Saudi Arabia Specialty Chemicals Market Size is USD
16,551.03 million in 2022 and is expected to register a CAGR of 4.34% during the
forecast period. Specialty chemicals are chemical products that
are used in a variety of sectors, including paints and coatings, textiles,
mining, plastic additives, and others. Antibiotics, adhesives, and pesticides
are examples of specialty chemicals since they are produced in small quantities
to meet specific demands. For example, antibiotics are developed to address the
problems associated with a particular disease. The industrial consumption of specialty
chemicals in Saudi Arabia has significantly increased in recent years. Due to
COVID-19 several market changes were observed in terms of the supply and demand
sides of specialty chemicals however, government support helped the market
maintain its positioning, leading to the steady growth of industries such as specialty
chemicals. The availability of feedstocks has been one of the major factors in
the expansion of Saudi Arabia's specialty chemicals sector. The country
contains large hydrocarbon deposits, which are the primary ingredients needed
to make a variety of chemicals. As a result, Saudi Arabia has been able to
build a strong petrochemical industry that serves as the sector's backbone.
In addition, specialty chemicals are used in the
automotive industry to maintain and protect cars and trucks.
These include brake fluid, antifreeze, rust inhibitors,
radiator seals, engine and transmission additives, auto cleaners, polishes, and
waxes. As per the International Trade Administration, Saudi Arabia is
the dominant player in the Middle East and North Africa (MENA) region, which is
growing at an extraordinary rate of 36%. Moreover, Saudi Arabia accounted for
52% of the vehicles sold in the Gulf Cooperation Council (GCC) and 35% in the
MENA region in 2021. Government regulations to support investments for
uplifting the country’s pharmaceutical sector are soaring the demand for
specialty chemicals, further driving the growth of Saudi Arabia Specialty
Chemicals Market during the forecast period. As per the data released by
International Trade Administration, Saudi Arabia accounts for 60% of the Gulf
Cooperation Council (GCC) countries’ healthcare investment expenditure.
Furthermore,
agrochemicals are becoming necessary for better crop protection and production
due to the growing population base and increased food consumption, which is expected
to fuel the expansion of the specialized chemicals industry during the next few
years. According to the Ministry of Environment, Water, and Agriculture,
Saudi Arabia's agriculture segment contributes USD 14.13 billion to the annual
GDP, and the country has the largest dynamic agricultural projects in the
Middle East related to date palm, poultry, dairy, and aquaculture. The demand
for specialist water-proofing compounds, repair and restoration compounds, joint
fillers, and tile-fixing adhesives is also anticipated to rise in Saudi Arabia because
of growing public and private investments in infrastructure development
projects. It is projected that the ongoing construction of significant projects
including Red Sea Islands, Al Faysaliya, King Abdullah's Economic City, Galleria
of Saudi Arabia, and Jabal Omar in Saudi Arabia will spur market expansion for
the country's specialty chemicals market share.
Construction chemicals are used by the
construction and civil repair industries. These substances provide water tightness,
improve the quality and strength of concrete, and shield concrete structures
from deterioration brought on by the atmosphere.
According to the Gulf Petrochemicals and Chemicals Association (GPCA), the
value of construction chemicals will increase from 0.8 MMT in 2020 to 0.9–1.0
MMT by 2025. Owing of their ability to alter and improve the physical and
chemical properties of structures, such as compressive strength, durability,
surface finish, and resistance to uncertain weather and working conditions,
construction chemicals are becoming more and more important to the construction
industry.
Increasing
Demand for Personal Care Products is Driving the Market
Owing to the
increasing participation of women in the workforce, sales of colored cosmetics
such as pigments and dyes in Saudi Arabia are steadily rising. Moreover, as the
COVID-19 pandemic spreads throughout the world, top manufacturers in Saudi
Arabia are noticing a significant rise in demand for hygiene products,
including hand sanitizers, liquid soaps, disinfectant sprays, and contaminant
wipes. According to the government of Saudi Arabia, the cosmetics market was
estimated at USD 16 billion in 2021, and the number of imported cosmetics in
the past year exceeded USD 0.6 billion in the country. The demand for
performance chemicals is predicted to increase across all end-use sectors in
Saudi Arabia, including oil and gas, paper, construction, water management, food,
mining, pharmaceutical, agricultural, and personal care for use in specialized
applications. Moreover, it is anticipated that the availability of a variety of
formulation chemicals, such as electronic chemicals, institutional and
industrial cleansers, surfactants, and flavors and fragrances, will boost the
market's expansion.
Rising Demand
from Food & Beverage Industry
Consumer
demand is the main driver of the expansion, with industries such as pharmaceuticals,
personal electronics, and food and beverage. The demand for flavoring compounds
has increased as processed foods and beverages have become more popular in
developed nations. According to the Saudi Arabian General Authority for
Investment (SAGIA), the Saudi F&B industry accounted for 10% of the gross
domestic product (GDP) in 2021, and the Food and Beverage (F&B) industry in
Saudi Arabia is the largest in the Middle East and is valued at USD 45 billion.
Increasing Usage in Pharmaceutical Industry
Many specialized chemicals, such as catalysts, are employed in
industrial pharmaceutical operations, including the manufacture of paracetamol,
vitamin K, and erythromycin. Additionally, to address growing climate change
concerns, modern catalysts like nano catalysts aid in making the drug
development process cleaner and greener. On the back of technological and
medical advancements, the Saudi Arabian pharmaceutical industry's growth
landscape is undergoing a significant transition. In 2022, the
Government of Saudi Arabia has declared to spend USD 36.8 Billion for
Healthcare and Social Development, which will drive the growth of Saudi
Arabia's Specialty Chemicals Market during the forecast period.
Recent Developments
- In March 2022, Halliburton Company announced the opening of the Halliburton
Chemical Reaction Plant in Saudi Arabia, which can manufacture a broad range of
specialty chemicals for the entire oil and gas value chain as well as many
other industries.
Mergers and Acquisitions
- In 2022, Brentaga collaborated with Al-Azzaz Chemicals Company to expand
its customer base and footprint in the specialty chemicals distribution market
in Saudi Arabia.
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Market Segmentation
Saudi Arabia Specialty Chemicals Market is
segmented on the basis of application and region. Based on application, the market is further divided into construction
chemicals, dyes & pigments, agrochemicals, surfactants, and others. Based
on region, the market is divided into Northern & Central, Western, Southern, and
Eastern.
Company Profiles
Saudi Basic Industries
Corporation, Saudi Arabian Oil Company, Rabigh Refining & Petrochemical
Company, Saudi Kayan Petrochemical Company, Saudi International Petrochemical
Company, Gulf Stabilizers Industries, NAMA Chemicals Co., National
Industrialization Company (Tasnee), Advanced Petrochemical
Company and Chevron Phillips Chemical Company, LLC are some of the key players in
the Saudi Arabia Specialty Chemicals Market.
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Attribute
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Details
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Market Size in 2022
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USD16,551.03 Million
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Market Size in 2028
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USD21,315.25 Million
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Growth Rate
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4.34%
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Base Year
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2022
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Historic Data
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2018 – 2021
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in
USD Million, Volume in Metric Tonnes, and CAGR for 2018-2022 and 2023-2028
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Report coverage
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Revenue forecast, volume forecast, company share, competitive
landscape, growth factors, and trends
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Segments covered
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Application
Region
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Regional scope
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Northern & Central, Western, Southern, Eastern
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Key companies profiled
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Saudi Basic
Industries Corporation, Saudi Arabian Oil Company, Rabigh Refining & Petrochemical
Company, Saudi Kayan Petrochemical Company, Saudi International Petrochemical
Company, Gulf Stabilizers Industries, NAMA Chemicals Co., National
Industrialization Company (Tasnee), Advanced Petrochemical Company and
Chevron Phillips Chemical Company, LLC
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Customization scope
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10% free report customization with purchase. Addition
or alteration to country, regional & segment scope.
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Pricing and purchase
options
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Avail customized
purchase options to meet your exact research needs. Explore
purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report Scope:
In this report, Saudi Arabia Specialty Chemicals market
has been segmented into the following categories, in addition to the industry
trends, which have also been detailed below:
·
Saudi Arabia Specialty Chemicals
Market, By Application:
o Construction Chemicals
o Dyes & Pigments
o Agrochemicals
o Surfactants
o Others
·
Saudi Arabia Specialty
Chemicals Market, By Region:
o
Northern & Central
o
Western
o
Southern
o
Eastern
Competitive landscape
Company Profiles: Detailed analysis of the major companies in Saudi
Arabia Specialty Chemicals market.
Available Customizations:
With the given market data, TechSci Research offers customizations
according to a company’s specific needs. The following customization options
are available for the report:
Company
Information
·
Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Specialty
Chemicals Market is an upcoming report to be released soon. If you wish early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]