USD 231.67 billion
Report ID: SQSG15A2052 | Region: Global | Published Date: November, 2022 | Pages: 157 | Tables: 73 | Figures: 75
Chemical Distribution Market size was valued at USD 231.67 billion in 2021 and is poised to grow from USD 246.49 billion in 2022 to USD 395.52 billion by 2030, growing at a CAGR of 6.3% in the forecast period (2023-2030).
The distribution of chemicals is a fairly broad industry that offers specialized solutions across a range of industries. Pharmaceuticals, construction, paints and coatings, agriculture, cosmetics, food and feed, and automobile are a few examples of sectors. Packaging, logistics, warehousing, mixing, blending, formulating, technical assistance, training, recycling, research & development, innovation, and ingredients are some of the operations that fall within the purview of the chemical distribution sector.
Essential raw materials are produced and supplied by the chemical industry to businesses in the manufacturing and industrial sectors. These feedstocks are either sold directly by producers or delivered to end users by outside distributors. Due to the outsourcing of value-added services like logistics, packaging, blending, waste removal, inventory management, and technical training, the distribution of commodity and specialty chemicals by third parties is predicted to grow significantly more than the sale of products directly to end users.
Strong consumer spending power and ongoing building activity are the main factors driving the U.S. market for chemical distribution. The housing market is once again seeing business investments, which is helping the chemical sector gain traction. Additionally, a study released in June 2019 by the American Chemistry Council, Inc. stated that 334 new industrial projects with a combined value of more than USD 204 billion had been announced. This indicates a continuous increase in investments in the U.S. economy. This tendency is expected to lead to a major increase of the manufacturing industry, which will have a beneficial effect on the market as a whole.
US Chemical Distribution Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 231.67 billion
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Global chemical distribution market is segmented based on the Product, End User, and region. Based on the product the global chemical distribution market is segmented into specialty chemicals, commodity chemicals. Based on end use the global chemical distribution market is segmented into specialty chemicals (automotive & transportation, construction, agriculture, industrial manufacturing, consumer goods, textiles, pharmaceuticals, and others), commodity chemicals (downstream chemicals, textiles, automotive & transportation, electrical & electronics, industrial manufacturing, and others). Based on Region Chemical Distribution Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.
Chemical Distribution Market Analysis by Product
Due to their widespread usage in a number of important end-use sectors, including the automotive, construction, electronics, and consumer goods industries, commodity compounds predominated the worldwide supply landscape. The category will grow at a CAGR of more than 6% from 2022 to 2028 as a result of the widespread consumption of these products across several industries. High-performance and tailored chemical solutions that satisfy client demands for certain application-specific needs are referred to as specialty products. Coatings, Adhesives, Sealants, Elastomers (CASE), polymers, building materials, lubricant additives, and other substances including surfactants, industrial gases, and textile auxiliaries are examples of specialty compounds. These are the ones that are most frequently utilized in end-use sectors including the automobile, electronics, building, pharmaceutical, textile, and other sectors.
Due to the affordable petrochemical feedstock, major corporations are moving their production operations to the Middle East and Africa (MEA). Other sectors, however, are increasing their output in Asia because of the region's low labor costs and rapid economic development. Additionally, the consumption of specialty chemicals and distribution activities have been influenced recently by trade liberalization, the removal of numerous economic barriers, the diffusion of advanced processing technology, the rapid growth of the industrialized Asian economies, and rising living standards in many developing nations. By 2028, specialty chemicals are projected to develop at the quickest rate, with a market value of USD 139.0 billion. Demand for application-specific compounds is expected to increase over the next years due to technical developments in manufacturing as well as increased demand from various sectors.
Chemical Distribution Market Analysis by End User
In 2021, the construction sector dominated the market and contributed for almost 18% of total revenue. Alarming pollution levels in China and the United States have stimulated innovation in building materials, resulting in the creation of smog-fighting solutions. One such business, Boral Roofing, has developed a novel smog-repellent tile that reduces nitrogen oxides (NOx) using a titanium dioxide photocatalyst to enhance air quality. Furthermore, it is projected that rising construction investment in Asia Pacific's growing nations would raise demand for specialty chemicals across a range of applications.
With a revenue share of over 36% in 2021, consumption of commodity chemicals has dominated the market in the downstream sector. The refining of crude oil, processing, and purification of unprocessed natural gas are all part of the downstream industry. It also involves the marketing and distribution of a range of items made from petroleum.
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In 2021, Asia Pacific assumed the position as the largest regional market, contributing more than 60% of global sales. Demand is anticipated to be driven by rising manufacturing activity and a large increase in per capita disposable income throughout the projected period. Automobile, construction, electrical, and electronics sectors are expanding, especially in nations like China, India, Malaysia, Vietnam, and Thailand. The region's chemical production is also expected to increase significantly as large businesses turn their attention to lucrative markets. Commodity compounds are expected to continue to dominate the market in the Asia Pacific, with specialty chemicals posting a higher CAGR of more than 7% from 2022 to 2028.
The shift in the trend toward third-party distributors as a development 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 sector in North America has slowed down during the past several years. The United States gulf coast is home to a number of proposed projects, notably South Louisiana Methanol and Natgasoline, which are scheduled to produce 1.75 million MT and 1.8 million MT per year, respectively, of petrochemicals.
However, due to ongoing improvements in the labor market, easy access to financing, and a supply of ample feedstock, it is anticipated that the market will see more capital investment from foreign chemical firms.
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Chemical Distribution Market Driver
Chemical Distribution Market Restraint
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The global chemical distribution market is relatively fragmented, with a high level of competition. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions.
Top Players in the Global Chemical Distribution Market
Chemical Distribution Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global chemical distribution market analysis, in terms of product, the commodities chemicals segment held the largest share in the global chemical distribution market. Due to their widespread usage in a number of important end-use sectors, including the automotive, construction, electronics, and consumer goods industries, commodity compounds predominated the worldwide supply landscape. On the basis of end-user, the construction segment held the largest share in the global chemical distribution market. It is projected that rising construction investment in Asia Pacific's growing nations would raise demand for specialty chemicals across a range of applications. And by region, the Asia Pacific region held the largest share in the global chemical distribution market driven by rising manufacturing activity and a large increase in per capita disposable income throughout the projected period.
|Market size value in 2021||USD 231.67 billion|
|Market size value in 2030||USD 246.49 billion|
|Forecast Unit (Value)||USD Billion|
|Regions covered||North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)|
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For the Global Chemical Distribution Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Chemical Distribution Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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