Polymer distribution continues playing a strategic role within the polymer industry value chain. It offers polymer producers chances to reduce costs, boost productivity, and provide superior service and support to plastics processors.
AMI Consulting has published the ninth edition of its authoritative report mapping the European Polymer Distribution industry. The research, which was released in October 2024, gives investors and industry participants a thorough grasp of the competitive challenges, market dynamics, and industry development scale.
In 2023, over 4.6 million tonnes of polymers were distributed throughout Europe, representing around 17% of the total demand. Polymer distribution generated revenues of over EUR 10 billion, with an added value of EUR 1.2 billion (27% more than in 2020). Despite the difficulties presented by the current situation of market, polymer distributors have been able to capitalise on industry dynamics to increase their profits, demonstrating that polymer distribution is still a lucrative business.
Besides limited demand and increased competition, the industry has been facing unprecedented challenges, including a pandemic, the Russian war in Ukraine and disruptions in logistics caused by the Red Sea crisis and the unrest in the Middle East. In addition, increased production capacities and a slowdown in demand for consumer durables has led to excess supply. Meanwhile, European producers faced challenges due to competitive imports (especially from the US and Asia) and rising energy costs, which exerted downward pressure on prices and margins.
In response, the European distribution market has maintained the robust M&A activity that began around a decade ago. Consolidation has been mainly driven by the desire to achieve economies of scale, increase market share, expand product offerings, and improve competitiveness. However, financial investment transactions carried out by private equity companies are becoming more and more significant.
Demand for recycled material is still rather contained, but European polymer distributors are well aware that recycled materials will eventually pick up pace despite the challenges related to waste collection and end-to-end traceability. The challenge ahead for the distribution industry is to understand where it fits in this segment and how the distributor can add value to the supply chain on behalf of the customers. Overall, conditions remain unstable, and outcomes are hard to foresee, with players constantly seeking to differentiate themselves through product quality, technical expertise, and value-added services.
Value added by distribution in the EU in 2023 (EUR million)
The ninth edition of AMI’s highly regarded Polymer Distribution in Europe report is the result of an extensive research programme, providing a detailed independent assessment of this industry. AMI Consulting has been monitoring the trends in this industry for over 20 years and, building on the previous editions, this study has been evolving into the most comprehensive analysis of polymer distribution currently available on the market. It represents an essential guide for industry players as they optimise business activities and plan future investments.
The study highlights the development of the Polymer Distribution market over the past five years (2018-2023), how it is responding to global volatilities, the implications of increasing imports, and how the market is likely to develop over the next five years to 2028. The report quantifies the of the polymer market, the share of demand supplied through distribution channels, as well as distributors’ volumes of sales and turnover.
