Chemistry in transition: from breakthroughs to speed
How innovation is shifting from breakthroughs to continuous development and the consequences of this.
Interview mit Jan Haemer und Marie Verdier, Simon-Kucher & Partners
Specialty chemicals are one of Europe's key strengths. While basic chemicals are under cost pressure, knowledge-intensive segments such as additives, coatings and ingredients remain competitive. But here, too, the logic of innovation is changing fundamentally. Simon Kucher experts Jan Haemer and Marie Verdier explain how innovation is shifting from breakthroughs to continuous development and what the consequences are.
CHEManager: Is the classic innovation logic of specialty chemicals becoming less important?
Jan Haemer: Historically, specialty chemistry was strongly technology-driven. Companies developed new molecules with clear unique selling points - often with long life cycles and stable customer relationships. Liquid crystals or superabsorbers show how individual innovations were able to secure high margins over many years.
Marie Verdier: The model still exists, but is no longer dominant. Innovation is shifting from breakthroughs to continuous development - products are being adapted more quickly to regulation, sustainability and customer needs.
What is driving this change?
M. Verdier: Sustainability is increasingly becoming a sought-after performance feature - for example with PFAS-free additives or bio-based ingredients. At the same time, applications are becoming more complex and more differentiated.
J. Haemer: Demand is fragmenting. Instead of a few large applications, many highly specific fields of use are emerging, while innovation cycles are shortening. Instead of a major breakthrough, we are seeing many smaller improvements: Formulation adjustments, performance optimizations or solutions for specific applications.
What does this mean for competitive dynamics?
J. Haemer: Speed is becoming the decisive competitive factor. The decisive factor is no longer just the best chemistry, but the fastest translation of customer requirements into marketable solutions.
M. Verdier: At the same time, the time window for monetization is shortening. Successful companies are therefore characterized by close customer integration, fast development processes and strong technical services.
What role does the commercial perspective play here?
M. Verdier: It is becoming much more important - and starts earlier. In an environment of incremental innovation, it is no longer enough to develop and price products. The value for the customer must be integrated into development right from the start.
J. Haemer: This changes the logic: companies need to think more from the market perspective - in other words, from benefits, willingness to pay and clear use cases. Pricing, value argumentation and customer understanding are becoming integral parts of the innovation process.
What role can Europe play in this environment?
J. Haemer: Europe continues to have clear strengths in knowledge-intensive specialty segments - for example in coatings, additives or ingredients for consumer goods. These areas thrive on application expertise and close customer interaction.
M. Verdier: At the same time, innovation is globalizing. Many applications are created in regional ecosystems - for example in electronics in Asia or in pharmaceuticals in India. Specialty chemicals also increasingly require a local presence, application laboratories and customer proximity.
What is the key strategic consequence of this?
J. Haemer: Specialty chemicals remains an attractive business, but the success factors are shifting.
M. Verdier: The decisive factor is no longer the next big molecular innovation, but continuous, customer-oriented innovation - and speed as a key competitive factor.
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