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Chemical Distribution Market Size, Share and Trends Analysis Report By Product, By End Use, By Region, And Segment Forecasts 2021 – 2027

Considering these trends, it has been estimated that the global chemical distribution market size could rise at a significant growth rate in the coming years.

The demand for chemical distribution market will gain considerable traction with the constant pressure of bringing product innovations and higher performance of materials across a multitude of industries. Chemicals are widely utilized across manufacturing processes of food, drinks, cosmetics, cars, detergents, and paints and to maintain different machinery and equipment, including industrial cleaners, cutting oils, belt dressings, and multi-purpose solvents.

It is quite challenging for the chemical suppliers to keep a track of their multiple customers, especially their small and mid-sized accounts as well as process all the deals by themselves. In order to bridge this gap and simplify these route-to-market concerns, there is a noticeable hike in the number of chemical distribution companies across the world.

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Specialty chemicals are more functional than basic components and are highly-priced. They are ordered in smaller volumes as they come from a limited number of sources. Noting these factors, the distribution of specialty chemicals accounts for technical expertise, marketing, and sales competence as well as application know-how. The low order volumes also push the specialty chemicals distributors towards outsourcing their supply chain infrastructure solutions to selected third parties, while paying for the services they need in contrary to investing in fixed assets.

The market for commodity chemical distribution solutions could grow at a remarkable pace as they are mainly directed towards supply chain infrastructure and high scale efficiencies. Due to their basic nature, lower prices, and ease of availability from numerous sources that have a common specification, they are distributed in high volume capacities. However, on account of their asset-intensive characteristics, and lower technical expertise, commodity chemical distributors are attracting a relatively lesser customer demand in comparison to the specialty distributors.

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The need for chemical distribution systems is expected to grow at a notable speed across automotive & transportation applications. With the consistent expansion of the sales of vehicles, there are substantial progressions in the production of cars and other locomotives. The distribution of the chemicals to process uses across auto-components like brake fluids, cleaners, polishes, engine and transmissions, antifreeze, additives and waxes, rust inhibitors, and radiator seals, is likely to pick tremendous pace.

Taking note of these aforementioned factors, leading chemical distribution companies are placing consistent efforts to increase their presence across the world. They are also actively indulging in inorganic strategic moves such as partnerships and acquisitions in order to widen their customer and product distribution portfolio, specifically in the present COVID-19 pandemic. To speak of an instance, in September 2020, IMCD N.V. inked an acquisition agreement to purchase 100% of major excipients distributor in India, Signet Excipients Private Limited in a bid to expand its market across the Asia-Pacific.

Rising environmental concerns and carbon emission limits are some factors which has led these players to take sustainable steps to maintain their position in the market. Some of the main chemical distribution market players are Brenntag AG, Helm AG, Univar Inc., O-mya AG, Nexeo Solutions, Stockmeier Group, Azelis, Biesterfeld AG, IMCD, Royal Vopak N.V., Global Chemical Resources, KPL International Limited, Azelis, Parchem Fine & Specialty Chemicals etc.

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