USD 226.8 billion
Chemical Distribution Market Size, Share, Growth Analysis, By Product, By Offering, By Sales Channel, By End Use, By Region - Industry Forecast 2024-2031
Report ID:
SQMIG15A2257 |
Region:
Global |
Published Date: December, 2024
Pages:
157
|Tables:
73
|Figures:
75
Chemical Distribution Market Insights
Global Chemical Distribution Market size was valued at USD 226.8 billion in 2022 and is poised to grow from USD 242.8 billion in 2023 to USD 404.9 billion by 2031, growing at a CAGR of 6.6% during the forecast period (2024-2031).
The distribution of chemicals is a fairly broad industry that offers specialized solutions across a range of industries. Pharmaceuticals, construction, paints and coatings, agriculture, cosmetics, food and feed, and automobile are a few examples of sectors. Packaging, logistics, warehousing, mixing, blending, formulating, technical assistance, training, recycling, research & development, innovation, and ingredients are some of the operations that fall within the purview of the chemical distribution sector.
Essential raw materials are produced and supplied by the chemical industry to businesses in the manufacturing and industrial sectors. These feedstocks are either sold directly by producers or delivered to end users by outside distributors. Due to the outsourcing of value-added services like logistics, packaging, blending, waste removal, inventory management, and technical training, the distribution of commodity and specialty chemicals by third parties is predicted to grow significantly more than the sale of products directly to end users.
Strong consumer spending power and ongoing building activity are the main factors driving the U.S. market for chemical distribution. The housing market is once again seeing business investments, which is helping the chemical sector gain traction. Additionally, a study released in June 2019 by the American Chemistry Council, Inc. stated that 334 new industrial projects with a combined value of more than USD 204 billion had been announced. This indicates a continuous increase in investments in the U.S. economy. This tendency is expected to lead to a major increase of the manufacturing industry, which will have a beneficial effect on the market as a whole.
US Chemical Distribution Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Commodity Chemicals
Fastest Growth
Commodity Chemicals
Growth Rate
6.6% CAGR
Global Chemical Distribution Market 2021-2028 ($ Bn)
Country Share for Asia-Pacific Region- 2021 (%)
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Chemical Distribution Market Segmental Analysis
Global Chemical Distribution Market is segmented by Product, End Use and Region. Based on Product, the market is segmented into Commodity Chemicals, Specialty Chemicals. Based on Offering, the market is segmented into B2B, and B2C. Based on Sales Channel, the market is segmented into Online and Offline. Based on End Use, the market is segmented into Construction, Automotive, Electronics, Pharmaceutical, Agriculture, Packaging, Energy, Food and Beverage, Textile, Others. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Chemical Distribution Market Analysis by Product
Due to their widespread usage in a number of important end-use sectors, including the automotive, construction, electronics, and consumer goods industries, commodity compounds predominated the worldwide supply landscape. The category will grow at a CAGR of more than 6% from 2022 to 2028 as a result of the widespread consumption of these products across several industries. High-performance and tailored chemical solutions that satisfy client demands for certain application-specific needs are referred to as specialty products. Coatings, Adhesives, Sealants, Elastomers (CASE), polymers, building materials, lubricant additives, and other substances including surfactants, industrial gases, and textile auxiliaries are examples of specialty compounds. These are the ones that are most frequently utilized in end-use sectors including the automobile, electronics, building, pharmaceutical, textile, and other sectors.
Due to the affordable petrochemical feedstock, major corporations are moving their production operations to the Middle East and Africa (MEA). Other sectors, however, are increasing their output in Asia because of the region's low labor costs and rapid economic development. Additionally, the consumption of specialty chemicals and distribution activities have been influenced recently by trade liberalization, the removal of numerous economic barriers, the diffusion of advanced processing technology, the rapid growth of the industrialized Asian economies, and rising living standards in many developing nations. By 2028, specialty chemicals are projected to develop at the quickest rate, with a market value of USD 139.0 billion. Demand for application-specific compounds is expected to increase over the next years due to technical developments in manufacturing as well as increased demand from various sectors.
Chemical Distribution Market Analysis by End User
In 2021, the construction sector dominated the market and contributed for almost 18% of total revenue. Alarming pollution levels in China and the United States have stimulated innovation in building materials, resulting in the creation of smog-fighting solutions. One such business, Boral Roofing, has developed a novel smog-repellent tile that reduces nitrogen oxides (NOx) using a titanium dioxide photocatalyst to enhance air quality. Furthermore, it is projected that rising construction investment in Asia Pacific's growing nations would raise demand for specialty chemicals across a range of applications.
With a revenue share of over 36% in 2021, consumption of commodity chemicals has dominated the market in the downstream sector. The refining of crude oil, processing, and purification of unprocessed natural gas are all part of the downstream industry. It also involves the marketing and distribution of a range of items made from petroleum.
Global Chemical Distribution Market by Product, 2021 (%)
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Chemical Distribution Market Regional Insights
In 2021, Asia Pacific assumed the position as the largest regional market, contributing more than 60% of global sales. Demand is anticipated to be driven by rising manufacturing activity and a large increase in per capita disposable income throughout the projected period. Automobile, construction, electrical, and electronics sectors are expanding, especially in nations like China, India, Malaysia, Vietnam, and Thailand. The region's chemical production is also expected to increase significantly as large businesses turn their attention to lucrative markets. Commodity compounds are expected to continue to dominate the market in the Asia Pacific, with specialty chemicals posting a higher CAGR of more than 7% from 2022 to 2028.
The shift in the trend toward third-party distributors as a development platform for expanding into underserved regional markets in recent years has been driven by the expansion of production capacity by large chemical firms in North America. However, due to fluctuating crude oil prices, the weak GDP of Latin America, and recession-hit nations, the petrochemical sector in North America has slowed down during the past several years. The United States gulf coast is home to a number of proposed projects, notably South Louisiana Methanol and Natgasoline, which are scheduled to produce 1.75 million MT and 1.8 million MT per year, respectively, of petrochemicals.
However, due to ongoing improvements in the labor market, easy access to financing, and a supply of ample feedstock, it is anticipated that the market will see more capital investment from foreign chemical firms.
Global Chemical Distribution Market By Geography, 2021 - 2028
- Largest
- Fastest
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Chemical Distribution Market Dynamics
Chemical Distribution Market Driver
- Global demand for chemicals is predicted to be driven by expansion in various end-use sectors, including automotive, pharmaceutical, and electronics, along with a significant increase in the industrial manufacturing sector. Additionally, it is anticipated that this element will favor the third-party distribution route. To acquire a competitive edge in a highly fragmented market, international distributors are implementing distinct channel tactics including product knowledge, local experience, and a robust logistical network.
- Essential raw materials are produced and supplied by the chemical industry to businesses in the manufacturing and industrial sectors. These feedstocks are either sold directly by producers or delivered to end users by outside distributors. Due to the outsourcing of value-added services like logistics, packaging, blending, waste removal, inventory management, and technical training, the distribution of commodity and specialty chemicals by third parties is predicted to grow significantly more than the sale of products directly to end users.
Chemical Distribution Market Restraint
- Third-party distributors are projected to encounter fierce competition from direct suppliers in addition to intense industry competition. Multinational corporations including Lanxess AG, Arkema, Honeywell International, and BASF SE are among them. These businesses have a large geographic footprint, a robust network of end users, and significant investment capacity. Direct means of distribution provide volume discounts while lowering third-party profit margins.
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Chemical Distribution Market Competitive Landscape
The global chemical distribution market is relatively fragmented, with a high level of competition. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions.
Top Players in the Global Chemical Distribution Market
- Brenntag (Germany)
- Univar Solutions (United States)
- Tricon Energy (United States)
- Helm (Germany)
- Nagase & Co. (Japan)
- IMCD (Netherlands)
- Ergon (United States)
- Klueber Lubrication (Germany)
- Clariant (Switzerland)
- Evonik Industries (Germany)
- BASF (Germany)
- Dow (United States)
- LyondellBasell (Netherlands)
- SABIC (Saudi Arabia)
- Chevron Phillips Chemical (United States)
- INEOS (Switzerland)
- Formosa Plastics (Taiwan)
- Sinopec (China)
- TotalEnergies (France)
- Braskem (Brazil)
Chemical Distribution Market Recent Developments
- In July 2022, NexusBioAg, a division of Univar Solutions, and MustGrow Biologics Corp. ("MustGrow"), an agricultural biotechnology company focused on providing scientifically-based biological solutions for high-value crops, have reached an exclusive marketing and distribution agreement in the Canadian canola and pulse market for TerraMGTM, a mustard-derived soil biological product. With the advent of this plant-based technology, NexusBioAg's wide range of inoculants, micronutrients, nitrogen stabilizers, and folders for the Canadian agricultural industry is further diversified and expanded.
- In July 2022, the distribution arrangement between Calumet Specialty Products and Univar B.V., a division of Univar Solutions Inc., a multinational distributor of chemicals and ingredients as well as a producer of value-added services, has been expanded to include all of Europe. In Europe, Univar Solutions clients may now access additional Calumet products with a variety of viscosity and solvency properties in the lubricants, greases, metalworking fluids, and adhesives industries as a consequence of the arrangement.
Chemical Distribution Key Market Trends
- Strong consumer spending power and the growing trend toward environmentally friendly infrastructure have driven the adoption of the chemical distribution market over the course of the forecast period. For instance, according to a study released in June 2019 by the American Chemistry Council, Inc., 334 new creation projects worth more than USD 204 billion were started, demonstrating a sustained increase in investment in the U.S. economy. This trend is expected to cause the manufacturing sector to increase significantly, which would then have a beneficial impact on the market as a whole. Over the 2022-2028 estimate period, the market is hampered by escalating environmental concerns. Additionally, robust growth in the industrial manufacturing sector along with expanding automotive, pharmaceutical, and electronics industries are predicted to promote further market expansion throughout the anticipated period.
Chemical Distribution Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global chemical distribution market analysis, in terms of product, the commodities chemicals segment held the largest share in the global chemical distribution market. Due to their widespread usage in a number of important end-use sectors, including the automotive, construction, electronics, and consumer goods industries, commodity compounds predominated the worldwide supply landscape. On the basis of end-user, the construction segment held the largest share in the global chemical distribution market. It is projected that rising construction investment in Asia Pacific's growing nations would raise demand for specialty chemicals across a range of applications. And by region, the Asia Pacific region held the largest share in the global chemical distribution market driven by rising manufacturing activity and a large increase in per capita disposable income throughout the projected period.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 226.8 billion |
| Market size value in 2031 | USD 404.9 billion |
| Growth Rate | 6.6% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Chemical Distribution Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Chemical Distribution Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Chemical Distribution Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Chemical Distribution Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Chemical Distribution Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Chemical Distribution Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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