The Global Chemical Distribution Market

The Market

The global chemical distribution market is growing at a forecasted compound annual growth rate of 5.56% from the year 2016-2021. There is an increasing demand of chemical distribution driven by the surging amount of customer demand for products and services.

Chemical distributors supply chemicals and ingredients in conjunction with global producers to end user customers. Easy access to products and a growing demand from the end users result in growth in the chemical distribution market.

The rising awareness among end user customers related to high value addition products and customer service leads to a highly competitive arena within the global market of chemical distribution.

Market Share

There are few powerhouse distribution players, but the market is consolidating. Today, the distribution market remains fragmented, with top companies dominating specific markets but few global powerhouses. As of 2015—the most recent year for which full company data are available—the three largest global distributors held a combined global market share of 12.5 percent (Brenntag at 5.9 percent, Univar at 4.7 percent, and Nexeo Solutions at 1.9 percent).

However, there are significant regional differences. North America is the most consolidated market, where the same three distributors hold a market share of 39 percent. By comparison, Asia is not only the largest distribution market but also the most fragmented; the number one player in Asia, the distribution section of Sinochem International, controls only 3.8 percent of the total share.

Specialty chemical distribution is growing faster than the overall market. Growth in the specialty segment is driven mainly by volume, not by price. The pricing of specialty chemicals and ingredients is primarily based on the added value to the end user customer, not on the prices of raw material.

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