| BD6003Q |
| MBD Market and Business Development Report : Chemicals Distribution : April 2005 |
|
|
CLICK
 TO BUY |
Report Scope
The UK chemical distribution industry research report analyses the
market size, trends and industry structure. With five year historical data, and
a detailed five year forecast, all data and trends are fully explained
throughout the report.
LIST OF CONTENTS
| 1 | EXECUTIVE SUMMARY |
| 2 | INTRODUCTION |
| 2.1 | Definitions |
| 2.2 | Methodology |
| 2.3 | Abbreviations |
| 2.4 | Market Positioning |
| 2.4.1 | Customers |
| 2.4.2 | Suppliers |
| 2.5 | UK Economy |
| 2.6 | Market Factors |
| 3 | MARKET SIZE AND TRENDS |
| 3.1 | Chapter Summary |
| 3.2 | Market Size |
| 3.3 | Market Trends |
| 3.3.1 | Chemical Market Trends |
| 3.3.2 | E-commerce |
| 3.3.3 | Mode of Distribution |
| 4 | INDUSTRY STRUCTURE |
| 4.1 | Chapter Summary |
| 4.2 | Industry Overview |
| 4.2.1 | Industry Rivalry |
| 4.2.2 | Threat of Entry |
| 4.2.3 | Threat of Substitutes |
| 4.2.4 | Recent Events |
| 4.3 | Structure by Turnover |
| 4.4 | Company Profiles |
| 4.4.1 | Avecia |
| 4.4.2 | Borealis UK |
| 4.4.3 | Petrochem Carless |
| 4.4.4 | Petrochem UK |
| 4.4.6 | DSM United Kingdom |
| 4.4.7 | Polimeri Europa UK |
| 4.4.8 | Octel |
| 4.4.9 | Univar |
| 4.4.10 | S & D Chemicals |
| 5 | FORECAST |
| 5.1 | Chapter Summary |
| 5.2 | Market Size |
| 5.3 | Industry |
| 6 | FURTHER SOURCES & CONTACTS |
| 6.1 | Trade Associations |
| 6.2 | Trade Magazines |
| 6.3 | Trade Exhibitions |
LIST OF TABLES
| No. | Title |
| 1 | UK Chemicals Industry Sector Shares of Gross Value Added, 2004 |
| 2 | UK Demand for Chemicals, by Sector, 2004 |
| 3 | Value of Goods Bought for Resale by UK Chemical Distributors, 2000-2004 |
| 4 | Turnover of UK Chemical Distributors, 2000-2004 |
| 5 | The UK Market for Chemicals, 2000-2004 |
| 6 | Analysis of the Changes in the UK Chemical Distribution Industry, 2000-2004 |
| 7 | Analysis of the Financial Structure of the Chemical Distribution Sector, 2003 and 2004 |
| 8 | Financial Analysis of Avecia, 1999-2003 |
| 9 | Key Financial Ratios for Avecia, 1999-2003 |
| 10 | Financial Analysis of Borealis UK, 1999-2003 |
| 11 | Key Financial Ratios for Borealis UK, 1999-2003 |
| 12 | Financial Analysis of Petrochem Carless, 1999-2003 |
| 13 | Key Financial Ratios for Petrochem Carless, 1999-2003 |
| 14 | Financial Analysis of Petrochem UK, 1999-2003 |
| 15 | Key Financial Ratios for Petrochem UK, 1999-2003 |
| 16 | Financial Analysis of CIBA Speciality Chemicals Investment, 1999-2003 |
| 17 | Key Financial Ratios for CIBA Speciality Chemicals Investment, 1999-2003 |
| 18 | Financial Analysis of DSM United Kingdom, 1999-2003 |
| 19 | Key Financial Ratios for DSM UK, 1999-2003 |
| 20 | Financial Analysis of Polimeri Europa UK, 1999-2003 |
| 21 | Key Financial Ratios for Polimeri Europa UK, 1999-2003 |
| 22 | Financial Analysis of Octel International, 1999-2003 |
| 23 | Key Financial Ratios for Octel International, 1999-2003 |
| 24 | Financial Analysis of Univar, 1999-2003 |
| 25 | Key Financial Ratios for Univar, 2000-2003 |
| 26 | Financial Analysis of S & D Chemicals, 2000-2004 |
| 27 | Key Financial Ratios for S & D Chemicals, 2000-2004 |
| 28 | Forecast UK Market for Chemicals, 2005-2009 |
| 29 | Forecast Value of Goods Bought for Resale by UK Chemical Distributors, 2005-2009 |
| 30 | Forecast Turnover of UK Chemical Distributors, 2005-2009 |
LIST OF DIAGRAMS
| No. | Title | Page |
| 1: | Development of the Value of Goods Bought for Resale by UK Chemical Distributors, |
EXECUTIVE SUMMARY
| 1 | In 2004, the value of goods bought for resale by UK chemical distributors is believed to have accounted for 15% of the total chemicals market compared with 14% in 2000. Furthermore, the value of goods purchased for resale by UK chemical distributors has demonstrated year-on-year growth since 2000. In 2004, a nominal 2% increase is believed to have taken the value to £6.05 billion excluding VAT, representing overall growth of 9% compared with 2000. |
| 2 | The distributors’ market has generally exceeded growth compared with the total chemicals market, partly reflecting the trend of manufacturers outsourcing activities such as sales & marketing and indeed distribution. However, at the same time, distributors have also faced increased competition from chemical producers who are expanding into direct selling via the Internet, a trend which is set to continue. |
| 3 | The turnover of UK chemical distributors is believed to have increased in each year between 2000 and 2004 to £8.18 billion in the latter year, equivalent of overall growth of 7% in nominal terms. MBD believe that growth slowed to just 1% in the latter year compared with slightly stronger growth rates recorded during the early part of the review period. |
| 4 | The difference between the turnover and the revenue from chemicals for re-sale is attributable to ancillary services such as warehousing and re-packaging. This is increasing as a proportion of distributor’s sales, due in part to the efforts to create added value services but also due to rising costs. Furthermore during recent years, margins of chemical distributors have been depressed as a result of the ongoing downturn in the chemicals sector, placing continuing emphasis on cost cutting and operational efficiency. |
| 5 | The UK market for chemicals has fluctuated moderately during the five year review period up to 2004. UK chemicals sales are believed to have increased by 4% in 2000, partly boosted by the oil price impact. However, the value is believed to have declined moderately between 2001 and 2003, reflecting the manufacturing recession in the UK and the worldwide economic slowdown. However, for 2004, MBD estimate a moderate 1% increase in chemicals sales, partially reflecting the moderate increase in UK manufacturing output and the slow global economic recovery. |
| 6 | The UK chemicals market is intrinsically linked to the economic performance of the UK, and particularly to the level of manufacturing output. The development of UK chemicals sales is expected to remain moderate over the next five years. A number of UK manufacturing industries continue to face difficult market conditions and current economic conditions as well as the impending EU legislation provide uncertainties concerning the chemical market development over the next few years. Overall, the UK market for chemicals is forecast to decline marginally in real terms between 2004 and 2009. |
| 7 | Distributors are expected to gain share from chemicals manufacturers, which abandon their attempts at distribution in favour of concentrating on core capabilities, namely the production of chemicals. However at the same time distributors are facing competition from manufacturers which have been increasingly expanding into direct selling via the Internet and further threat is also arising from dotcom exchanges. The value of goods bought for resale by UK chemical distributors is anticipated to demonstrate real term growth during much of the five year forecast period up to 2009. Annual growth levels are expected to remain relatively moderate at between 1% and 2%. Overall, the value of goods is projected to increase by a moderate 1% in real terms between 2000 and 2004. |
| 8 | Turnover of chemical distributors is anticipated to demonstrate real term growth during much of the forecast period. Annual growth levels are expected to remain relatively consistent at a moderate 1% in real terms. In 2009, total turnover of UK chemical distributors is forecast to reach £8.24 billion at 2004 prices, representing an overall increase of 1% in real terms. |
| 9 | The number of customers served by distributors is declining, although many of these incorporate multiple locations. Therefore, the consolidation in the chemical distribution sector is expected to continue, as chemical producers and their customers tend to prefer to deal with large distributors with broad product ranges and multiple, or even global, locations. This is likely to encourage greater concentration in the industry. |
| 10 | A further driver behind the consolidation is believed to be the growing use of IT for interfacing with both chemical manufacturers and their customers, with IT costs more easily absorbed by the larger organisations. However, despite the consolidation, distributors are expected to add value in service, as there is little margin elasticity in the distribution sector. Therefore even the larger operators will need to provide service levels comparable to that of their regional counterparts. Although the large distributors are expected to dominate the commodity end of the market, smaller players able to create added value in the form of niches in geography, product or technology can survive the competition, presenting opportunities for specialisation in the industry, effectively leading to a polarisation of suppliers with the medium sized, non-specialised distributors the most vulnerable to take over activity. |
| 11 | Nonetheless, the trend of smaller chemical distributors forming international partnerships with distributors in different countries is set to continue. This allows them to compete with larger players on an international basis and it also reduces the risk of being too dependent on the domestic market. |
Text © 2005 MBD
| Can't find what you
need? Try our "Research on Request" market report service and define your own report research! Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days |
| Click here for full details |
Ariadne - working together with our customers
to enhance productivity and increase knowledge
© 2005
5www.the-list.co.uk Ariadne
Last updated by Amanda Porteous 2005
