During the predicted period of 2022-2027, the market is expected to expand at a CAGR of about 6%. In 2021, the market for distributing chemicals was estimated to be worth US$266.67 billion. According to research reports, the market’s value will increase to US$374.52 billion by 2027.
The rise of the chemical industry, increased demand from other end-user sectors, rising need for value-added services, digitalization, and other factors have all contributed to the expansion of the worldwide chemical distribution market in recent years. Chemical manufacturing companies are encouraged to request these services to reduce supply chain complexity and take advantage of new opportunities because chemical distribution services act as a vital link for chemical producers to connect with smaller customers who are located in less developed regions. As a result, the expansion of the chemical sector will increase the demand for chemical distribution services, which will fuel the expansion of the worldwide chemical distribution market.
In the anticipated term, growth in the overall market is anticipated to be fueled by factors including outsourcing, consolidation, increased investment in R&D, and the integration of artificial intelligence (AI) into chemical distribution. During the predicted period of 2022-2027, the market is expected to expand at a CAGR of about 6%.
The rise in environmental and security concerns, the complexity of chemical logistics, and other issues could all have a negative impact on the market’s growth. Due to the negative effects that chemical production has on the environment, including climate change, groundwater and soil contamination, degradation of natural resources, waste management issues, noise pollution, air pollution, and the depletion of non-renewable resources like fossil fuels, oil, natural gas, and coal that are used as raw materials in chemical manufacturing, people are becoming more concerned about their safety in the environment, which has led to a decrease in demand for various chemicals and a consequent negative impact on the environment.
The market is anticipated to expand quickly during the forecast period as a result of several recent developments, including the incorporation of artificial intelligence (AI) into the distribution of chemicals, outsourcing, rising investment in research & development, consolidation, etc. Chemical wholesalers are increasingly being used by chemical companies to obtain chemicals because they frequently offer better delivery timings and delivery reliability for chemical product range despite the significant complexity associated with reaching the end customers. As a result, the demand for chemical distribution services will continue to increase, contributing to the expansion of the global chemical distribution market. Chemical manufacturers are increasingly dependent on chemical distributors for the safe delivery of loose and non-bulk chemical material as well as handling custom amalgamation and repackaging.
