AGROCHEMICALS late have been fairly widespread as recovery from the COVID recession continues ,” Swift said . “ Since last year , the recovery has largely been V-shaped , with some interruptions , largely due to weather events . Volumes are up 5.1 % year-to-date and , with economic strengthening in Q4 , 2021 will be a good year for specialties . A 5.5 % gain is likely ,” he added . “ We expect activity to improve in 2022 and into 2023 , but at a more moderated pace . A 3.7 % gain in headline volumes is expected in 2022 , slowing to a 2.1 % pace in 2023 . Growth during 2021-23 will average 3.6 %/ year .” Electronic chemicals will be one of the bright spots this year and into 2023 , Swift anticipates . Other segments featuring above-average growth include coatings , corrosion inhibitors , foundry chemicals , industrial and institutional cleaners , oilfield chemicals , pigments , printing inks , and rubber processing chemicals . Some of these segments ’ dynamics reflect a recovery from a steep downswing . In his keynote address in Charleston , Swift had noted that the chemical industry is early in the supply chain and that even then the latest data , from early September , showed slowing growth . “ The big growth numbers are behind us ,” he told delegates .
Quarterly Market Volume ( 000 mt ) 12,000
10,000 8,000 6,000 4,000 2,000
0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Other |
Water management chemicals |
Textile specialities |
Rubber processing chemicals |
Plastic additives |
Oilfield chemicals |
Food additives |
Electronic chemicals |
Cosmetic chemicals |
Coatings |
Catalysts |
Adhesives & sealants |
Figure 1 – Volume outlook for US speciality chemical market , 2005-2025 . Source – Dr Kevin Swift
Among notable segments , Swift noted that coatings , especially architectural coatings are looking strong , as are automotive , OEM appliances and machinery coatings . Cosmetics are holding steady , but demand for hand sanitiser is slowing . Food additives are showing a small dip . That is a segment where production that went to Asia and other regions is slowly being revived in North America . There is the same potential in rubber , elastomers and plasticisers , being driven by the repatriation , or reshoring of tyre manufacture to North America . Oilfield chemicals are highly variable . There was a plateau in September , followed by slow growth .
Plastic additives have been showing steady recovery . That has been a segment where reshoring has been a big story . Water management is enjoying long-term growth . Electronic chemicals have been horizontal . Textile chemicals are enduring a long , slow decline . Returning to the topic of the supply chain , Swift explained in his keynote address in Charleston that a fundamental shift has taken place in the tactical understanding of inventory management . “ Inventories were in a long-term decline since the 1990s and the wide adoption of just-in-time logistics . Most companies became aware of supply chain resistance after the Fukushima ‣