The scale of the industry continues to expand.
After decades of development, China’s fine chemicals industry has formed a comprehensive and technologically advanced industrial system, becoming a vital component of the global fine chemicals sector. Although statistical methodologies vary across institutions, all data consistently reflect the industry’s significant global market position and substantial growth potential. According to data released by CCID Consulting, China’s fine chemicals industry (including new chemical materials) reached a scale of 3.9 trillion yuan in 2024, marking a year-on-year increase of 7.5%. From 2022 to 2024, the industry achieved a compound annual growth rate (CAGR) of 6.1%, demonstrating steady and positive development with enhanced resilience. According to S&P Global statistics, the global specialty chemicals market size in 2024 was approximately $774.4 billion, with China’s market size reaching about $215.9 billion, accounting for 28% of the global total and ranking first worldwide. North America and Western Europe followed with $165.3 billion (21%) and $104.2 billion (14%), respectively.
Regional Layouts with Distinct Characteristics
China’s fine chemicals industry has gradually developed clustered and differentiated spatial characteristics. The East China region, leveraging its robust economic foundation, comprehensive industrial support, and advantageous geographical location, has emerged as the nation’s core hub for fine chemicals. Centered around Shanghai, this area hosts numerous R&D institutions and corporate headquarters, establishing itself as an innovation epicenter. Provinces like Jiangsu and Zhejiang have progressively built a complete industrial chain spanning “raw materials – basic chemical products – high-end fine chemical processing.” Beyond this, other regions have progressively defined their niches based on comparative advantages. For instance, the Pearl River Delta leverages its robust electronics, home appliances, and automotive industries to focus on fine chemical products closely tied to its end-consumer markets. Guangdong Province’s “Action Plan for Developing Green Petrochemical Strategic Pillar Industry Clusters (2023-2025)” explicitly states: “Centered on the application of next-generation electronics, high-end equipment manufacturing, modern light industry and textiles, and other advanced manufacturing and strategic emerging industries. By integrating the characteristics of upstream and midstream products, we will extend the downstream petrochemical industry chain, promote the deep processing of chemical products, and develop high-end fine chemicals and new chemical materials such as engineering plastics, electronic chemicals, functional membrane materials, and high-performance fibers.” Central, western, and parts of northeastern China leverage their legacy industrial bases and cost advantages to actively receive industrial transfers from eastern regions. By focusing on local mineral resources or the needs of specific leading enterprises, they develop specialty chemicals and new chemical materials tailored to regional demands, effectively complementing and supporting the core clusters in the east.
Continuously Optimized Policy Environment
The Chinese government places high importance on the development of the fine chemicals industry. In recent years, the state has intensively issued multiple guiding and supportive policy documents, clearly defining the strategic positioning of fine chemicals within the modern chemical industry system. For instance, in July 2024, nine ministries including the Ministry of Industry and Information Technology jointly issued the “Implementation Plan for Innovative Development of the Fine Chemical Industry (2024-2027),” explicitly stating that fine chemicals serve as a key engine for driving high-quality development in the petrochemical and chemical sectors. This sector is crucial for ensuring the security and stability of vital industrial chains and supply chains, advancing green and low-carbon development, and improving people’s livelihoods. In September 2025, the Ministry of Industry and Information Technology and six other departments jointly released the “Work Plan for Stabilizing Growth in the Petrochemical Industry (2025-2026).” This plan explicitly calls for enhancing high-end supply by focusing on the needs of key industrial chains such as integrated circuits, new energy, and medical equipment. It supports breakthroughs in critical products across sectors including electronic chemicals, high-end polyolefins, high-performance fibers, specialty rubber, and high-performance membrane materials.