Chemical distributors can add value by offering the following services:

1. Connecting supply and demand. for chemical substances, for instance by providing access to local markets or to customers in relatively low tonnage bands. This allows chemical producers to outsource their marketing and sales activities. At the same time it simplifies the sourcing process for customers by providing a one-stop shop for chemicals;
2. Solving logistical challenges related to transport, storage, customs and tax formalities;
3. Providing handling services such as re-labelling, re-packaging or formulating;
4. Assuring the quality of the products delivered at customers;
5. Improving the safety of the chemical supply chain, for instance when storing explosive substances or when trading drug precursors. Next to their own operations, chemical distributors also work on safety at their suppliers and customers. They may for instance audit the capacity of customers to handle hazardous chemicals safely prior to delivery;
6. Assisting suppliers and customers with compliance and legal aspects. The production, transport, storage and use of the chemicals is subjected to many different regulations. Chemical distributors may have better knowledge of local laws than chemical producers or downstream users;
7. Helping customers with financing of the purchase of chemical substances;
8. Enabling innovation thanks to their technical knowledge, flexibility and role as central player in the supply chain between chemical producers or downstream users.

According to the Boston Consulting Group (2017) the chemical distribution industry has grown quickly. Between 2008 and 2015 the global chemical distribution market grew with over 60 % and a similar growth is expected between 2015 and 2022. Increased chemical consumption is a key underlying driver for this growth, but not all growth in the chemical distribution market can be attributed to this. Growth also results from a greater share of outsourced distribution among producers and a broader portfolio of value-added services offered by distributors. As a result the share of the global chemical consumption distributed by chemical distributors is expected to grow from 9,7 % in 2008 to 12,3 % in 2022. The growth is expected to be highest in China and the rest of Asia Pacific. For all regions the compounded annual growth rates for the chemical distribution industry are expected to be higher than the GDP growth.