The global chemical distribution market was valued at US$266.67 billion in 2021. The market value is projected to grow to US$374.52 billion by 2027, according to ResearchAndMarkets.

The global chemical distribution market has been growing over the past few years, due to factors such as the growth of chemical industry, rising demand from other end user industries, rising demand for value-added services, digitalization, etc. Chemical distribution services serve as an important link for the chemical producers to reach to the smaller customers that are situated in less developed regions, incentivizing chemical manufacturing firms to demand these services to reduce supply chain complexities and tap into new opportunities. Therefore, growth in chemical industry will lead to the rise in demand for chemical distribution services by chemical industry, boosting the growth of global chemical distribution market.

The factors such as integration of artificial intelligence (AI) into chemical distribution, outsourcing, consolidation, increasing investment in research and development, etc. are expected to drive the overall market growth in the forecasted period. The market is anticipated to grow at a CAGR of approx. 6% during the forecasted period of 2022-2027.

However, the market growth would be negatively impacted by various challenges such as growing environmental and security concerns, rising complexities in chemical logistics, etc. Since chemical production is associated with climate change, groundwater and soil contamination, degradation of natural resources, waste management issues, noise pollution, air pollution and depletion of non-renewable resources like fossil fuels, oil, natural gas and coal that are used as raw material in chemical manufacturing, Therefore, rising environmental safety concerns among people have contributed to lower demand for various chemical and hence, negative effect on the demand for chemical distribution services, impeding the growth of chemical distribution market.

The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as integration of artificial intelligence (AI) into chemical distribution, outsourcing, increasing investment in research and development, consolidation, etc. With high complexity attached in reaching the end users, there has been rise in chemical companies, outsourcing the purchase of chemicals to chemical distributors as they often provide improved delivery timings and delivery reliability for chemical product ranges. Therefore, with rising dependence of chemical manufacturers on chemical distributors for safe delivery of loose and non bulk chemical material along with handling custom amalgamation and repackaging will continue to boost the demand for chemical distribution services and hence the growth of global chemical distribution market.