
Industry research
Scope
US
Companies
89
Table of contents
What does the Advanced materials, polymers and additives market landscape look like in the US?
The North American market accounts for ~23% of the global specialty chemical production industry (CISA, February 2023). The market remains highly fragmented, with incumbents competing against large multinational chemical manufacturers and industrial conglomerates such as 3M (US), BASF Group (DE), Toray Industries (JP) and Morgan Advanced Materials (GB). In the advanced materials and polymer segments, competitive pressure is further intensified by Chinese producers that benefit from significant cost advantages. However, tariffs introduced by the Trump administration have accelerated nearshoring trends, prompting incumbents to relocate or expand operations within the US to mitigate supply chain risks and tariff impacts. To remain competitive, many US incumbents focus on mission-critical materials that have limited global supply and high barriers to entry. For example, Materion stands out in high-performance materials as the only fully integrated mine-to-mill producer of beryllium globally. Additionally, several players pursue strategic acquisitions to enhance their capabilities and market reach, illustrated by Pexco’s acquisition of Wisconsin Plastic Products to strengthen its custom plastic extrusion offering.
What is the level of investor activity in the US Advanced materials, polymers and additives industry?
Investor-led interest has been significant, with ~52% of identified assets backed by financial sponsors (as of April 2025). Several factors attract investors, including (i) improved productivity stemming from the emergence and integration of AI, robotics and Industry 4.0 technologies, (ii) reshoring initiatives driving demand for US-made specialty chemical inputs, as well as (iii) the expansion of defense, infrastructure, EV and aviation end-markets, fueling greater consumption of advanced materials, polymers and additives. On the other hand, deterring factors for investors include (i) raw material cost volatility, impacting margins and pricing, (ii) supply chain risks from a heavy reliance on foreign sources (e.g. China), as well as (iii) rising compliance costs driven by stricter US regulations.
What are the key ESG considerations in the US Advanced materials, polymers and additives industry
ESG topics primarily revolve around environmental and social matters. Environmental concerns mainly relate to resource consumption and end-of-life disposal, leading to plastic pollution, chemical runoff and greenhouse gas emissions. Herein, incumbents mitigate these environmental challenges by developing bio-based and biodegradable polymers, as well as implementing circular economy strategies that emphasize recycling and waste reduction. Social issues primarily relate to health risks associated with exposure to certain hazardous chemicals. To address this, incumbents adopt safer alternatives, such as non-toxic materials (e.g. bio-cellulose additives), to reduce harm to workers and end-users.

The global specialty chemical production market was valued at ~$810bn in 2021 and is forecasted to grow to ~$1,068bn by 2026 (+5.7% CAGR 2021-2026; EY, June 2023)
Technavio (December 2024) estimates that the US specialty chemicals market generated ~$240bn in revenue in 2024 and expects it to reach ~$270bn by 2028 (+3.0% CAGR 2024-2028)
The emergence and integration of AI, robotics and Industry 4.0 technologies are enhancing manufacturing efficiency and reducing costs across supply chain planning, procurement, product development and administration. To illustrate, AI for R&D can reduce product development times by up to ~30% for polymers and other specialty chemical manufacturers, while also improving product performance and cost efficiency (Andrew Busch, January 2025; McKinsey & Company, November 2024; McKinsey & Company, September 2023)
Reshoring trends, driven by Trump-era tariffs on Chinese imports, have pushed US OEMs to re-evaluate and localize their supply chains in an effort to reduce reliance on foreign sources of specialty chemical inputs. As a result, there is a growing demand for domestically produced additives, advanced materials and polymers across key end-markets such as automotive, aerospace, electronics and construction (CNBC, April 2025; S&P Global, January 2025)
The growth in defense and infrastructure spending, along with the recovery of commercial aviation, is boosting demand for advanced materials. At the same time, the scaling of electric vehicles is driving increased use of polymers and additives, which are critical for thermal management, insulation and long-term durability (Ultrus, March 2024; Deloitte, November 2023)
Persistent volatility in the pricing of essential, often petroleum-derived, raw materials is expected to remain a major challenge for manufacturers to maintain profitability. For instance, the price of carbon fiber precursor (acrylonitrile) fluctuates with petrochemical markets (Vaisala, April 2024; ChemQuest, August 2023; Adhesives Magazine, April 2023)
Supply chain vulnerabilities arising from heavy reliance on foreign countries (e.g. China) for critical materials (e.g. rare earth elements) that are not available in the US. Trade tensions, geopolitical instability and export controls can disrupt timely deliveries, with subsequent supply shortages, cost increases and reduced manufacturing efficiency ultimately impacting profitability (Fortune, April 2025; Reuters, April 2025; Reuters, April 2025)
Tightening US regulations, including the updated TSCA framework and heightened oversight from the FDA and CPSC, are driving up compliance costs, thereby slowing innovation and eroding the global competitiveness of US advanced materials and chemical producers. Additionally, a surge of upcoming regulations is set to raise chemical manufacturing compliance costs by ~50% in the US (Ricardo, June 2024; American Chemistry Council, January 2024; American Chemistry Council, September 2023)
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A clear overview of all active investors in the industry
An in-depth look into 89 private companies, incl. financials, ownership details and more.
A view on all 471 deals in the industry
ESG assessments with highlighted ESG outperformers