Chemical companies are approaching end-user markets in order to survive

The 20th century was a time when the Chemical companies flourished with the help of the petrochemical industry and succeeded in creating products with a variety of functions not previously found in products. It succeeded in developing a material and creating a new market. However, as the market expands and more producers appear, these products soon become universal, leading to a vicious circle of market saturation, oversupply and falling prices.
Moreover, Chemical companies have long been widely regarded as materials in developed economies, so it is no longer possible to expand the market in terms of quantity. As a result, the chemical industry has turned to emerging markets or specialty chemicals with higher functions for growth opportunities. But with capacity growing faster than demand in China and the Middle East (see chart), and Chemical companies in these emerging countries rapidly acquiring technology, the chances of market saturation or product generalisation are higher. In this context, the specialty Chemical companies is no longer the exception, because the competition is becoming more and more intense, and technical advantages alone cannot guarantee its competitiveness.
However, there are still many European chemical professionals who retain their various specialty chemical businesses. Many of them are afraid to target based on the growth potential of a product or market, and instead choose segments where they can build better relationships with their customers and integrate them into their core business. As a means of strengthening relationships, they promote the joint development of technologies or products, or the production of customized high-performance products. Moreover, some companies even invest their corporate resources and design a new business model to be closer to the end user to ensure the distance from the customer company. These strategies are worthy of consideration by other chemical companies to ensure their market dominance and viability. Here is a typical example of this kind of work.

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