Chemical Distribution Market Size, Share & Trends Analysis Report By Product (Specialty Chemicals, Commodity Chemicals), By End-use, By Region (Asia Pacific, Europe), And Segment Forecasts, 2023 - 2030

Report Overview

The global chemical distribution market size was valued at USD 246.49 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 6.3% from 2023 to 2030. The distribution industry is projected to be driven by rising chemical consumption in a variety of end-use industries, including construction, pharmaceuticals, polymers & resins, and plastics. Key raw materials are supplied by chemical producers to businesses in the manufacturing and industrial sectors. These raw materials are either sold directly by producers or third-party distributed to end users. Due to the outsourcing of value-added services like packaging, logistics, waste removal, blending, inventory management, and technical training, the distribution of specialty and commodity chemicals by third parties is predicted to grow significantly as compared to the sale of products directly to end-users.

Transporting and storing chemicals in bulk and packaged form is known as chemical distribution. Sacks, barrels, containers, and pipelines are frequently used to disperse them. The chemical business creates a variety of chemicals as raw materials for oil and petroleum, cosmetics, food, textile, paint, building construction, and agricultural industries. A range of specialty and common chemicals are offered by distributors worldwide.

Chemical distribution services provide a crucial link for producers to connect with smaller clients located in less developed areas. The growth of the global chemical industry is aided by the chemical distributors' assistance to chemical producers in entering new markets. Today, emerging markets like those in Asia Pacific, the Middle East, Latin America, and Africa are crucial because the chemical industry may grow tremendously in these areas. The chemical sector also makes significant contributions to both developed and developing markets.

One of the other drivers of growth for the chemical distribution market, especially in the Asia-Pacific region is the shift in consumer demand, which has led to an increased focus on high-quality products. Additionally, growing globalization is anticipated to encourage small and large manufacturing companies to enter into strategic partnerships with international players in order to realize the structurally efficient cost, market share, and competitive advantage and better serve their global customers.

The growing worries about employee safety could serve as a barrier. Additionally, the push from organizations around the world to concentrate on reducing the environmental impact of chemicals will partially impede industrial expansion. The market trends, however, are projected to show a change throughout the forecast timeframe due to the development and integration of sophisticated technologies in the chemicals sector.

Product Insights

Commodity chemicals dominated the global market with a revenue share of more than 63% in 2022. This is attributed to the increased usage of these chemicals in a variety of end-use industries, including transportation, automotive, and personal care, among others.

A "fungible" substance is a commodity chemical that has achieved complete interchangeability. This implies that there is not even the slightest distinction between the products of different manufacturers. This is the main distinction between commodity and specialty chemicals since the former are completely standardized, and you can predict exactly what you will get from them. Natural gas is one type of fungible chemical.

On the other hand, specialty chemicals are more limited in terms of the producers who can make them. Instead of being used generally, these compounds are designed for particular services and consumer demands. Due to patent restrictions, specialty chemicals are frequently only available from a few manufacturers; nevertheless, when market demand increases and patent restrictions lapse, specialty compounds may eventually turn into commodity chemicals.

End-use Insights

Industrial manufacturing dominated the specialty chemical distribution end-use with a share of more than 23% in 2022. Its high share is attributable to its wide usage in industrial manufacturing processes for the production of products like adhesives, sealants, institutional & industrial cleaners, and high-performance thermoplastics. Various chemicals are used for water treatment, process treatment, and finished fuel additive solutions to help refineries, petrochemical facilities, and heavy industrial operators reach performance and cost objectives.

These chemicals are often called downstream chemicals, which are some of the commodity chemicals. Additionally, the paint, bumpers, and headlights on today's cars as well as the interior seats, dashboard parts, and safety features like seatbelts and airbags all require chemistry. Even the lithium polymer car barriers that some hybrid and electric vehicles use contain plastic. Growing demand for these types of end-use industries is estimated to trigger the distribution market in the near future.

Regional Insights

Asia Pacific dominated the global chemical distribution market with a revenue share of more than 59% in 2022. This is attributed to the rising demand for various chemicals from the end-use industries such as automotive, pharmaceuticals, mining, cosmetics, and plastic additives, especially in developing economies of India & China.

In the past, the major economies of Asia-Pacific, including China, Japan, India, South Korea, and Australia, have had fast industrial growth, which has had a considerable impact on the market for chemical distribution. Moreover, the Asia Pacific region's gross domestic product includes a sizeable contribution from the chemical industry of roughly 7.3%. Furthermore, the region's quick industrialization is providing market participants with profitable chances. In the past, globalization was a major factor in the expansion of the chemical distribution sector.

The shift in a trend toward third-party distributors as a growth platform for expanding into underserved regional markets in recent years has been driven by the expansion of production capacity by large chemical firms in North America. However, due to fluctuating crude oil prices, the weak GDP of Latin America, and recession-hit nations, the petrochemical industry in North America has slowed down over the past few years. Due to multiple planned facilities along the U.S. Gulf Coast, such as Natgasoline & South Louisiana Methanol, the capacity for petrochemical production is expected to rise in the upcoming years.

Key Companies & Market Share Insights

The market is moderately fragmented because there are so many local enterprises. In an effort to grow their market share, several players in the industry are pursuing strategies like investments, collaborations, acquisitions, and mergers. Businesses are also spending money on improving their offerings. Additionally, they are focusing on maintaining competitive prices. Through strategic partnerships and investments meant to support market trends, these businesses have been concentrating on expanding their market presence.

For instance, Brenntag AG stated in August 2022 that it had extended its distribution agreement with ISCA, one of the largest producers and suppliers of specialty chemicals, to distribute preservatives used in the cosmetics industry throughout Europe. Brenntag AG Specialties increased its cooperation with the makers of preservatives in Switzerland, Germany, Slovenia, Croatia, Poland, Slovakia, France, Benelux, and the Nordic region after the partnership with ISCA in the UK was a success. Some prominent players in the chemical distribution market include:

• Univar Solutions Inc.

• Helm AG

• Brenntag AG

• Ter Group

• Barentz

• Azelis

• Safic Alan

• ICC Industries, Inc.

• Jebsen & Jessen Pte. Ltd.

• Quimidroga

• Solvadis Deutschland GmbH

• Ashland

• Caldic B.V.

• Wilbur Ellis Holdings, Inc.

• Omya AG

• IMCC

• Biesterfeld AG

• Stockmeier Group

• REDA Chemicals

• Manuchar 

Chemical Distribution Market Report Scope

Global Chemical Distribution Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global chemical distribution market report based on product, end-use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Specialty Chemicals

    • CASE

    • Agrochemicals

    • Electronic

    • Construction

    • Specialty Polymers & Resins

    • Personal Care & Pharmaceuticals

    • Other Specialty Chemicals

  • Commodity Chemicals

    • Plastic & Polymers

    • Synthetic Rubber

    • Explosives

    • Petrochemicals

    • Other Commodity Chemicals

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Specialty Chemicals

    • Automotive & Transportation

    • Construction

    • Agriculture

    • Industrial Manufacturing

    • Consumer Goods

    • Textiles

    • Pharmaceuticals

    • Other Specialty Chemical End-uses

  • Commodity Chemicals

    • Downstream Chemicals

    • Textiles

    • Electrical & Electronics

    • Automotive & Transportation

    • Industrial Manufacturing

    • Other Commodity Chemicals End-uses

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Belgium

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Taiwan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE

    • Qatar

    • Kuwait

    • Oman

    • Bahrain