The Europe fine chemical market is projected to reach a valuation of USD 33,612.1 million in 2022. By reaching a valuation of USD 53,714.2 million in 2032, the market is anticipated to exhibit moderate growth at a CAGR of 4.9% from 2022 to 2032.
Fine chemicals are single, pure chemicals that are often created in small and restricted quantities by using batch or biotechnological procedures, followed by synthesis, segregation, and purification. Few of the common examples of fine chemicals utilized are polypeptides, aromatic compounds, monoclonal antibodies, erythropoietin, nucleotides, and plastic additives.
Pharmaceuticals, agrochemicals, building materials, food & beverages, electronics, and others extensively employ fine chemicals for their applications in chemical manufacturing. Increasing demand for these types of chemicals among key industries, including pharmaceuticals & nutraceuticals, agriculture, cosmetics, and personal care, are fueling sales.
Demand for fine chemicals is primarily being driven by their increasing usage in the pharmaceutical industry. High demand for fine chemicals in pharmaceuticals as pure substances, as compared to commodity chemicals is a prominent factor driving the Europe fine chemical market.
Fine chemicals are extensively used in the manufacturing of medicines to treat heart and blood vessel diseases. These are categorized by their low volume and high value structure. Fine chemicals are further combined with bulk or specialty chemicals to produce complex chemicals, which have applications in pharmaceuticals and nutraceuticals.
Pharmaceutical fine chemicals can play a decisive role in the treatment of brain cancer, lung cancer, blood cancer, and liver cancer. Key companies have established divisions that mainly focus on developing specific drugs for certain conditions such as solid tumors and hematological oncology.
Increasing construction and development activities is bound to propel the demand for raw materials such as sealants, adhesives, and inhibitors, thereby leading to a significant surge in terms of value of the Europe fine chemical industry. As complex chemicals are manufactured through fine chemicals, demand for these raw materials are anticipated to increase in the next ten years.
| Attributes | Key Insights |
|---|---|
| Europe Fine Chemical Market Estimated Size (2022E) | USD 33,612.1 million |
| Projected Market Valuation (2032F) | USD 53,714.2 million |
| Value-based CAGR (2022 to 2032) | 4.8% |
| Collective Value Share: Top 3 Countries (2022E) | 55.6% |
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In the historical period from 2017 to 2021, demand for fine chemicals grew by 2.9% year over year. Demand for fine chemicals has been consistently increasing due to rising demand from end-use industries. Demand for active pharmaceutical ingredients rose during the pandemic crisis in 2020, whereas other chemicals witnessed a dip down at the same time, which impacted growth in the market.
Based on current estimations, the market for fine chemicals in Europe is expected to witness a CAGR of about 4.8% over the period of 2022 to 2032. High growth prospects in the forecast period is mainly pushed by increasing demand from end-use industries and expansion of production capacities. With the trend of utilization of application-specific chemicals in Europe, the market is expected to expand in the forecast period.
Demand for Fine Chemicals to Skyrocket among Pharmaceutical Product Manufacturers
Prominent companies are focusing on consumers’ needs and formulating innovative marketing strategies, which will drive the market in the next ten years. These companies are strengthening their footprints by employing various approaches such as mergers, acquisitions, partnerships, and new product launches across Europe. Demand for fine chemicals is increasing as key suppliers launch new, innovative products.
Manufacturers are mainly focusing on the pharmaceutical industry to increase production of fine chemicals as the pharmaceutical sector remains a prominent consumer. Key manufacturers are also implementing several lucrative and cost-effective methods to produce fine chemicals, which have in turn, increased demand for such products in recent years.
Leading companies are investing in research and development activities to improve product effectiveness and efficacy. This is further expected to expand the application coverage of fine chemicals in agrochemicals, construction chemicals, and additives.
South Korea chemical industry has continuously expanded the cosmetics raw material market in recent years, which is also one of the development factors for key fine chemical manufacturers. Launch of novel and innovative products for end-use industries such as agriculture, chemicals, and electronics would help to create new opportunities for fine chemical manufacturers in Europe.
Growing public knowledge of the harmful consequences of skin allergies caused by the use of specific fine chemicals is anticipated to impede industry expansion in Europe. Overuse can irritate the eyes and result in skin irritation, edoema, and inflammation. Regular chemical peels might enhance a person's skin's sensitivity to UV rays and make their skin more susceptible to sunburn.
Global trade limitations and rigorous laws guiding society's regulatory taxes on products are limiting progress. These are also having an impact on the manufacture of fine chemicals. Stringent regulations imposed by government agencies across Europe on manufacturers regarding the upper limit of fine chemical usage in pharmaceutical formulations are also acting as a barrier to adoption. A high threat from these regulations is anticipated to restrain the fine chemical industry.
Burgeoning Demand for Agrochemicals in Germany to Push Fine Chemical Products Sales
Demand for fine chemicals is expected to remain prominent in Germany owing to presence of key chemical and pharmaceutical companies. In 2032, Germany is expected to account for more than 31% of volume shares in Europe fine chemical market. More than 500 pharmaceutical companies are located in Germany, which would drive demand for fine chemicals.
Burgeoning demand for pharmaceutical and agrochemical products that consume a high volume of fine chemicals remain a key reason responsible for the dominance of Europe in the fine chemical sector. Substantial production of fine chemicals for pharmaceuticals, strong development in the agrochemical industry, and surging demand for fine chemicals are key factors pushing fine chemicals sales in Germany.
Increasing Demand for Insecticides in France to Fuel Sales among Fine Chemical Industries
France is expected to surge at a CAGR of 4.9% between 2022 and 2032 with the presence of key chemical manufacturers in the country. Demand for fine chemicals is expected to be high in France, followed by Germany. In 2022, the country is expected to account for high-value shares following Germany in the Europe fine chemical industry.
Key players in agrochemical sector across France include BASF Agro, Syngenta, Monsanto, Dow Agro, and Bayer. The country exports active pharmaceutical ingredients to developing countries. For increasing crop production in France, farmers are implementing pesticides and insecticides in their farms. Agrochemicals are the first choice of farmers and hence demand & supply of fine chemicals are high in France.
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Development of Pharmaceutical Ingredients across Europe to Spur Sales of Fine Chemicals and Solvents
Pharmaceuticals, including active pharmaceutical ingredients, excipients, peptides & proteins, steroids, and alkaloids are set to be key fine chemicals. In 2022, the pharmaceuticals product type segment accounted for 64.7% of share in the Europe market for fine chemicals. Owing to ongoing development of the pharmaceutical industry in Europe, consumption of pharmaceutical-based fine chemicals is projected to remain prominent.
Medications are often employed to identify, treat, and cure diseases. They are also utilized in illness prevention. These chemicals are used as steroids, alkaloids, peptides, and proteins in medicine and nutraceutical manufacturing. Increasing investments in pharmaceutical ingredients across Europe are expected to boost demand for fine chemicals in the next ten years.
Captive Manufacturing of Organic Fine Chemicals to Gain Traction Worldwide
According to Future Market Insights, captive manufacturing is set to be the key manufacturing type segment. In 2022, the captive manufacturing type segment accounted for more than 62% of value share in the Europe fine chemical market.
Fine chemicals that are extensively used by manufacturers are considered to be under the captive segment. Few agrochemical and pharmaceutical companies tend to produce their products and then use them to manufacture their products. Research and development departments of key companies are innovating fine chemical applications in their existing products, upgrading them, and introducing new products in the market.
Manufacturers are focusing on the enhancement of their production capacities in the presence of continued competition in Europe fine chemical market, particularly in Germany and France. Increasing demand from expanding end-use applications is expected to drive demand for fine chemicals.
For instance,
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 33,612 million |
| Projected Market Valuation (2032) | USD 33,612 million |
| Value-based CAGR (2022 to 2032) | 4.9% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | Value (USD million) and Volume (Tons) |
| Key Countries Covered | Germany, Italy, France, United Kingdom, Spain, BENELUX, Russia, and Rest of Europe |
| Key Segments Covered | Product Type, Manufacturing Type, End Use, and Country |
| Key Companies Profiled | Sumitomo Chemicals; BASF SE; GlaxoSmithKline plc; ChemadaIndustries Ltd.; Syntor Fine Chemicals Ltd.; Lonza; Boehringer-Ingelheim International GmbH; Pfizer Inc; Johnson Matthey; Royal DSM N.V; Merck and Co.; Lanxess; Albemarle Corporation; Weylchem International GMBH; Novartis International AG; Borregaard AS; Solvay SA; Evonik Industries AG; Toray Fine Chemicals Co. Ltd; Nippon Fine Chemical Co. Ltd; NOURYON; HUNTSMAN INTERNATIONAL LLC; CLARIANT AG; BAYER AG; Ashland Global Holdings Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Driver, Restrain, Opportunity, Threat Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The Asia Pacific region generated 25% of the global demand in 2022.
The Asia Pacific market to grow at 5.5% CAGR through 2033.
The organic material type segment contributes 60% of total production.
The liquid form segment holds 40% of the global market share.
From 2018 to 2022, the global market exhibited 3.5% CAGR.
| Estimated Market Size (2024E) | USD 499.4 million |
|---|---|
| Projected Market Value (2034F) | USD 782.9 million |
| Value-based CAGR (2024 to 2034) | 4.6% |
| Expected Market Value (2023) | USD 235.6 million |
|---|---|
| Projected Market Value (2033) | USD 338.8 million |
| Growth Rate (2023 to 2033) | 3.7% CAGR |
| Estimated Market Value (2022E) | USD 10,867.5 million |
|---|---|
| Projected Market Value (2032F) | USD 25,812.9 million |
| Value-based CAGR (2022 to 2032) | 9.0% |
| Market Size (2023) | USD 8.9 billion |
|---|---|
| Market Size (2033) | USD 12.5 billion |
| Market CAGR (2023 to 2033) | 3.4% |
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Europe Fine Chemical Market
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