China Specialty Chemicals Market Size & Outlook, 2023-2030

The increasing demand for detergents, personal care products, and cleaning products is expected to fuel the demand for cosmetic chemicals and industrial & institutional chemicals over the forecast period. Construction and electronic chemicals product segments witnessed significant growth owing to the growth of electrical machinery and equipment manufacturing industry in China.

Specialty chemicals are widely used in applications from household items (such as cosmetics, detergents, and processed foods) to high-tech products (such as mobile phones and aircraft). For instance, paper processing industry, which utilizes specialty chemicals has shown stagnant growth owing to increasing digitization. Many small to mid-sized paper processing mills have been shut down in response to strict environmental regulations, which reduced the use of specialty paper chemicals.

Trade restrictions between China and the U.S. may indirectly impact the consumption of specialty chemicals. For instance, the consumption of plastic additives in China decreased due to reduced plastic exports to the U.S. As China is a major producer of plastics & electronic products, a decrease in exports is expected to negatively impact the consumption of electronic chemicals.