Chemical Wholesalers

Chemical Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate as merchant wholesale distributors of plastics materials and a variety of other chemical products. Major companies include Tricon Energy and Univar Solutions (both based in the US), Brenntag and HELM AG (both based in Germany), ITOCHU (Japan), and Sinochem (China).

COMPETITIVE LANDSCAPE

Chemical distribution is a cyclical business dependent on industrial demand. The profitability of individual companies depends on an efficient distribution system. Larger companies can offer more products and services. Local and regional distributors can compete effectively through superior service or geographic focus. The US industry is concentrated: the largest 50 companies generate about 60% of the revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products distributed by chemical wholesalers include chemicals (except explosives), which account for about 40% of the industry's revenue. This is followed by cleaning chemicals (about 15%) and miscellaneous chemicals and supplies (over 10%). Other products include laminates, plastic raw materials, and automotive chemicals.