Stale wholesale: Low demand and weak chemical prices have constrained revenue growth

The Industrial and Agricultural Chemical Product Wholesaling industry plays a major role in Australia's chemical sector, distributing a range of products, including organic chemicals, adhesives, industrial gases, explosives, fertilisers, pesticides, plastic resins, plasticisers and agricultural chemicals. Many of these products are then used by other firms to produce a variety of base products, intermediate goods and components, and finished products. Although competing imports are included in the relevant manufacturing industry, rather than at the wholesaling level, the level of chemical product imports affects industry firms.Industry products tend to be homogeneous commodities, with prices set on the international stage in response to global demand and supply trends...read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 13-18
-0.1%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
16,149
Businesses
2,339
Market Share of Companies

Industry Threats & Opportunities

  • The prices of industry products are set in response to global demand and supply trends
  • The Manufacturing division's decline has negatively affected industry demand
  • An anticipated improvement in demand from downstream markets will support revenue growth

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    Industry Report - Industry Key Buyers Chapter

    The top four industry players are estimated to account for 15.8% of industry revenue in 2017-18, demonstrating the industry's low concentration level. This reflects the fragmented nature of the industry and the disparate range of goods distributed to a host of industries ranging from agriculture to downstream service industries. Over the past five years, there has been some industry consolidation as players have divested operations to concentrate on core businesses. Some of the larger companies in the industry have also increased revenue levels at a faster rate than the industry on average. These developments have increased industry concentration, a trend that is expected to continue over the next five years.Industry concentration can vary between market segments. For...purchase to read more.

    Additional Insights for the Industrial and Agricultural Chemical Product Wholesaling Industry

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

  • Having a good technical knowledge of the product
  • Must comply with government regulations
  • Ability to control stock on hand

    • IBISWorld analysts also discuss how external factors such as Demand from manufacturing and Demand from mining in the Industrial and Agricultural Chemical Product Wholesaling industry impact industry performance..

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    Industry Products

    What is the Industrial and Agricultural Chemical Product Wholesaling Industry?

    Industry companies wholesale a range of basic and specialty industrial and agricultural chemicals, and allied products. These products are sourced from upstream manufacturing industries or imported. The industry is not involved in manufacturing relevant chemical products, or wholesaling pharmaceuticals or personal-care products.

    Industry Products
  • Polymer and plastic product wholesaling
  • Other basic chemical product wholesaling
  • Specialty chemical product wholesaling
  • Other agricultural chemical product wholesaling
  • Fertiliser, herbicide and pesticide wholesaling
  • Explosives wholesaling
  • Industrial chemical and gas wholesaling
  • Pigment and colour chemical wholesaling
    • Industry Activities
  • Acid, adhesive, bleaching compound, detergent and gelatine wholesaling
  • Explosives wholesaling (except ammunition)
  • Fertiliser, pesticide, insecticide, herbicide and weedkiller wholesaling
  • Industrial detergent, soap, oil, fat and alcohol wholesaling
  • Industrial gas and liquefied gas wholesaling (except liquefied petroleum gas)
  • Marine oil, methylated spirit and oil treating compound wholesaling
  • Other miscellaneous chemical product wholesaling
  • Pigment, dyestuff and chemical colour wholesaling
  • Photographic chemical, plasticiser, polish and synthetic rubber wholesaling
  • Plastic block, rod, plate, sheeting and other unfinished products wholesaling
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Demand from manufacturing
  • Demand from mining
  • Demand from agriculture
  • Trade-weighted index
  • Demand from construction

    • Current Performance
  • Revenue and demand
  • Profit and pricing
  • Changing demand
  • Chart: Revenue Growth

    • Industry Outlook
  • Key demand drivers
  • Imports and profit
  • Upstream rationalisation
  • Challenges ahead
  • Table: Industrial and Agricultural Chemical Product Wholesaling Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Mining
  • Construction

    • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Explosives Manufacturing
  • Fertiliser Manufacturing
  • Industrial Gas Manufacturing
  • Pesticide Manufacturing
  • Synthetic Resin and Synthetic Rubber Manufacturing

    • Products & Services
  • Fertiliser, herbicide and pesticide wholesaling
  • Specialty chemical product wholesaling
  • Other basic chemical product wholesaling
  • Industrial chemical and gas wholesaling
  • Polymer and plastic product wholesaling
  • Other agricultural chemical product wholesaling
  • Explosives wholesaling
  • Pigment and colour chemical wholesaling
  • Chart: Industrial and Agricultural Chemical Product Wholesaling Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Chemical manufacturing companies
  • Agricultural companies
  • Other manufacturing companies
  • Mining, oil and gas companies
  • Construction and other companies
  • Chart: Major Market Segmentation for the Industrial and Agricultural Chemical Product Wholesaling Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Industrial and Agricultural Chemical Product Wholesaling

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial and Agricultural Chemical Product Wholesaling Industry

    • Industry Globalization

    Major Companies

    Ixom HoldCo Pty Ltd,
  • Table: Ixom HoldCo Pty Ltd - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial and Agricultural 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

    Key Statistics

    Table: Industry Data for the Industrial and Agricultural Chemical Product Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Basic Chemicals
  • Also commodity chemicals, these include polymers, basic industrial chemicals, inorganic chemicals and fertilisers.
    • Crop-Production Products
  • General term for fertilisers and related goods
    • Crop-Protection Products
  • General pesticide products including pesticides, herbicides and insecticides.
    • Plasticisers
  • An additive to plastics that increase flexibility and resilience.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Industrial and Agricultural Chemical Product Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Industrial and Agricultural 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 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 Industrial and Agricultural 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 Industrial and Agricultural 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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