Industry research
Scope
US
Companies
73
Table of contents
What does the specialty chemicals production market landscape look like in the US?
Consolidation levels within the US market vary by segment. The coatings, paints and colorants industries are highly consolidated, whereas the adhesives and cleaning agents segments are fragmented. Large players in each segment differentiate through their one-stop-shop product portfolios, advanced technologies, diversified end-market exposure and broad geographic presence across the US and globally. These players continue to expand their geographic presence and patent portfolios through strategic M&A (e.g. H.B. Fuller’s acquisition of Adhezion Biomedical brought >100 patents in medical adhesive formulations). Within the long tail, some incumbents specialize and lead in specific product categories (e.g. Innovative XCessories & Services is a leader in spray-on polyurethane bedliner coatings), while others cater to a specific end-market (e.g. Simoniz USA manufactures cleaning agents primarily for the automotive market).
What is the level of investor activity in the US specialty chemicals production industry?
Investor-led interest has been moderate, with ~34% of identified assets backed by financial sponsors (as of June 2025). Deterring factors for investors include (i) margin pressure from volatile raw material prices and supply chain disruptions, (ii) rising compliance costs due to stricter regulations such as PFAS classification, as well as (iii) growing overcapacity that threatens long-term profitability. In turn, potential sponsor-led interest mainly stems from (i) rising demand linked to expansion in US housing construction activity, (ii) reshoring tailwinds and tariffs on imports that enhance domestic producers’ competitiveness and utilization, as well as (iii) the adoption of advanced manufacturing technologies that increase efficiency gains and improved margins.
What are the key ESG considerations in the US specialty chemicals production industry?
ESG topics primarily revolve around environmental and social matters. Environmental concerns mainly relate to carbon emissions, energy consumption, water pollution from hazardous chemicals and the use of PFAS in formulations. To address this, incumbents invest in renewable energy, adopt bio-based alternatives, implement decarbonization initiatives, adopt real-time water monitoring systems and reformulate products to eliminate harmful substances. Social topics mainly relate to occupational and community health risks from toxic exposure, chemical fires and accidental leaks. Herein, players implement hazard detection systems, comprehensive safety training programs and pursue safer formulation practices to minimize risks.
Statista (February 2025) forecasts the global specialty chemicals market to grow from ~$640.8bn in 2023 to ~$939.7bn by 2031 (+4.9% CAGR 2023-2031)
According to Technavio (December 2024), the US specialty chemicals market generated ~$240.0bn in revenue in 2024 and is expected to reach ~$269.9bn by 2028 (+3.0% CAGR 2024-2028)
The rise in US housing activity is expected to increase the demand for construction-related specialty chemicals, including coatings, adhesives, sealants, colorants and waterproofing agents. To illustrate, the number of new residential construction projects is expected to grow from ~1.35m in 2024 to ~1.40m by the end of 2025, with each single-family home using ~33k lbs of chemicals (S&P Global, January 2025; Hilco Global, January 2025; SEATEX, February 2024)
The ongoing reshoring trend, combined with the imposition of new tariffs on Chinese imports, is set to accelerate the domestic production of specialty chemicals by reducing reliance on cheaper foreign alternatives. Notably, Chinese chemical products will face an estimated ~34% tariff, significantly narrowing the price gap and enhancing the competitiveness of domestic producers. This shift is expected to improve capacity utilization rates and catalyze new investment in US-based manufacturers (Chemistry World, April 2025; S&P Global, January 2025)
Identified players are set to benefit from the adoption of emerging advanced technologies, including automation, process optimization and digital manufacturing innovations, leading to increased production efficiency and high-performance formulations. To illustrate, generative AI could unlock ~$80-140bn in value for the industry through ~2-3x faster molecule discovery and ~30% shorter formulation cycles (McKinsey & Company, November 2024)
Volatile raw material prices (i.e. petrochemical feedstocks) and supply chain disruptions are expected to limit market growth. Herein, geopolitical tensions (e.g. US-China tensions) and the risk of labor unrest (e.g. port strikes on the US East and Gulf Coasts, which handle ~90% of waterborne chemical trade in the US) raise costs and reduce profit margins for manufacturers (ACC, October 2024; BCG, October 2022)
Stricter regulations continue to drive up costs for specialty chemicals producers. The EPA’s classification of PFAS as hazardous and its expansion of reporting mandates, coupled with broader air and safety regulations that may require costly retrofits, could erode the US industry’s competitive edge. These adaptations can be costly and time-consuming, potentially hampering market growth (Holland & Knight, July 2024; ACC, November 2023)
The US specialty chemicals sector is under pressure from severe overcapacity due to aggressive production ramp-ups by players in anticipation of a broad-based economic rebound that has since proven uneven, thereby leaving the market oversupplied. This overcapacity is projected to grow by ~24% by 2028 (vs. 2024), which is expected to put further pressure on the profit margins of identified manufacturers (Hilco Global, January 2025)
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A clear overview of all active investors in the industry
An in-depth look into 73 private companies, incl. financials, ownership details and more.
A view on all 466 deals in the industry
ESG assessments with highlighted ESG outperformers
