Chemical Distribution Market Size & Share, By Product (Specialty Chemicals and Commodity Chemicals); End Use - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6193
  • Published Date: Jun 14, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Chemical Distribution Market size was over USD 262.34 Billion in 2023 and is expected to reach USD 401.45 Billion by the end of 2036, growing at around 6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of chemical distribution is evaluated at USD 274.45 Billion.

The market is experiencing a considerable increase due to the escalating demand for chemicals in numerous industries including agriculture, construction, automotive, pharmaceuticals, textiles, and various other sectors.

Within the next quarter of a century, it is anticipated that India will be responsible for up to twenty percent of the additional global consumption of chemicals. Through the year 2040, it is expected that the domestic demand will have increased from 185 billion US dollars in 2021 to 1,050 billion US dollars altogether.


Chemical Distribution Market overview
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Chemical Distribution Sector: Growth Drivers and Challenges

Growth Drivers

  • Increased services offered by distributors - The expansion of services provided by distributors and the outsourcing of work to them are the primary drivers of additional growth. Increased chemical consumption is not the only factor contributing to the expansion of the chemical distribution market but there are few more factors that also drive the market growth.

    A bigger proportion of distribution was outsourced among companies between the years 2008 and 2012, which resulted in an annual growth rate of approximately 1.2 percent.
  • Shifting Consumer Preferences - Environmentally conscious consumers are attentive to information about the environment and products, processing, and brands that may affect it. Consumers are increasingly environmentally sensitive and prefer organic products and services, favoring businesses that follow environmental policies.

    The American Chemical Society (ACS) promotes green and sustainable chemistry and engineering to create cost-effective, healthier, and more sustainable processes and products. Innovations in this sector include biobased chemicals, catalysis, endangered elements, green chemistry metrics, process engineering, rational molecular design for reduced toxicity, pharmaceutical solvents, and chemical waste.
  • Increasing Spending Power - The chemical distribution industry has experienced growth over the projection period due to the combination of robust consumer expenditure and the increasing demand for ecologically sustainable infrastructure. The increasing use of large quantities of chemicals, including specialized ones, by the oil, gas, and petroleum sectors is expected to drive the expansion of the chemical distribution industry.

    The American Chemistry Council (ACC) has recently reported that investments in the U.S. chemical sector, which are directly related to the abundant and cost-effective availability of domestic natural gas and natural gas liquids (NGLs), have exceeded USD 200 billion.

Challenges

  • Increasing Health Concerns - During the "green revolution," farmers adopted technology to boost productivity and meet the expanding food needs of a rapidly growing population. The Green Revolution yielded significant returns by substantially expanding food grain production. This has also increased the use of chemical fertilizers and pesticides, which affect the environment and human health.
  • Environmental regulations - Chemical companies are required to adhere to environmental regulations that dictate the production and disposal of their products when they are no longer required. This is true for both manufacturers and consumers. This regulation alone is anticipated to necessitate an expenditure of over USD 300 billion by chemical industries in the coming years for pollution prevention apparatus and compliance costs.

Chemical Distribution Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

6%

Base Year Market Size (2023)

USD 262.34 Billion

Forecast Year Market Size (2036)

USD 401.45 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Chemical Distribution Segmentation

 Product (Specialty Chemicals, Commodity Chemicals)  

Commodity chemicals segment is poised to dominate chemical distribution market share of over 60% by 2036, Due to the demand of commodity chemicals in food & beverages, pharmaceuticals, agriculture, electronics, and construction. Almost every business employs commodity chemicals to make many products. 
Belgium-based Novasol Chemicals is a 100% privately held chemical distribution firm founded in 1997. Novasol Chemicals is ISO 9001-certified, among the ICIS TOP 100 EU chemical distributors, and REACH and GHS-CLP compliant. They offer custom distribution and packaging for a wide range of commodity and specialty chemicals. The Belgian-based company has local teams in over 25 countries in Asia, Europe, and North America and is intimately tied to its main logistics hubs.

End Use (Automotive & Transport, Agriculture, Construction, Consumer Goods, Industrial Manufacturing, Textiles, Pharmaceuticals)

In chemical distribution market, construction segment is estimated to dominate revenue share of over 19% by 2036, due to the tremendous growth of the building and construction industry in developed markets. It is expected to witness this segment rise due to emerging area industrialization and urbanization in the projected period.

V.K. Brothers is a significant Indian construction chemical and specialty chemical provider. Construction systems and solutions for building and civil works are developed, manufactured, and sold by the firm. It makes all kinds of chemical construction products, including Dr. Fixit waterproofing solutions, concrete-repair-system, tile-fixing adhesives, concrete premixtures, crack-repair sealants, grouts, concrete curing compounds, membranes, jointing compounds, and more. Hence, such manufacturers tend to drive the chemical distribution industry growth.

Our in-depth analysis of the global market includes the following segments:

          Product

  • Specialty Chemicals
  • Commodity Chemicals

          End Use

  • Automotive & Transport
  • Agriculture
  • Construction
  • Consumer Goods
  • Industrial Manufacturing
  • Textiles
  • Pharmaceuticals  

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Chemical Distribution Industry - Regional Synopsis

APAC Market Statistics

Asia-Pacific segment is anticipated to dominate over 60% chemical distribution market share by 2036, with a compound annual growth rate (CAGR) of 3.5% by 2036. Rapid expansion and industrial development in these areas, propelled by political infrastructure and economic policies, have resulted in enhancements in the capacity of local chemical distributors.

The findings indicate that there are regional disparities in the utilization of third-party distribution. 91% of the respondents in China anticipate a growth in the proportion of outsourcing within the next three years, while 84% in the APAC region have the same expectation. They are becoming more in line with international standards, providing professionalization and supply reliability, and broadening their range of services.

In addition, the chemical distribution business in South Korea is expected to reach maturity and align with the Western market within the next decade, owing to its technical expertise and regulatory support.

North America Market Analysis

By 2036, North America segment is set to dominate over 25% chemical distribution market share. Top players like IMCD, and Brenntag, who represent 40% of the North American market, impact it. The North American chemical distribution industry is predicted to develop because of the fast-growing automotive, construction, and pharmaceutical industries.

Rising spending by US chemical businesses on North American production unit development promises a strong chemical distribution industry in the future years. The US chemical sector has invested USD 109 billion in new and expanded facilities since 2010.

In Canada, the market is growing due to cheaper labor costs, accessibility to growth markets, reduced raw material costs, and favorable regulatory conditions.

Research Nester
Chemical Distribution Market size
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Companies Dominating the Chemical Distribution Landscape

    The market for chemical distribution is dominated by key market players who are gaining traction in the market by adopting several strategies including mergers and acquisitions.

    • Azelis Holding S.A
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis 
    • Univar Solutions
    • Brenntag
    • ICC Chemical Corporation
    • IMCD NV
    • Barentz International BV
    • Nexeo Solutions
    • Obegi Chemicals Group
    • STOCKMEIER Chemie GmbH & Co. KG
    • MANUCHAR nv

In the News

  • Azelis Holding S.A.(2023) - Azelis acquires 100% of Localpack S.A., a Colombian life sciences and industrial chemicals wholesaler. The acquisition meets the Group's regional growth goals by strategically expanding its footprint. Localpack is a top domestic specialized chemical distributor. The 27-person company conducts an application laboratory near Medellin for Colombian customers. Azelis' Latin American lateral value chain is expanded by Localpack's long-standing partnerships with global and regional principals and technical product expertise.
  • Univar Solutions LLC (March 1, 2024 ) - a leading global solutions provider to users of specialty ingredients and chemicals, today announced the acquisition of Valley Solvents & Chemicals Company and certain of its affiliates ("Valley Solvents"), a long-time distributor of solvents and inorganics and provider of waste management services in the Texas and Gulf Coast region. The acquisition expands the Company's local chemical distribution network and valued-added services across its Chemical Distribution division, while strengthening environmental services capabilities for its ChemCare business under its Services division.

Author Credits:  Rajrani Baghel


  • Report ID: 6193
  • Published Date: Jun 14, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2023, the industry size of Chemical Distribution Market was over USD 262.38 Billion.

The market size for Chemical Distribution Market is projected to cross USD 401.45 Billion by the end of 2036 expanding at a CAGR of 6% during the forecast period i.e., between 2024-2036.

The major players in the market are Univar Solutions, Brenntag, ICC Chemical Corporation, IMCD NV, Barentz International BV, Nexeo Solutions, Obegi, ChemicalsGroup, STOCKMEIER Chemie GmbH & Co. KG, MANUCHAR nv and others.

The Commodity Chemicals segment is anticipated to garner a share/size of 60% during 2024-2036.

In the year 2023, the industry size of Chemical Distribution Market was over USD 262.38 Billion.
Chemical Distribution Market Report Scope
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