The global chemical distribution market size reached at USD 264.5 billion in 2022 and is expected to hit USD 412.4 billion by 2030, poised to grow at a noteworthy compound annual growth rate (CAGR) of 5.6% from 2021 to 2030.
Access our Premium Real Time Data Intelligence Tool, Visit: Precedence Statistics
The chemical distribution market is growing at a sustainable rate owing to the innovative measures adopted by the chemical distributors to tackle the bottlenecks of the supply chain systems. The rising consumption of chemicals across various end use industries such as automotive, agriculture, construction, pharmaceuticals, and textiles is exponentially boosting the growth of the global chemical distribution market. The need for the chemical distributors emerged owing to the complexities faced by the chemical manufacturers. The chemical distributors offers convenience to the producers and helps to expand in the new markets, by eliminating supply chain complexity. The value-added services offered by the chemical distributors like inventory management is fostering the demand for the chemical distribution services among the chemical manufacturers. The chemical distributors are considered to be an essential part of the manufacturer’s go-to-market strategy. The chemical distributors effectively reduces the cost of distribution and helps the chemical manufacturers to supply their products to new and developing markets at a convenient cost. The availability of wider variety of chemicals and its increased usage in huge number of different industries is boosting the growth of the global chemical distribution market.
The chemical distribution services serve as an important link for the producers to reach to the smaller customers that are situated in less developed regions. The chemical distributors helps the chemical manufacturers to reach to new markets that helps in the growth of the global chemical industry. Today, the developing markets like Asia Pacific, Middle East, Latin America, and Africa are critically important as these regions offers immense growth opportunities to the chemical industry. Chemical industry is also a prominent contributor to the GDP of developed and developing markets. For instance, the chemical industry contributed around 3.5% of the Europe’s GDP, 2.9% in North America, and 7.3% in Asia Pacific. Hence, the exponential growth of the chemical industry is boosting the growth of the global chemical distribution market.
Report Scope of the Chemical Distribution Market
|Market Size in 2022||USD 264.5 Billion|
|Market Size by 2030||USD 412.4 Billion|
|Growth Rate from 2021 to 2030||CAGR of 5.6%|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2021 to 2030|
|Segments Covered||Product Type, End User Type, Region Type|
|Companies Mentioned||Helm AG, Univar Inc., Omya AG, TER Group, Barentz B.V., Azelis Holding S.A., Solvadis, Ashland, Inc., Brenntag AG|
Based on product, the commodity chemicals segment dominated the global chemical distribution market, accounting for over 60% of the market share in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. This is simply attributed to the extensive consumption of commodity chemicals across various industries such as food & beverages, pharmaceuticals, agriculture, electronics, and construction, all across the globe. Almost each and every industry uses commodity chemicals for manufacturing wide variety of goods.
On the other hand, the specialty chemicals segment is estimated to be the fastest-growing segment during the forecast period. This is mainly due to the low number of specialty chemical producers. The use of specialty chemicals is highly under the scrutiny of the government and it is used for certain special applications across different industries. The rising usage of specialty chemical in polymer and pharmaceutical industries is expected to drive the growth of this segment during the forecast period.
End Use Insights
Based on end use, the construction segment dominated the global chemical distribution market, accounting for around18% of the market share in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. This is attributable to the rapid growth of the building and construction industry across the developed markets. The rising industrialization and urbanization in developing regions is expected to drive the growth of this segment during the forecast period.
On the other hand, the pharmaceutical segment is expected to be the fastest-growing segment during the forecast period. The rapidly growing biopharmaceuticals especially in the developed markets like North America and Europe is expected to be a significant factor that will augment the growth of the pharmaceutical segment in the foreseeable future.
Based on region, Asia Pacific dominated the global chemical distribution market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. The rapid growth of the industries in the major Asia Pacific economies such as China, Japan, India, South Korea, and Australia has significantly played a crucial role in the growth and development of the chemical distribution market in the past. The Asia Pacific accounted for around 60% of the global chemical distribution market share in 2020. Moreover, the chemical industry contributes a significant share of about 7.3% to the Asia Pacific’s gross domestic product. Further, rapid industrialization in the region is offering lucrative opportunities to the market players. The globalization played a significant role in the growth of the chemical distribution market in the past.
The North America is expected to show a significant growth in the upcoming years. The North America chemical distribution market is highly influenced by the top players such as IMCD, Univar, and Brenntag, which holds approximately 40% of the market share in North America. The rapidly growing automotive, construction, and pharmaceutical industries in the region is expected to drive the growth of the chemical distribution market in North America. Moreover, the rising expenditure by the chemical companies for expansion of production units in North America is promising a handsome growth of the chemical distribution market in the forthcoming years.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved services. Moreover, they are also focusing on maintaining competitive pricing.
The various developmental strategies like providing value-added services, acquisitions, partnerships, and agreements fosters market growth and offers lucrative growth opportunities to the market players.
Some of the prominent players in the global chemical distribution market include:
Segments Covered in the Report
By End Use
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client