LONDON–(BUSINESS WIRE)–#GlobalThirdPartyChemicalDistributionMarket–The new third-party chemical distribution market research from Technavio indicates Negative and Inferior growth for the market in the short term as the business impact of COVID-19 spreads.
"One of the primary growth drivers for this market is the growing focus on chemical distribution,” says a senior analyst for the Industrials sector at Technavio. The rising demand for third-party chemical distribution from economies in MEA and APAC is one of the critical factors driving the market growth. The developing chemical industry in these regions has induced channel partners to distribute chemicals to a broader target audience. Furthermore, increasing investments in the chemical industry are also leading to the demand for third-party distribution. One of the major companies, Saudi Aramco, has already partnered with Sabic to build the oil-to-chemical complex with an investment of USD 20 billion. Such partnerships in the chemical industry will have a significant influence on the growth of the third-party chemical distribution market, which will grow during the forecast period. As the markets recover, Technavio expects the third-party chemical distribution market size to grow by USD 96.72 billion during the period 2020-2024.
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Third-Party Chemical Distribution Segment Highlights for 2020
- The third-party chemical distribution market is expected to post a year-over-year growth rate of 5.90%.
- The increased demand for commodity chemicals across several end-user industrial applications, including synthetic rubbers, fertilizers, pesticides, and others, will influence the growth of the market.
- Market growth in this segment will be slower than the growth of the market in the specialty chemicals segment.
- 48% of the growth will originate from the APAC region.
- APAC had the largest third-party chemical distribution market share in 2019, and the region will offer several growth opportunities to market vendors during the forecast period.
- The continuously developing chemical industry has led channel partners to distribute chemicals to a broader target audience, which will significantly influence third-party chemical distribution market growth in this region.
- China is one of the key markets for third-party chemical distribution in APAC.
- Market growth in this region will be faster than the growth of the market in other regions.
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- The third-party chemical distribution market size is expected to accelerate at a CAGR of over 6% during the forecast period.
- The third-party chemical distribution market is segmented by type (commodity chemicals and specialty chemicals) and geography (APAC, Europe, MEA, North America, and South America).
- The market is fragmented due to the presence of many established vendors holding significant market share.
- The research report offers information on several market vendors, including Azelis group, Biesterfeld AG, Brenntag AG, HELM AG, IMCD NV, Omya International AG, Sinochem Hong Kong (Group) Co. Ltd., Stockmeier Holding GmbH, Tricon Energy Inc., and Univar Inc.
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