At the same time, the distribution market itself continues to consolidate. BCG found that just 5 of the world’s largest chemical distributors accounted for more than 70% of that group’s acquisitions in 2023, and expects M&A activity to accelerate again. Scale, geographic reach and portfolio breadth increasingly matter, especially in a fragmented distribution market.
But the competition goes far beyond who can stock and move the most product.
Chemical distributors increasingly compete on technical expertise, formulation and application support, regulatory knowledge, specialist market understanding, supply chain resilience and the ability to solve complex customer problems. That makes communicating what you know as important as communicating what you sell.
And the way customers find that expertise is changing drastically as well.
Search engines are no longer the only route to discovering suppliers. LLMs can research distributors, compare their capabilities and narrow down potential suppliers against detailed technical and commercial requirements long before a buyer even makes an enquiry.
For an industry competing on expertise, trust and increasingly value-added services, that creates a new commercial challenge: When a potential customer, or the AI helping them, goes looking for an answer, which distributors actually get found?











