In terms of revenue, the Global Chemical Distribution Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 6.8% from 2023 to 2030.
Rising chemical consumption in several end-use sectors, including construction, pharmaceuticals, polymers & resins, and plastics, is predicted to be a major driver for the distribution industry. Chemical manufacturers provide essential raw materials to companies in the manufacturing and industrial industries. Producers sell these raw materials directly to consumers, or third parties disseminate them. It is anticipated that, in comparison to the way that products are currently sold to end users, the distribution of specialty and commodity chemicals by third parties will increase significantly as a result of the outsourcing of value-added services like packaging, logistics, waste removal, blending, inventory management, and technical training.
Chemical Distribution is the movement and storage of chemicals in mass and packaged form. They are typically distributed using pipes, barrels, containers, and sacks. The chemical industry produces various chemicals as raw materials for oil and petroleum, cosmetics, textile, food, paint, agricultural sectors, and building construction. Distributors all over the globe provide a variety of standard and specialized chemicals.
Key Highlights from the Report
- Based on Product, the Commodity Chemicals segment dominates the Chemical Distribution market with the major market share and will continue its dominance in the forecast period. The segmental growth will be expanded by increased use of these chemicals in various end-use sectors, including transportation, automotive, and personal care, as well as increasing demand for high-performance and customized commodity chemicals.
- Based on the End-Use Industries, the Commodity Chemicals segment accounted for the highest CAGR in the forecast period. This results from greater utilization in the automotive, construction, agricultural, and consumer goods sectors.
- In terms of region, Asia Pacific holds the significant market share within the Chemical Distribution market. This results from increasing demand from the mining and skin care industries.
The development of the chemical industry, increased demand from other end-use industries, increased demand for value-added services, digitalization, and other factors have all contributed to the expansion of the global Chemical Distribution market in recent years. Chemical manufacturing companies are encouraged to request these services to reduce supply chain complexity and take advantage of new opportunities because Chemical Distribution services act as a vital link for chemical producers to connect with smaller customers located in less developed regions. As a result, expanding the chemical industry will increase demand for Chemical Distribution services and fuel the development of the global Chemical Distribution market.
Due to several recent trends, including incorporating artificial intelligence (AI) into Chemical Distribution, outsourcing, rising investment in research and development, consolidation, etc., the market is anticipated to expand quickly during the projection period. Chemical companies are increasingly using chemical distributors to buy chemicals because they frequently offer better delivery timings and reliability for chemical product ranges despite the high complexity associated with reaching the end users. As a result, the demand for Chemical Distribution services will continue to increase, contributing to expanding the global Chemical Distribution market. In addition, chemical manufacturers are increasingly dependent on chemical distributors to safely deliver loose and non-bulk chemical material and handle custom amalgamation and repackaging.
On the other hand, many difficulties, including escalating security and environmental worries, complicated chemical transportation, etc., would adversely affect market expansion.
Geographically, Asia Pacific market is anticipated to witness significant market growth with the highest growth rate during the forecast period. Throughout the projected period, it is expected that increasing manufacturing activity and a substantial rise in per capita disposable income will be the main drivers of demand. Particularly in countries like India, China, Malaysia, Thailand, and Vietnam, the automotive, construction, electrical, and electronics industries are growing. In addition, the production of chemicals in the area is also anticipated to rise considerably as big businesses focus on lucrative markets.
The Global Chemical Distribution Market is Segmented as follows
- Specialty Chemicals (CASE, Agrochemicals, Electronic, Construction, Specialty Polymers & Resins, Personal Care & Pharmaceuticals, and Other Specialty Chemicals)
- Commodity Chemicals (Plastic & Polymers, Synthetic Rubber, Explosives, Petrochemicals, and Other Commodity Chemicals)
- Specialty Chemicals (Automotive & Transportation, Construction, Agriculture, Industrial Manufacturing, Consumer Goods, Textiles, Pharmaceuticals, & Other Specialty Chemical End-uses)
- Commodity Chemicals (Downstream Chemicals, Textile, Electrical & Electronics, Automotive & Transportation, Industrial Manufacturing, & Other Commodity Chemicals End-uses)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of the Key Players of the Global Chemical Distribution Market is
Univar Solutions Inc. (U.S.), Helm AG (Germany), Brenntag AG (Germany), Ter Group (Germany), Barentz (Mexico), Azelis (Luxembourg), Safic Alan (France), ICC Industries Inc. (U.S.), Jebsen & Jessen Pte. Ltd. (Singapore), Quimidroga (Spain), Solvadis Deutschland GmbH (Germany), Ashland (U.S.), Caldic B.V. (Netherlands), Wilbur Ellis Holdings Inc. (U.S.), Omya AG (Switzerland), IMCD (Netherlands), Biesterfeld AG (Germany), Stockmeier Group (Germany), REDA Chemicals (UAE), Manuchar (Belgium)
The Global Chemical Distribution Market Scope can be Tabulated as below
|Market Size Provided for Years||2017 - 2030|
|Historic Years||2017 - 2021|
|Forecast Years||2023 - 2030|
|Regions & Counties Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|