Mexico: Specialty Chemical Distribution Market Landscape

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01
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Part
01

Mexico: Specialty Chemical Distribution

Two additional major specialty chemical distributors in Mexico are Pochteca Materias Primas and T.Z. Group. Pochteca's revenue in 2017 was $335.5 million, while T.Z. Group had revenue of $26 million.

Grupo Pochteca SAB de CV

Product Segments

Geographic Coverage

Química Treza SA de CV (T.Z. Group)

Product Segments

Geographic Coverage

  • The company's headquarters is located at Huapango Dam No. 11, Col. Hydraulic Resources, Tultitlán, State of Mexico.
  • The company has five distribution warehouses in Mexico.
  • The addresses, phone numbers, and emails of all its distribution facilities in Mexico can be found here.

Part
02
of two
Part
02

Mexico: Specialty Chemical Distribution Trends

Consolidation and digitalization are two emerging trends that are impacting the specialty chemical distribution industry in North America.

Consolidation

  • In Mexico and Latin America as a whole, distributors in the industry have typically been local and family-owned; there were no regional players a few years ago. This is now changing as consumers can now purchase products globally.
  • There is also an increasing demand for local efficiencies and services in the distribution market. However, because distribution is capital intensive, small players in the local industry cannot easily compete with international players.
  • This situation necessitates the consolidation of the market through the acquisition of small and medium-sized distributors by the major players. The impact of this consolidation is an improvement in the efficiency of the industry.

Companies Adopting the Trend

  • According to Eduardo Denyer Angel, president, Brenntag Latin America North, a significant part of the company's business is specialty chemicals in Mexico. He noted that as most global distributors are investing in expediting consolidation, the company has also been investing in and seeking acquisitions in Mexico, Latin America's second-largest market. With most of its recent acquisitions being specialty chemical players, the company will pursue this consolidation strategy to support its growth plan.
  • According to Johnny Silva, managing director at Disan Mexico, the company, which also distributes specialty chemicals, is also considering acquisitions in Mexico.

Digitalization

  • The entry of multinational conglomerates like Amazon and Alibaba, who are taking advantage of their strides in e-commerce to reach small and medium-sized clients, has further disrupted the traditional market.
  • This disruption has made it necessary for distribution companies to introduce practices that add value, particularly by striving to lessen the burden of logistics through such means as digitalization.
  • Impacting the industry, the digitalization trend will contribute to an increase in the unclear distinction between distributors and logistics providers.

Company Adopting the Trend

  • Leschaco Mexicana, a freight forwarding company, which focuses mainly on chemicals (including specialty chemicals), is one company that is adopting this trend.
  • According to the company's managing director, Martin Sack, while Latin America still lags in terms of technological advancement, major organizations will continue to source their logistics services the usual way. However, the company is already preparing for future trends by investing massively in new technologies to offer digital services for customers who need them.

Research Strategy

To identify emerging or future trends that are impacting the specialty chemical distribution industry in North America, with a focus on Mexico, we found reports that focus on the Latin American chemical distribution industry, which identified trends in the industry as confirmed through interviews of executives of major chemical distribution companies. We ensured that these companies are particularly involved in the distribution of specialty chemicals in Mexico.
Sources
Sources