Chemical Logistics Market Analysis

Global Chemical Logistics Market Overview

Chemical Logistics Market Size was valued at USD 273.50 Billion in 2023. The Global Chemical Logistics industry is projected to grow from USD 282.70 Billion in 2024 to USD 388.13 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.04% during the forecast period (2024 - 2032).

Increased trade and industrial output, growing demand for chemicals in various industries, and rising demand in specific sectors (e.g., pharmaceuticals) driving the Chemical Logistics Market.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Chemical Logistics Market Trends

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  Growing Demand for Chemicals in Various Industries

  
  

The market for chemical logistics, both in terms of revenue and growth rates, is likely to witness significant advancements soon due to the growing need for chemicals in other industries. This demand is supported by the increasing utilization of chemicals in industries such as pharmaceuticals, agriculture, F&B, construction, and automotive, which all influence the growth of chemical logistics in one way or another.

One such source of sustenance towards achieving this is the surging pharmaceutical industry, which needs a regular chain of chemicals and other raw materials to proceed. It is noted that the pharmaceutical industry has experienced a very high demand for active pharmaceutical ingredients (APIs) and Excipients', especially after the COVID-19 pandemic. As the world's population continues to rise and get old, the consumption of medicines and other health-related products is also on the rise, which creates a demand for the provision of chemical infrastructures that are reliable and effective. Such logistics services are engaged to ensure adequate measures are undertaken in transporting chemicals considered sensitive and harmful to the health and environment in compliance with strict regulations.

In the field of agriculture, the market for agro-chemicals like fertilizers, pesticides, and herbicides constitutes yet another major factor driving the growth of chemical logistics. As the global population is expected to grow to close to 10 billion by the year 2050, the need for food cultivation is increasing, which requires the application of sophisticated agricultural chemicals for better crop yield and pest control. These chemicals also require specialized logistics, which further adds to the size of the general chemical logistics market. Further, the focus on sustainable agricultural practices and bio-based chemistry offers new markets and new problems for transport organizations that must meet this changing market's requirements.

Food and beverage businesses contribute to the growth of chemical logistics. They are actively utilized in the production, preservation, and packing of food, with strict rules on their application. As more people consume fast and packaged food, there are corresponding food-grade chemicals, hence an increasing requirement for food transportation and specialized logistics services. The transport of food chemicals must also conform to health standards to reduce food contamination or spoilage, which is imperative for maintaining food quality and safety.

Chemical Logistics Market Segment Insights

Global Chemical Logistics Service types Insights

By Service Types, Chemical Logistics (3PL) market was segmented into Transportation Management, Warehousing and Distribution, Customs Brokerage and Compliance, Specialized Services, and Value-Added Services. The chemical logistics market, particularly within the Transportation Management segment, is poised for steady growth from 2024 to 2032, driven by various factors across different transport subtypes. In 2024, the market for Transportation Management in chemical logistics is projected to reach $99.67 billion, with expectations to grow to $159.81 billion by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 4.39%. This growth is supported by increasing global trade, advancements in supply chain technologies, and the rising complexity of chemical transportation needs.

Figure 1: Chemical Logistics Market, by Service Type, 2023 & 2032 (USD Billion)

Global Chemical Logistics Chemical Type Insights

By Chemical Type, market is segmented into Basic Chemicals, Specialty Chemicals, Agrochemicals, Pharmaceutical Chemicals, Petrochemicals, Other Types. Basic chemicals, also known as commodity chemicals, are produced in large quantities and serve as the building blocks for various chemical processes and products. This category includes both inorganic and organic chemicals. Inorganic chemicals consist of acids, alkalis, salts, and other compounds used in various industries such as manufacturing, agriculture, and water treatment. Organic chemicals, on the other hand, are primarily derived from petrochemical feedstocks, such as ethylene, propylene, and methanol, which are essential for producing plastics, synthetic rubber, and other materials.

The demand for basic chemicals is primarily driven by their widespread use across multiple sectors, including construction, automotive, textiles, and consumer goods. Growing urbanization and industrialization, especially in developing regions like Asia-Pacific, are significant factors propelling demand for these chemicals. Additionally, the rising need for sustainable products and materials is pushing innovation in the production of eco-friendly organic chemicals, thereby stimulating demand in this segment. In 2023, the global market size for basic chemicals is estimated to be around USD 1.2 trillion, driven by a robust increase in demand from sectors such as manufacturing, automotive, and consumer goods. Top logistics companies providing services to this segment include Maersk Logistics, Expeditors, CH Robinson, and Kuehne + Nagel, which offer transportation, warehousing, bulk handling, and regulatory compliance services. The compound annual growth rate (CAGR) for basic chemicals logistics is projected to be around 4.37% from 2024 to 2033, driven by rapid industrialization and increasing consumer demand worldwide.

Global Chemical Logistics End Use Insights

By End-Use, market is segmented into Agriculture, Pharmaceuticals, Manufacturing, Oil and Gas, Food and Beverage, Consumer Goods, Other End-Use. The agriculture sector is a foundational pillar in the Chemical Logistics Market, necessitating the extensive use of agrochemicals like fertilizers, pesticides, and herbicides. As the global population expands, the demand for food production intensifies, directly correlating with the need for agrochemicals. In 2023, the market for chemical logistics in agriculture was valued at USD 27.29 Billion and is projected to grow to USD 28.10 Billion in 2024, ultimately reaching USD 37.39 Billion by 2032. The sector is expected to grow at a steady CAGR of 3.63% from 2024 to 2032. This growth is primarily driven by the ongoing need to enhance agricultural productivity and meet global food security demands. Agrochemicals are critical for optimizing crop yields, making their timely and efficient transportation essential. The logistics involved require specialized handling, storage, and transportation capabilities to prevent contamination and maintain the effectiveness of these chemicals. Furthermore, the shift towards sustainable farming practices is expected to spur the demand for bio-based agrochemicals, further complicating logistics requirements. Regionally, Asia-Pacific is a significant market for agricultural chemicals due to its large agricultural base, followed by North America and South America. The focus on enhancing supply chain efficiency, coupled with stringent environmental regulations, will shape the future logistics strategies in this sector.

Global Chemical Logistics Regional Insights

The report on the Global Chemical Logistics (3PL) Market has been segmented based on regions such as Europe, North America, Asia-Pacific, South America, Middle East & Africa.

North America is the largest regional market for chemical logistics, reflecting its significant industrial base and established infrastructure. In 2023, the market was valued at USD 101.47 billion, with projections to reach USD 104.32 billion in 2024 and grow to USD 137.01 billion by 2032. The region is expected to grow at a CAGR of 3.47% from 2024 to 2032. This growth is driven by the robust demand for chemicals in industries such as manufacturing, oil and gas, pharmaceuticals, and consumer goods. The United States is a major hub for chemical production and consumption, requiring advanced logistics solutions to handle the volume and complexity of chemical shipments. Canada also plays a vital role, particularly in the oil and gas sector, where chemical logistics is crucial for operations in the Alberta oil sands and other regions.

Europe is another significant market for chemical logistics, supported by a well-established chemical industry and stringent regulatory standards. In 2023, the market size was USD 66.79 billion, with expectations to grow to USD 68.64 billion in 2024 and reach USD 89.89 billion by 2032, at a CAGR of 3.43% from 2024 to 2032. The demand for chemical logistics in Europe is driven by key industries such as pharmaceuticals, automotive, and manufacturing, which require reliable and efficient transportation of chemicals. Germany, the largest chemical producer in Europe, along with France, the United Kingdom, and Italy, are major contributors to the market. The logistics providers in this region must navigate a complex regulatory environment, ensuring compliance with European Union (EU) standards for chemical safety and environmental protection.

Figure 2: Chemical Logistics Market, by region, 2023 & 2032 (USD Billion)

Global Chemical Logistics Key Market Players & Competitive Insight

In 2023, the chemical logistics market is characterized by a competitive landscape with several key players vying for market share. The market is highly fragmented, with the top five players—Maersk Logistics, CH Robinson, Kuehne + Nagel, DSV, and GXO—collectively holding 23.5% of the total market. The remaining 76.5% is distributed among numerous smaller companies and specialized providers, indicating a broad base of competition and a diverse range of service offerings within the industry.

Maersk Logistics leads the market with a 5.60% share, leveraging its extensive global network and strong presence in ocean and inland logistics. The company's integrated supply chain solutions and focus on reliability and efficiency make it a dominant player in the chemical logistics sector. CH Robinson follows closely with a 5.30% market share. Known for its robust transportation management and logistics services, CH Robinson has capitalized on its broad network and expertise in supply chain management to maintain a significant position in the market.

Key Companies in the Chemical Logistics Market include.

• Maersk Logistics


• Expeditors


• CH Robinson


• Kerry Logistics


• DP World Logistics


• Hellmann Worldwide Logistics


• Agility Logistics


• Kuehne + Nagel


• DSV


• Geodis


• GXO

Global Chemical Logistics Industry Developments

In June 2024, Maersk Logistics International Logistics Supply Chain Management Practice was reinforced with an aim to promote the international movement of chemical products by ensuring their transportation across various regions in a safe and timely manner.

In June 2024, UPS Supply Chain Solutions expanded its collection of road logistics services in the quest to meet the needs of the consumers by making direct to consumers’ deliveries of chemical products. This also included expanding existing delivery networks and developing final delivery solutions.

In May 2024, FedEx expanded the scope by adding additional regional distribution roads in the Asia Pacific area, including new hubs targeting the expansion of road transportation and capability to move chemicals – new cross routes.

In May 2024, Kuehne + Nagel was able to incorporate systems such as automated and real-time risk monitoring that enabled not only the management of risks but also emergency protocols, allowing the company to operate better under the new regulations set.

In May 2024, C.H. Robinson has promptly entered into the development of sophisticated management and securing technologies of chemicals under threat encompassing of improved monitoring during delivery of volatile materials. Furthermore, this increases the ability for better on the spot monitoring and securing of materials supplied during supply chain processes.

In January 2024, Sinotrans launched an online digital platform with the goal of enabling the effective tracking and management of the logistics of chemicals. The various functions that the framework integrates include tracking orders, schematic planning, managing the warehouse, and measuring supply quantitatively. This boosts the effectiveness and transparency of the logistics movement

Chemical Logistics Market Segmentation:

Chemical Logistics Market by Service Types Outlook (USD Billion, 2019-2032)

• Transportation Management


• Warehousing and Distribution


• Customs Brokerage and Compliance


• Specialized Services


• Value Added Services

Chemical Logistics Market by Chemical Type Outlook (USD Billion, 2019-2032)

• Basic Chemicals


• Specialty Chemicals


• Agrochemicals


• Pharmaceutical Chemicals


• Petrochemicals, Other Types

Chemical Logistics Market by End-Use Outlook (USD Billion, 2019-2032)

• Agriculture


• Pharmaceuticals


• Manufacturing


• Oil and Gas


• Food and Beverage


• Consumer Goods


• Other End-Use

Global Chemical Logistics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Spain
  
  
  • Italy
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Malaysia
  
  
  • Thailand
  
  
  • Indonesia
  
  
  • Rest of Asia Pacific
  
  
  
  


• Middle East and Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  

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