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Chemical Distribution Market Size, Share and Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI3973

Chemical distribution market size will expand at a significant pace between the years 2021 and 2027 owing to rising preference for specialty and bulk products across the construction, oil & gas, and petroleum sector mainly in the Middle East region. Growing need for reachable supply chain networks amongst consumers has stirred the demand for chemicals across the automotive, construction, electronics, infrastructure, and pharmaceuticals sectors.
 

The increasing complexity in reaching customers along with the soaring customer requirement for mixing, blending, and packaging services as well as reachable supply chain models will lead to market progression. Chemical distribution refers to the transport as well as storage of bulk and packaged chemicals, which are then distributed via containers, pipelines, barrels, and sacks.
 

Based on products, chemical distribution industry is segmented into specialty chemicals and commodity chemicals. Out of these, the commodity chemicals segment will see expansion with increasing penetration in the automotive, electronics, construction, and consumer goods sectors. Growing adoption in synthetic rubber, plastics and polymer, explosives, and petrochemicals will also influence the segment growth.
 

The market revenue from specialty chemicals segment will proliferate with increasing need for application-specific compounds and rising technological advancements with regard to production. Coatings, elastomers, cosmetic and lubricant additives, construction materials, adhesives, polymers, and sealants, are some well-known specialty compounds.
 

Demand for chemical distribution solutions across the construction sector is set to showcase notable proceeds due to the increasing construction spending across several developing economies, mainly in the APAC region. The escalating pollution levels have also made way for the higher enhancements of construction materials, such as the influx of smog-combating products.
 

Regionally, Asia Pacific is expected to be a major shareholder in the chemical distribution business due to the hiking household disposable incomes and surge in number of manufacturing activities. The strong presence of a higher number of small & medium-sized chemical manufacturers has led to a massive rise in the count of third-party distributors. Factors, such as expanding consumer size, fast-growing digitalization, and booming economy in China, India, Vietnam, Malaysia, and Thailand have led to significant advancements in the automotive, construction, and electrical & electronics sectors.
 

North America chemical distribution market will gain traction through 2027 owing to the growing requirement for specialty construction chemicals and escalating popularity of sustainable and green infrastructure. On account of the easy availability of credit, ongoing labor market upgrading, and easy access to abundant feedstock, capital investments by international chemical producers are on a significant rise in the region.
 

Some of the major chemical distribution industry participants include Brenntag AG (DB US Holding Corporation), Omya AG, Univar Inc., Stockmeier Group, Global Chemical Resources, Royal Vopak N.V., KPL International Limited, IMCD, Parchem Fine & Specialty Chemicals, Biesterfeld AG, Nexeo Solutions (Univar Solutions), Azelis, and Helm AG.
 

These business players are actively taking up partnership-oriented inorganic strategies, including mergers, technical innovations, investments, partnerships, acquisitions, as well as novel product developments to enhance their revenue, portfolio, and sales.
 

For instance, in May 2021, Michelman entered a novel distribution agreement with Omya, a leading distributor of specialty chemicals. Through this partnership, Omya became the exclusive distributor for the former’s surface modifiers as well as wax emulsion product portfolio to the paints and coating markets across Canada.
 

Effect of the COVID-19 outbreak on chemical distribution industry outlook

In response to the coronavirus crisis, chemical distribution networks witnessed stalled operations on account of the severe congestion and the significant delays in unloading the cargo ships. This contributed to immense strains on the chemical distribution supply chain. The pandemic also placed significant stress on chemical distributors across a diverse range of industries, like paints and coatings, giving way to insufficient access to clean water, limited medical and medicinal supplies, declining food production, and preservation capabilities.
 

What Information does this report contain?

Historical data coverage: 2017 to 2021; Growth Projections: 2022 to 2028.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.

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