Chain reaction: Strong demand from residential construction has boosted industry revenue

The Chemical Product Wholesaling industry distributes a diverse range of products including industrial chemicals and gases, essential oils, glues, construction-related products, agrochemical products and fertilisers. As a result, it serves a wide range of clients. Many of these products are intermediates, including base and feedstock products, and speciality and refined chemicals, which are sold as inputs to manufacturing industries. The industry is highly fragmented, with no player commanding a market share of more than 5%.Over the five years through 2019-20, revenue is expected to rise at a compound annual rate of 0.2% to £13.9 billion...read more.

Industry Statistics & Market Size
Revenue
£13.9bn
Annual Growth 15-20
0.2%
Forecast Growth 20-25
Profit
Employment
19,369
Businesses
1,681
Market Share of Companies

Industry Threats & Opportunities

  • Demand from manufacturing and residential construction sectors has boosted revenue
  • Oil price changes have been passed to wholesalers and thus on to their customers
  • Rising industrial production activity is expected to support revenue growth
  • Industry Report - Industry Investment Chapter

    The industry displays a moderate level of capital intensity, reflecting the reliance on labour in many areas of operation. IBISWorld estimates that for every £1.00 spent on capital, industry operators will spend £7.33 on labour in 2019-20. The level of capital intensity has been increasing over the past five years, as an increasing reliance on IT platforms for inventory control has been reflected in higher capital investment.The level of capital intensity varies between firms, as some wholesalers use limited labour due to the intermediary nature of the operations and minimal, if any, value-adding to physical goods. Moreover, transportation and warehousing can sometimes be outsourced. On the other hand, the provision of ancillary sales services is supporting demand for labour...purchase to read more.

    Additional Insights for the Chemical Product Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Chemical Product Wholesaling Industry are

  • Having a good technical knowledge of the product
  • Ability to control stock on hand
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Downstream demand from manufacturing and Demand from basic pharmaceutical product manufacturing in the Chemical Product Wholesaling industry impact industry performance..

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    What's in this report

    What is the Chemical Product Wholesaling Industry?

    Companies in the Chemical Product Wholesaling industry are involved in the wholesale of various industrial chemicals and gases. They also wholesale fertilisers, agrochemical products, glues and essential oils. The industry does not include the activities of commission agents, commodity brokers and other types of wholesalers acting on behalf of others.

    Industry Products
  • Industrial gases
  • Fertilisers and agrochemicals
  • Polymers and essential oils
  • Pharmaceutical chemicals
  • Cleaning chemicals
  • Chemicals used in food industries
  • Industry Activities
  • Wholesaling industrial chemicals and gases
  • Wholesaling fertilisers and agrochemical products
  • Wholesaling glues and essential oils
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Downstream demand from manufacturing
  • Demand from basic pharmaceutical product manufacturing
  • World price of crude oil
  • Industrial production index
  • Downstream demand from agriculture
  • Total value of construction

  • Current Performance
  • Current Performance continued
  • Up in the air
  • Oil prices
  • Firm fragmentation
  • Marginal improvement
  • Chart: Revenue Growth

  • Industry Outlook
  • Building up
  • Global growth
  • Regulating change
  • Pressure points
  • Table: Chemical Product Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chemical Product Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereals, Leguminous Crops & Oilseed Growing
  • Crude Petroleum & Natural Gas Extraction
  • Perfume & Cosmetics Manufacturing
  • Basic Pharmaceutical Product Manufacturing
  • Commercial Building Construction

  • Key Selling Industries
  • Essential Oil Manufacturing
  • Fertiliser & Nitrogen Compound Manufacturing
  • Glue & Adhesives Manufacturing
  • Industrial Gas Manufacturing
  • Paint, Coatings & Printing Ink Manufacturing
  • Pesticide & Other Agrochemical Manufacturing
  • Primary Form Plastics Manufacturing

  • Products & Services
  • Polymers and essential oils
  • Fertilisers and agrochemicals
  • Industrial gases
  • Pharmaceutical chemicals
  • Chemicals used in food industries
  • Cleaning chemicals
  • Chart: Chemical Product Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Chemical manufacturers
  • Oil, gas and mining sector
  • Agriculture and food sector
  • Coating and adhesive manufacturers
  • Other manufacturing industries
  • Chart: Major Market Segmentation for the Chemical Product Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Chemical Product Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chemical Product Wholesaling Industry

  • Industry Globalization
    Brenntag AG,
  • Table: Brenntag AG - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chemical Product Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Chemical Product Wholesaling Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)
  • IT services and related spend (2011-2025)
  • Insurance (2011-2025)
  • Telecommunications (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Agrochemical
  • A generic term for the chemicals used in agriculture.
  • Fertiliser
  • A substance that is added to soil to supply one or more plant nutrients essential to the growth of plants.
  • Wholesale Bypass
  • A growing trend whereby upstream producers supply goods directly to the end consumers or retailers, thereby bypassing the wholesaler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chemical Product Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Chemical Product Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Chemical Product Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Chemical Product Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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