Chemical Distribution Market Size, Share, Growth Analysis, By Product, By Offering, By Sales Channel, By End Use, By Region - Industry Forecast 2024-2031

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.