Latin America Chemical Distribution Market Size By Product (Commodity Chemicals and Specialty Chemicals), By End-User (Industrial Manufacturing, Automotive & Transportation, Construction), By Geographic Scope And Forecast

Latin America Chemical Distribution Market Analysis

Latin America Chemical Distribution Market size was valued at USD 22,595.75 Million in 2021 and is projected to reach USD 34,352.44 Million by 2030, growing at a CAGR of 4.72% from 2022 to 2030.

The growing consumption of chemicals across end-use industries including, construction, pharmaceuticals, polymers, and resins along with the high complexity in reaching the customers are likely to boost the market. The Latin America report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Latin America Chemical Distribution Market Definition

Chemical distributors are mediators that procure chemical products in bulk from chemical manufacturers or other chemical distributors in order to accomplish orders for wholesalers, consumers, governments, and other businesses. They benefit from the gap between the cost of purchasing a product and the cost of selling it at retail.

Chemical distribution is a diversified industry that serves a variety of industries and offers tailored solutions. Pharmaceuticals, food and feed, paints and coatings, construction, cosmetics, agriculture, and automobile are just a few industries.

The chemical distribution sector involves various activities such as packaging, warehousing, logistics, blending, mixing, technical assistance, formulating, training, innovation, and research and development.

Distributors, one of the core members of the supply chain, have to deal with four major factorsquality balance, geographical and time-related distances, product assortment, and service. One of the distributor’s key goals is improving supply management and becoming an indeed added value provider.

Latin America Chemical Distribution Market Overview

The strong presence of key players and local players soaring the market growth. Latin America continues to have a very diverse chemical distribution industry, with hundreds of sub-regional players. Challenging economic conditions, open borders, government regulations, competitive economic requirements, e-commerce, digital production, and lower commodity prices will all lead to greater integration and acquisition in the region. In challenging times like these, some companies are taking the next step. Reno S.A., a specialized solvent distributor based in Chile and operating commercially in Peru and Argentina, has deliberately decided to grow naturally. This ensures that their growth is stable and minimizes their exposure to managing risks, as an acquisition may represent a loss of control. Incorporating new business segments and constantly incorporating new products is another regional distributor strategy to ensure a strong position in front of customers and suppliers. Additionally, growing consumption of chemicals across end-use industries including, construction, pharmaceuticals, polymers, and resins along with high complexity in reaching the customers are likely to boost the market.

However, higher shipping costs and infrastructure challenges are hindering the market growth. Constantly changing fuel costs also has a negative impact on the transportation industry. Uncertainty about the implementation of MARPOL 2020 oil and its limited supply, combined with the 2019 water ballast treatment equipment required on ships, has had an adverse impact. The failure of many charters to secure asset contracts after 2020 has affected the overall levels of commodities and markets, and commodity markets from fixed assets have found deals.

Furthermore, there is an increasing need to develop better infrastructure and improve logistics facilities owing to effective chemical distribution. This offers lucrative growth opportunities for the market. Competing Latin America as a chemical industry will focus on building capacity to facilitate maintenance and, more generally, infrastructure to support the smooth running of things. There is good reason to make these changes sooner rather than later as the steady economic growth and globalization present growing interest in Latin America’s rapidly developing markets.

Latin America Chemical Distribution MarketSegmentation Analysis

The Latin America Chemical Distribution Market is segmented on the basis of Product, End-User, and Countries.

Latin America Chemical Distribution Market, By Product

• Commodity Chemicals• Specialty Chemicals

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On the basis of Product, the Latin America Chemical Distribution Market has been segmented into Commodity Chemicals and Specialty Chemicals. Commodity Chemicals accounted for the largest market share in 2021 and is projected to grow at a CAGR of 4.05% during the forecast period. Specialty Chemicals was the second-largest market in 2021. Commodity chemicals refer to the bulk chemicals that are manufactured on a larger scale with a large volume for a wide range of applications. These have applications across Automotive & Transportation, Cosmetics, Construction, Agriculture, Industrial Manufacturing, Consumer Goods, Textiles, Pharmaceuticals, and the rest of the others. Commodity chemicals are manufactured in huge quantities, as the demand is high across Latin America.

Latin America Chemical Distribution Market, By End-User

• Industrial Manufacturing• Automotive & Transportation• Construction• Consumer Goods• Textiles• Agriculture• Pharmaceuticals• Others

On the basis of End-User, the Latin America Chemical Distribution Market has been segmented into Industrial Manufacturing, Automotive & Transportation, Construction, Consumer Goods, Textiles, Agriculture, Pharmaceuticals, and Others. Industrial Manufacturing accounted for the largest market share in 2021 and is projected to grow at a CAGR of 4.43% during the forecast period. Automotive & Transportation was the second-largest market in 2021. Various industrial manufacturing sectors have been influenced by the growing desire for convenience, fast urbanization, and rising population. These developments have resulted in increased demand and significant growth for industrial manufacturing enterprises. Despite substantial labor and supply chain issues, the manufacturing industry is rapidly regaining ground. Manufacturers must negotiate increased risks while pursuing environmental objectives to retain this pace. Manufacturers are well aware that they must invest more in long-term operations.

Latin America Chemical Distribution Market, By Countries

• Brazil• Argentina• Colombia• Chile• Rest of Latin America

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The Latin America Chemical Distribution Market is segmented on the basis of countries into Brazil, Argentina, Colombia, Chile, and the Rest of Latin America. Brazil accounted for the largest market share in 2020 and is projected to grow at the highest CAGR of 5.01% during the forecast period. Argentina was the second-largest market in 2020. Brazil’s chemical industry is one of the world’s largest, as well as the Southern Hemisphere’s leader. Brazil is a logical choice for the chemical industry because it is rich in oil, gas, minerals, and rare earth, as well as has a diverse ecosystem. Brazil’s chemical industry is the seventh-largest in the world, and it has expanded significantly as the country’s economy has grown in prominence. The chemical industry in Brazil is the third-largest industrial sector in the country, accounting for 10% of the total industrial GDP.

Key Players

The “Latin America Chemical Distribution Market” study report will provide valuable insight with an emphasis on the Latin America market. The major players in the market are Brenntag AG, Univar Inc., Evonik, Fagron, GTM Caldic, Sun Chemicals, ICC Chemicals, Barentz B.V., Azelis Holding S.A., Omya AG, Jebsen & Jessen Offshore, TER Group, and others.

Key Developments

• Brenntag Specialties announced a new agreement with specialty chemical and optical brightener producer, Archroma• Archroma had built decades of expertise in dyestuff and specialty chemical solutions bringing color and performance to textile, paper, packaging, coatings

• Univar Solutions and BASF expanded collaboration• Univar Solutions has been named the exclusive distributor for BASF’s Chemical Intermediates’ Glyoxal• With this agreement BASF and Univar Solutions, a global chemical and ingredient distributor and provider of value-added services, expand their collaboration to better serve customers through a host of sustainable solutions across a range of applications

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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