This report by Transparency Market Research (TMR) focuses on the trends and factors responsible for the changing dynamics in the chemical distribution market. It also makes predictions about the future status of this market.
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Chemical Distribution Market: Notable Developments
- Stockmeier Group, one of the leading chemical distributors across the world, has recently entered into a partnership agreement with Quaron Belgium and Contichim International. The chemical distributor aims at expanding its network in Belgium with this strategic initiative. This move is expected to impact the global chemical distribution market positively in the long run.
- The demand for AdBlue is skyrocketing. Brenntag, a global leader in chemical distribution, produces and supplies AdBlue across the world. This increase the usage of AdBlue is likely to help reduce harmful particulate matter and nitrogen oxides significantly.
Helm AG, Univar Inc., Brenntag AG, Nexeo Solution Holding LLC, ICC Chemicals, Inc., Barentz B.V., Azelis Holding S.A., Omya AG, Jebsen & Jessen Offshore Pte. Ltd. TER Group, Solvadis, and Ashland, Inc., are some of the key chemical distributors in the world in the chemical distribution market.
Chemical Distribution Market Dynamics
Demand for Bulk Products in Middle East to Contribute in Market Growth
The increasing demand for reachable supply chain network among consumers has boosted the global chemical distribution market, significantly. The rise in the demand for chemicals in various end-use industries, such as automotive, electronics, construction, infrastructure, and pharmaceuticals, is also supporting the growth in this market, remarkably.
The demand for specialty and bulk products from various industries, such as oil and gas, petroleum, and construction, is likely to increase in the Middle East, especially in Qatar, Dubai, and Saudi Arabia, fuelling the need for chemical distribution in the near future.
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Shale Gas Feedstock Benefits to Keep North America Ahead of Others
Geographically, North America leads the global chemical distribution market. In 2017, it accounted for nearly 15% of the overall revenue generated in this market. With feedstock benefits stirring the market up and massive demand-supply rebalancing, this regional market is likely to remain on the top over the next few years. After economic recovery, the U.S. has gained significant operational cost advantages from shale gas feedstock, improving the profitability of a number of chemical companies in the chemical distribution market.
Recent economic crisis in the developed market, such as collapsing of the Eurozone, however, has incited chemical companies to explore other markets. Europe is expected to register a steady rise in the demand for chemicals in the near future, which, in turn, is projected to attract heavy investments from key players. Constant development in infrastructure and improvement in the manufacturing sector are also anticipated to support the growth in the regional chemical distribution market.
Among developing markets, Asia Pacific is likely to register a high-paced growth in the next couple of years, with a large number of chemical companies shifting their bases to emerging economies of Asia Pacific. The significant rise in number of third-party distributors will also reflect positively on the growth of this regional chemical distribution market.