February 2024
09 Sep 2024
The global chemical distribution market size was exhibited at USD 264.50 billion in 2022 and is projected to be worth around USD 412.40 billion by 2030, growing at a CAGR of 5.6% over the forecast period 2022 to 2030.
Transport and storage of packaged and bulk chemicals are referred to as chemical distribution. These are frequently transported through pipes, crates, barrels, and sacks. A wide range of chemicals is produced by the chemical industry as raw materials for the oil and petroleum, cosmetics, food, textile, paint, building construction, and agriculture industries. Numerous speciality and common chemicals can be found in the product portfolios of distributors worldwide. The consumption of speciality goods, including Coatings, Adhesives and Sealants, Elastomers (CASE), polymers and resins, agrochemicals, and construction chemicals, which are currently consumed in small amounts, is expected to increase significantly in the upcoming years.
Market Growth
While chemical distributors have taken creative steps to address the supply chain system constraints, the market for chemical distribution is expanding at a steady rate. The global chemical distribution market is growing at an exponential rate due to the increased consumption of chemicals across numerous end-use industries, including automotive, agricultural, construction, pharmaceuticals, and textiles. Due to the challenges faced by chemical makers, the demand for chemical distributors was created. By simplifying the supply chain, chemical distributors provide producers with convenience and aid in market expansion. Chemical distributors offer value-added services, including inventory management, which are increasing demand for their services among chemical manufacturers.
Chemical Distribution Market Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 278.49 Billion |
| Market Size by 2030 | USD 412.4 Billion |
| Growth Rate From 2022 To 2030 | CAGR of 5.6% |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2022 To 2030 |
| Segments Covered | By Product Type, and By End User |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Regional Analysis
Based on revenue, Asia Pacific dominated the global chemical distribution market in 2020, and it is anticipated that it will continue to do so throughout the forecast period. The past expansion and development of the chemical distribution market have been significantly influenced by the swift industrial growth in the major economies of the Asia-Pacific region, including China, Japan, India, South Korea, and Australia. In 2022, the Asia Pacific region accounted for about 65% of the market share for chemical distribution worldwide. In the upcoming years, North America is anticipated to have tremendous expansion.
The major players, which account for about 40% of the market share in North America, IMCD, Univar, and Brenntag, have a significant impact on the chemical distribution industry there. The region's rapidly expanding construction, pharmaceutical, and automotive sectors are anticipated to fuel the expansion of North America's chemical distribution industry.
Market Dynamics:
Market Drivers
In terms of the manufacturer's go-to-market strategy, chemical distributors are regarded as being crucial. The distributors of chemicals efficiently lower the cost of distribution and assist chemical producers in providing their goods to emerging markets at a reasonable price. The availability of a greater range of chemicals and their increased use in a vast array of diverse industries are promoting the expansion of the worldwide chemical distribution industry. The distribution services for chemicals provide a vital link between producers and smaller clients located in less developed areas. The growth of the global chemical business is facilitated by the distributors of chemicals, who assist manufacturers in entering new markets.
The shift in consumer demand that has resulted in an increased focus on high-quality products is one of the key development drivers for the chemical distribution industry, particularly in the Asia-Pacific region. In order to achieve structurally efficient cost, market share, and competitive advantage and better serve their global customers, it is also anticipated that growing globalization will encourage small and large manufacturing companies to enter into strategic partnerships with international players.
Market Restraints
Due to the COVID-19 pandemic's breakout, the world economy has been in a slump since the beginning of 2020. The distribution of chemicals is expected to be considerably impacted by the COVID-19 epidemic. To stop the COVID-19 pandemic from spreading, governments in numerous nations have implemented draconian lockdowns. There are a lot of shuttered or severely underutilized manufacturing enterprises. The pandemic's reduction in industrial activity has had a negative impact on the global market for chemical distribution.
As a crucial strategy to expand their consumer base and fortify their supply chain, chemical producers are turning to acquisitions. A significant component that presents a barrier within the supply chain for chemicals is the dependence of producers on distributors for the safe transportation of loose and non-bulk chemical supplies and managing varied logistics requirements, including custom amalgamation and repackaging.
Market Opportunities
Nowadays, emerging markets like those in the Asia Pacific, the Middle East, Latin America, and Africa are crucial since the chemical industry can grow tremendously in these areas. The GDP of both developed and developing markets is significantly influenced by the chemical sector. As an illustration, the chemical sector made up about 3.5% of the GDP in Europe, 2.9% in North America, and 7.3% in Asia-Pacific. Consequently, the worldwide chemical distribution market is expanding at an exponential rate thanks to the chemical industry.
Segments Insights:
Product Insights
With over 62% of the market share in 2022 in terms of revenue, the commodity chemicals sector dominated the global chemical distribution market based on product, and it is anticipated that this segment will continue to hold the lead throughout the forecast period. The widespread use of commodity chemicals across a variety of global industries, including food and beverage, medicines, agriculture, electronics, and construction, is the only explanation for this. Commodity chemicals are used by almost all industries to manufacture a wide range of products. On the other hand, it is anticipated that the specialty chemicals segment would experience the quickest growth throughout the forecast period.
End-Use Insights
In terms of revenue, the construction sector led the global chemical distribution market by end-use in 2022, accounting for about 20% of the market share, and is anticipated to continue to lead during the forecast period. This can be attributed to the developed markets' rapidly expanding building and construction sectors. During the projected period, this segment's expansison is anticipated to be driven by the growing industrialization and urbanization in developing regions. Contrarily, the pharmaceutical sector is anticipated to experience the fastest growth during the forecast period.
Recent Developments:
Market Key Players:
Market Segmentation:
By Product
By End Use
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