Global Chemical Distribution Market Size, Share, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Chemical Distribution Market


The global Chemical Distribution market size is projected to reach US$ 336.58 billion by 2026, from US$ 241.35 billion in 2020, at a CAGR of 5.7% during 2021-2026. The industry is driven by the growing consumer demand for services and reachable supply chain network. Moreover, increasing demand from end-use industries including construction, automotive, infrastructure, electronics, and pharmaceuticals is expected to boost the market growth. The chemical industry produces and supplies essential raw materials to companies in the industrial and manufacturing sectors. These products can be distributed to the users or consumers by containers, barrels, pipelines, sacks, or small packages.

The market is witnessing a significant evolution as a result of vendors consolidating with strategic initiatives, such as M&A, partnership, and joint ventures, to improve supply in developing economies of Asia Pacific and Middle East & Africa. Commodity and specialty chemical distribution by third parties has been significantly growing than the sale of products directly to consumers by suppliers owing to outsourcing of value-added service. Apart from the basic tasks of selling and transporting, distributors also offer value-added services, such as logistics, blending, packaging, inventory management, waste removal, and imparting technical training.

Distributors afford a function to both the manufacturer and the end-user by reducing cost in the supply chain, complexity, and better utilization. Generally, they purchase larger volumes from the producers, which can vary in size from trains, ships, pipeline, and truck deliveries, which is transferred to the warehouses and bulk installations. However, these distributors are playing a dynamic role by expanding their customer base through the introduction of new additional services and by improving the overall efficiency of the supply chain network and logistics.

Producer supplies to distributor, especially in order to reduce complexity in the fragmented market. Commodity and specialty chemical manufacturers face the challenge of supplying a wide range of products in different qualities and sizes to a diverse consumer base. Increasing globalization has led to small- and large-sale companies partnering with international firms, aiming to achieve structural efficient cost, competitive advantage, market share.

Market Segmentation, Outlook & Viewpoint: Global Chemical Distribution Market

Product Market Segmentation & Outlook (Revenue, USD Million, 2007 - 2025)

Specialty

  
CASE
  
Agrochemicals
  
Electronic
  
Construction
  
Specialty Polymers & Resins
  
Others

Commodity

  
Plastics & Polymers
  
Synthetic Rubber
  
Explosives
  
Petrochemicals
  
Others

End-use Market Segmentation & Outlook (Revenue, USD Million, 2007 - 2025)

Specialty

  
Automotive & Transportation
  
Construction
  
Agriculture
  
Industrial Manufacturing
  
Consumer Goods
  
Textiles
  
Others

Commodity

  
Downstream Chemicals
  
Textiles
  
Automotive & Transportation
  
Electrical & Electronics
  
Industrial Manufacturing
  
Others

Key Players, Recent Developments & Regional Insights: Global Chemical Distribution Market

In terms of revenue, specialty chemicals segment was valued at USD 85 billion in 2017. This segment is anticipated to remain the fastest-growing application product segment owing to rising demand for adhesives and sealants in the construction and automotive industries across Asia Pacific region. Lucrative opportunities are also expected to be presented by innovative paints & coatings manufacturing capabilities in the region, leading to the demand for value chain enhancement and extended distribution networks in other emerging economies.

Authorities have formulated several measures, such as Pollutant Release & Transfer Registers (PRTR) system, which calculates the amount of contaminants and disposables being released into the environment while handling substances. This factor is anticipated to hinder growth and challenge industry participants over the forecast period. Commodity segment is anticipated to expand at a steady CAGR of 5.5% over the forecast period.

The segment is relatively mature due to high consumption of these products, especially on account of demand for petrochemicals in several developed economies inclduing Germany, Italy, Canada, and U.S. The revitalization of the automotive industry and renewed construction and housing sector in U.S., along with burgeoning population in emerging economies is expected to remain a key driving factor for the global market.

Regional Insights

In terms of revenue, North America accounted for 12% of the global industry in 2017. The region is anticipated to witness a significant growth in coming years owing to major demand-supply rebalancing and feedstock advantages revitalizing the industry. The market in U.S. has operational cost benefits from shale gas feedstock post economic recovery and thus improves the profitability of chemical companies in the industry, attracting regional firms from other economies.

Economic factors, such as recent collapse in Eurozone, resulted in economic instability and ambiguity creating opportunity for chemical distributors to explore overseas market in recovery phase to boost their growth. The demand in Central & Eastern Europe (CEE) is expected to witness a steady growth from 2018 to 2025. The regional market is anticipated to witness heavy investments in efficient freight channels, such as rail, ports, and inland waterways on account of EUs transport infrastructure development policies.

Expanding manufacturing and infrastructure segments are further expected to boost the industry growth.Asia Pacific is expected to register the fastest CAGR of 6.1% from 2018 to 2025 as a lot of international companies are shifting their focus to potential markets. Increasing share of third-party distributors is a key trend touted to shape industry dynamics in the region over the forecast period.

Chemical Distribution Market Share Insights

Distributors undergo certain processes that include sales, logistics, and transportation of products from the source to the destination. Increasing demand for specialty and bulk products for petroleum, oil & gas, and construction industries are augmenting the demand for distribution in Middle East countries, such as Saudi Arabia, Dubai, and Qatar. Customers normally order products in lesser quantities, usually in less-than-truckload quantities from suppliers.

Structural cost-effectiveness is the main reason for suppliers to use third-party distributors. Servicing small customers with a lower cost is through third-party distributors.

Key industry participants include Univar, Inc.; Helm AG; Brenntag AG; ICC Chemicals, Inc.; Nexeo Solution Holding LLC; Barentz B.V.; Omya AG; Azelis Holding S.A.; TER Group; Jebsen & Jessen Offshore Pte. Ltd.; Solvadis; BASF SE; Ashland, Inc.; REDA; Stockmeier Chemie; Biesterfeld AG; Safic-Alcan; Quimidroga; and IMCD Group.

Key Insights Covered: Global Chemical Distribution Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Chemical Distribution industry.
2. Global major manufacturers" operating situation (sales, revenue, growth rate and gross margin) of Chemical Distribution industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Chemical Distribution industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Chemical Distribution industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Chemical Distribution industry.

Research Methodology: Global Chemical Distribution Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other