be used on their own or integrated into a formulation to achieve specific finish.
![Default_Specialty_Chemicals_3 (1)](https://hackmd.io/_uploads/S1sF6TaVC.jpg)


[Specialty chemicals market](https://www.gmiresearch.com/report/global-specialty-chemicals-market/) is increasingly gaining popularity in recent times. According to a research firm, GMI Research, the specialty chemicals market size reached USD 272.6 billion in 2022 and it is estimated would grow to reach USD 402.8 billion in 2030.

**What is the Difference with Commodity Chemicals?**
So, what are the differences between both chemicals? Since specialty chemicals are made for specific needs, the products are usually made in low volumes. An example is antibiotics which are made in small amounts when they are necessary. Its specific functions mean that its application will be less than commodity chemicals, therefore it will be produced in smaller quantities. 

The manufacturing process of specialty chemicals is also more complex. However, as the there is research and innovation undertaken, we can expect that these chemicals can be more effective to produce and therefore become a commodity. 

Meanwhile, commodity chemicals usually do not have huge differences between one product or manufacturer to the other, and can be utilized in so many applications, thus it can be manufactured in a large amount.

There is also a difference based on the price. As specialty chemicals are like premium brands, the price will be more expensive than the commodity. This is owing to the research and developments, licensing fees, dedicated logistics and storage services, among others. Meanwhile the price of commodity chemicals is more market-competitive, since it is affected by the market trends.

In the manufacturing process, specialty chemicals are non-automated and focus on customization thus it will take more time to produce, unlike commodity chemicals which are automated and focused on efficiency. Commodity chemicals are more standardized thus they do not need any special requirements or technical support to produce.

Even though both of the chemicals look like they are contradictory, actually both of them are interconnected. Commodity chemicals which serve as raw materials can be used to manufacture the specialty chemicals. Furthermore, as the technology for producing commodity chemicals enhances, it can impact the effectiveness and affordability of specialty chemicals.

In addition, there is also consumer chemical which refers to the chemical products which undergo direct sales to consumers, such as paints, detergents, cleaners, among others.

**What are The Examples?**

There are several examples of these chemicals across sectors and industries. In the food industry, it can be used for additives such as sweeteners or preservatives. In cosmetics, there can be sulfates or parabens. While in pharmaceuticals, it can be used for supplements. 

We can also find specialty chemicals in industrial coatings such as resins and antimicrobial coatings. In industrial cleaners, this chemical can be found in bleaches or disinfectants. Specialty chemicals can also be used in lubricants and oilfield chemicals

**What Should Specialty Chemicals Manufacturers Do?**

While manufacturing the chemicals, there are some variables that the companies should conduct.

1.	**Test and analyze**
While manufacturing the chemicals, companies should undergo tests and analysis to ensure that the products perform as expected. There also should be trace, contamination, and formulation analysis to ensure safety standards.

2.	**Optimize the process**
Manufacturers should also optimize the process by using computer-assisted simulation or process modelling to increase performance while improving cost efficiency.

3.	**Conduct innovation**
This market has a huge potential, therefore manufacturers should conduct innovation, whether for its cost, performance, environmental impacts, and others. These innovations can expand the market even further and increase the profit.

However, there are also some challenges in this market to move forward. There is an inflation and supply chain issue that can impact the cost of raw materials, logistic operations, and other supply chain elements. Many manufacturers also have to focus on the environmental impact reduction by controlling hazardous materials or minimizing waste. In addition, in the [technology](https://hackmd.io/@headstartacademy/B1Xufnvfd) era, manufacturers should adopt innovative technologies such as data analytics and automation to remain competitive.
