Global Third-Party Chemical Distribution Market to grow at a CAGR of 5.34% to 2021 – Analysis of Brenntag, HELM, Univar, Nexeo Solutions, and IMCD

MarketResearchNest.com adds “Global Third-Party Chemical Distribution Market 2017-2021” new reports to its research database. The report spread across 78 pages with tables and figures in it.

The analysts forecast the global third-party chemical distribution market to grow at a CAGR of 5.34% during the period 2017-2021.

The chemical distribution process involves sales, logistics, and transportation of chemicals. Chemical distributors offer value-added services such as blending, mixing, packaging, formulation, inventory management, and waste removal to customers. These distributors source the products from chemical manufacturers and supply them to vendors. The chemicals are transported to other vendors or directly transported to third-party chemical distributors that supply these chemicals to end-users.

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Research recognizes the following companies as the key players in the global third-party chemical distribution market: Brenntag, HELM, Univar, Nexeo Solutions, and IMCD.

Other Prominent Vendors in the market are: Azelis, Biesterfeld, Caldic, ICC Chemical, Jebsen & Jessen, Manuchar, Omya, Petrochem, Sinochem Plastics, STOCKMEIER CHEMIE, and Vinmar International.

Commenting on the report, an analyst team said: “One trend in the market is Key vendors entering partnerships. The global third-party chemical distribution market is highly fragmented, especially in the emerging regions such as APAC and MEA. For instance, in 2012, Ravago Group and Barentz entered a joint venture for their chemical distribution activities in a 50:50 partnership.”

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According to the report, one driver in the market is growing demand for value-added services. Distributors worldwide are experiencing high demand for value-added services from manufacturers and consumers. Many chemical manufacturers have reduced their overhead expenses such as extra internal operating expenses and staffing owing to the slow growth in Europe. Thus, the value-added services that were provided by manufacturing companies are now outsourced to third-party distributors.

Further, the report states that one challenge in the market is high operational costs and competitive pricing. The increase in demand for value-added services and professional expertise in the third-party chemical distribution market has intensified competition in the global chemical industry in terms of price and additional services. Customers (chemical manufacturers) demand extra value-added services, and thus vendors (third-party distributors) face issues in determining the price of chemical products and services. Vendors do not determine the price of manufactured products but charge manufacturers, wholesalers, and customers for transportation and logistics.

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.

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