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Supply chains across the globe suffered during the
pandemic. The chemicals industry was hit hard
because of the global nature of supply chains.
Evolving consumer preferences and new distribution
models continually reshape the chemical blending and
mixing M&A industry, presenting challenges and
opportunities. However, despite this era of disruption,
there are valuable opportunities.
As chemical mixing and blending companies seek
growth opportunities through acquisitions or begin to
think through an exit strategy, REAG is prepared to help
entrepreneurs better understand their options and
make informed decisions that drive value.
The market size, measured by revenue, of the Chemical Product Manufacturing industry was $62.4bn in 2022 with size increasing in that same year by 17.6%.
Developments in the consumer appliance sector are expected to stimulate demand and industry concentration is low, with the top three players accounting for 18.8% of total industry revenue in 2023.
Low industry concentration can create favorable conditions for mergers and acquisitions (M&A) in certain cases. When an industry has low concentration, there may be more opportunities for companies to acquire smaller competitors or consolidate fragmented market segments. This can lead to increased market share, economies of scale, and enhanced competitiveness for the acquiring companies.
Manufacturing levels are forecast to rise in markets, such as household parts and construction materials, boosting demand for chemicals needed in downstream production and technology continues to be the differentiating factor among small and large operators in the industry.
In this chemical mixing and blending, companies engage in the production of a wide variety of chemical goods.
Vital operations encompass the customized blending of plastic resins, as well as the manufacturing of toners, toner cartridges, photographic chemicals, and sensitized photographic film, paper, and plates.
The process of custom compounding plastic resins involves the specialized mixing and blending of acquired plastic resins, as well as the reformulation of plastic resins derived from recycled plastic products.
Mergers and acquisitions (M&A) in this market segment provides companies with opportunities to expand their product portfolios, access new markets, achieve economies of scale, enhance technological capabilities, and strengthen their competitive positions in the industry.
Chemical mixing and blending refers to the process of combining different substances or components to create a homogeneous mixture with desired properties.
This includes working with and supporting industries that rely on variety of chemicals, including: resins, raw
materials, toll blending, private labeling, water based, solvent based, flammable, oil based, soaps, lubricants,
adhesives, sealers, specialty coatings, coatings and cementitious material, as well as filling and bottling.
Chemical mixing and blending are important as they enable the creation of uniform compositions, ensuring
consistent product quality, improved performance, and efficient utilization of resources.
Several essential industries rely on chemical mixing and blending, including the pharmaceutical, food and beverage, cosmetics, agriculture, automotive, construction, and manufacturing sectors.
Nearshoring chemical mixing and blending offers several advantages, including reduced transportation costs, faster
response times, better communication and collaboration, improved quality control, and increased flexibility in
adapting to changing market demands.
The main materials used in the industry include silver, pulp, polyvinyl chloride (PVC) chemicals, petrochemicals, plasticizers and various organic and inorganic chemicals.
Schedule a discovery call with our senior advisory team so we can understand your needs.
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