8 Best Specialty Chemicals Stocks to Invest In

In this article, we will take a look at the 8 Best Specialty Chemicals Stocks to Invest In.

Specialty chemicals, when compared to bulk chemicals, are made for specific use cases and offer technical solutions that effectively address operational issues, including customized performance and added value. Since these high-performance compounds are produced in somewhat smaller quantities than commodity chemicals and command premium prices, the industry is strategically significant for global production and innovation, especially in a trade environment riddled with disruptions from volatility and tariffs.

According to a report by Renub Research, the Specialty Chemicals Market is expected to grow from $648.22 billion in 2024 to $1,006.46 billion by 2033, at a CAGR of 5.01%.

However, Europe’s chemical makers are facing new challenges as U.S. import tariffs disrupt international trade, causing clients to delay purchases and lowering demand in a sector still fighting to recover after the region’s 2022 energy crisis. Chemicals, the EU’s fourth-largest export sector behind equipment, automobiles, and pharmaceuticals, has struggled in recent years with high manufacturing costs as gas and power prices skyrocketed following the Russian invasion of Ukraine.

Our Methodology

For our list of the best specialty chemicals stocks to invest in, we started with a list of stocks pulled from ETFs, stock screeners, and web rankings. We then utilized Insider Monkey’s Q2 2025 database to discover the best stocks held by hedge funds. The list is organized in ascending order of hedge fund sentiment around each stock.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

8. Gevo, Inc. (NASDAQ:GEVO)

Number of Hedge Fund Holders: 5

Gevo, Inc. (NASDAQ:GEVO) ranks among the best specialty chemicals stocks to invest in. Gevo, Inc. (NASDAQ:GEVO) and Frontier Infrastructure Holdings LLC announced on September 22 that they will collaborate to provide ethanol producers with North America’s first fully integrated carbon management platform, which would include digital carbon tracking, permanent sequestration, and transit by train.

The collaboration focuses on more than 200 ethanol plants in North America that generate over 70 million tons of high-purity CO₂ a year.

The agreement combines Gevo, Inc. (NASDAQ:GEVO)’s experience in bioenergy carbon capture and Verity digital tracking with Frontier’s Sweetwater Carbon Storage Hub in Wyoming. Meanwhile, Union Pacific Railroad will carry CO₂, establishing a pipeline-independent alternative.

Gevo, Inc. (NASDAQ:GEVO) is an American company that produces, manufactures, and distributes sustainable, low-carbon biofuel and chemical products.