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East & Southern African Fine Chemicals Market - Forecast(2023 - 2028)
East & Southern African Fine Chemicals Market Overview
The East & Southern African Fine Chemicals Market
size is estimated to reach US$320 million by 2027, after growing at a CAGR of 5.8%
during the forecast period 2022-2027. Fine chemicals are complex and pure
chemicals that are manufactured in limited quantities and in batches. Various types
such as agrochemicals, active pharmaceutical ingredients including polypeptide,
erythropoietin and others and specialty chemicals have major utilization in
medical & pharmaceuticals, construction materials such as synthetic resins,
concrete and others, food, electronics and other sectors. The demand for fine chemicals in the agriculture
sector is growing for applicability in pesticides, herbicides and others to
offer maximum crop protection, which acts as a driving factor in the East and
Southern Africa fine chemicals industry. In addition, the rising use of fine
chemicals in healthcare and pharmaceuticals is fueling the growth scope. The covid-19 outbreak resulted in a major hamper for the East & Southern African Fine Chemicals Market due to restricted demand in major
end-use industries, production halt, supply chain disruption and other lockdown
regulations. However, a significant recovery in the medical &
pharmaceutical, construction and other sectors is boosting the demand for East
and Southern African fine chemicals. Thus, the East and Southern African fine
chemicals industry is anticipated to grow and contributes to the growing East & Southern African Fine Chemicals Market size during the forecast period.
East & Southern African Fine Chemicals Market Report Coverage
The “East & Southern African Fine Chemicals Market Report – Forecast (2022-2027)” by
IndustryARC, covers an in-depth analysis of the following segments in the East & Southern African Fine Chemicals Market.
Key Takeaways
- South Africa dominates the East & Southern African Fine Chemicals Market, owing to the growing medical & pharmaceuticals sector, rising agricultural production and rapid urbanization, thereby propelling the growth of fine chemicals in this country.
- The growing pharmaceuticals sector is propelling the demand for the East and Southern African Fine Chemicals for various applications involving drugs, medications and others, thereby contributing to the growing East & Southern African Fine Chemicals Market size.
- The demand for fine chemicals is growing rapidly in the building & construction sector for major utilization in synthetic resin, low-density fiberboard, concrete, coatings and other construction materials, thereby fueling the growth scope in the East and Southern African fine chemicals industry.
- However, the strict regulations and environmental policies for fine chemicals act as a major challenge for the East and Southern African fine chemicals industry.
Figure: East & Southern African Fine Chemicals Market Revenue Share, By Geography, 2021 (%)
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East & Southern African Fine Chemicals Market Segment Analysis – by Type
The active pharmaceutical ingredients segment
held the largest East & Southern African Fine Chemicals Market share in 2021
and is projected to grow at a CAGR of 5.6% during the forecast period
2022-2027. The growth scope for active pharmaceutical ingredients is high
compared to other types due to its wide range of applicability in drugs for the
medical and pharmaceuticals sector to treat a rising number of chronic diseases.
The demand for fine chemicals such as polypeptide, erythropoietin and others is
growing due to the rising utilization in pharmaceuticals and
biopharmaceuticals. In addition, the
advancements in therapeutic drugs and medical devices and others are fueling
its growth in the East and Northern Africa industry. Thus, with the massive
utilization of these fine chemicals in pharmaceuticals
for drugs and medications, the active pharmaceutical ingredients type segment
is projected to grow rapidly during the forecast period.
East & Southern African Fine Chemicals Market Segment Analysis – by End-Use Industry
The pharmaceuticals segment held a significant
East & Southern African Fine Chemicals Market share in 2021 and is projected to grow at a CAGR of 5.9% during the forecast period 2022-2027. Fine
chemicals have demand and utilization in the medical & pharmaceutical
sector for applicability as active pharmaceutical
ingredients in therapeutic drugs, medications and others. The medical & pharmaceutical sector is
growing rapidly owing to growth factors such as rising healthcare spending,
chronic diseases gases and medical infrastructure development. Thus, with the
bolstering of medical drugs & pharmaceutical production, the demand for fine
chemicals such as polypeptides, nucleotides, glycerol, erythropoietin and others is
expected to rise significantly, which in turn, is anticipated to boost the
growth scope for East and Southern African fine chemicals in the pharmaceutical industry over the forecast
period.
East & Southern African Fine Chemicals Market Segment Analysis – by Geography
South Africa held the largest East & Southern African Fine Chemicals Market share in 2021 up to 60%. The fast-paced growth of fine chemicals in the East and Southern African region is influenced by factors such as an established base for the medical & pharmaceutical sector, rising income levels and urbanization. The medical & pharmaceutical sector is significantly growing in South Africa owing to growth factors such as rising chronic disease cases, demand for therapeutic drugs, high spending on medical infrastructure and urbanization. According to the World Bank, health expenditure in the South African region rose from 8.86% in 2018 to 9.11% in 2019. With the increase in therapeutics, medical & pharmaceuticals sectors, the demand for East and Southern African fine chemicals for a wide range of applicability is growing, which, in turn, is anticipated to boost the growth of the fine chemicals industry in the South Africa region during the forecast period.
East & Southern African Fine Chemicals Market Drivers
Bolstering Growth in the Construction Sector :
Fine chemicals have a growing demand
in the construction sector for the production of sealants, polymer additives,
pigments, synthetic resins, concrete and other construction materials owing to their
superior features such as corrosion resistant, excellent strength, high thermal
resistance and durability. The building and construction sector is growing
rapidly owing to growth factors such as rising infrastructural development
projects, demand for modular construction technologies and urbanization. For
instance, according to the International Trade Administration, the construction
industry in Kenya expected growth of 4.5% in 2021, after a growth of 6 3% in
2020. According to the World Bank, the value added by the construction sector to
the GDP of Zimbabwe rose from 34.7% in 2019 to 35.8% in 2020. With the significant
growth in building & construction activities, the demand for fine chemicals
in synthetic resin, concrete, low-density fiberboards and various building
materials is rising, thereby driving the East and Southern African fine
chemicals industry.
Rising Growth of the Agriculture Sector :
Fine chemicals have significant
applications in the agriculture sector for pesticides, biocides and crop
protection. The agriculture sector in the East and Southern African region is
lucratively growing owing to factors such as rising farm yield, growing
agricultural produce and crop cultivation technologies. For instance, according
to the International Trade Administration, South Africa showed the best growth in
the agriculture sector in 2020, with a growth rate of 13.1%. Moreover, the
estimated market size for the agricultural equipment sector in South Africa
rose from US$1,280 thousand in 2020 to projected US$1,380 thousand in 2022. With
the rising agricultural production and food yield, the demand for fine
chemicals in pesticides and biocides is growing, thereby driving the East and
Southern Africa fine chemicals industry.
East & Southern African Fine Chemicals Market Challenges
Strict Environmental Regulations for Fine Chemicals:
Fine chemicals have various negative
impacts on the environment, which restrains the growth of the East and Southern
Africa fine Chen chemicals market. Various strict regulations and standards are
thereby implemented to manage the harmful effects, product certification and
license. In addition, management practices under the Corporate Responsibility
for Environmental Protection (CREP) are formulated by the Central Pollution
Control Board. The flourishing environmental protection and production
management for fine chemicals act as a challenging factor due to the wide range
of regulatory compliance and regulations, thereby the East and Southern Africa
fine chemicals industry anticipates a major slowdown.
East & Southern African Fine Chemicals Industry Outlook
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the East & Southern African Fine Chemicals Market. The top 10 companies in East & Southern African Fine Chemicals Market are:
- Sasol Chemical Industries
- Dow Sentrachem
- AECI
- Anchor Chemicals
- Bayer
- Shell Chemicals
- Saarchem
- Protea
- T&C Chemicals
- Polifin
Recent Developments
- In October 2021, Azelis, a leader in specialty chemicals and food ingredients, announced the acquisition of Umongo, a market leader of lubricants based in South Africa. The transaction aims to boost the product offering and growth scope.
- In September 2020, IMCD, a leading distributor of specialty chemicals and ingredients announced the acquisition of 100% shares in the South African distributor Siyeza Fine Chem Proprietary Limited, thereby offering growth solutions and expanded product portfolio.
- In August 2019, Brenntag acquired the African distributor Desbro Group, a leader offering a portfolio in specialty chemicals and commodities, thereby strengthening the chemicals portfolio.
Relevant Reports
Report Code: CMR 0411
Report Code: CMR 12114
Report Code: CMR 1266
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