According to the findings of a new report published by Grand View Research, Inc.; the global chemical distribution market is anticipated to have a healthy growth rate during the forecast period i.e., from 2014 to 2020. The chemical sector manufactures key raw materials and supplies it to the industrial and manufacturing companies. The key end users in this market are cosmetics, oil and petroleum, food, paint, textile, agriculture, and construction.
The chemical distribution process involves transportation, sales, and logistics of chemicals from the source to the destination. Rapid industrialization across the globe has resulted in an increased manufacturing and consumption of chemicals in various sectors. The chemical distributors get products from chemical manufacturers and supply them to vendors. All these factors are expected to augment the global market development over the next few years.
On the other hand, strict health and environmental rules and regulations resulting in an increased cost of compliance for distributors may have a negative impact on the global market. However, rise in demand for specialty and bulk chemicals for gas, petroleum, and oil sectors, particularly in the Middle East region. In addition, due to growing concerns regarding safety, a lot of chemical distributors are aiming at integrating their operations with various sustainability practices to retain reliability among their suppliers. This factor is also estimated to fuel the development of the chemical distribution market over the forecast period.
Full Research Report On Chemical Distribution Market Analysis:
Furthermore, rising awareness levels among consumers regarding high value addition products and service offerings have resulted in a strong competition in the global market. Thus, many chemicals manufacturing companies have started outsourcing services, such as mixing, blending, logistics, and packaging, to the third-party distributors. At present, such third-party distributors play a key role in the chemicals industry and keep introducing new value-added services for enhanced efficiency of the supply chain network and logistics. This is also anticipated to augment the market expansion over the coming years.
This market is also experiencing increased consolidation as the vendors are developing organic growth strategies like joint ventures and mergers and acquisitions to meet the growing demand for chemicals in developing regions like Asia Pacific. Followed by the Europe regions, Asia Pacific was the largest regional market for chemical distribution and is anticipated to continue to experience a strong growth rate even during the forecast years. The key factor responsible for this development is the rising demand for chemicals from various developing nations, such as China and India.
The North America region is also expected to witness a fast-paced expansion during the next few years. One of the major reasons behind this growth is rapidly expanding gas and oil activities in the region that has resulted in an increased demand for specialty chemicals. Some of the prominent companies operating in the global chemical distribution market include Nexeo Solutions Holdings LLC; Univar Inc.; ICC Chemicals Inc.; IMCD GROUP B.V.; Azelis Holding S.A.; and Brenntag AG.
Most of these market layers focus on partnerships and mergers and acquisition activities as part of their business expansion strategies. For instance, Univar Inc. recently bought Kemetyl Industrial Chemicals in order to strengthen its position in the pharma sectors in the Middle East and Africa and Europe regions. Kemetyl is a chemical product distributor that provides specialty chemicals, particularly in the Nordic region.
With this successful acquisition, the company plans expand its position in the pharma sector while strengthening its water treatment expertise and enhancing the brand, said the CEO of Univar, Inc. The CEO also believes that Kemetyl’s sustainable product pipeline can help boost the former’s value to its consumers through synergies. Univar is focusing on increasing its share in the European industry Brenntag, one of the competitor distribution companies, offered to acquire Quimitecnica.
Browse related reports by Grand View Research:
- Monoethylene Glycol (MEG) Market – https://www.grandviewresearch.com/industry-analysis/monoethylene-glycol-market
- Ethylene Amines Market- https://www.grandviewresearch.com/industry-analysis/ethylene-amines-market
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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