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March 14 2016, David R Brown

New study on UK chemical distributors by Chemagility forecasts growth of 4.6% p.a to 2020

According to the latest research from Chemagility the UK chemical distribution market was worth EUR 5.6 billion (GBP 4.5 billion) in 2015 which represents around 10.6% of the total European chemical distribution market worth EUR 53 billion.

A paradigm shift in UK chemical distribution will see the emergence of new business models and major structural changes

David brown
Managing Director, Chemagility Ltd

The report shows that the UK chemical distribution industry has enjoyed a period of unprecedented growth. Between 2000 and 2008 it grew at a CAGR of over 6.0% per annum followed by slightly lower growth of 4.5% per annum from 2010 to 2014. This 'golden era' was punctuated by only one year of contraction in 2009, at the height of the global financial crisis, from which the industry quickly recovered.

David Brown, Chemagility's Managing Director, said, “The recession accelerated structural changes and rationalisation in the UK chemical industry which led to plant closures and supply chain weaknesses. This created gaps in the marketplace that agile, entrepreneurial distributors were quick to exploit. UK distributors were also bolstered by on-going outsourcing trends from producers, keen to reduce costs and focus on their core competencies, as well as chemical companies in the emerging economies of China and Asia-Pacific who were looking for partners to facilitate exports to the UK and Europe.”

Chemagility is forecasting a compound annual growth rate (CAGR) of 4.6% for the UK chemical distribution industry between 2015 and 2020. Growth drivers include above GDP growth in key end use markets for distributors, further outsourcing from producers, continued geographic expansion of UK distributors businesses to other regions and diversification of business models to add value and further growth. “This positive outlook assumes no further exogenous shocks from geo-political events or a significant slow-down in the global economy. There is also a high degree of uncertainty surrounding the impact of the REACH 2018 deadline and the upcoming UK referendum on the industry,” added Brown.

The report, 'UK Chemical Distribution 2016', provides a detailed analysis of the UK's chemical distribution sector covering the key players, distributor performance benchmarks, opportunities & challenges, upside & downside trends as well as forecasts to 2020. The report also reviews the development of the industry and its future prospects in context to the wider chemical industry and the macroeconomic situation in the UK.

Reports on Greece, Romania and Bulgaria were published towards the end of 2015 and Chemagility are planning a full report on the European chemical distribution market later in the year.

UK Chemical Distribution 2016 can be purchased online at www.chemagility.com. For an invoice contact Neil Mitchell on +44 (0)1420 476191 or email support@chemagility.com.

Source(s): Chemagility Press Release

Further Information

Visit: http://www.chemagility.com