Chemical Distribution Market Report 2025

The chemical distribution market size has grown strongly in recent years. It will grow from $299.64 billion in 2024 to $328.24 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to industrial growth, increased global chemical trade, increased chemical manufacturing, increased regulatory compliance, growth in 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 $477.28 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to growing need for sustainable chemicals, increasing adoption for e-commerce and digital platforms, increasing focus on green chemistry, global supply chain resilience, and increasing specialty and custom chemicals. Major trends in the forecast period include chemical industry innovation, technological advancements, sustainable solutions, key players' partnerships, cutting-edge solutions launch.

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 expanding construction industry is anticipated to drive the growth of the chemical distribution market in the future. This industry involves the planning, design, development, and execution of various physical structures, buildings, and infrastructure projects. It heavily depends on a wide variety of chemicals, such as concrete admixtures, bonding agents, sealants, and coatings, which are crucial for numerous construction applications, ranging from structural integrity to aesthetic finishes. For example, in November 2023, data published by the Office for National Statistics, a UK-based national statistical institute, revealed that annual new orders in 2022 increased by 11.4% from 2021, reaching a record £80.83 billion ($105,905 million). This growth was mainly driven by significant increases in private infrastructure (85.1%), private commercial (10.2%), and other public non-housing sectors (17.5%), with a slight 0.6% decline in private industrial projects. Thus, the expanding construction industry is fueling the growth of the chemical distribution market.

Technological advancements are transforming the chemical distribution market. Innovations, such as eco-friendly chemical compounds, are being developed with engineered structures that make them non-toxic and environmentally safe, suitable for various applications. For example, in October 2023, Perstorp Group, a Sweden-based specialty chemicals company, introduced a new grade of 2-Ethylhexanol (2-EH) with 100% renewable, traceable mass-balanced carbon content. By incorporating the absorption of biogenic CO2 from renewable raw materials used in its production, the product achieves a negative carbon footprint from its creation to its arrival at the Perstorp facility. Developed with both physical and chemical traceability, 2-EH Pro 100 is designed to reduce the carbon footprint across the entire value chain while promoting sustainable sourcing of renewable and recycled raw materials.

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.

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.

Asia-Pacific was the largest region in the chemical distribution market in 2024. 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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