Chemical logistics involves the transportation, storage, and distribution of various chemicals from manufacturers to end-users. Chemical logistics provides supply chain management services for chemicals such as acids, alkalis, organic and inorganic compounds. It ensures safe and compliant transportation of chemicals via rail, road or sea. This lowers operational costs and risk of accidents for chemical companies. The industry is highly regulated to ensure protection of environments and communities from hazardous chemicals.
The Global chemical logistics market is estimated to be valued at US$ 297.07 Bn in 2025 and is expected to reach US$ 423.90 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5% from 2025 to 2032.
Key Takeaways
Key players operating in the Chemical Logistics market are A&R Logistics, Agility Logistics, Al-Futtaim Logistics, BASF, BDP International, Inc., BDtrans, C.H. Robinson Worldwide Inc., CEVA Logistics, Deutsche Bahn (DB) Schenker, Deutsche Post AG (DHL), DHL, Montreal Chemical Logistics, Petochem Middle East, Rhenus Logistics, Ryder System Inc.
The growing demand from end-use industries such as pharmaceuticals, specialty chemicals, oil and gas, and food and beverage has been driving Chemical Logistics Market Demand. Increased international trade of chemicals has also fueled market growth.
Major players are focusing on global expansion by entering into partnerships with international logistics companies. For instance, in 2021, Agility opened a new chemical logistics hub in Vietnam to support global customers and expand its footprint in Southeast Asia.
Market Key Trends
The chemical logistics market is witnessing increased adoption of supply chain digitization solutions such as tracking and monitoring systems, digital documentation, and predictive analytics. Use of Internet of Things (IoT) sensors, RFID tags and blockchain is helping players achieve transparency, speed and productivity across supply chains. Digitization improves customer experience by enabling real-time tracking and reducing errors. It also aids in optimizing transit times and meeting regulatory standards. The trend of supply chain digitization is anticipated to continue in the coming years and drive efficiencies in chemical logistics.
Porter's Analysis
Threat of new entrants: The chemical logistics industry requires large infrastructure and high capital investment which poses significant entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of a large number of logistics providers in the market offering substitutable services. However, differentiated services and innovation help logistics providers to retain their customers.
Bargaining power of suppliers: Suppliers of transportation, warehousing facilities etc have low bargaining power due to the presence of a large number of substitute suppliers in the industry.
Threat of new substitutes: Threat of substitutes is low as transporting chemicals via road, rail or sea is necessary and few alternatives exist for providing logistics services for chemicals.
Competitive rivalry: The industry is highly competitive with the presence of numerous regional and global players offering similar services. Pricing pressure exists due to high competition.
The geographical regions accounting for the largest share in the global chemical logistics market in terms of value currently includes North America and Europe. North America holds the largest market share primarily attributed to presence of major chemical manufacturers in the US and Canada generating substantial demand for logistics services. Asia Pacific is projected to be the fastest growing regional market for chemical logistics during the forecast period owing to rising manufacturing, trade and consumption of chemicals in countries such as China and India.
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