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Premium Report Details
Base Year: 2024
Companies covered: 10
Tables & Figures: 433
Countries covered: 18
Pages: 300
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Chemical Distribution Market
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Chemical Distribution Market Size
The global chemical distribution market size was valued at USD 306.9 billion in 2024 and is estimated to grow at a CAGR of over 5.1% from 2025 to 2034. The development of advanced technologies in end-use industries will help overall market to grow.
The rapid expansion of the global chemical industry driven by a considerable rise in natural gas production may emerge as a leading factor supporting the market growth. The rise in natural gas demand in driven by upcoming LNG supply wave. According to Internation Energy Agency natural gas demand in India is set to rise by almost 60% by 2030, which will be at par with some of the world’s largest consumers. Indias gas consumption is set to reach 103 billion cubic meters yearly by the end of this decade.
The positive prospect of the chemical industry has made many investors and other participants in the sector to embark on tremendous growth initiatives and invest heavily in order to take advantage of the opportunities. Take, for instance, the new petrochemical unit which is being built by the OMV group which, alongside other developed initiatives, is expected to nurture the advancement of the chemical industry in the next few years. Natural gas demand is expected to rise in 2025, fast growing markets in Asia is a major factor contributing to growth along with rebound in Europe industrial gas demand.
The rising concerns pertaining to workers' safety may act as a restraining factor. In addition, the increasing pressure from organizations worldwide to focus on minimizing the environmental impact of chemicals will also hamper the industry expansion to some extent. However, with the proliferation and integration of advanced technologies in the chemicals sector, the chemical distribution market trends are likely to depict a transformation through the forecast timeframe.
The increasing concerns related to workers' safety may act as a pitfall for the market. Also, the pressure from organizations around the world to focus on keeping the impact of chemicals on environment minimum will also hamper market growth to some extent. However, with the innovation of advanced technologies in the chemicals field, the industry is likely to foster I forecasted timeframe.
Chemical Distribution Market Trends
Increasing popularity of digitalization- Many chemical distributors today are digitizing. They are creating their online platform and increasing their digital connectivity. As the industry moves in this direction increasing transparency and connectivity along the value chain it is believed that third party model of chemical distribution will be valuable, increase efficiency and will improve distributors relationship with suppliers and customers.
Popularity of sustainability and green chemistry- Sustainability is becoming a major driver in chemical distribution market as industries are moving towards greener and more environmentally friendly formulations. Distributors are also prioritizing the supply of bio-based solvents and biodegradable chemicals, low carbon alternatives to meet consumer preference and regulatory requirements. Distributors are also investing in sustainable packaging and environmentally friendly logistics to minimize their environmental footprints. The popularity of sustainable solutions in pushing manufacturers and distributors to co-develop green solution.
Strategic partnerships- Strategic mergers and acquisitions are taking place since companies are looking to expand their geographical presence and enhance their supply chain. Large distributors are acquiring small regional players to access new market and strengthen their distribution network. Strategic collaborations between chemical manufacturers and distributors are also on the rise which ensures reliable supply, effective logistics and service capabilities.
Providing value added services- Over the time as market and consumer trends changed, the chemical distribution market has expanded its offerings. While evolving and growing with this expansion the chemical distribution industry is today is much more capable of fulfilling consumer needs. Chemical distributors today fill the role of tollers, marketers, warehousers, blending specialist, specialty manufacturers and more. Chemical distributors need to be capable of process, formulate and blend chemicals and they also need the logistical expertise and technical background required for safe transportation of chemicals. Solution oriented and value-added services which adopt sustainability initiatives and technological advancements will set chemical distribution industry apart.
Chemical Distribution Market Analysis
In terms of products, the commodity chemicals segment is estimated to exceed USD 262 billion by 2034, exhibiting more than 5.1% CAGR during 2025 to 2034.
Commodity chemicals are manufactured on huge scale in large manufacturing factories, which allows for mass consumption and in return it reduces the production cost. Whereas specialty chemicals are manufactured in smaller quantities with a focus on specific needs of consumers.
Commodity chemicals have a range of applications in many industries. These chemicals are basic raw materials of many products. Specialty chemicals are made with specific purposes to meet the requirements of the customer. Also, specialty chemicals require ample research and development in formulations. Their focus is on customization and fulfilling client requirements. Hence the price of specialty chemicals are high. All these factors contribute to the large market share of commodity chemicals.
With respect to end-user, the electronics segment is expected to expand at more than 5.2% CAGR between 2024 and 2034, with an estimated target valuation exceeding USD 62.1 billion by 2034.
This high share of electronics and use in the chemical distribution market is due to many reasons. The electronics industry is one of the largest consumers of specialty chemicals, these materials are used for manufacturing printed circuit boards, semiconductors, batteries and display. Chemicals like high purity solvents, di electric materials and dopants, photo resists play important roles in processing like chip packaging and wafer fabrication. The rise of technology like artificial intelligence, 5G, the internet of things (IoT) is further expected to boost chemicals demand in electronics end use.
Today 35% businesses are currently using AI, 78% of devices use AI technology. It is estimated that by 2030 AI will hold USD 15.7 trillion in the worldwide economy. This rise in technology in electronics will in turn boost demand for chemical distribution in the mentioned end use.
The Asia Pacific chemical distribution market is anticipated to depict a CAGR of more than 5% from 2025 to 2034. The regional industry may account for over USD 224 billion worth of revenue by 2034.
China is a major player in chemical production specifically basic chemicals. China is aiming to become self-sufficient initially in chemical production and later to lead the industry globally. China is largest chemicals market in the world, in 2022, the share of China in global chemical production was 44% and share of capital investment was 46%. Chinese chemicals manufacturers are strong in basic chemicals where innovations play small role hence, they are focusing on gaining large market share in consumer chemicals and fine chemicals globally.
India is another country in Asia Pacific driving growth for chemical distribution market in the region. Chemicals industry in the country is one of the largest globally. According to Statista, it ranked fifth in the world in terms of revenue and contains more than 80,000 products which makes it one of the most diversified sectors in the economy. Additionally, it provided raw materials to many end user industries in the country and acts as a backbone in the development process of India.
Chemical Distribution Market Share
The top 5 companies in the chemical distribution industry includes Brenntag AG, Univar Solutions, Tricon Energy, Nagase & Co, and IMCD. According to Statista, these five players are leading wholesale chemical distribution companies globally. Their revenue in 2023 is USD 18.5 billion, USD 11.5 billion, USD 10.6 billion, USD 6.4 billion, and USD 5.1 billion respectively. Other than above top 5 Azelis, Kolmar Group, Sunrise Group, Helm AG, Czarnikow are some of the notable players in the chemical distribution industry.
To gain competitive advantage many distributors have gone through mergers and acquisitions in the chemical distribution industry. According to Statista, the number of mergers and acquisitions taken place in the market from 2020 to 2023 are 254, 268, 241, and 239 respectively. In 2023 there were 239 M&A took place in chemical distribution market. The combines value of all the deals in 2023 is approximately USD 9 billion.
In March 2024, Univar Solutions LLC, who is a global solution provide to customers of specialty chemicals and ingredients announced acquisition of Valley Solvents & Chemicals Company who is a long-time distributor of solvents and inorganics in Texas and Gulf Coast region. This acquisition will help Univar Solutions expand its distribution network in North America and enhance expertise in industrial, energy and environmental services.
Also in June 2023, Univar Solutions completed acquisition of Kale Kimya, who is a Turkish specialty chemicals distributor. Kale Kimya is a regional chemical distributor well known in beauty and personal care, and industrial cleaning market. This acquisition will bring Univar Solutions the opportunity to strengthen supplier and customer relationships, improve portfolio and expand services within industrial solution verticals.
Brenntag who is a global leader in ingredients and chemical distribution announced acquisition of PIC and PharmaSpecial in Brazil. This acquisition will significantly enhance position of Brenntag in booming life science markets in the country. PIC and PharmaSpecial are both established and family-owned chemicals distributor, and they serve large number of customers and pharmacies in pharma, personal care and life science industries. This acquisition will help Brenntag enhance its global network of application and innovation centers. Also, with this acquisition Brenntag gets entry in soft gel capsule market and increase their footprints in Latin America.
Also, Brenntag expanded its footprint by announcing acquisition of Lawrence Industries Ltd who is a leading independent distributor of specialty chemicals in U.K. This acquisition will help Brenntag strengthen its position in material science and coatings, adhesives and sealants and elastomers. According to CEO of the company this acquisition will help company enhance its specialty offerings in United Kingdom and Ireland which is perfectly in line with their strategy in materials science.
Chemical Distribution Market Companies
Major players operating in the chemical distribution industry are:
Chemical Distribution Industry News
The chemical distribution market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:
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Market, By Product
Market, By End Use
The above information is provided for the following regions and countries: