Report Overview

The growing adoption of innovative specialty chemicals and the expanding major end use industries are expected to boost the growth of South Africa Specialty Chemicals Market during the forecast period between 2024 and 2030.

South Africa Specialty Chemicals Market - Industry Trends & Forecast Report, 2030

South Africa Specialty Chemicals Market size was estimated to be worth USD 8.7 million in 2023. During the forecast period between 2024 and 2030, South Africa Specialty Chemicals Market size is projected to grow at a CAGR of 4.50%, reaching a value of USD 11.1 million by 2030.

By volume, South Africa Specialty Chemicals Market size was estimated at 13.1 million tons in 2023. During the forecast period between 2024 and 2030, South Africa Specialty Chemicals Market size is expected to expand at a CAGR of 4%, reaching a volume of 17.2 million tons by 2030.

Major growth factors for South Africa Specialty Chemicals Market include its rising application in various end user industries, including water treatment, chemicals, oilfields, and pharmaceuticals, and advancements in process technology. In addition, financial support and other forms of assistance from the government to boost domestic production are anticipated to drive South Africa Specialty Chemicals Market during the period in analysis.

Specialty Chemicals – Overview

Specialty chemicals are either single chemical substances or combinations of several chemical components that are created for particular uses and occasionally for particular clients. Typically, they are extremely high purity, low volume, high-value compounds utilized as steps in bio-pharmaceutical or high-tech processes. Specialty chemicals are chemical substances that are utilized as intermediates or raw ingredients at different stages throughout the production of pharmaceuticals. They are materials that are utilized based on their functionality or performance.

South Africa Specialty Chemicals Market

Growth Drivers

Rising Demand for Personal Care Products

The COVID-19 pandemic has triggered the general health consciousness among people, resulting in a significant spike in the demand for personal hygiene products, such as hand sanitizers, disinfectant sprays, and liquid soaps. The market is registering a surge in solvent consumption in volume owing to the rising demand for solvents such as ethanol, which is used to produce hand sanitizers. In addition, the rising aging population and strong use of specialty chemicals in anti-aging products further drive the growth of South Africa Specialty Chemicals Market.

Challenges

Fluctuations in Raw Material Prices

Stringent regulations and fluctuating raw material prices are predicted to impede the growth of the Specialty Chemicals Market in South Africa. The intricacies of its small-scale manufacturing also present significant challenges for the industry, particularly concerning products produced by biorefineries such as collagen. Competition from less expensive conventional alternatives to specialized chemicals exacerbates the sector's challenges. The growth of the Specialty Chemicals Market in South Africa could be hindered by all these challenges.

South Africa Specialty Chemicals Market

Segmental Coverage

South Africa Specialty Chemicals Market – By Product Type

Based on product type, South Africa Specialty Chemicals Market is segmented into agrochemicals, rubber processing chemicals, construction chemicals, food & feed additives, cosmetic chemicals, oilfield chemicals, specialty pulp & paper chemicals, specialty textile chemicals, water treatment chemicals, pharmaceutical & nutraceutical additives, CASE (coatings, adhesives, sealants, and elastomers), and others (institutional & industrial cleaners, electronic chemicals, mining chemicals). The institutional and industrial cleaners segment holds the largest share in South Africa Specialty Chemicals Market. They are the essential parts used in commercial floor and surface cleaning, general-purpose cleaning, and other applications where convenience of use, hygienic practices, technical performance, and food safety are crucial features.

South Africa Specialty Chemicals Market – By End User Industry

On the basis of end user industry, South Africa Specialty Chemicals Market is segmented into automotive, construction, consumer goods, food & beverages, healthcare, industrial manufacturing, oil & gas, and others (including packaging, personal care, water treatment). The construction sector dominates South Africa Specialty Chemicals Market by end user industry, owing to rapid urbanization and rising number of housing and public infrastructure projects. Specialty chemicals are crucial in the construction industry as they enhance concrete strength and quality and protect it from atmospheric degradation, which fuels its market growth.

Competitive Landscape

Major companies in the highly competitive South Africa Specialty Chemicals Market include Durban Speciality Chemicals, AECI Specialty Chemicals, SUN ACE South Africa, Safic Alcan Southern Africa (Pty) Ltd, IMCD South Africa, Protea Chemicals, Reba Chemicals (Pty) Ltd, BASF, Gold Reef Speciality Chemicals (Pty) Ltd, and Southern Chemicals (Pty) Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2024 – Azelis, a specialty chemical supplier, announced the acquisition of CPS Chemicals (Coatings), a specialty chemical distributor, to boost its footprint in South Africa.

Scope of the Report

By Product Type

• Agrochemicals

• Rubber Processing Chemicals

• Construction Chemicals

• Food & Feed Additives

• Cosmetic Chemicals

• Oilfield Chemicals

• Specialty Pulp & Paper Chemicals

• Specialty Textile Chemicals

• Water Treatment Chemicals

• Pharmaceutical & Nutraceutical Additives

• CASE (Coatings, Adhesives, Sealants, Elastomers)

• Others (Institutional & Industrial Cleaners, Electronic Chemicals, Mining Chemicals)

By End User Industry

• Automotive

• Construction

• Consumer Goods

• Food & Beverages

• Healthcare

• Industrial Manufacturing

• Oil & Gas

• Others (Packaging, Personal Care, Water Treatment)