At the 2023 ADI Forum (formerly FlexPO+), Uday Turaga, CEO, ADI Analytics discussed the commoditization of the specialty chemicals industry and the performance of various segments over the past decade. While the chemical industry has generally become more commoditized, specialty chemicals have historically yielded higher returns. However, the first half of 2022 was challenging for most specialty chemical segments, with only mining, oilfield, and fertilizers showing positive returns. Over the longer term (the last decade), many specialty chemical markets have seen significant increases in returns, emphasizing their importance.
There was a concerted effort to combat commoditization even in mature market segments like PVC and polyethylene. This involved differentiating grades, tailoring products for specific applications, and coupling them with other material offerings to secure significant price premiums. This trend of customization and specialized solutions was becoming more pronounced across various market segments, allowing companies to capture added value despite overall industry commoditization.
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
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