Specialty chemicals are made for a specialized use. Nospecific definition is available for specialty chemicals. In general it can bedescribed as chemicals with high value and low volume which is used asperformance enhancing properties. Additives, adhesives, corrosion inhibitors,dyes, lubricants, and pigments are a few to name.
Manufacturers and retailers work on a frantic pace, to makeand sell trendy garments at competitive prices. With todays fashion, apparelshave to be both functional and stylish. Growing demands in the customer expectationsand distinct performance requirements in the end user industries require focuson providing product and application know-how to the ultimate consumers. Attemptsmade by businesses to come up with innovative solutions manipulate the marketfor specialty chemicals.
During the process of manufacture, textiles go throughvarious chemical treatments. This includes pretreatment, dyeing, and refinementof textiles. Special chemicals such as flame retardants, water repellents, andwarp sizes are used in this process. More than sixty different textilechemicals are used in various textile processes like yarn formation, fabricpretreatment, laminating, finishing, and coating. Textile dyes and chemicalssegment is the largest component of the chemicals industry. Dyestuff segment isthe biggest industry due to its forward and backward linkages with versatileapplications in textiles, leather, printing inks, paper etc.
Global market for specialty chemicals is estimated to bearound $500 billion USD. This includes approximately 50 segments ofconstruction, textile, oil field, electronic chemicals and polymer additives. Marketis concentrated in US, EU, and Japan with the future growth potential seenbrightly in Asian countries. Growth rate in the economy of these countries andimprovement in the consumers lifestyle command for increased productivity ofthese performance enhancing materials.
Being a part of the industry, what is your perception about the growth of specialty chemicals in the textile segment, and its current market size?
"Agion sees growth potential in the industry as newtechnologies to combat odor emerge to set a new bar of performance particularlyin apparel. Penetration of antimicrobials in particular for all market segmentsis still relatively small-for example, the technologies have only been adoptedby higher end performance wear-and have not yet penetrated into mainstreamcasual apparel. We do expect this penetration to occur in the near future. Inaddition we are seeing growth opportunities in areas related to healthcare,ranging from uniforms to environmental design".
How would you look at the overall growth of specialty chemical industry? What innovation doyou see in the near future?
"Market sizing is tied to vertical application andpenetration within those segments. For example, performance finishes-whetherantimicrobial, wicking, stain resistance, anti-wrinkle etc.-continue to beadopted as standard features for apparel. As far as antimicrobial fibers orfinishes go, many segments are just beginning to adopt these features. Infootwear, for example, Agion enjoys major market share-already there have beenmore than 100 million shoes with the Agion feature for odor protection. This isspecifically in performance footwear such as running shoes, hiking boots, andski/snow boots and this feature is quickly becoming adopted by mainstreamretail brands including Wal-Mart and Kohls".
Which countries offer potential market for specialty chemicals?
"The majority of manufacturing done for our textile partners is in Asia. We are also seeing increased activity and interest from India, parts of the Middle East and Latin America. As far as brand targets, we will continue to build on our base in the United States and look forward to expansion in Europe".
Specialty chemicals industry does not need enormous capital for its setup, but requires deep pool of scientific manpower. However, payback on these chemicals is not quick enough to attract investors. Specialty chemical industry is knowledge based, and countries need to become knowledge based with a dual focus on technology as well as customer requirements to survive the global environment.
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