Fine chemicals enter the stage of green transformation

The 23rd National Fine Chemical Industry (Binhai) Conference was held on November 24–25, 2023. At the conference, Luo Yamin, Vice Chairman of the National Fine Chemical Raw Materials and Intermediates Industry Cooperation Group, pointed out that after years of development, China's fine chemical industry has established a prominent position and demonstrated advantages in the global chemical industry landscape, gradually entering a phase of green development and transformation. The annual output value of China's fine chemical industry ranges between 4 trillion and 5 trillion yuan, forming a relatively comprehensive industrial system with a wide range of products.  

**China’s Fine Chemical Market to Grow at an Average Annual Rate of 6% in the Next Five Years**  

Fine chemicals refer to the design, innovation, research and development, manufacturing, and application of specialty chemicals with comprehensive functional and performance requirements. It is one of the most dynamic emerging fields in the chemical industry today.  

Professor Zou Shuping from Zhejiang University of Technology explained at the forum that fine chemicals are characterized by a wide variety, high technological content, high added value, and broad application coverage. They encompass 11 categories, including pesticides, dyes, high-purity substances, catalysts, functional polymer materials, and active pharmaceutical ingredients (APIs). Among them, APIs and their intermediates, as well as pesticides and their intermediates, account for more than 32% of the sector and are critical to environmental, health, and safety concerns.  

Luo Yamin stated that the global fine chemical market is expected to grow at an average annual rate of 3%–4% over the next five years, reaching a total size of $2.8 trillion by 2027. Among all consumption regions, China’s fine chemical market will grow the fastest, at about 6% annually. In the next five years, battery chemicals, electronic chemicals, pharmaceuticals, nutritional ingredients, adhesives and sealants, and flavors and fragrances will all exhibit growth rates higher than the industry average.  

According to the *China Fine Chemical Market Prospects and Investment Opportunities Research Report* released by CIC Industry Research, China’s fine chemical market size is projected to reach 11 trillion yuan by 2027. Meanwhile, China’s fine chemical ratio (the proportion of fine chemical output value to total chemical output value) has been increasing year by year, rising from 36.5% in 2016 to 41.2% in 2021, with plans to reach 55% by 2025. She Yuanbin, Academician of the European Academy of Sciences and President of Zhejiang Emergency Management College, noted that China has established more than 30 fine chemical technology centers in emerging fields, with over 5,000 manufacturers producing tens of thousands of product varieties and an annual production capacity exceeding 2,000 tons.  

During the transformation period of China’s chemical industry, the fine chemicals sector will face significant upgrading opportunities: rapidly changing downstream market demand drives continuous advancements in technology and products, while the "dual-carbon" goals and digitalization trends are also reshaping the essence of the fine chemical industry.