Chemicals – October 2021

Economic Recovery and End Market Activity Fuel Uptick in Specialty Chemicals Demand

Capstone Partners released its October 2021 Chemicals Industry Update reporting that following a tumultuous 2020, chemical product manufacturers and wholesalers across nearly all segments have experienced a significant increase in demand, bolstered by rising per capita income and an uptick in manufacturing and construction activity.

Merger and acquisition (M&A) activity in the Chemicals industry has proliferated through year-to-date (YTD), driven by companies continuously reassessing their portfolios and divesting non-core assets that no longer align with their growth strategy. Amid elevated carveout activity, strategics and private equity (PE)-backed companies have pursued targets with complementary product portfolios, leveraging strong credit and equity markets to bolster service offerings and market share.

Also included in this report:

• Which product categories are expected to generate the largest share of revenue for chemical products in 2021
• Why oil and natural gas prices have increased significantly
• A segment highlight providing an overview and outlook for the Antimicrobial Product market