Chemical Distribution Global Market Report 2024

Chemical distribution refers to a diverse business that caters to a range of industries, providing solutions in the form of both specialty and commodity chemicals. Key sectors involved in chemical distribution include agriculture, cosmetics, food and feed, pharmaceuticals, construction, and paints and coatings. The activities within chemical distribution encompass packaging, logistics, warehousing, mixing, blending, formulating, technical assistance, training, recycling, research & development, innovation, and ingredient supply.

The primary types of chemical distribution are specialty chemicals and commodity chemicals. Specialty chemicals are compounds designed for specific purposes or performances, finding applications in various sectors such as agriculture, construction, pharmaceuticals, chemical processing, food additives, coatings, paper trade, and transportation. Chemical distribution employs various transportation methods, including pipelines, containers, barrels, and sacks, serving end-users in sectors like construction, agriculture, textiles, pharmaceuticals, and industrial manufacturing.

The chemical distribution market research report is one of a series of new reports that provides chemical distribution market statistics, including chemical distribution industry global market size, regional shares, competitors with a chemical distribution market share, detailed chemical distribution market segments, market trends and opportunities, and any further data you may need to thrive in the chemical distribution industry. This chemical distribution market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The chemical distribution market size has grown strongly in recent years. It will grow from $274.49 billion in 2023 to $301.57 billion in 2024 at a compound annual growth rate (CAGR) of 9.9%. The expansion observed in the historical period can be attributed to factors such as industrial growth, a rise in global chemical trade, increased chemical manufacturing activities, heightened regulatory compliance, and a growing demand for supply chain efficiency.

The chemical distribution market size is expected to see strong growth in the next few years. It will grow to $431.15 billion in 2028 at a compound annual growth rate (CAGR) of 9.3%. The anticipated growth in the forecast period can be attributed to the escalating demand for sustainable chemicals, a rising adoption of e-commerce and digital platforms, an increased focus on green chemistry, global supply chain resilience, and a growing demand for specialty and custom chemicals. Key trends expected in the forecast period encompass innovation in the chemical industry, technological advancements, the introduction of sustainable solutions, partnerships among key players, and the launch of cutting-edge solutions.

The chemical distribution market is poised for growth, driven by the escalating consumption of chemicals across diverse end-use industries. Industries such as construction utilize a range of chemical compounds, including concrete admixtures, polymer bonding agents, epoxy grouts, and adhesives. In the automotive sector, the manufacturing of an automobile involves approximately 10,000 chemicals. The expansion of these industries contributes to the overall growth of the chemical distribution market. For instance, as reported in June 2022 by the India Brand Equity Foundation, India's chemicals industry covers over 80,000 commercial products and had a market value of USD 178 billion in 2018–19. With increasing demand for specialty chemicals and petrochemicals, the industry is expected to grow at a 9.3% compound annual growth rate (CAGR) and reach USD 304 billion by 2025. The specialty chemicals market is projected to be worth $40 billion by 2025. Hence, the rising demand for chemicals in various end-use industries is a key driver propelling the chemical distribution market's growth.

The growth trajectory of the chemical distribution market is further fueled by the flourishing construction industry. The construction sector, encompassing the planning, design, development, and execution of physical structures and infrastructure projects, heavily relies on a diverse array of chemicals such as concrete admixtures, bonding agents, sealants, and coatings. These chemicals play a crucial role in ensuring structural stability and enhancing aesthetics in construction applications. In February 2022, the UK's Office for National Statistics reported an unprecedented annual increase of 12.7% in the construction sector in 2021 compared to the previous year. The growing construction industry, marked by increases in both new work and repair and maintenance, is a significant factor driving the chemical distribution market's expansion.

Technological advancements are playing a pivotal role in shaping the chemical distribution market. Advancements, such as the development of eco-friendly chemical compounds with engineered structures that act as non-toxic and environmentally safe agents, are gaining prominence. An example of this is seen in the November 2021 innovation by Cosmo Specialty Chemicals, an Indian specialty chemicals company, which introduced a hydrophilic block silicone emulsion. This eco-friendly agent, characterized by its non-toxic nature, exhibits superior softening characteristics compared to traditional non-silicone softeners. Its applicability spans various sectors, with a notable impact in the textile industry. This technological advancement exemplifies the ongoing evolution of the chemical distribution market.

Major players in the chemical distribution market are actively introducing new products, with a focus on specialty chemical solutions, to tap into larger customer bases, boost sales, and drive revenue growth. Specialty chemical solutions represent a category of chemical products and formulations specifically designed for distinct industrial or commercial applications. In August 2023, ChemCeed LLC, a US-based specialty chemicals provider, launched its innovative Titanate Catalyst product line. These catalysts, including Tetra isopropyl titanate (TIPT), Tetra n butyl titanate (TNBT), Tetra 2-Ethyl Hexyl Titanate (TEHT), Polybutyl Titanate (PBT), and BB 1001 titanium butyl phosphate, showcase exceptional performance in esterification, transesterification, and Ziegler-Natta reactions. Their applications span diverse industries, contributing to enhanced adhesion in printing inks, facilitating cross-linking in paints, coatings, adhesives, and sealants, and acting as catalysts for polymerization and esterification/transesterification reactions. This product line underscores the industry's commitment to innovation, meeting specific needs across multiple sectors.

In a significant development, Apollo Global Management Inc., a US-based private equity company, completed the acquisition of Univar Solutions in August 2023 for a deal valued at $8.1 billion. This strategic move validates Univar's effective strategy and brings substantial value to its shareholders. Apollo expresses enthusiasm about the partnership, viewing it as an opportunity to strengthen their investments in the portfolio. The acquisition aligns with Apollo's goal to collaborate closely with Univar's team, expanding the company's reach and serving vital suppliers and customers on a global scale. Univar Solutions, a US-based chemical distributor, now stands as a key player within Apollo's diversified portfolio, emphasizing the dynamic nature of the chemical distribution market.

Major companies operating in the chemical distribution market include Univar Solutions Inc., HELM AG, Brenntag AG, Azelis Holdings, Omya AG, Biesterfeld AG, Safic-Alcan SAS, Stockmeier Holding GmbH, REDA Chemicals Holding S.A., Ashland Global Holdings Inc., BASF SE, Jebsen & Jessen (SEA) Pte Ltd., Quimidroga S.A., Solvadis Deutschland GmbH, TER HELL & Co. GmbH, IMCD Group, Nexeo Solution Holding, ICC Chemicals, Global Chemical Resources, Royal Vopak NV, KPL International Limited, Parchem Fine & Specialty Chemicals, Ravago Chemicals, KODA Distribution Group, Nordmann Rassmann GmbH, HORN Company, KISCO Ltd, Fitz Chem LLC, Charkit Chemical Company LLC

Asia-Pacific was the largest region in the chemical distribution market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the chemical distribution market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the chemical distribution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The chemical distribution market consists of revenues earned by entities by providing fine chemicals, bulk chemicals and specialty chemicals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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