Third-Party Chemical Distribution Market Revenue to Cross $347+ Billion by 2028- Growing at 4.2% CAGR | Exclusive Report by The Insight Partners

Global Third-Party Chemical Distribution market is driven by the significant expansion of industries such as natural gas production and increasing customer demand for services such as mixing, blending, packaging and convenient supply chain models.

New York, Jan. 24, 2023 (GLOBE NEWSWIRE) -- The Insight Partners published latest research study on “Third-Party Chemical Distribution Market Size, Demand, Industry Trends and Forecast to 2028 - COVID-19 Impact and Global Analysis by Type [Commodity Chemicals (Coatings, Adhesives, Sealants, and Elastomers; Agrochemicals; Construction Chemicals; Specialty Polymer & Resins; and Others) and Specialty Chemicals (Plastics & Polymers, Synthetic Rubbers, Explosives, Petrochemicals, and Others)], End User (Automotive, Electronics, Construction, Oil & Gas, Pharmaceuticals, and Others), and Geography” the market is expected to grow from 270.7 billion in 2022 to US$ 347.4 billion by 2028, with an estimated CAGR of 4.2% from 2022 to 2028. The market growth is attributed to the rapid growth in the demand for chemicals across the world

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Global Third-Party Chemical Distribution Market Report Scope, Segmentations, Regional & Country Scope:

Market Size Value inUSD 270.7 billion in 2022
Market Size Value byUSD 347.4 billion by 2028
Growth rateCAGR of 4.2% from 2022 to 2028
Forecast Period2022-2028
Base Year2022
No. of Pages150
Historical data availableYes
Segments coveredType, End User, and Geography
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
Key Research CapabilitiesGlobal Market Assessment, Business Development Strategies, Competitive Landscape, Opportunity Analysis, Regional and Country Level Market Analysis, Market Entry Strategies, Market Dynamics, Risk and Return Assessments, Pricing Analysis, Market Size and Forecasting, Company Profiling, Value Chain Analysis, Expansion Strategies, SWOT Analysis, New Product Development
Global Third-Party Chemical Distribution Market Forecast to 2028 - Latest COVID-19 Analysis    

Growing Demand from Chemical Industry is Bolstering Third-Party Chemical Distribution Market Growth

Third-party chemical distribution involves chemical distribution worldwide through third parties. The third-party chemical distribution process consists of sales, logistics, and transportation of chemicals. To customers, chemical distributors propose value-added services such as blending, mixing, wrapping, formulation, inventory management, and waste elimination. Rising investment in the chemical distribution industry is bolstering the global third-party chemical distribution market growth. In recent years, the increasing demand for chemicals from various end-use industries, such as automotive, pharmaceutical, and electronics, is encouraging third-party distributors to adopt growth strategies such as establishing partnerships, joint ventures, and mergers & acquisitions. For instance, Azelis expanded its operations in South America by acquiring ROCSA in Colombia. Brenntag North America, Inc. acquired Matrix Chemical LLC, a North American distributor of acetone and solvents. Such acquisitions are helping organizations to expand their presence in growing markets.


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Third-Party Chemical Distribution Market: Competition Landscape

Key players operating in the global third-party chemical distribution market include Azelis Group; Barentz International BV; Brenntag North America, Inc; ICC Chemical Corporation; IMCD NV.; Jebsen & Jessen Pte Ltd.; Petrochem; Protea Chemicals; REDA Chemicals; and Univar Solutions Inc. These market players focus on providing high-quality products to fulfill customer demands. They also focusing on strategies such as investments in research and development activities and new product launches.

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Third-Party Chemical Distribution Market: Segmental Overview

Based on type, the third-party chemical distribution market is segmented into commodity chemicals (coatings, adhesives, sealants, and elastomers; agrochemicals; construction chemicals; specialty polymer & resins; and others) and specialty chemicals (plastics & polymers, synthetic rubbers, explosives, petrochemicals, and others). The commodity chemicals segment is expected to hold a larger share of the market in 2021. The manufacturing of a wide range of end user products, such as construction materials, adhesives, plastics, apparel, and tires, increased in 2021 after recovering from the COVID-19 pandemic. In addition, the increased demand for commodity chemicals in personal care and aerospace industries led to the dominance of the commodity chemicals segment in 2021.

Based on end user, the third-party chemical distribution market is segmented into automotive, electronics, construction, oil & gas, pharmaceuticals, and others. The automotive segment is expected to grow at the highest CAGR from 2022 to 2028. Growth in end-use industries, such as automotive, pharmaceutical, and electronics, combined with strong growth in the industrial manufacturing sector, is expected to drive the global demand for chemicals, thus fueling the global chemical distribution market growth. The third-party distribution channel is further expected to benefit from this aspect. Multinational distributors follow differentiated channel strategies, such as product awareness, local experience, and a powerful logistics network, to achieve a competitive advantage in a highly fragmented market. Commodity chemicals use has dominated the market in the downstream business. The downstream business covers the refining, manufacturing, and purifying of crude oil from raw natural gas. Additionally, it involves selling and distributing a range of goods extracted from petroleum

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Key Developments

  • In 2022, Azelis strengthened its Asia Pacific footprint by acquiring Chemiplas Agencies Ltd in Australia and New Zealand.
  • In 2022, Azelis extended a partnership with Sun Chemical to France and Benelux for the industrial chemicals market.
  • In 2021, Barentz International, a life science ingredients distributor, announced an agreement to acquire a majority stake in the distribution activities of Gangwal Chemicals Private Limited.

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