subject: The Top 10 Global Fine Chemicals Companies: Industry Overview, Key Trends, Growth Strategies, Financ [print this page] The history of the fine chemicals industry dates back to the late 18th century, when the early chemical industry was evolved from natural dyes and explosives into modern pharmaceutical products. However, by the end of the 19th century, the commercial production of branded pharmaceuticals flourished in Europe (especially in Germany, as many of the active pharmaceutical ingredients were produced in this country).
Fine chemicals are generally produced on a large scale, which can be measured in thousands of tonnes per year for certain food additives and drug intermediates. Fine chemicals manufacturing is typically carried out in batch processes, with synthesis being followed by separation and purification steps.
Pharmaceuticals has always been the largest market for the fine chemicals industry. Moreover, it is likely that pharmaceutical intermediates will account for over two-thirds of the fine chemicals market by 2012. Although the number of fine chemicals companies involved in the manufacture of high potency APIs (HPAPIs) has historically been limited, the segment has attracted more companies recently.
Profitability levels have fallen for many fine chemical companies in recent years. However, the recent focus on biopharmaceutical products holds promise for this industry in the future. For instance, many of the larger fine chemicals players have invested in biotechnology, either through self-funded R&D programs or through alliances and partnerships.
Key features of this report
Overview of the global fine chemicals market
Market dynamics and profitability of the global fine chemicals market
Detailed profiles of the leading 10 players in the global fine chemicals market
Key partnerships and M&A activities in the fine chemicals sector
Key trends and opportunities in the global fine chemicals market
Scope of this report
Develop insights into the global fine chemicals market, including pharmaceutical intermediates, agrochemical intermediates, flavors and fragrances, dyes, and others
Build knowledge of key partnerships and M&A activities that are shaping the future of the global fine chemicals industry.
Understand the major issues affecting the global fine chemicals industry.
Assess the competitive landscape of the global fine chemical industry.
Key Market Issues
Increasing demand for HPAPIs: HPAPIs are very effective in treating diseases at low dosage; however, the production of such potent compounds requires significant investment. Thus, many companies are also differentiating their products from their competitors through specialized technologies and demonstrated expertise. The growth in demand for HPAPIs, primarily in cancer therapies, is expected to increase its sales in the near future. Additionally, the ability to increase life expectancy among cancer patients will also drive the demand for HPAPIs in coming years.
Relocation to emerging and fast growing markets: Managing and rationalizing existing assets in the EU and investing in new facilities in emerging and fast growing markets has been a key trend in the fine chemicals sector recently. Growth in Western Europe started to slow in recent years, making Asia (mainly China and India) and Latin American countries the new growth markets for the fine chemicals industry.
Advanced technologies: Recently, many of the leading pharmaceutical and fine chemicals manufacturers have started to focus on small-scale complex products, an area where advanced technologies are required. For example, in June 2009, Italian fine chemicals company Endura announced that it would commercialize a technology that encapsulates insecticide into very small crystals. The encapsulation delays the release of insecticides, thus enabling an enzyme inhibitor to disable the enzymes that insects use to block pesticides. Moreover, Endura will also promote the concept of microencapsulated piperonyl butoxide (PBO, a naturally occurring synergist) in agriculture throughout the world in collaboration with strategic partners.
Key findings from this report
The pharmaceutical industry has always been the largest market for the fine chemicals industry. Although the number of fine chemicals companies that are developing high-potency APIs has been limited, this segment has attracted many companies in recent years.
Fine chemicals players with significant exposure to the generics segment are likely to face pressure on their profitability levels in the near future. However, the recent shift in focus toward biopharmaceutical products will expand the margin of this industry in coming years.
Agrochemical intermediates represent the second largest category among fine chemicals (after APIs), the majority of which are used in the manufacture of pesticides, herbicides, insecticides, fungicides, and fumigates.
Outsourcing has become a key trend in this industry, fueled by the growing importance of biopharmaceutical and virtual pharma companies in low-cost destinations such as Asia. Outsourcing from biotech and pharmaceutical companies will strengthen the custom manufacturing industry in India and China.
BASF is one of the leading chemical producers in the world, with significant exposure in fine chemicals. With a presence in over 80 countries, BASF is one of the leading suppliers of chemical intermediates to the plastic, automobile, agriculture, and pharmaceutical industries.
Key questions answered
What are the key trends of global fine chemicals industry?
Which are the leading players in the global fine chemical market?
Which companies will drive the future of the global fine chemicals market?
What are the key strengths, weaknesses, threats, and opportunities for the leading fine chemicals players?
How has the financial performance of leading players in the global fine chemicals market faired through the recent economic downturn?
Which companies are best positioned to succeed in the global fine chemicals market during 200914?
Table of Contents :
The Top 10 Global Fine Chemicals Companies
Executive summary 12
Industry overview 12
BASF 13
Lonza 13
DSM 14
Sumitomo Chemical 14
Merck KGaA 15
Lanxess (Saltigo) 16
Sigma-Aldrich 16
Jubilant Organosys 17
Johnson Matthey 17
Evonik Chemicals 18
Chapter 1 Introduction 20
What is this report about? 20
Methodology 20
Chapter 2 Industry overview 24
Summary 24
Fine chemicals an overview 25
Different types of fine chemicals 26
Pharmaceutical intermediates 27
Agrochemical intermediates 28
Flavors and fragrances 28
Dyes and others 29
Market dynamics 29
Size and structure 29
Profitability 30
Competitive landscape 30
Manufacturing standards and their potential benefits 32
Potential benefits of the guideline 33
Key partnerships and M&A activity in the fine chemicals sector 34
Key trends 35
Advanced technologies 35
Increasing demand for HPAPIs 35
Relocation to emerging and fast growing markets 36
Increasing use of biotechnology and nanotechnology 36
Chapter 3 BASF 40
Summary 40
Company overview 41
Business segmentation 41
R&D focus 42
Financial performance 42
Growth strategies 44
Leading supplier of chemical intermediates 44
Verbund, an innovative approach 44
Diversified product portfolio 45
SWOT analysis 45
Chapter 4 Lonza 48
Summary 48
Company overview 49
Business segmentation 49
R&D focus 50
Financial performance 51
Growth strategies 52
Chemical manufacturing strengthens Lonzas technology platform 52
Partnership with biopharmaceutical and chemical companies 52
SWOT analysis 54
Chapter 5 DSM 56
Summary 56
Company overview 57
Business segmentation 57
R&D focus 58
Financial performance 60
Growth strategies 61
Increasing R&D activity in emerging markets 61
Microreactors: a new technology for pharmaceutical production 61
SWOT analysis 62
Chapter 6 Sumitomo Chemical 64
Summary 64
Company overview 65
Business segmentation 65
R&D focus 66
Financial performance 67
Growth strategies 69
Strong progress in major R&D projects 69
Pursuing a new strategy of creative hybrid chemistry 69
Strong response to the EUs REACH legislation for chemicals 69
Creation of next-generation chemical safety information management database 70
SWOT analysis 71
Chapter 7 Merck KGaA Chemicals 74
Summary 74
Company overview 75
Business segmentation 75
R&D focus 76
Financial performance 76
Growth strategies 77
Merck KGaA and Millipore partnership for specialty products 77
New pharmaceutical production plant to increase Merck KGaAs capacity in
Germany 78
Stronger presence in India through acquisition of Bangalore Genei 78
Merck Serono to build its R&D operations in China 78
SWOT analysis 79
Chapter 8 Lanxess (Saltigo) 82
Summary 82
Company overview 83
Business segmentation 83
R&D focus 84
Financial performance 84
Growth strategies 85
Expansion in BRIC countries 85
Advanced Intermediates segment 86
Custom manufacturing 86
SWOT analysis 87
Chapter 9 Sigma-Aldrich 90
Summary 90
Company overview 91
Business segmentation 91
R&D focus 92
Financial performance 92
Growth strategies 93
Strong focus on emerging markets 93
Partnerships and alliances 94
Targeting the high-growth biology segment 94
SWOT analysis 95
Chapter 10 Jubilant Organosys 98
Summary 98
Company overview 99
Business segmentation 100
R&D focus 101
Financial performance 101
Growth strategies 104
Integrated business model 104
Strong R&D and manufacturing services for intermediates and APIs 104
Positioning as an outsourcing partner of choice 105
SWOT analysis 106
Chapter 11 Johnson Matthey 108
Summary 108
Company overview 109
Business segmentation 109
R&D focus 110
Financial performance 111
Growth strategies 112
Johnson Mattheys Sustainability 2017 initiative 112
Strong market position in APIs and contract manufacturing services 112
SWOT analysis 113
Chapter 12 Evonik Chemicals 116
Summary 116
Company overview 117
Business segmentation 117
R&D focus 117
Financial performance 118
Growth strategies 119
Specialty chemicals remain a key focus area for Evonik 119
Strong commitment to custom manufacturing business 120
SWOT analysis 121
Chapter 13 Other major players 124
Boehringer Ingelheim 124
Company overview 124
Recent financial performance 124
Divis Laboratories 125
Company overview 125
Recent financial performance 126
Pfizer CentreSource 127
Company overview 127
Recent financial performance 127
Cambrex 128
Company overview 128
Recent financial performance 128
Fabbrica Italiana Sintetici 129
Company overview 129
Recent financial performance 130
Appendix 131
Glossary 131
Index 133
List of Figures
Figure 2.1: Fine chemicals and their usage 27
Figure 3.2: BASF SWOT analysis 45
Figure 4.3: Lonza business divisions 49
Figure 4.4: Lonza SWOT analysis 54
Figure 5.5: DSM business focus 58
Figure 5.6: DSM SWOT analysis 62
Figure 6.7: Sumitomo Chemical research laboratories 67
Figure 6.8: Sumitomo Chemical SWOT analysis 71
Figure 7.9: Merck KGaA Chemicals SWOT analysis 79
Figure 8.10: Saltigo SWOT analysis 87
Figure 9.11: Sigma-Aldrich SWOT analysis 95
Figure 10.12: Jubilant Organosys business segmentation 100
