The global third-party chemical distribution market to grow at a CAGR of 5.83% during the period 2016-2020.
Global Third-party Chemical Distribution Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the revenue generated from the third party distribution of chemicals.
The chemical distribution process involves sales, logistics, and transportation of chemicals from source to destination. Chemical distributors offer many services such as blending, mixing, packaging, formulation, inventory management, and waste removal as value-added services to their customers. These distributors source the products from chemical manufacturers and supply them to vendors.
From there, these chemicals are again transported to other vendors or directly transported to third-party chemical distributors, who supply these chemicals to the end customers. These chemical distributors derive their profit from both manufacturers and consumers based on high volumes by decreasing the complexity and cost of the supply chain.
According to the report, one driver fostering growth in this market will be the growing demand for value-added services. Distributors worldwide are experiencing high demand for value-added services from both manufacturers and consumers. Due to Europe's slow growth, many chemical manufacturers have to cut down their overhead expenses such as extra internal operating expenses and staffing. Therefore, the value-added services, which were provided by manufacturing companies are now outsourced to third-party distributors.