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.
Growth Drivers
Challenges
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 |
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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 |
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End Use |
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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.
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.
Author Credits: Rajrani Baghel
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