Chemical Distribution Market Highlights

The chemical distribution market was estimated at USD 250.0 billion in 2023 and is expected to grow at a CAGR of 6.46% during 2023-2033 to reach USD 438.6 billion in 2033.

Chemical Distribution Market CAGR

2023-2033

CAGR OF

6.46%

Chemical Distribution Market

Chemical distribution is the process of moving and storing chemicals in packaged and large quantities. They are commonly distributed using sacks, barrels, containers, and pipelines. A wide range of chemicals are produced by the chemical industry as raw materials for the food, paint, textile, building and construction, oil and petroleum, and agricultural sectors. Various distributors provide a variety of common and exotic chemicals on a large scale, across the globe.
Rising chemical consumption in various end-use industries, such as construction, medicines, polymers & resins, and plastics, is expected to fuel the demand for chemical distribution. The chemical industry produces and supplies necessary raw materials to companies in the manufacturing and industrial sectors. Producers sell these raw materials directly to consumers, or third-party distributors provide them to consumers. The distribution of commodity and specialty chemicals by third parties is expected to grow significantly more than the sale of products directly to end users due to the outsourcing of value-added services like logistics, packaging, blending, waste removal, inventory management, and technical training.
Chemical distribution services provide a vital conduit between manufacturers and smaller customers in underdeveloped regions. Chemical distributors help chemical companies reach new markets, which contributes to the expansion of the chemical industry worldwide. These days, emerging markets such as those in Latin America, Africa, Asia Pacific, and the Middle East are especially important because they have the potential to see great growth in the chemical industry. Additionally, the chemical industry contributes significantly to both developed and developing markets.

Chemical Distribution Market Dynamics

The chemical distribution market is evolving due to technological advancements in the industry. Numerous innovations, such as an environmentally friendly chemical compound with a designed chemical structure that serves as a safe and non-toxic agent for the environment suited for a range of uses. For instance, in November 2021, the Indian specialty chemicals business Cosmo Specialty Chemicals created a hydrophilic block silicone emulsion. Its lower rotational free energy than C-O bonds gives it superior softening properties when compared to other conventional non-silicone softeners. The agent is eco-friendly and non-toxic, and it may be used in many ways to still have a significant impact on the textile industry.
Furthermore, regulations regarding the handling, transportation, and storage of chemicals have a significant impact on the chemical distribution market. Compliance with regulations such as REACH in Europe and the Toxic Substances Control Act in the United States is essential for distributors. Sustainability and environmental concerns are increasingly shaping the chemical distribution industry. Distributors are focusing more on sustainable practices, such as green logistics coupled with the use of eco-friendly packaging, to reduce their environmental footprint.

Chemical Distribution Market Segmental Analysis

Chemical Distribution Market

By Product Type

Specialty Chemical

Commodity Chemicals

The Market will Grow

At the CAGR of:

6.46%

The Forecast Market

Size for 2033 in USD:

$439B

The chemical distribution market is divided into product type and end-users. Based on product type, the market is bifurcated into specialty chemicals and commodity chemicals. The specialty chemicals are used in various applications such as construction, Specialty Polymers & Resins, CASE, Agrochemicals, electronics, Personal Care & Pharmaceuticals, and other specialty chemicals. The demand for agrochemicals is driven by the increasing global population and the need to produce more food. As farmers strive to improve crop yields and quality, the demand for agrochemicals continues to grow. Agrochemicals encompass a wide range of products, including fertilizers, pesticides, herbicides, and fungicides. This diversity allows distributors to offer a comprehensive range of products to meet the specific needs of farmers.
Based on end-users, the market is classified into Automotive & Transportation, Construction, Agriculture, Electronics, Industrial Manufacturing, Consumer Goods, Textiles, Medical & pharmaceutical, and others.

Chemical Distribution Market

By End-User

XX%

Automotive & Transportation

Construction

Agriculture

Electronics

250

Total Market Size

USD (Billion), 2023

6.46%

CAGR

2023 - 2033

Chemical Distribution Market Regional Analysis

The chemical distribution market is divided into different regions such as North America, Europe, South America, Asia-Pacific, and the Middle East & Africa. 
Asia-Pacific accounted for the largest market share in 2023, which is also anticipated to witness the fastest growth rate during the forecast period, driven by rapid industrialization, urbanization, and economic growth. Shift towards specialty chemicals, increasing investments in infrastructure development, and rising demand for sustainable solutions. The increasing population coupled with the expanding manufacturing industry, further propelled the demand for chemicals in industries such as construction, automotive, and electronics.

Chemical Distribution Market

By Region

The Market will Grow

At the CAGR of:

6.46%

The Forecast Market

Size for 2033 in USD:

$439B

Chemical Distribution Market Key Players

The Chemical Distribution market is highly competitive. The state of the economy and government assistance have a direct impact on the expansion of businesses. Based on their product's quality and market penetration in both the target and growing markets, these companies distinguish their Chemical Distribution driver in the industry. Furthermore, recent important mergers and acquisitions in the sector have had a big impact on the dynamics of competition. For instance:
•    By purchasing BLH SAS (BLH), a distributor of flavours and scents targeted at the French fine perfumery market, in November 2023, Azelis expanded its global presence in the flavours and fragrances industry. With the acquisition of Quimdis in France, Vigon in America, and Ashapura in India during the last two years, Azelis has expanded its portfolio of taste and fragrance acquisitions.
•    US-based private equity firm Apollo Global Management Inc. purchased Univar Solutions in August 2023 for a sum of $8.1 billion. The acquisition adds significant value for Univar's shareholders and is proof of the strategy's efficacy. Apollo is happy to have a partner to support their further portfolio investments. They look forward to working closely with the Univar team as they grow the company and serve their essential suppliers and clients worldwide. Chemical distributor Univar Solutions is situated in the US.
•    To increase its footprint in Southeast Asia, IMCD bought all the shares of specialized distributor Brylchem Pte Ltd in June 2023. The deal is expected to close in 2023's fourth quarter.
•    Brenntag increased its presence in the Asia Pacific market for specialty chemicals with the acquisition of Shanghai Saifu Chemical Development Co., Ltd. in June 2023.
•    To strengthen IMCD's chemical distribution capabilities, its Swedish affiliate bought ACM AB in April 2023. Additionally, in April 2023, IMCD India purchased Tradeimpex, an Indian company, to provide a broad selection of items to its clientele.
•    To improve its manufacturing and delivery of industrial chemicals and provide value-added services including transportation, repacking, warehousing, and mixing and blending, with an emphasis on South-East Asia, Brenntag purchased Aik Moh Group in March 2023.
•    The acquisition of ChemSol Group in Costa Rica, El Salvador, Panama, Guatemala, and Honduras was announced by Univar Solutions Inc. in February 2023 with the goal of expanding its portfolio of ingredients and specialties and solidifying its position in Central America.

The overall competitive landscape has been affected due to these strategic activities. The following are the major players in the Chemical Distribution market:
•    Brenntag AG
•    UNIVAR SOLUTIONS INC.
•    HELM AG 
•    JEBSEN & JESSEN PTE. LTD.
•    BARENTZ
•    OMYA AG
•    TER GROUP
•    STOCKMEIER GROUP
•    AZELIS
•    SOLVAY
•    IMCD GROUP
•    SAFIC-ALCAN
•    BIESTERFELD AG
•    ICC INDUSTRIES, INC.
•    QUIMIDROGA
•    WILBUR-ELLIS HOLDINGS, INC.
•    SOLVADIS DEUTSCHLAND GMBH
•    REDA CHEMICALS
•    Manuchar

Chemical Distribution Market Scope: