Chemical Distribution Global Market Opportunities and Strategies to 2033

This report describes and explains the chemical distribution market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global chemical distribution market reached a value of nearly $274.5 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.4% since 2018. The market is expected to grow from $274.5 billion in 2023 to $431.6 billion in 2028 at a rate of 9.5%. The market is then expected to grow at a CAGR of 9.8% from 2028 and reach $690.3 billion in 2033.

Growth in the historic period resulted from the growth of manufacturing activities, rapid growth in urbanization and growth of the pharmaceutical industry. Factors that negatively affected growth in the historic period were growing environmental concerns.

Going forward, growing demand for specialty chemicals, growing construction industry, increasing international trade and increasing penetration of online retail platforms will drive the growth. Factor that could hinder the growth of the chemical distribution market in the future include fluctuating raw materials prices.

The chemical distribution market is segmented by product into specialty chemical and commodity chemical. The commodity chemical market was the largest segment of the chemical distribution market segmented by product, accounting for 60.4% or $165.9 billion of the total in 2023. Going forward, the specialty chemical segment is expected to be the fastest growing segment in the chemical distribution market segmented by product, at a CAGR of 10.7% during 2023-2028.

The commodity chemicals market is segmented by product into performance chemicals and bulk chemicals. The bulk chemicals market was the largest segment of the commodity chemicals market segmented by product, accounting for 42.5% or $116.6 billion of the total in 2023. Going forward, the performance chemicals segment is expected to be the fastest growing segment in the commodity chemicals market segmented by product, at a CAGR of 9.5% during 2023-2028.

The chemical distribution market is segmented by type into pipelines, containers, barrels and sacks. The pipelines market was the largest segment of the chemical distribution market segmented by type, accounting for 54.4% or $149.2 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the chemical distribution market segmented by type, at a CAGR of 9.9% during 2023-2028.

The chemical distribution market is segmented by end-user into transportation, construction, agriculture, pharmaceuticals, industrial manufacturing, personal care, food and other end-users. The industrial manufacturing market was the largest segment of the chemical distribution market segmented by end-user, accounting for 23.3% or$ 64 billion of the total in 2023. Going forward, the pharmaceuticals segment is expected to be the fastest growing segment in the chemical distribution market segmented by end-user, at a CAGR of 11.4% during 2023-2028.

Asia Pacific was the largest region in the chemical distribution market, accounting for 44.3% or $121.6 billion of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the chemical distribution market will be Asia Pacific and South America where growth will be at CAGRs of 11.2% and 10.6% respectively. These will be followed by Middle East and North America where the markets are expected to grow at CAGRs of 9.3% and 8.5% respectively.

The global chemical distribution market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 19.2% of the total market in 2022. Brenntag AG was the largest competitor with a 5.2% share of the market, followed by Univar Solutions Inc. with 4.3%, Tricon Energy with 3.4%, Nagase & Co. with 2.1%, Caldic B.V. with 0.9%, IMCD with 0.8%, Azelis with 0.7%, Helm AG with 0.7%, Barentz with 0.6% and Omya AG with 0.6%.

The top opportunities in the chemical distribution market segmented by product will arise in the commodity chemical segment, which will gain $84.9 billion of global annual sales by 2028. The top opportunities in the chemical distribution market segmented by type will arise in the pipelines segment, which will gain $89.9 billion of global annual sales by 2028. The top opportunities in the chemical distribution market segmented by end-user will arise in the industrial manufacturing segment, which will gain $34.6 billion of global annual sales by 2028. The top opportunities in the commodity chemicals market segmented by product will arise in the bulk chemicals segment, which will gain $56.8 billion of global annual sales by 2028. The chemical distribution market size will gain the most in China at $38.1 billion.

Market-trend-based strategies for the chemical distribution market include strategic collaborations and partnerships fostering growth and expansion in chemical distribution, facility expansions and investments driving growth in the chemical distribution industry, launch of full-line chemical distribution platforms strengthening market presence, adoption of product information management systems streamlining chemical data management and emergence of online B2B marketplaces and digital platforms transforming chemical distribution.

Player-adopted strategies in the chemical distribution market include focus on strategic acquisitions to expand business and develop the business expertise and focus on strategic collaborations to expand business.

To take advantage of the opportunities, the analyst recommends the chemical distribution companies to focus on expanding service-oriented platforms, focus on specialized product information management systems, focus on facility expansion, focus on specialty chemical segment, focus on pipelines segment, focus on diversifying distribution channels, focus on strategic collaborations for distribution expansion, expand in emerging markets, continue to focus on developed markets, focus on enhancing online B2B marketplaces, provide competitively priced offerings, focus on dynamic pricing strategies, participate in trade shows and events, continue to use B2B promotions, focus on building strong relationships with industrial manufacturing end-users and focus on targeting industrial manufacturing end-users.