Press release from Business Wire India
Source: Frost & Sullivan
Monday, December 13, 2010 02:04 PM IST (08:34 AM GMT)
Editors: General: Consumer interest, People; Business: Accounting & management consultancy services, Business services, Chemicals, Information technology, Retailers, Water; Technology
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Rising Industrial Growth Creates a Vast Market for Specialty Chemicals, finds Frost & Sullivan
Mumbai, Maharashtra, India, Monday, December 13, 2010 -- (Business Wire India) -- Currently, the majority of end-user industries of specialty chemicals in the Gulf Cooperation Council (GCC) depends on imports due to the yawning gap between supply and demand in the region. This situation is expected to change in the future as national companies will look to manufacture specialty chemicals and make the most of the rising demand from major industries.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com ), Strategic Assessment of the Specialty Chemicals Market in the GCC - A Position Paper, finds that the market earned revenues of $2.35 billion in 2009 and estimates this to reach $3.09 billion in 2014. The market is expected to grow at a CAGR of 5.65 percent. Oil field and water treatment chemicals are the two major segments contributing to this market's growth.
If you are interested in more information on this study, please send an e-mail to Tanu Chopra/ Nimisha Iyer, Corporate Communications, at tanu.chopra@frost.com / niyer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.
Governments in the GCC are giving a push to the emerging specialty chemicals market by encouraging companies to produce value-added products. Downstream derivatives are vital to cater to the demand spawned by the increasing industrialization in the GCC.
"Global chemical majors are increasing their foothold in the GCC by forming joint ventures with Middle Eastern companies," says Vishnu Sankaran, Industry Manager, Chemicals and Materials Practice, MENA, Frost & Sullivan. "As the GCC possesses the required feedstock and is located advantageously, it is likely to become a significant market for specialty chemicals in the next decade."
Multinational specialty chemicals companies have their sales offices in the GCC to cater to the huge demand in this region. Research and development is crucial to target specific end-user industries with specialized products.
While suppliers of specialty chemicals will be buoyed by the vast potential of the market, the global economic slowdown and products with minimum margins will constrain their revenue inflow. Their dependence on imports and stiff competition from Asia will also limit the usage of these chemicals.
Specialty chemicals could eventually be tagged commodity products, resulting in a shift in production from Europe and the United States to China and other countries in Asia. Specialty chemicals manufactured in Asia are expected to be available at a lower price than those manufactured in the GCC, which will restrain the GCC market.
Besides supplying oil, the region has not taken any efforts to develop relationships with other countries. Venturing into new regions and establishing relationships will provide the GCC with more markets for specialty chemicals.
Participants have to leverage their key competitive factors of niche product segment, specialized products, value additions, technical expertise, and favorable location to strengthen their market share in the established application segments. Market entrants could explore untapped application segments and provide them with good quality and application-specific products.
"This can be achieved by increasing their investments in product development, obtaining government backing, and providing robust, customized products and support," notes Sankaran.
Strategic Assessment of the Specialty Chemicals Market in the GCC - A Position Paper is part of the Chemicals & Materials Growth Partnership Service program, which also includes research in the following markets: Indian Specialty Chemicals Industry, Strategic Analysis of the Indian Performance Chemicals Industry, Strategic Opportunity Assessment of GCC Market for Construction Chemicals, and South African Industrial Water and Wastewater Treatment Chemicals Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
Strategic Assessment of the Specialty Chemicals Market in the GCC - A Position Paper
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CONTACT DETAILS
Tanu Chopra, Corporate Communications - Middle East, Frost & Sullivan, +91 (22) 40013437, tanu.chopra@frost.com
Anish Charles, Corporate Communications - South Asia, Frost & Sullivan, +91 (22) 40013419, anishc@frost.com
Nimisha Iyer, Corporate Communications - South Asia & Middle East, Frost & Sullivan, +91 9820050519, niyer@frost.com
KEYWORDS
CONSUMER, PEOPLE, CONSULTANCY SERVICES, BUSINESS SERVICES, CHEMICALS, IT, RETAIL, WATER, TECHNOLOGY
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