Chemical imbalance: Lower input prices have caused lower selling prices, hindering revenue growth

As a key intermediary between chemical manufacturers and downstream industry, the Chemical Wholesaling industry plays an important role in the chemical supply chain. The construction and manufacturing sectors are the key customers for chemical wholesalers and, as a result, their production levels largely determine industry demand. As overall conditions have improved in the US economy, downstream demand has grown, boosting industry production over the five years to 2017. Looking ahead, the industry is projected to experience strong demand from the manufacturing and construction sectors, which, in conjunction with recovering oil prices, will drive up revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$177bn
Annual Growth 12-17
-0.7%
Forecast Growth 17-22
Profit
Employment
127,480
Businesses
12,449
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry is projected to experience strong demand from the manufacturing and construction sectores
  • Demand from downstream customers will strengthen as the economy continues to recover
  • Industry Report - Industry Locations Chapter

    Chemical wholesalers operate throughout the country, but they are primarily concentrated in the Southeast region, where 24.7% of the industry’s facilities are located. An estimated 75.0% of North American chlor-alkali capacity is located in the Gulf Coast region. Moreover, of the 40.0 million to 43.0 million tons of sulfuric acid consumed each year, 30.0 million tons are manufactured and consumed on-site at fertilizer manufacturing facilities. Most of these facilities are located in the Southeast and West regions (13.3%) of the United States. Having facilities in these regions puts wholesalers close to key market segments and other wholesale and retail businesses.Texas and California have the greatest number of facilities, with 11.8% and 9.5%, respectively. Cal...purchase to read more.

    Additional Insights for the Chemical Wholesaling Industry

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

  • Guaranteed supply of key inputs
  • Having links with suppliers
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Industrial production index in the Chemical Wholesaling industry impact industry performance..

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    What's in this report

    What is the Chemical Wholesaling Industry?

    This industry wholesales chemicals and related products, including compressed gas, chemical additives and synthetic rubber, to the manufacturing, construction and mining industries. This industry does not wholesale agricultural or medicinal chemicals, paints or varnishes, fireworks or plastics materials.

    Industry Products
  • Alkalies and chlorine
  • Industrial gases
  • Detergents and soaps
  • Biofuels
  • Adhesives, automotive chemicals
  • Other chemicals
  • Industry Activities
  • Wholesaling acids
  • Wholesaling chemical additives (e.g. concrete, food, fuel and oil)
  • Wholesaling compressed gases (except liquefied petroleum gas)
  • Wholesaling explosives (except ammunition and fireworks)
  • Wholesaling industrial chemicals
  • Wholesaling laundry soap, chips and powder
  • Wholesaling oil additives
  • Wholesaling resins and synthetic rubber
  • Wholesaling sulfuric acid
  • Wholesaling synthetic rubber
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from construction
  • Industrial production index
  • Demand from plastic and resin manufacturing
  • World price of crude oil

  • Current Performance
  • Stable demand conditions
  • Fluctuating input prices
  • Industry consolidation
  • Increasing regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions strengthen further
  • Fluctuating input prices
  • Industry consolidation
  • Increasing regulation
  • Table: Chemical Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Textile Mills
  • Shoe & Footwear Manufacturing
  • Sawmills & Wood Production
  • Wood Paneling Manufacturing
  • Paper Mills
  • Petrochemical Manufacturing
  • Pesticide Manufacturing
  • Cosmetic & Beauty Products Manufacturing
  • Semiconductor & Circuit Manufacturing
  • Circuit Board & Electronic Component Manufacturing

  • Key Selling Industries
  • Adhesive Manufacturing
  • Dye & Pigment Manufacturing
  • Explosives Manufacturing
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing
  • Oxygen & Hydrogen Gas Manufacturing
  • Soap & Cleaning Compound Manufacturing

  • Products & Services
  • Other chemicals
  • Adhesives, automotive chemicals
  • Alkalies and chlorine
  • Detergents and soaps
  • Biofuels
  • Industrial gases
  • Chart: Chemical Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing and mining industrial users (for production)
  • Wholesalers (for resale)
  • Retailers (for resale)
  • Other businesses (for production)
  • Chart: Major Market Segmentation for the Chemical Wholesaling Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chemical Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Chemical 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 Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Industrial Production Index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Environmental Protection Agency (Epa)
  • A government agency designed to protect human health and safeguard the natural environment.
  • Surfactant
  • Compounds that lower the surface tension between two liquids or between a liquid and a solid; they may act as detergents, wetting agents and foaming agents.
  • Wholesale
  • The sale and resale of goods without transformation to retailers, commercial customers and other wholesalers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Chemical Wholesaling Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Chemical Wholesaling industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 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 of 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 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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