The Future Dynamics of the Chemical Distribution Business in the ASEAN with the Anticipated Surge of M&A

Abstract

The chemical distribution market size was worth about €210.00 billion in 2015 and is expected to reach €440.00 billion by the year 2030. The specialty chemical distribution market itself had a global market size of about €97.00 billion, of which the Asia-Pacific market contributes about €40 billion (sales in 2017). Asia Pacific has the largest specialty chemical market, and it is the fastest growing, with a compound annual growth rate (CAGR) of 6.8% from 2012 to 2017. North America and Western Europe had a smaller specialty chemical distributor market size and significantly smaller growth rate than the Asia-Pacific market. Chemical consumption in North America and the Western Europe regions is decreasing because of weaker demand from the mature Western economies. The bright spot is that the increased growth of the chemical distribution business through to 2022 will originate from the Asia-Pacific region. Mergers and acquisitions (M&A) activities will pick up tremendously in the Asia-Pacific region as global companies search for fast growth in their business and will opt for M&A to grow inorganically.

TOPICS: Developed markets, emerging markets, frontier markets

Key Findings

• • Who are the major chemical distributors operating in the Asia-Pacific region, especially in the Association of Southeast Asian Nations (ASEAN)?

• • Who are the possible potential targets for M&A for the global chemical distributors in the ASEAN?

• • Are there any other strategies for the global chemical distributors to grow in the ASEAN without doing any acquisition?