Chemical Distribution Market

Market Definition

The Chemical Distribution Market size was valued at USD 268.50 billion in 2021 and is predicted to reach USD 380.10 billion by 2030 with a CAGR of 4.2% from 2022-2030. Chemical distribution refers to the packaging, storage and transport of chemicals in bulk quantity. Several raw materials and ingredients are produced by the chemical industry that has wide applications in cosmetics, oil and petroleum refineries, crop protection, food, paint, medicines, and other industries.

Chemical distributors and traders are companies that supplies chemical substances or ingredients and cause chemical products to be placed upon the market. These chemicals are either distributed directly or through agents and sub-agents that represent manufacturers for a given market, depending on the chemicals.

Market Dynamics and Trends

The demand for chemical distribution is increasing owing to the significant applications of chemicals such as adhesives, acids, bases and specialty chemicals in the automobile industry for protection against corrosion, paint adhesion and environmental safety.

Also, globalization of the chemical business along with the growing demand for specialty chemicals such as adhesives, polymers, resins, elastomers, agrochemicals and surfactants for specific formulations are expected to propel the growth of the market during the forecast period.

Moreover, rise in demand for a reachable supply chain network among consumers by incorporating blockchain technology that records transactions between multiple parties in a secure and evident way across various end users has boosted the global chemical distribution market.

In addition, rise in demand for various industries including oil & gas, petroleum, and construction in the Middle East, especially in Qatar, Dubai, and Saudi Arabia is encouraging the demand for bulk and specialty chemicals. This is expected to fuel the growth of chemical distribution market during the forecast period.

However, negative impacts of chemicals on health including eye and skin problems as well as on environment such as global warming and pollution leads to rising environmental safety concerns among the people. This results in reduced consumption of various chemicals such as pesticides and polychlorinated biphenyls that are expected to restrain the growth of the market during the forecast period.

On the other hand, the manufacturers are highly dependent on chemical distributors for the safe delivery of loose and non-bulk chemical materials along with handling custom amalgamation and repackaging. This is a significant factor that is expected to create lucrative growth opportunities for the chemical distribution market players in the future.

Market Segmentations and Scope of the Study

The chemical distribution market size has been segmented based on product, end use, and geography. On the basis of product, the market is divided into specialty chemicals and commodity chemicals. The specialty chemicals segment is further divided into CASE, agrochemicals, electronic, construction, specialty polymers & resins, oil & gas mining, food processing, consumer goods flavor & fragrances, and personal care active ingredients (PCAI).

The commodity chemicals segment is further classified into plastics & polymers, synthetic rubber, explosives, petrochemicals, petrochemicals, textiles, and others. On the basis of end use, the market is divided into automotive & transport, agriculture, construction, consumer goods, industrial manufacturing, textiles, pharmaceuticals, and others. The geography breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and ROW.

Geographical Analysis

North America region holds the lion share of the chemical distribution market at present and is expected to continue dominating the market during the forecast period. This is attributed to the rising trend of sustainable and green infrastructure that leads to the demand for specialty construction chemicals in the US. For instance, in 2020, CDP-ICLEI Unified Reporting System had announced 304 sustainable infrastructure projects valued at USD 25.6 billion in 97 cities across the U.S. The projects include renewable energy generation and energy efficient buildings and retrofit projects along with climate adaptation plans.

Also, rising burden of chronic diseases in this region leads to rapid growth of the biopharmaceutical industry which increases the demand for chemical consumption and drives the growth of the market. For instance, in July 2021, Takeda Pharmaceutical and Frazier Healthcare partnered to launch a biopharmaceutical company named HilleVax to develop and market Takeda’s norovirus vaccine candidate, HIL-214 (previously TAK-214).

On the other hand, Asia Pacific is expected to witness a rapid rise in the chemical distribution market due to rapid industrialization, and huge demand for specialty products in cosmetics and lubricants in countries such as Japan, China, and South Korea.

Moreover, demand for chemicals in various well-established industries such as automotive and oil & gas are expected to boost the market growth in this region. For instance, according to the estimates, oil production in the Asia-Pacific region in the year 2021 was around 7,335 thousand barrels per day, with China being the leading manufacturer and followed by India and Malaysia among others.

Also, significant rise in number of third-party distributors is estimated to reflect positive growth in the chemical distribution market in this region. For instance, in April 2022, DNA Script announced partnership with several leading biotechnology distribution companies throughout the Asia-Pacific region, including Cold Spring Biotech Corp, Research Instruments Pte. Ltd., Premas Life Sciences Pvt. Ltd. and Bio-Medical Science Co. Ltd. to provide labs with new capabilities to accelerate their work support of enzymatic synthesis products. This partnership expands DNA Script’s footprint and provides sales and support through these chemical distributors in this region.

Competitive Landscape

The chemical distribution market comprises of various players such as Brenntag SE, Tricon Energy Inc., Univar Solutions LLC, Sinochem Petrochemical Distribution Co., Ltd., Nagase & Co., Ltd., Sunrise Group Corporation, IMCD N.V., Azelis Group NV, HELM AG, Kolmar Group AG, Barentz International B.V., Caldic B.V., Snetor S.A.S., Stavian Chemical Joint Stock Company, Stockmeier Holding SE, Junan Resources Co., Ltd., DKSH Holding AG, OQEMA AG, Omya International AG, Biesterfeld SE. These manufacturers are actively indulging in acquisition strategies to enhance their product quality and increase their growth as well as geographical reach.

For instance, in December 2021, Univar Solutions, a global chemical and ingredient distributor announced the strategic acquisition of Sweetmix, a leading ingredients and specialty chemicals distributor in Brazil. This acquisition helped the company to enhance its Univar Solutions position in the local coatings, adhesives, sealants and elastomers market.

Also, in December 2021, Barentz International, a leading global distributor of life science ingredients announced the acquisition of stake in Gangwal Chemicals Private Limited. The strategic acquisition intended to increase their distribution of specialty ingredients for nutraceuticals and cosmetics.

Key Benefits

• The chemical distribution market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the chemical distribution market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the chemical distribution market is provided in the report.

• The competitive analysis of the market players along with their market share in the chemical distribution market

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments

By Product Type

• Commodity Chemicals

  • Petrochemicals and Intermediates

  • Inorganic Base Chemicals

  • Industrial Gases

  • Commodity Fertilizers

  • Other Commodity Chemicals

• Polymers and Resins

  • Commodity Thermoplastics

  • Engineering Plastics

  • Thermosetting Resins

  • Elastomers

• Specialty Chemicals

  • Coatings and Construction Chemicals

  • Adhesive and Sealant Chemicals

  • Lubricant and Metalworking Chemicals

  • Performance Additives and Modifiers

  • Surfactants and Cleaning Chemicals

  • Water Treatment Chemicals

  • Oilfield Chemicals

  • Mining Chemicals

  • Textile Chemicals

  • Leather Chemicals

  • Paper and Pulp Chemicals

  • Electronics Chemicals

  • Pigments and Colorants

  • Catalysts and Process Chemicals

  • Other Specialty Chemicals

• Fine Chemicals and Active Ingredients

  • Pharmaceutical Ingredients

  • Agrochemical Active Ingredients

  • Other Fine Chemicals

• Food and Feed Ingredients

  • Food Ingredients

  • Feed Ingredients

• Personal Care and Cosmetic Ingredients

  • Functional Ingredients

  • Active Ingredients

  • Fragrance Ingredients

• Agricultural Formulation Products

  • Crop Protection Formulations

  • Agricultural Adjuvants

  • Specialty Fertilizers

• Other Distributed Chemical Products

By Product Form

• Liquid

• Solid

• Gas

• Semi-Solid

By End-Use Industry

• Agriculture

• Automotive and Transportation

• Building and Construction

• Chemical Manufacturing

• Electronics and Electrical

• Food and Beverage

• Mining and Metals

• Oil and Gas

• Paints and Coatings

• Personal Care and Cosmetics

• Pharmaceuticals and Healthcare

• Pulp and Paper

• Textiles and Leather

• Water and Wastewater Treatment

• Other Industrial Users

• Distribution Channel

• Direct Sales

• Agent and Broker Sales

• Secondary Distribution

By Geography

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East 

  • Africa

Key Players

• Brenntag SE

• Tricon Energy Inc.

• Univar Solutions LLC

• Sinochem Petrochemical Distribution Co., Ltd.

• Nagase & Co., Ltd.

• Sunrise Group Corporation

• IMCD N.V.

• Azelis Group NV

• HELM AG

• Kolmar Group AG

• Barentz International B.V.

• Caldic B.V.

• Snetor S.A.S.

• Stavian Chemical Joint Stock Company

• Stockmeier Holding SE

• Junan Resources Co., Ltd.

• DKSH Holding AG

• OQEMA AG

• Omya International AG

• Biesterfeld SE