Chemical Distribution Market Size, Share & Trends Analysis Report 2021-2028
Chemical Distribution Industry Overview
The global chemical distribution market size is projected to reach USD 375.7 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 5.4% from 2020 to 2028. The market has witnessed a rebound in the number of mergers and acquisitions over the past few years owing to the rising focus of major players on inorganic growth to fill regional footprint and product portfolio.
The portfolio of distributors across the globe include a range of specialty and commodity chemicals. Specialty products such as Coatings, Adhesives, Sealants, and Elastomers (CASE), polymers and resins, agrochemicals, and construction chemicals are consumed in low quantities and are anticipated to witness significant growth in the coming years. These chemicals are under high scrutiny from the regional governments and are hence produced by specialized manufacturers.
Specialty and commodity compounds are primarily consumed by end-use industries, such as construction, automotive, infrastructure, electronics and pharmaceuticals. Asia Pacific has witnessed rapid growth in demand for chemicals owing to growing industrialization, especially in China. The rise in production of electronics coupled with spending capacity of the consumers has led to a high demand for electronic grade raw material, thereby positively affecting the growth in the country.
Chemical Distribution Market Segmentation
Grand View Research has segmented the global chemical distribution market on the basis of product, end-use, and region:
Based on the Product Insights, the market is segmented into Specialty Chemicals, and Commodity Chemicals.
- The global chemical distribution market is segmented into basic or commodity and specialty products. The product portfolio of one supplier is generally easily interchangeable with others, leading to low differentiation, and reducing switching costs for consumers. Pricing is thus an important differentiating factor for competitors in the market.
- Commodity compounds dominated the global supply landscape owing to the vast consumption of these products in several major end-use industries such as automotive, construction, electronics, and consumer goods. Consumption of these products in bulk across various industries has prompted the segment to expand at a CAGR of 5.1% from 2020 to 2028.
- Specialty chemicals are expected to emerge as the fastest-growing segment and are anticipated to reach USD 139.0 billion by 2028. Rising demand for application-specific compounds in several industries along with technological advancements in terms of production is anticipated to drive the demand over the forthcoming period.
- The specialty product segment refers to high-performance and customized chemical solutions that meet application-specific consumer requirements. Specialty compounds include Coatings, Adhesives, Sealants, Elastomers (CASE), cosmetic additives, construction materials, polymers, lubricant additives, and others such as surfactants, industrial gases, and textile auxiliaries. These are most widely used across end-use industries such as automotive, electronics, construction, pharmaceuticals, textilesand others.
Based on the End-Use Insights, the market is segmented into Specialty Chemicals, and Commodity Chemicals.
- Specialty and commodity compounds are largely used in common end-use industries such as textiles, automotive and transportation, and industrial manufacturing. Some other specific applications of specialty chemicals include agriculture, and pharmaceutical, whereas commodity products are specially used in the downstream sector.
- Consumption of commodity chemicals in the downstream sector has dominated the market with a share of 35.6% in terms of revenue in 2020. The downstream sector includes the petroleum crude oil refining, processing, and purifying of raw natural gas. In addition to this, it also includes the marketing and distribution of a variety of petroleum-derived products.
Chemical Distribution Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Acquisition of small distributors by leading global distributor companies such as MilliporeSigma, Brenntag AG, and Univar Solutions, has influenced to achieve economies of scale and focus on specialized sales channel strategy, rationalizing their distributor base, and strengthening of supply chain networks.
Mergers, acquisitions, and capacity expansion are major strategies followed by the companies to diversify their product portfolio and increase market share on a global scale. Major companies are consolidating growth by expanding existing product ranges to include specialty products as well. Some of the prominent players in the chemical distribution market include:
- Univar AG
- Helm AG
- Brenntag AG
- Azelis Holdings SA
- IMCD Group
- BASF SE
- Biesterfeld AG
Order a free sample PDF of the Chemical Distribution Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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Grand View Research, Inc.
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