Chemical Distribution Market Overview
Chemical Distribution Market size was worth USD 244.9 Billion in 2022, accounting for a CAGR of 5.37% during the forecast period (2022-2030), and the market is expected to be worth USD 392.14 Billion by 2030.
The chemical distribution market is anticipated to witness significant growth in the coming years due to rising demand for chemical Products from multiple end-use industries such as commodity chemicals, pharmaceuticals, polymers and resins, and plastics. This industry indulges in functions associated with transportation and storage of chemicals. The chemical distribution industry plays a crucial role in current distribution infrastructure, especially in connecting underdeveloped regions where businesses’ traditional supply chain is ineffective. Additionally, due to the involvement of chemical distributors, several new opportunities in remote regions have been unlocked. Superior supply chain is estimated to produce several new possibilities for producing as well as consuming industries.
Asia Pacific region is the leading contributor in this industry owing to the presence of various manufacturing units with high levels of chemical consumption. Especially in countries like China, India & Australia which make this region an ideal location for chemical distributors to operate in. Overall this market is well-positioned to witness rapid expansion and growth due to a continuous rise in chemical demand.
Chemical distribution deals with aspects like transportation and storage of chemicals. This service functions by removing numerous bottlenecks and complex supply chain restraints which in turn helps chemical manufacturers to ensure smooth functioning and robust supply chain. With surging consumption of chemicals in industries like agriculture, commodity chemicals, pharmaceuticals, and textiles it is essential for businesses to maintain robust supply chain in order to remain competitive in market. Furthermore, chemical distributers also provide value added services like inventory management which help businesses with cost cutting. Additionally distributers could also help in expansion of reach into less developed regions.
Augmented demand for chemicals from various industries is the main driver for distribution market. Furthermore, continuous expansion of chemical sector is also expected to have positive impact on chemical distribution services. At the same time upsurge in globalization is resulting into expansion of territories thus supply chains are getting more complex. Resulting into integration of distributers with chemical business in order to sustain robust supply chain. Additionally chemical distributers also provide value added services like inventory management which helps businesses with cost cutting. Which is very crucial for businesses to sustain into highly competitive and price sensitive chemical market. Aforementioned factors are fostering the demand for chemical distribution services in chemical sector.
Environmental and security concerns associated with chemical industry pose as a major threat to the chemical distribution industry. Chemical industry is generally perceived to have negative impacts on the environment like contributing to climate change, contaminating groundwater and soil, degrading natural resources, creating waste management problems, causing noise and air pollution. Therefore, rising environmental safety concerns among consumers is estimated to have negative impact on the demand for several chemical which could result into stagnant rate of growth for chemical distribution Market.
The chemical distribution market has been impacted due to the COVID-19 pandemic in multiple parts of the world. Main factors were restrictions imposed by governments in order to curb spread of corona virus. These restrictions resulted into disruption of global supply chain as the demand and Production activities for goods were partially distorted. Resulting into the demand for chemicals from end use industries to plummet. With no demand to cater operations related to the supply and distribution of these chemicals also took a hit (chemical distribution). The overall impact of COVID-19 on this industry is estimated to be considerable in short term but with situation stabilizing in 2022 and markets experiencing a V-shaped recovery. The chemical consumption is at pre-COVID level resulting into Re-initialization of chemical distribution activities hence supporting the market.
Chemical Distribution Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||392.14 Billion|
|By Product||Specialty Chemicals, Commodity Chemicals, Others|
|End-Use||Industrial Manufacturing, Textile, Automotive & Transportation, Construction, Electrical & Electronics.|
|By Geography||North America, Europe, Asia Pacific, Latin America, Middle East and Africa.|
|Key Players||Barentz International B.V., Ashland, Brenntag AG, Jebsen & Jessen Pte Ltd., HELM AG, Omya AG, Safic-Alcan, BASF SE, Azelis S.A., Biesterfeld AG, ICC Industries, Inc., Quimidroga, REDA Chemicals, STOCKMEIER Group, solvadis deutschland gmbh, TER HELL & CO. GMBH, Univar Inc.|
Chemical distribution market’s Product segment is divided into specialty chemicals & commodity chemicals. Commodity chemical segment held lion’s share in this segment as they are used in bulk quantities into numerous industries. For instance sodium hydroxide which is an example of commodity chemical is widely used in pulp & paper, soap & detergent and food & beverage industry. Another example is Formaldehyde it also has crucial application into the medical industry to be specific it is used in manufacturing of sanitizers and disinfectants these chemicals are used in large quantities across several industries. On the other hand specialty chemical segment is the fastest growing segment in chemical distribution industry. These chemicals are generally high quality and are used in minute quantities and have specific applications.
By End Use
This end use segment could be categorized into industrial manufacturing, textile, automotive & transportation, Construction, electrical & electronics and others. In this segment construction chemical distribution has the largest market share. The rational being rapid urbanization in developing countries like China and India. Massive real estate boom has resulted into elevated demand for construction related commodities like Concrete additives, Polymer adhesives, Bonding agents, Epoxy mortars hence making this segment the largest contributor. Furthermore, the industrial manufacturing segment is the fastest growing segment owing to the rapid growth in demand from Asia pacific region.
The regional segment includes Asia Pacific, Europe, North America, the Middle East, and Africa & Latin America. Asia Pacific region has dominating market share among all the regions due to the presence of countries which are industrial manufacturing centers of the world like China, Bangladesh, Indonesia and India. With massive requirement of chemicals as an input. Furthermore, this region is underdeveloped in terms of infrastructure as compared to North America and European region this makes Asia pacific region one of the most suitable location for chemical distribution industry.
North America and European region will also witness growth and the reason estimated is expansion manufacturing operations by key players into this region.
Middle East, Africa & Latin America regions will see moderate growth but at the same time few lucrative opportunities will arise in specific countries like Brazil and Saudi Arabia due to large investments into development of manufacturing infrastructure.
Middle East, Latin America and African regions will witness a significant growth due to factors like presence of cheap labor and natural resources at bulk. Which makes this region ideal for setting up manufacturing units and with significant investments pouring in for the same reason. It is very much anticipated that the demand for chemical distribution will amplify in order to facilitate the operations associated with manufacturing at large scale.
Chemical Distribution Market Competitive Landscape:
The chemical distribution market has been analyzed in terms of its competitive landscape, with major players profiled in the report. These players are driving the market through their investments in R&D and Product innovation, as well as the launch of new business strategies and Products. The report includes company overviews, financial information, revenues, market potential, investments in R&D, global presence, Production sites and capacities, strengths and weaknesses, Product launches, Product diversity, and application
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