Asia has been accounting for more than half of the global chemical sales over the last 25 years.
The chemical industry is experiencing promising growth with several years of M&A activity, and the industry is expected to realign their portfolios and focus more on core competencies. Fine chemicals are classified into a specific group of chemicals that are characterized by their low volume and higher price. With the relentless demand for fine chemicals, renowned companies in the chemical space are focusing on developing their strengths to deliver growth and generate greater shareholder value. Moreover, the competitive pressure to scale across potential market segments may further drive the chemical industry across the globe. Also, with the latest innovations in the chemical space, the chemical industry is anticipated to witness promising growth. However, several factors may hinder the growth of the industry over the years. These factors include:
- Increasing competition: With Asia contributing to the majority shares in the chemical space, fine chemicals suppliers are witnessing the entry of new suppliers among these regions. Also, with an increase in the manufacturing sectors such as the automotive and construction, the fine chemical space will witness robust pressures to meet the customers’ demands and stay ahead in the marketplace.
- Increasing scrutiny of recalls and quality audits: Recalls and quality audits become a major concern for fine chemicals suppliers as the industries need to comply with regulatory compliance and government-mandated requirements to maintain strict quality standards. Moreover, organizations should ensure special production techniques, materials, and packaging to address the company’s requirements.
To address the aforementioned factors and gain relevant insights into the fine chemicals market, organizations are leveraging market assessment studies. Market assessment is all about gaining a comprehensive understanding of the marketplace and studying the need for the customer’s product in the marketplace. A reliable market assessment study helps businesses study competitors, gain a comprehensive analysis of the market trends, and accordingly allocate resources to cater to the business requirements.
The Business Challenge
- The Client: A leading fine chemicals supplier
- Area of Engagement: Market assessment
A prominent fine chemicals supplier with a considerable number of supply units spread across the globe wanted to understand the current market dynamics and position their products effectively in the market. With the help of a market assessment study, the client wanted to ascertain real-time information to identify the regional opportunities and challenges and assess the regulations and policies. Through the engagement, the client wanted to seek ways to identify the potential competitors and identify the pain points and unmet needs in the market. The primary objective of the client was to stay relevant in this increasingly competitive marketplace by offering a distinguished set of products.
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To understand the market and build accurate go-to-market strategies, Infiniti’s market assessment experts carried out extensive research comprising interviews and discussions with leading stakeholders in the fine chemicals space. The market assessment experts also compiled information from secondary sources such as paid industry databases, company presentations, and industry forums in the chemical companies space.
The Solution Benefit and the Business Impact
The market assessment solution offered by Infiniti helped the client study the needs and preferences of the customers and offer customized offerings in the European market. The engagement also offered holistic insights into the customers’ purchasing habits, usage, and overall awareness of the product. Furthermore, the engagement also sought ways to assess robust information in terms of the brand image and recognition and make necessary adjustments to their market offerings. The engagement further assisted the client to understand the potential bottlenecks while entering niche market segments and anticipate risks with new product development.
With the technological boom in the chemical industry, the global chemical industry is expected to witness a stipulated growth of approximately 3 percent in the next 20 years. This growth will be spurred by the major players in Asia and the Middle East.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the chemical industry