Chemical Distribution Market to Witness an Outstanding Growth by 2031

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Chemical Distribution: Introduction

• The global chemical distribution market has been expanding at a steady pace, led by the innovative measures undertaken by the chemicals industry to counter the slowdown in the supply chain system. Chemical distributers across the world are adopting sustainable practices for safe transportation of chemicals and materials, thereby building credibility among chemical suppliers.
• Increase in consumption of chemicals across end-use industries such as construction, pharmaceutical, polymers, and resins; and high complexity in reaching customers are likely to drive opportunities for chemical distributors in the next few years.

Key Drivers and Restraints of Global Chemical Distribution Market

• Rise in demand for reachable supply chain network among consumers has boosted the global chemical distribution market. Increase in demand for chemicals in various end-use industries, such as automotive, electronics, construction, infrastructure, and pharmaceuticals, is also supporting the growth in the market.
• Demand for specialty and bulk products is likely to rise in various industries, such as oil & gas, petroleum, and construction, in the Middle East, especially in Qatar, Dubai, and Saudi Arabia. This is expected to fuel the need for chemical distribution in the near future.

Chemical Distribution: Product Segment

• In terms of product, the chemical distribution market can be classified into commodity chemicals and specialty chemicals
• The commodity chemicals segment dominated the global market owing to the vast consumption of these products in several major end-use industries such as automotive, construction, electronics, and consumer goods
• Specialty chemicals refer to high-performance and customized chemical solutions that meet application-specific consumer requirements. Specialty compounds include Coatings, Adhesives, Sealants, Elastomers (CASE), cosmetic additives, construction materials, polymers, lubricant additives, and others such as surfactants, industrial gases, and textile auxiliaries.

COVID-19 Impact on Chemical Distribution Market

• Since the beginning of 2020, the global economy has been experiencing downturn with the outbreak of the COVID-19 pandemic. The outbreak of COVID-19 is anticipated to significantly impact chemical distribution.
• Governments of several countries have imposed strict lockdowns to curb the spread of the COVID-19 pandemic. Many manufacturing companies are either shut down or running low on production capacity.
• Decrease in industrial activities due to the pandemic has been adversely impacting the global chemical distribution market

North America Holds Major Share of Chemical Distribution Market

• In terms of region, the global chemical distribution market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• North America dominated the market in 2020. This trend is expected to continue during the forecast period. North America dominated the chemical distribution market, followed by Asia Pacific.
• Demand for specialty construction chemicals in the U.S. is driven by the rising trend of sustainable and green infrastructure. Specialty product distributors are thus benefiting from the rise in demand for such chemicals in developed economies such as U.S., Germany, and the U.K.
• Among developing markets, Asia Pacific is likely to register high-paced growth in the next couple of years, with a large number of chemical companies shifting their bases to emerging economies of the region. Significant rise in number of third-party distributors is also estimated to reflect positively on the growth of the regional chemical distribution market.
• Increase in infrastructure spending in developing economies due to population growth and urbanization is likely to boost the market