Chemical Distribution Market Research Report - Global Forecast till 2030

Chemical Distribution Market Research Report Information By Product (Specialty Chemicals, Commodity Chemicals) End Use (Automotive, Electronics, Construction, Oil & Gas, Petroleum, Pharmaceuticals, Textiles, Others) Forecast 2030

ID: MRFR/CnM/7961-HCR | January 2023 | Region: Global | 100 Pages         

Chemical Distribution Market

Chemical Distribution Market is expected to reach an approximate evaluation of USD 368 billion by the end of the forecast period. The global market is positioned to register a CAGR of 4.5%.

Segmentation
By Product Specialty Chemicals Commodity Chemicals
By End Use Automotive Electronics Construction Oil & Gas Petroleum Pharmaceuticals Others
Key Players
Companies Profiled   Helm AG    Univar Inc.    Brenntag AG    Nexeo Solution Holding LLC   ICC Chemicals    Inc.   Barentz B.V.   Azelis Holding S.A.   Omya AG   Jebsen & Jessen Offshore Pte. Ltd.   TER Group    Solvadis.
Drivers
Market Driving Forces   Demand for specialty and bulk products
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Chemical Distribution Market Overview


Market valuation of chemical distribution market was recorded at USD 248 billion at the end of 2021 and is expected to reach an approximate evaluation of USD 368 billion by the end of the forecast period. The global market is positioned to register a CAGR of 4.5%. 


The activities that includes in chemical distribution industry are packaging, logistics, warehousing, mixing, blending, formulating, technical support, training, recycling, research & development, innovation, ingredients. Major factors that are expected to boost the growth of the chemical distribution market in the forecast period are increase in demand of the services such as mixing, blending, packaging, inventory management and supply chain network. Also, the growing utilization of bulk and speciality chemicals by oil, gas and petroleum industries is further anticipated to propel the growth of the chemical distribution market.


COVID-19 Impact on the Chemical Distribution Market:


The outbreak of Covid-19 has had severe impact on all ecosystems of businesses worldwide including manufacturing, distribution, to end-use market movements. Consumers as well as product formulators were taken a back by the pandemic toll on general business protocols and emergence of businesses across the entire value chain. Manufacturers of key petrochemical products went under severe constraints due to lack of availability of feedstock, thereby resulting in lower production of plastic products.


Since the beginning of 2020, the global economy has been experiencing downturn with the outbreak of the COVID-19 pandemic. The outbreak of COVID-19 is anticipated to significantly impact chemical distribution. Governments of several countries have imposed strict lockdowns to curb the spread of the COVID-19 pandemic. Many manufacturing companies are either shut down or running low on production capacity. Decrease in industrial activities due to the pandemic has been adversely impacting the global chemical distribution market.


Market Dynamics



  • Drivers


Demand for specialty and bulk products: Demand for specialty and bulk products is likely to rise in various industries, such as oil & gas, petroleum, and construction, in the Middle East, especially in Qatar, Dubai, and Saudi Arabia. This is expected to grow the need for chemical distribution in the near future. Rise in demand for reachable supply chain network among consumers has boosted the global chemical distribution market. Increase in demand for chemicals in various end-use industries, such as automotive, electronics, construction, and pharmaceuticals, is also supporting the growth in the market.



  • Restraints


Negative impacts of chemicals on health and environment: Exposure to harmful chemicals, both indoor and outdoor, may cause many health effects, including respiratory and cardiovascular diseases, allergies and cancer. Similarly, wildlife and ecosystems are affected by the use of for example pesticides and the accumulation of persistent pollutants.



  • Opportunity


Rising investments by the chemical manufacturers to expand production units: The rising investments by the chemical manufacturers to expand production units is expected to increase the demand for the chemical distribution services. Increased value-added services provided by the distributors will open growth avenues in the upcoming future.



  • Challenges


Stringent government regulations: Stringent government regulations on the usage of various specialty chemicals in the food and beverages and other industries is a major challenge faced by the chemical industry participants.


Segmentation


By Product




  • Specialty Chemicals

    • CASE

    • Agrochemicals

    • Electronic

    • Construction

    • Specialty Polymers & Resins

    • Others




  • Commodity Chemicals



 By End Use



  • Automotive

  • Electronics

  • Construction

  • Oil & Gas

  • Petroleum

  • Pharmaceuticals

  • Textiles

  • Others


By Region



  • North America

  • Europe

  • Asia-Pacific

  • Latin America

  • Middle East and Africa


Regional Analysis


Asia Pacific emerged as the leading regional in chemical distribution market . It dominates the chemical distribution market due to the increase in the production of activities. Increasing manufacturing activities is expected to drive demand over the forecast period. Countries such as China, India, and South Korea are witnessing the expansion of industries such as automotive, construction, and electrical and electronics.


 North America is projected to observe significant amount of growth in the chemical distribution market due to the increasing manufacturing capacities by major chemical companies. North American chemical industry is one of the most consolidated markets with the top three distributors, Brenntag, Univar, and IMCD. Expanding production capacities by major chemical companies in North America in recent years has driven the shift in trend towards third-party distributors as a growth platform for expanding into untapped regional markets. However, the petrochemical industry in North America witnessed a slowdown over the past few years on account of volatile crude oil prices.


Europe is likely to show some significant growth in the forecasted period. These opportunities are because European countries have an expanding packaging industry. There's a growing production of PET bottles and packaged beverages as well as food products. All this indicates how concerned the European population is towards its environment which fuels the demand for  chemical distribution market in this region.


Latin America is also expected to show some considerable growth. These usually are predicted to grow due to the packaging industry growth enlarging demands in flexible packaging products such as plastic dbags pouches sashes which fuse the growth of chemical distribution market.


The Middle East and Africa contribute moderately to chemical distribution market. Its growing market is usually due to the end-use industries such as packaging automobiles and petrochemicals.


Competitive Landscape


The competitive landscape offers an analysis of the key developments by the companies operating in the market worldwide. Key companies operating in the global ecosystem are highly innovative in terms of product innovation, product positioning, research & development activities, expansion strategies and more.Acquisition of small distributors by leading global distributor companies such as MilliporeSigma, Brenntag AG, and Univar Solutions, has influenced to achieve economies of scale and focus on specialized sales channel strategy, rationalizing their distributor base, and strengthening of supply chain networks.


Mergers, acquisitions, and capacity expansion are major strategies followed by the companies to diversify their product portfolio and increase market share on a global scale. Major companies are consolidating growth by expanding existing product ranges to include specialty products as well. Some of the prominent players in the chemical distribution market include Helm AG, Univar Inc., Brenntag AG, Nexeo Solution Holding LLC,ICC Chemicals, Inc.,Barentz B.V.,Azelis Holding S.A.,Omya AG,Jebsen & Jessen Offshore Pte. Ltd.,TER Group, Solvadis.


Some of the key developments include:



  • In January 2022 Major chemicals organisation HELM and Lithium chemicals producer Leverton announced the formation of a joint venture called LevertonHELM to scale up manufacturing capacity of battery grade Lithium chemicals in Europe.

  • In May 2022 HELM AG and Unium Bioscience Ltd announced to enter into a strategic partnership. The new relationship between Unium and HELM will allow HELM to access alternative crop production products in selected regions underlining both companies’ commitments towards sustainable agriculture by supplying innovative solutions answering grower needs to the market.

  • In June 2021 REDA has launched a new series of water treatment solutions for a major number of needs. ZenTreat is REDA’s trade name for a wide spectrum of water treatments, including drinking water, wastewater, power generation, among many others.


Report Overview:


The chemical distribution market is segmented by product, end use, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global chemical distribution market emerging and fast-growing segments, regions, and countries.


Objectives of the Study



  • To get a comprehensive overview of the global chemical distribution market

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments

  • To gain insights about the key country/region in which the market is growing


Intended Audience



  • Government, associations, and industrial associations

  • Investors and trade experts

  • Consulting in chemical experts

  • Chemical industries



Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 368 Billion
  CAGR    4.5% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022 -2030
  Historical Data   2020
  Forecast Units    Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Product, End Use, and Region
  Geographies Covered   North America ,Europe, Asia-Pacific, Latin America, Middle East ,Africa
  Key Vendors    Helm AG, Univar Inc., Brenntag AG, Nexeo Solution Holding LLC,ICC Chemicals, Inc.,Barentz B.V.,Azelis Holding S.A.,Omya AG,Jebsen & Jessen Offshore Pte. Ltd.,TER Group, Solvadis.
  Key Market Opportunities   Rising investments by the chemical manufacturers to expand production units
  Key Market Drivers   Demand for specialty and bulk products


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Frequently Asked Questions (FAQ) :

The global chemical distribution market would register a growth of 4.5%.

Yes, Asia-Pacific country would set the trend in the chemical distribution market

Negative impacts of chemicals on health and environment, is the key restraining factor for the global chemical distribution market

Some of the prominent players in the chemical distribution market include Helm AG, Univar Inc., Brenntag AG, Nexeo Solution Holding LLC,ICC Chemicals, Inc.,Barentz B.V.,Azelis Holding S.A.,Omya AG,Jebsen & Jessen Offshore Pte. Ltd.,TER Group, Solvadis.