Strategic growth measures by vendors to help develop chemical distribution market

10:30 AM, 28th January 2021
With demand for disinfectants, hand sanitizers, and other chemicals dramatically rising over the past few months in wake of the novel COVID-19 pandemic spread, the business space of chemical distribution is currently witnessing a robust transformation globally.

With demand for disinfectants, hand sanitizers, and other chemicals dramatically rising over the past few months in wake of the novel COVID-19 pandemic spread, the business space of chemical distribution is currently witnessing a robust transformation globally. In fact, it would be overt to state that COVID-19 is reshaping the future of chemicals distribution market, with massive evolutions undergoing in the domain.

About 40 percent of the membership of the United States National Association of Chemical Distributors have reported a subtle rise in orders, amidst the worst pandemic scenes. Reportedly, there is a sudden spike in demand for IPA (isopropyl alcohol) or ethanol; chemicals that are abundantly being used to help combat the spread of coronavirus. This makes disinfectants, hand sanitizers, and wipes, a strong market across the overall chemical distribution industry.

It has been estimated that chemical distribution market would accrue phenomenal gains in the years ahead, primarily due to the proliferating use of specialty chemicals across myriad powerful industries including construction, agriculture, pharmaceutical, manufacturing, chemicals, and others.

How is adoption of specialty chemicals in construction industry complementing the overwhelming growth of chemicals distribution market?

With the global construction industry spending likely to account for $12.9 trillion by 2022 end, the need for specialty chemicals is also expected to rise subsequently. Various specialty products such as coatings, emulsion, adhesives, and others are generally used in construction sector to enhance the quality of structures while also increasing their life span. On top of that, the construction industry is a key market for specialty chemicals wherein more than 30 chemicals have emerged as innate products for various structure realization.

However, the industry is currently experiencing a slowdown due to COVID-19 outbreak, which has put various businesses on standstill, in turn enabling the specialty chemicals business to experience a downfall. Nevertheless, upliftment of stringent lockdown norms and regulations and efforts by vivid chemical producers to support development of specialty chemicals landscape is supporting global chemical distribution industry progression.

Speaking on the numerous efforts being taken by specialty chemicals providers, it would be essential to state the mention of acquisition of GEO Specialty Chemicals by CPS Performance Materials. This acquisition comes on heels of the CPS’s aim of expanding its specialty chemicals portfolio for construction and coatings markets.

Unveiling competitive trends across global chemical distribution market

With the chemicals industry taking up novel measures to counter the slowdown in supply chain system, the global chemical distribution market is observing a decent rise in its overall valuation. Chemical distributors and industry majors across the world are adopting sustainable practices for safe transportation of chemicals and materials, adding credibility amongst the chemicals suppliers. Having said that, mentioned below is a brief snapshot of competitive measures undertaken by industry behemoths to gain a significant position in the chemical distribution business space:

  • Stockmeier Group

One of the classic pioneers in chemical distribution industry- Germany based Stockmeier Group- had in 2019, announced acquisition of industrial chemicals distribution division of a Barcelona headquartered - Indukern Group. As per news reports, the acquisition move responds to Indukern’s growth strategy of laying emphasis on its other divisions including food ingredients, flavors and fragrances, animal health and nutrition, and Pharma.

Moreover, this buyout offers Stockmeier Group an immense potential to expand its position in and around Europe.

  • Brenntag AG

In late-2017, one of the finest German chemical distribution firms, Brenntag AG, had announced 65 percent stake acquisition in Raj Petro Specialties in an effort to establish a JV in the Indian province. As per company officials, this move would enable Brenntag to expand its footprint in the thriving Indian chemical distribution market while also being able to stand upfront in other Asian Pacific economies. In addition to this, the cooperation offers Brenntag diverse potential for collaborations and future growth.

All in all, potential synergies and developments in the overall chemical industry would allow global chemical distribution market to carve a profitable growth trajectory for itself over the time span of 2020 to 2026.

Get detailed analysis on the Chemical Distribution Market:

Contact Us:

Arun Hegde
Corporate Sales, USA
Global Market Insights Inc.
Phone: 1-302-846-7766
Toll Free: 1-888-689-0688



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