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Chemical market analysis

Market Intelligence Solution to Support Data-Driven Strategies for a Specialty Chemical Company

Specialty Chemicals Industry Analysis

The specialty chemicals industry is far more competitive than it used to be probably a decade ago. Rapid globalization, lack of visibility into demand patterns, and sustainability issues are increasing challenges for specialty chemicals manufacturers and distributors. In order to succeed in the long-run, companies in the specialty chemical manufacturing industry will need to understand challenges coming their way and leverage strategic planning to overcome them.

Specialty Chemicals Industry

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Business Challenge

The client is a specialty chemical manufacturer and distributor based out of the United States

The client faced difficulties in keeping pace with the market transformation and adapting to the fast-changing marketplace. Also, with the entry of new players in the market, the client observed a steady decline in their sales rate, which further resulted in huge losses in their profit margins. As such, the company in the specialty chemicals industry realized the need to conduct a market intelligence analysis to understand the industry’s fluctuating dynamics, as well as the market trends and opportunities.

Furthermore, by leveraging Infiniti’s market intelligence solution, they wanted to tackle challenges such as:

Specialty chemicals industry challenge #1: Push for globalization

With foreign countries such as Germany and Canada offering lucrative opportunities for specialty chemical companies, the client wanted to conduct a market intelligence study to identify profitable opportunities in these regions. Also, they wanted to understand the capital investment for entering German and Canadian specialty chemicals industry.

Specialty chemicals industry challenge #2: Lack of visibility into demand patterns

The company faced challenges in forecasting the product demand with complete accuracy. As a result, they faced difficulties in managing inventory and planning their workforce. With Infiniti’s market intelligence solution, they wanted to identify factors affecting the specialty chemicals demand in the market. Furthermore, they wanted to efficiently forecast the product demand in advance and reduce issues related to supply-demand mismatch.

Specialty chemicals industry challenge #3: Pricing challenges

The rapid pace of change in raw material price, shipping rates, and tariffs made it difficult for the company to competitively price their products. Therefore, the company wanted to engage in strategic planning around their pricing structures.

Specialty chemicals industry challenge #4: Evolving regulatory requirements

With Infiniti’s market intelligence solution, the client wanted to keep up with the regulatory changes and ensure adherence to both processing requirements and product quality standards.

With over 15 years of experience in serving companies across the globe, our industry experts can help you devise strategies to capitalize on new market opportunities. Contact us today!

Solutions Offered

To help the client tackle the industry challenges, the experts at Infiniti Research conducted a comprehensive specialty chemicals industry analysis. This phase of the engagement helped the client to assess competition in the local market and understand the industry transformations.

Our market intelligence engagement also involved the German and Canadian specialty chemicals market intelligence study. This helped the client to pursue profitable opportunities in the Canadian and German specialty chemicals market. Also, the company in the specialty chemicals industry was able to evaluate the capital requirements for entering these regions.

Our experts also conducted a demand and supply analysis. This helped the client to efficiently forecast the product demand and maintain adequate stocks in-hand.

By conducting market scanning and monitoring analysis, our experts also helped the company in the specialty chemicals industry to identify changes in emerging regulations and better prepare for changes pertaining to industry regulation.

Results Obtained

The insights obtained from Infiniti’s market intelligence engagement helped the company in the specialty chemicals industry to reduce time to market and understand the factors affecting their business growth. Furthermore, the client was able to adapt to the fast-evolving marketplace, competitively price products, and lower risks of stockouts and over-stocks.

As a result, the company witnessed a huge increase in their sales rate. This subsequently helped the company in the specialty chemicals industry to enhance sales by 29% in one year.

Request for more information to know more about our services for companies in the specialty chemicals industry.

Chemical market analysis

Navigating Complexity for Specialty Chemical Companies: 8 Major Roadblocks and How to Over Them

With plummeting profitability and increasing market competition, specialty chemical companies are undergoing several unique challenges. They must identify strategies to pull through such roadblocks in order to survive in the long run.

The global specialty chemicals market continues to expand at a rapid pace. This growth has been underpinned by factors including increased productivity, sound business models, and portfolio restructuring. However, market growth isn’t exactly good news for the existing companies in the specialty chemicals industry. The flourishing market means that it would draw in more players and add on to the competitive pressure in the industry. Therefore, survival for specialty chemical companies greatly depends on understanding the most pressing challenges and leveraging insightful strategic planning to overcome them.

Key challenges facing specialty chemical companies 2019

specialty chemical companiesChanging business portfolios

Specialty chemical companies are increasingly being transformed through increasing product diversification and rapid merger and acquisition activities. Business portfolios of specialty chemical companies are constantly changing as producers add and dispossess divisions, engage in new market entries, and participate in mergers. Moreover, globalization has increased the business portfolio complexity of specialty chemical companies.

Dynamic demand patterns

One of the key challenges faced by specialty chemical manufacturers is uncertain and unpredictable demand patterns. They also have only limited visibility into future customer orders. The growing customer portfolios spanning over several end-use markets and visibility into demand variability represents significant challenges for specialty chemicals manufacturers.

Specialty chemical companies are currently facing several unique challenges. Fortunately, there are some strategies that specialty chemicals producers can take to support success. RFP for more insights.

Expanding product portfolios

In order to increase differentiation, strategize new market entry, and maximize customer loyalty, specialty chemical companies are continuously experimenting with new product innovations. New product introductions coupled with frequent adaptation of existing products have caused a significant rise in the number of products produced, consequently, leading to greater operational complexity.

Regulation and compliance

Specialty chemicals manufacturers are increasingly facing issues in documentation and certification of product quality and procedural compliance. These issues are largely driven by government regulations, end-use market requirements, or specific customer requirements. Furthermore, batch and lot level traceability requirements are becoming common in several segments and add to the complexity of operations.

Increasing customer intimacy

Specialty chemical companies are increasingly adopting the trend of moving closer to their customers by offering them tailored products and customer-specific service arrangements. Although moving closer to the customers has been a source of differentiation for specialty chemical companies, it has resulted in increased complexity of other business operations.

Get in touch with an analyst to know how we help clients in the chemical industry to keep track of market challenges and learn how our tailor-made solutions can help overcome major roadblocks in the market.

Industry price changes

The raw materials used by specialty chemical manufacturers are often priced on the higher side. The market fluctuations between countries often leave manufacturers vulnerable to the associated price drops. For instance, the 2014 shale gas price drop in the US resulted in heightened competition in Europe. This placed additional pressure on manufacturers in an already high-pressure market.

Growing demand for multi-stage manufacturing

Customers are increasingly seeking specialty chemicals that can only be produced through complex, multi-stage, multi-product processes that require more time to complete and an extensive list of components. Both of these can largely cut into the profit margin of specialty chemical companies.

Technology upgrade requirements

Most of the digital technology available today can be both a boon and a bane for specialty chemicals companies. While tools like IoT, artificial intelligence, and blockchain provide several advantages, implementing and integrating them into existing processes can be a time consuming and labor-intensive process.

Learn more about Infiniti’s tailor-made solutions for specialty chemical companies

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