Chemical Warehousing Market Expected to Reach $22.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Chemical Warehousing Market," The market of chemical warehousing was valued at $15.8 billion in 2022, and is estimated to garner $22.4 billion by 2032, growing at a CAGR of 3.7% from 2023 to 2032.

The global chemical warehousing market has seen significant growth due to increase in chemical production, increase in demand for warehousing and distribution logistics in e-commerce industry, and rise in need to handle and distribute dangerous chemicals. Furthermore, the introduction of blockchain technology and technological growth are likely to create growth opportunities for the industry. However, lack of control of manufacturers and poor Infrastructure, and higher cost is anticipated to hinder the market growth rate during the forecast period. These warehouses play an important role in the chemical supply chain by ensuring the safe, secure, and compatible storage of various chemical substances before they are distributed to end users. Chemical warehousing requires particular procedures and infrastructure to handle the variety and sometimes hazardous nature of chemicals.

The chemical warehousing market is segmented on the basis of warehouse type, chemical type, and region. By warehouse type, the market is divided into general warehouse and speciality chemical warehouse. On the basis of chemical type, the market is segmented into petrochemical, general chemicals, agriculture chemicals, polymer and plastic, construction chemicals, textile chemicals and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

In addition, the market is highly competitive, with several key players dominating the chemical warehosing industry. Prominent manufacturers focus on innovation, product differentiation, and strategic partnerships to maintain their market positions. Market leaders include companies such as Odyssey Logistics & Technology Corporation, Univar Solutions LLC, Rinchem Company, LLC, Anchor 3PL, BRENNTAG, Broekman Logistics, Commonwealth Inc., DHL, RSA TALKE, and KEMITO B.V

As companies continue to develop technology in chemical warehousing, the market is expected to witness strong growth..  The increase in chemical production is due to rising demand from various end-use industries. These chemicals are used in various industries, including clothing, automobiles, farming, packaging, medications, healthcare, construction, and technology. The expansion of chemical production is expected to provide significant growth opportunities during the forecast period.

Furthermore, the global logistics and e-commerce market has experienced tremendous growth in recent years, owing to rise in connectivity solutions. The growth in e-commerce and logistics industries drives the demand for time-efficient delivery for the transportation of goods in forward and reverse logistics worldwide. Increase in the e-commerce industry has resulted in increased demand for chemical and related products by consumers. The growth of the e-commerce industry has made the availability of chemicals in retail quantity to small businesses and for personal use. Rise in sales of chemicals through online channels resulted in increase in demand for its storage, thus driving the chemical warehousing market growth.

To serve, the increase in demand companies operating in the region are expanding their business operations through merger, acquisition and other strategies. For instance, on  September 5, 2023, Univar Solutions LLC. acquired FloChem Ltd., a Canada-based bulk liquid chemicals distribution company. The acquisition will help Univar Solutions LLC increase its market penetration, particularly in the Eastern Canada region and enhance its product portfolio.

Growth of online shopping in recent years has promoted the development and adoption of warehousing and distribution logistics services and solutions by the leading retail, e-commerce, and third-party logistics companies (3PLs). Moreover, e-commerce companies are heavily investing and building their warehouses to reduce the lead time of delivery. For instance, Amazon is building two more mega warehouses of 4.1 million-square-foot and 3.8 million-square-foot in Ontario, California, U.S. and in Loveland, Colorado, U.S., respectively. Moreover, in June 2022, the company announced to invest $300 million to build 3.1 million-square-foot distribution centre in Niagara, New York, U.S. Such advancements in the e-commerce industry have become an essential component and have enhanced retail customer services, thus driving the market for chemical warehousing during the forecast period.

KEY FINDINGS OF THE STUDY

• By warehouse type, the specialty chemical warehouse segment is anticipated to exhibit significant growth in the chemical warehousing market in the near future.
• By chemical type, the others segment is anticipated to exhibit significant growth in the market in the near future.
• Region-wise, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.