Specialty chemicals for construction continue to grow globally

Recently, Standard & Poor's Global released the "Construction Chemicals Report". The report predicts that in 2022~2027, the global consumption of specialty chemicals for construction will continue to grow at an average annual growth rate of 3.1%.

According to the report, there is no universally accepted definition of construction chemicals, and the chemicals covered in the report are chemicals and polymers commonly used in the construction industry. The report divides construction chemicals into two parts, specialty chemicals include concrete admixtures, asphalt emulsions, adhesives, roofing materials, flooring materials, etc., and general chemicals include cement slurry, mortar, cement additives and expanded polystyrene insulation board.

According to the report, in recent years, due to the environmental boom, the use of some chemicals used in the construction industry has increased rapidly, as well as in developed regions such as North America, Western Europe and Japan. For example, more and more insulation materials and sealants are used on construction sites. These materials reduce the energy consumption of buildings to meet revised building codes and green building guidelines. The demand for roof coatings is driven by the need for environmental protection and energy saving, and safety environmental regulations and customized technical requirements also contribute to the growth in the demand for floor coatings.

The current construction chemicals industry is very fragmented, with many suppliers, including many small and medium-sized companies operating regionally, and a limited number of multinational producers, the report said. Together, the top 10 construction chemical producers account for about 40 percent of the global market, focusing on concrete admixtures, bitumen emulsions, adhesives and sealants, specialty coatings, spray insulation foams and other specialty chemicals, the report said.

S&P Global added that at the end of last year, the construction chemicals industry announced two major M&A transactions, and the market concentration of the construction chemicals industry increased. In November 2021, Sika Group, the largest producer of construction chemicals, announced the acquisition of the former BASF construction chemicals company Mibs Group, but the acquisition has not yet been approved. Sika has announced that it is looking for buyers for part of the Maibs Group's concrete admixture business. In addition, Saint-Gobain acquired all outstanding shares of GCP Applied Technologies in December 2021 for a transaction value of approximately $2.3 billion, which was completed in September 2022.