CHEMICAL LOGISTICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Chemical Logistics Market Size and Forecast – 2025 to 2032

Global chemical logistics market is estimated to be valued at USD 297.07 Bn in 2025 and is expected to reach USD 423.90 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.2% from 2025 to 2032.

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Key Takeaways

• Based on Service, Transportation & Distribution segment is projected to account for 46.1% shares of the global market in 2025, owing to its bulk shipments across long distances.
• Based on Mode of Transportation, Roadways segment is expected to capture 45.6% share of the market in 2025, due to its unique handling challenges like reactivity risks, temperature/humidity controls or specific packaging needs.
• Based on End User Industry, the Chemical segment is projected to command 25.6% share of the market in 2025, due to its function as raw materials in diverse end-markets such as from plastics and detergents to pharmaceuticals and agrochemicals
• Based on Region, North America is set to dominate the global market with a 40. 8% share in 2025.

Market Overview

Growing demand for chemicals from end-use industries such as healthcare, pharmaceuticals, food processing and others is expected to boost the need for effective logistics services. Moreover, implementation of advanced technologies in logistics operations, increased offshore chemical production and international trade agreements can the chemical logistics market demand. Adoption of industry 4.0, IoT solutions, and automation can make the logistics operations more efficient. However, high operational costs and lack of trained workforce can hamper the market growth.

Current Events and Its Impact

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Role of AI in Chemical Logistics

AI plays a transformative role in chemical logistics by enhancing efficiency, safety, and decision-making across the supply chain. It enables real-time tracking and predictive analytics for inventory management, ensuring optimal stock levels and reducing waste. AI algorithms can forecast demand, optimize transportation routes, and schedule deliveries while considering hazardous material regulations and safety protocols.

Additionally, AI-driven systems support risk assessment by identifying potential disruptions, such as supply shortages or environmental hazards, allowing companies to proactively mitigate them.

In September 2025, Elemica and Agilis announced a strategic partnership to launch the chemical industry’s first integrated solution linking digital buyer engagement with supply chain execution. This joint solution combines Agilis’ ionicPIM-powered customer engagement tools with Elemica’s Network and iFlow Platform, streamlining the entire buyer journey—from product discovery to delivery. Designed by industry experts, it reduces cost-to-serve, drives growth, and lays the groundwork for AI-driven planning and decision-making.

Market Trends

Rising Demand for Processed and Packaged Food

Growing global population is expected to boost demand for processed and packaged food products. Chemicals play a very important role in the manufacturing, processing, and packaging of various food items. A wide range of chemicals are used as preservatives, colorants, flavoring agents, and other food additives in order to increase the shelf life of food products and provide taste and consistency.

Busy lifestyles of people can boost the consumption of packaged food that can be prepared and consumed quickly. The food processing industry relies heavily on a well-functioning chemical logistics network to efficiently manage the storage and transportation of essential chemicals, ensuring the smooth operation of its production processes.

As food companies expand their operations globally and enter new international markets to cater to growing demand, these require sophisticated supply chain management and logistics services to deliver chemicals and raw materials on time. Ensuring an uninterrupted supply of various food-grade chemicals to manufacturers through a reliable logistics system is critical for the food industry to sustain its future growth trajectory.

Growth of the Personal Care and Cosmetics Sector

Personal care and cosmetics industry have witnessed growth due to increasing spending power, evolving beauty standards, and rising aspiration among the middle class in developing nations. A diverse range of chemicals is utilized in the production of skincare, hair care, color cosmetics, fragrances, and other personal care products.

These chemicals include preservatives, emulsifiers, solvents, pigments, and functional chemicals, which are essential for the manufacturing process. As new products are continuously being developed to meet dynamic consumer demands, companies require flexible logistics partners who can efficiently handle complex international trade lanes.

Rising e-commerce channels have enabled personal care brands to reach new global markets. This places tremendous pressure on their supply networks to deliver small orders across vast geographical locations without any delays. A responsive chemical logistics infrastructure assumes strategic significance for personal care players looking to capitalize on the exponential growth opportunities.

Segmental Insights

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Chemical Logistics Market Insights, by Service - Transportation & Distribution dominates the market due to reliance on cost-effective transportation

By service, transportation & distribution segment is estimated to contribute the highest market share of 46.1% in 2025. Moving chemicals typically involves bulk shipments across long distances, thus, making transportation a major cost factor.

Companies prioritize service providers that offer sustainable and scalable transportation networks to deliver raw materials and finished goods internationally. The globalization of trade has expanded markets but also increased transportation requirements, thus, boosting demand for multimodal carrier expert in chemical handling.

In August 2024, Crowley and SEACOR Holdings announced the formation of Fairwater Holdings LLC, an independent U.S. company that combines their petroleum and chemical transportation assets, expertise, and crews to offer integrated Jones Act shipping solutions.

Chemical Logistics Market Insights, by Mode of Transportation - Roadways dominates the market, owing to need for specialized storage

By mode of transportation, roadways segment is estimated to contribute the highest market share of 45.6% in 2025. Chemicals pose unique handling challenges like reactivity risks, temperature/humidity controls or specific packaging needs. Thus, chemical companies prioritize reliable warehousing providers with equipment and facilities tailored for chemicals. For example, containers, tanks and silos must utilize appropriate materials of construction and incorporate spill containment.

Warehouses require zoning by chemical class and permit inventory tracking software for oversight of inventories, shipments and rotation of stored materials. As chemical supply chains lengthen internationally, more storage capacity distributed across strategic global locations serves to maintain continuous operations. Additionally, surge storage supports the cyclic demands of consumer end-markets. The demand driven complexity of chemical supply networks depends on flexible, standardized storage management.

Chemical Logistics Market Insights, by End-use Industry - Chemical industry dominates the market, owing to extensive applications

By end-use industry, chemical industry segment is estimated to contribute the highest market share of 25.6% in 2025. As a foundational industry, chemicals function as raw materials in diverse end-markets such as from plastics and detergents to pharmaceuticals and agrochemicals.

Chemicals are fundamental to product development across consumer and industrial sectors, from polymers used in packaging and construction to surfactants employed in personal and home care goods. Due to their enabling properties, demand for chemical logistics steadily increases along with overall industrial production. The commoditization of chemicals leads to reduced input costs for downstream customers, thereby increasing consumption.

Additionally, the performance requirements of engineered goods drive continuous chemical innovation, ensuring long-term growth in material demand. As global manufacturing capacity expands to emerging economies, the need for chemical transportation and storage also scales up within these industrializing regions.

Regional Insights

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North America Chemical Logistics Market Analysis & Trends

North America has established itself as the dominant region in the global chemical logistics market with estimated market share of 40.8% in 2025. The U.S., being one of the largest producers and consumers of chemicals globally, has boosted demand for logistics and transportation services.

For instance, in May 2025, NRS Logios America, announced the opening of its Chemical Logistic Park in Casa Grande.

Asia Pacific Chemical Logistics Market Analysis & Trends

Asia Pacific has emerged as the fastest growing regional market for chemical logistics. Rapid industrialization and economic growth of countries like China and India have significantly boosted local production of bulk and specialty chemicals. This has propelled the need for efficient logistics services to handle massive import-export activities and domestic distribution of chemicals across the vast geographical territories of Asian countries.

Moreover, growing chemical hubs in countries like Singapore and Malaysia catering to international trade are further driving cross-border logistics needs. Several Asian nations are also proactively developing national logistics policies and upgrading ports, rail and trucking infrastructure to capitalize on the emerging opportunities. This has facilitated entry of global as well as regional logistics players to tap into Asia Pacific's lucrative growth prospects.

For instance, in August 2025, Suttons International China unveiled its ground-breaking domestic trucking service exclusively tailored for the Chinese region. This venture is set to redefine chemical logistics, offering customers unparalleled reliability, value, and service.

Chemical Logistics Market Outlook Country-Wise

The U.S. Chemical Logistics Market Trends

The U.S. chemical logistics market is evolving under pressure from several intersecting trends. There’s rising demand driven by growth in end‑use sectors like pharmaceuticals, agriculture, manufacturing, and specialty chemicals, leading to greater volumes of hazardous and non‐hazardous chemical shipments. To keep up, providers are investing in digitalization — IoT, real‑time tracking / monitoring, blockchain – to improve transparency, safety, and efficiency.

Japan Chemical Logistics Market Trends

Japan’s chemical logistics market is being reshaped by three main forces: labor constraints, sustainability, and digitalization. To reduce emissions and improve efficiency, there is a strong push toward modal shifts (from road to rail and waterways), shared container use, and collaborative logistics among multiple chemical producers.

For instance, in July 2025, Industry Group launched Collaborative Logistics Demonstration Test Using Rail Transport in Tokai and Chugoku Regions in Effort to Solve Logistics Issues in Chemical Industry

Market Concentration and Competitive Landscape

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Analyst Opinion (Expert Opinion)

Global chemical logistics market growth is driven by increasing offshore chemical production and need for just-in-time delivery. Growing chemical trade between Asia and North America/Europe also necessitate efficient logistics networks. Chemical companies are outsourcing their distribution to third-party logistic providers to achieve economies of scale and focus on their core businesses.

The transportation of hazardous chemicals is hindered by regulatory compliance challenges, including strict requirements for labeling, packaging, storage, and documentation. Additionally, a shortage of trained drivers qualified to transport chemicals can further restrain market growth.

North America region dominates the market during the forecast period. Rapid industrialization and growing key end-use industries such as automotive, consumer goods and healthcare boosts demand for chemicals. Moreover, foreign manufacturers are setting up production bases in the region to cater to large domestic chemical logistics markets. This can boost demand for domestic and international chemical shipments. 

Chemical Logistics Industry News

• In September 2025, Toray Industries and Tokyo-based T2 launched a long-haul autonomous truck trial on a major expressway in Japan to transport Toray’s petrochemical products. The trial aims to assess the viability of T2’s autonomous trucks as a sustainable solution to Japan’s driver shortage.

• In May 2024, C.H. Robinson introduced advanced tracking and safety technologies to improve the handling and transportation of hazardous chemicals and real-time visibility and monitoring. This initiative focuses on improving real-time visibility and monitoring capabilities throughout the supply chain.  

Market Report Scope

Chemical Logistics Market Report Coverage

Market Opportunities: Growing demand for sustainable and eco-friendly logistics solutions in the chemical industry

The chemical industry is one of the largest contributors to global greenhouse gas emissions, with logistics activities being a significant portion of this total. There is a growing demand for sustainable and eco-friendly logistics solutions in the chemical industry due to increasing environmental consciousness and regulatory pressures. Increasing focus on reducing carbon emissions in the chemical industry can boost demand.

Market Segmentation

• Service Insights (Revenue, US$ Bn, 2020 - 2032)
• Transportation & Distribution
• Storage & Warehousing
• Customs & Security
• Green Logistics
• Consulting & Management Services
• Others
• Mode of Transportation Insights (Revenue, US$ Bn, 2020 - 2032)
• Roadways
• Railways
• Airways Waterways
• Waterways
• Pipelines
• End-use Industry Insights (Revenue, US$ Bn, 2020 - 2032)
• Chemical industry
• Pharmaceutical Industry
• Cosmetic Industry
• Oil & Gas Industry
• Specialty Chemicals Industry
• Food & beverages
• Others
• Regional Insights (Revenue, US$ Bn, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• France
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa
• GCC Countries
• Israel
• South Africa
• Rest of Middle East & Africa
• Key Players Insights
• 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.

Sources

Primary Research Interviews

• Chemical manufacturers and producers
• Third-party logistics providers (3PL) specializing in chemicals
• Warehouse and distribution center managers
• Regulatory compliance officers in chemical transportation
• Others

Databases

• Chemical Economics Handbook (CEH)
• Global Trade Atlas
• Bloomberg Terminal
• Others

Magazines

• Chemical Week
• Logistics Management Magazine
• Chemical Processing
• Supply Chain Management Review
• Others

Journals

• Journal of Business Logistics
• Transportation Research Part E: Logistics and Transportation Review
• International Journal of Physical Distribution & Logistics Management
• Others

Newspapers

• Financial Times
• Wall Street Journal
• Chemical & Engineering News
• The Journal of Commerce
• Others

Associations

• American Chemistry Council (ACC)
• Council of Supply Chain Management Professionals (CSCMP)
• International Association of Chemical Transportation (IACT)
• Dangerous Goods Advisory Council (DGAC)
• Others

Public Domain Sources

• U.S. Department of Transportation (DOT)
• Environmental Protection Agency (EPA)
• European Chemicals Agency (ECHA)
• International Maritime Organization (IMO)
• Others

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years

*Definition: Global Chemical Logistics Market involves the storage, transportation, and distribution of chemical products and raw materials within global supply chains. This includes hazardous chemicals, petrochemicals, and other industrial chemicals that require specialized logistics services due to safety and regulatory compliance needs. Companies operating in this market provide logistics solutions such as transportation of chemicals by road, rail, sea or pipeline networks, warehousing of chemicals in dedicated facilities, and value-added services like chemical blending and packaging.