The global chemical distribution market size is projected to reach USD 375.7 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 5.4% from 2020 to 2028. The market has witnessed a rebound in the number of mergers and acquisitions over the past few years owing to the rising focus of major players on inorganic growth to fill regional footprint and product portfolio.
The portfolio of distributors across the globe include a range of specialty and commodity chemicals. Specialty products such as Coatings, Adhesives, Sealants, and Elastomers (CASE), polymers and resins, agrochemicals, and construction chemicals are consumed in low quantities and are anticipated to witness significant growth in the coming years. These chemicals are under high scrutiny from the regional governments and are hence produced by specialized manufacturers.
Specialty and commodity compounds are primarily consumed by end-use industries, such as construction, automotive, infrastructure, electronics and pharmaceuticals. Asia Pacific has witnessed rapid growth in demand for chemicals owing to growing industrialization, especially in China. The rise in production of electronics coupled with spending capacity of the consumers has led to a high demand for electronic grade raw material, thereby positively affecting the growth in the country.
Increasing globalization is anticipated to encourage small and large manufacturing companies undergo strategic alliances with international players to achieve structural efficient cost, market share and competitive advantage to serve their global consumers in a better way. Chemical producers are adopting acquisition as a key strategy to enhance their consumer reach and strengthen their supply chain.
The dependence of manufacturers on distributors for safe delivery of loose and non-bulk chemical substances and handling various logistics requirements including custom blending and repackaging is another factor posing a challenge in the chemicals supply chain. Various regulatory authorities such as the National Association of Corporate Directors (NACD) ensures the establishment of safety standards for transportation and distribution of products across North America, whereas Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) monitors the safety standards in Europe.
Browse Full Report (Tables & Figures) @ https://www.grandviewresearch.com/industry-analysis/chemical-distribution-market
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