Chemical Warehousing Market Forecasts to 2028 – Global Analysis By Type (General Warehouse and Specialty Chemicals Warehouse), Chemical Type (Petrochemical, Consumer Chemicals, Synthetic Rubber, Agrochemicals, Polymer and Plastic, Construction Chemicals, Textile Chemicals and Other Chemical Types) and By GeographyAccording to Stratistics MRC, the Global Chemical Warehousing Market is accounted for $16.18 billion in 2022 and is expected to reach $22.70 billion by 2028 growing at a CAGR of 5.8% during the forecast period. Chemical warehousing involves both hazardous and non-hazardous materials storage. It is heavily regulated, requiring a substantial investment in the construction of facilities as well as strict adherence to the associated procedures, practices, and paperwork in order to guarantee safety and compliance. Many businesses have outsourced the storage of their goods to professionals, such third-party logistics (3PL) providers who are experts in chemical and hazardous operations. Services for warehousing, distribution, transportation, and inventory management are provided by companies that provide chemical warehousing and storage.
According to according to the American Chemistry Council, Chemical volumes in the United States increased by 1.4% in 2021 and 3.2% in 2022, while shipments increased by 8.1% in 2021 and 8.2% in 2022. Furthermore, according to the government of India, India's chemical sector (including fertilizers and pharmaceuticals) reached USD 178 billion in 2019 and is predicted to expand to USD 304 billion by 2025, with an annual growth rate of 9.3%. Therefore, the rise in chemical production is driving the growth of the chemical logistics market.
Rise in production and international trade
The market for chemical warehousing is primarily driven by an increase in chemical manufacturing and worldwide trade, particularly for hazardous chemicals. Particularly in the FMCG sector, there would be a huge demand for chemical warehouse facilities.
High costs of basic raw materials
The price of raw materials has an impact on both the amount of a product that a business can manufacture at any one time and the price of their finished product. Depending on quality, raw material prices can also change. Another aspect to take into account when choosing what and how much to purchase is the price of the raw materials. Higher-quality raw materials cost more than lower-quality raw materials. High costs of basic raw materials like natural gas and crude oil has a negative impact on the growth the market.
Increasing trend of third-party logistics (3PL)
The market for chemical storage will see increased revenue opportunities due to the rising trend of third-party logistics (3PL) providers for a variety of warehousing, distribution, transportation, and inventory management services.
Strict safety requirements
All harmful compounds, including those that are combustible, explosive, corrosive, poisonous, carcinogenic, and others, must be stored safely. Chemicals that are improperly stored have the potential to be extremely harmful and could result in a major accident.
The regional chemical warehousing and storage business was in upheaval in 2020 due to the spread of the COVID-19 pandemic. Due to COVID-19-related constraints, the logistics sector in nations like India, China, and Japan had a skilled labour scarcity, which in turn created challenging supply chain issues. However, after COVID-19, the market in question is anticipated to experience moderate development as consumer demand for chemical warehousing and storage from industries like automotive and electronics businesses is anticipated to gradually recover.
The specialty chemicals warehouses segment is expected to be the largest during the forecast period
Based on the type, the market is classified into General Warehouse and Specialty Chemicals Warehouse. The specialty chemicals warehouse segment is projected to control the global chemical warehousing market and most liable explanation for the majority of the share during the forecast period. Specialty chemical storage management has been subject to rules from OSHA and other regulatory bodies. Chemical warehouses can be used to store specialty chemicals such specialty polymers, radioactive materials, and nanomaterials. To reduce risks and hazards to the health and safety of workers and employees, chemical storage must be segregated.
The agrochemicals segment is expected to have the highest CAGR during the forecast period
Based on the chemical type, the market is segmented Petrochemical, Consumer Chemicals, Synthetic Rubber, Agrochemicals, Polymer and Plastic, Construction Chemicals, Textile Chemicals and Others. The agrochemicals segment is captured to be more profitable and predicted to record a strong CAGR during the forecast period. Rise in demand for agrochemicals has spurred revenue streams for logistics companies. Agrochemicals like fertilisers, insecticides, and herbicides are in great demand due to the agriculture industry's global scale.
Region with highest share:
Asia Pacific is anticipated to hold the highest share during the forecast period. Owing to the presence of a significantly high number of chemical production companies in the region. Urbanization and industrialisation are occurring quickly in Asia Pacific, boosting the expansion of numerous industries there. Due to the increased demand for chemical feedstock from these sectors, more warehouses are required to store the chemicals. Additionally, government programmes to upgrade warehouse infrastructure are fostering market expansion in the area.
Region with highest CAGR:
The North America chemical warehousing market is one of the fastest-growing regions and also records highest CAGR during the forecast period. This is due to the availability of low-cost raw resources (such natural gas) for the production of chemicals encourages large-scale chemical production in the area, which increases chemical storage and exports. In the U.S., investments are expected to increase in agrochemicals, textile chemicals, polymer, and plastic industries.
Key players in the market
Some of the key players profiled in the Chemical Warehousing Market include Deutsche Post DHL Group, Broekman Logistics, ALFRED TALKE GmbH & Co. KG, Broekman Logistics, Affiliated Warehouse Companies, Anchor 3PL, KEMITO, Commonwealth Inc., Odyssey Logistics & Technology Corporation, Univar Solutions, BRENNTAG, Warehouse Specialists Inc., Rinchem Company, Inc.
In 2019, Vinmar entered into a contract with TALKE Group for Houston chemical logistics. The purpose of the contract was to handle plastic resins on the 500,000-square foot site that was designed for an initial term of 10 years.
In 2018, Odyssey Logistics & Technology Corporation acquired AFF Global Logistics, a recognized leader in logistics services to Hawaii, Alaska, PR, freight forwarding, and comprehensive warehousing and distribution services across North America productivity.
• General Warehouse
• Specialty Chemicals Warehouse
Chemical Type Covered:
• Consumer Chemicals
• Synthetic Rubber
• Polymer and Plastic
• Construction Chemicals
• Textile Chemicals
• Other Chemical Types
• North America
Rest of Europe
• Asia Pacific
Rest of Asia Pacific
• South America
Rest of South America
• Middle East & Africa
Rest of Middle East & Africa
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