Global market leader in chemical and ingredients distribution
In the coming years, Brenntag aims to strengthen and further expand its position as the global market leader in chemical and ingredients distribution in a changing global market environment.
In financial year 2025, Brenntag worked systematically to drive the execution of its “Strategy to Win” presented in November 2022. Firstly, the core elements comprised differentiated strategies for the two divisions Brenntag Specialties and Brenntag Essentials.
Brenntag Essentials’ strategy is based on local (last-mile) delivery services, regional provision and regional supply chain services, global sourcing and interregional optimization. Through this business model, Brenntag Essentials plans to accelerate its growth in the highly attractive, globally expanding market for the distribution of commodity and industrial chemicals.
Brenntag Specialties is placing emphasis on price and margin management, cost and efficiency improvements, portfolio management and strategic portfolio decisions, and value-added services. With its global industry segments, Brenntag Specialties is implementing dedicated industry strategies and plans to extend its focus on very attractive market segments and further increase Life Science’s share of the portfolio.
Secondly, in addition to the dedicated strategies, Brenntag is pursuing a sustainability agenda with the aim of assuming a leading role in the responsible distribution of sustainable chemicals and ingredients. This includes achieving net-zero emissions by 2050, for example.
Thirdly, Brenntag aims to drive market consolidation through value-creating M&A activity. The focus here is on selectively expanding the market position in EMEA and the Americas in both divisions, strengthening strategic capabilities and market positions, adding to the existing portfolio and enhancing technical capabilities.
Fourthly, it is transforming itself into a data- and technology-driven company (Digital.Data.Excellence (DiDEX) initiative). At the same time as pursuing the aforementioned “Strategy to Win” with its four core elements, Brenntag will in future place a clear focus on improving operational efficiency. The further disentanglement of Brenntag Specialties and Brenntag Essentials still planned at the beginning of 2025 will not be pursued. Since the beginning of the year, the company has also been implementing a stringent cost-reduction program at an accelerated pace, with an annual target of EUR 300 million in savings. A key element of the accelerated program is to reduce organizational complexity, simplify and streamline administrative processes, and eliminate duplicate structures and structural overlaps. The initiatives also include implementing a worldwide reduction in personnel in a socially responsible manner. The focus is primarily on administrative costs, mainly at the corporate headquarters and within support functions. The program is subject to the usual consultations with works council representatives. In addition, Brenntag will continue to optimize the global site network, including assessing site closures and market exits.
1) Chemical substances, including the quality grade and concentration level (in the case of diluted products) or the product form (in the case of solid substances), are recorded as chemicals.