ASEAN Chemical Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.50 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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ASEAN Chemical Logistics Market Analysis
The ASEAN chemical logistics market has a 2022 value of USD 81 billion, and during the forecast period, it is expected to grow at a CAGR of more than 5.5%.
- The chemical industry is one of the ASEAN's most significant industries. With a chemical supply chain spanning from chemical manufacture to chemical distribution, this sector must run a tight ship. In a world where chemicals are used in the production of 96% of all manufactured items, there are several chances for chemical firms to expand. Transportation and logistics are critical in the chemical industry for keeping demand and supply in balance.
- The Thai pharmaceutical business is primarily concerned with the manufacture of downstream finished goods. Drugs manufactured in-country are often generics, with imported active ingredients blended and processed into finished goods destined mostly for the domestic market (about 90% of total output is consumed within the nation).
- The COVID-19 outbreak caused a decrease in the uptake of hospital services for non-serious conditions, while sales through pharmacies slowed due to weakening consumer spending power.
- Chemical fertilizer demand is expected to rise by 2.5% each year over the next three years, to 5.6-5.8 million tonnes for usage with the primary crops of rice, maize (for animal feed), oil palm, sugarcane, rubber, and cassava. Rice (estimated to grow by 1.5-2.5% per year), maize, and cassava (anticipated to rise by 2.0-3.0% per year) are particularly essential, accounting for almost 60% of total fertilizer usage.
- Manufacturers will aim to broaden their market access and distribution channels, for example, by adding value via the creation of new goods (for example, by making customized fertilizer mixes) and by expanding exports to neighbouring countries.
ASEAN Chemical Logistics Market Trends
The Rise in Chemical Production is Expected to Propel the Growth of the Chemical Logistics Market
- According to the Industry and Trade Information Centre (VITIC), there are about 1.81 thousand chemical manufacturing firms in six economic areas across Vietnam, of which 894 are fertilizer manufacturers and 106 are chemical enterprises. plant protection chemicals, 68 companies manufacturing basic chemicals, 14 companies making petrochemical goods, and so on.
- The chemical sector today employs 2.7 million people, 725 thousand of whom are actively involved in the manufacture of chemicals and chemical products. According to data from the General Statistics Office, the chemical sector is still growing well, with bright spots in both output and consumption.
- In June 2022, the output of cosmetics, soaps, detergents, polishes, and hygiene products climbed by 7.7% compared to the first six months of 2021, and by 20.7% compared to the average month.
- According to data from the General Department of Customs, Vietnam's chemical export turnover in the first eight months of 2021 reached USD 1.45 billion, up 29.4% over the same period in 2020.
- Basic chemicals and detergents are examples of chemical items that Vietnamese enterprises might benefit from the EVFTA. Specifically, the tax rate for laundry detergents (HS 3402) was reduced from 4% to 0% as soon as the agreement went into effect, while the tax rate for phosphorus products (HS 2804 7000) was reduced from 5.5% to 0% as soon as the agreement went into effect.
- Exports of hydrogen, rare gases, and other non-metallic products of Vietnam also increased by 5% during the period while that of the world decreased by 6%.
Rise of Tech-Driven Logistics Services and Growth in Adoption of IOT Enabled Connected Devices
The chemical industry's increased demand for automation and modernized green warehouses for sustainable company operations drives market expansion. Chemical producers are rapidly investing in cost-effective warehousing solutions that integrate green practices with smart technology, such as the Internet of Things (IoT), smart sensors, and robots, as concerns about energy saving and environmental protection grow.
The Internet of Things (IoT) industry in Southeast Asia (SEA) has grown significantly in recent years, with enterprises realizing the need for connection, particularly in a Covid-19-affected world. Connected technologies are considered a driving force in increasing corporate efficiency, minimizing downtime, and regulating expenses.
IoT technology is key to Thailand's 4.0 plan and will be critical in driving the country's digital transformation. Narrowband IoT technology has been deployed across the country by companies such as AIS and True Corporation. Vehicle tracking and smart parking applications are now commercial, whereas smart metering applications are in the testing stage.
Thailand's dtac has announced the debut of 5G IoT solutions across three primary business segments: smart industrial, smart logistics, and smart utilities. Smart factory solution developers can access existing systems and develop digitalisation plans with IoT capabilities to collect, analyse, and monitor data in real time and remotely to improve efficiency, reduce operating costs, and conform to future digital platforms. IoT and smart sensors are projected to provide exact real-time monitoring of items as they are carried, allowing businesses to follow progress and increase security.
Furthermore, National Telecom (NT), WhiteSpace (WSP), Delta Electronics (Thailand), and Chunghwa Telecom have signed an agreement to collaborate on a 5G private network in Thailand. Thailand intends to use a 5G network to upgrade IoT to enormous IoT and enable a larger density of linked devices. Furthermore, Thailand's AIS has collaborated with ZTE and Suranaree University of Technology to convert manufacturing plants into smart factories.
According to ASEAN Briefing, Indonesia's IoT industry is predicted to reach USD 30 billion by 2022, with the sector having a substantial influence on lowering healthcare expenses, increasing industrial productivity, and lowering corporate operations costs.
ASEAN Chemical Logistics Industry Overview
There are multiple big and small players in the ASEAN chemical logistics market. The sector is highly fragmented. The sector has been observing many innovative and digital trends in recent years, like adopting big data analytics and IoT technologies to further fuel the growth of the chemical logistics industry. Some of the major players are A&R Logistics, Agility Logistics, Al-Futtaim Logistics, C.H. Robinson, and BDP International, Inc.
ASEAN Chemical Logistics Market Leaders
CEVA Logistics
Eagles Air & Sea
Alps Logistics
Tiong Nam Logistics Holdings BhD
Tiong Nam Logistics Holdings BhD
*Disclaimer: Major Players sorted in no particular order
ASEAN Chemical Logistics Market News
- October 2022: Rinchem is nearing the completion of a brand-new chemical warehouse based in Malaysia slated to be ready in Q2 of 2023. While the company currently has two other warehouses in the Asia Pacific (Taiwan & South Korea), this will be Rinchem's first warehouse located in Malaysia. The 45,000 sq. ft. dangerous goods warehouse will have the capacity to store 3100 pallet positions. Rinchem's warehouses are custom-built to support the proper segregation of various hazard classes and to offer multiple temperature zones.
- February 2022: In Port Klang, Malaysia, Leschaco recently opened a new chemical and dangerous goods warehouse with a floor space of 120.000 ft on two levels. Within this new facility, up to 13,000 pallets of chemical products and hazardous materials can be safely stored. Contract logistics, especially for chemicals, is a fast-growing market in Malaysia. Accordingly, logistics companies that are reliable partners for transporting and storing chemicals and dangerous goods are in demand. Leschaco (Malaysia) Sdn Bhd has grown with its customers and developed into an important player in the logistics and storage of chemical products in the APAC region.
- October 2021: Ratanakorn Asset and FLS recently agreed to form FLS Supply Chain Centers as a joint venture to design, build, and operate specialized warehouse complexes across Thailand. The first such project will be developed in Maptaphut, Rayong, and involves in its first phase a state-of-the-art, 10,000-square-meter warehouse for the storage and handling of hazardous chemicals, according to the companies. The facility will also include a chemical processing and repackaging facility. The JV said it expects the first phase of construction to be completed in May 2022.
Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 The Rise in Demand for Specialty Chemicals in ASEAN Countries Increasing Trade Logistics Activity
4.2.2 Partnerships and Collaborations Between Major Players in the Chemical Logistics Market are Being Formed for the Creation of Innovative Goods and Technologically Enhanced Services
4.3 Market Restraints/Challenges
4.3.1 Complexities Related to Chemical Logistics
4.3.2 High Cost Involved in the Transportation of Chemicals
4.4 Market Opportunities
4.4.1 Rise of Tech-Driven Logistics Services and Growth in Adoption of IOT Enabled Connected Devices
4.4.2 Rising Demand for Green Warehousing will have a Significant Impact in the Market Growth.
4.5 Value Chain/Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Technological Innovations in the industry
4.8 Government Initiatives to Attract Investment in the Industry
4.9 Insights into the 3PL Market
4.10 Impact of COVID - 19 on the Industry
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Transportation
5.1.2 Warehousing, Distribution, and Inventory Management
5.1.3 Consulting & Management Services
5.1.4 Customs & Security
5.1.5 Green Logistics
5.1.6 Others
5.2 By Mode of Transportation
5.2.1 Roadways
5.2.2 Railways
5.2.3 Airways
5.2.4 Waterways
5.2.5 Pipelines
5.3 By End User
5.3.1 Pharmaceutical Industry
5.3.2 Specialty Chemical Industry
5.3.3 Oil and Gas Industry
5.3.4 Cosmetic Industry
5.3.5 Others
5.4 By Geography
5.4.1 Singapore
5.4.2 Thailand
5.4.3 Malaysia
5.4.4 Vietnam
5.4.5 Indonesia
5.4.6 Philippines
5.4.7 Rest of ASEAN
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 A&R Logistics
6.1.2 BDP International
6.1.3 Agility Logistics
6.1.4 DHL
6.1.5 Rhenus Logistics
6.1.6 CEVA Logistics
6.1.7 CT Logistics
6.1.8 Rinchem
6.1.9 Eagles Air & Sea
6.1.10 JWD InfoLogistics Public Company Limited
6.1.11 Tiong Nam Logistics Holdings BhD
6.1.12 Alps Logistics*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 GDP Distribution, by Activity
8.2 Insights on Capital Flows
8.3 Economic Statistics-Transport and Storage Sector, Contribution to Economy
ASEAN Chemical Logistics Industry Segmentation
Chemical logistics is the transfer of chemical commodities with a supply chain using logistics organization services like warehousing and transportation. Chemicals are an essential aspect of practically every industry, including plastics processing, pharmaceuticals, food manufacturing, and vehicle manufacturing. The chemical industry provides products for the majority of industries. Liquid or solid chemicals are used to make pharmaceuticals, food, and other everyday items.
A comprehensive background analysis of the ASEAN Chemical Logistics Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.
ASEAN Chemical Logistics Market is segmented By Service (Transportation, Warehousing, Customs & Security, Green Logistics, Consulting & Management Services, and Others), By Mode of Transportation (Roadways, Railways, Airways, Waterways, Pipelines), By End User (Pharmaceutical Industry, Cosmetic Industry, Oil and Gas Industry, Specialty Chemicals industry, and Other End-users), and By Geography (Singapore, Thailand, Indonesia, Malaysia, Vietnam, Philippines, and the Rest of ASEAN). The report offers market size and forecasts for the ASEAN Chemical Logistics Market in value (USD billion) for all the above segments.
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management | |
| Consulting & Management Services | |
| Customs & Security | |
| Green Logistics | |
| Others |
| By Mode of Transportation | |
| Roadways | |
| Railways | |
| Airways | |
| Waterways | |
| Pipelines |
| By End User | |
| Pharmaceutical Industry | |
| Specialty Chemical Industry | |
| Oil and Gas Industry | |
| Cosmetic Industry | |
| Others |
| By Geography | |
| Singapore | |
| Thailand | |
| Malaysia | |
| Vietnam | |
| Indonesia | |
| Philippines | |
| Rest of ASEAN |
Frequently Asked Questions
What is the current ASEAN Chemical Logistics Market size?
The ASEAN Chemical Logistics Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in ASEAN Chemical Logistics Market?
CEVA Logistics, Eagles Air & Sea, Alps Logistics, Tiong Nam Logistics Holdings BhD and Tiong Nam Logistics Holdings BhD are the major companies operating in the ASEAN Chemical Logistics Market.
What years does this ASEAN Chemical Logistics Market cover?
The report covers the ASEAN Chemical Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the ASEAN Chemical Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
ASEAN Chemical Logistics Industry Report
Statistics for the 2024 ASEAN Chemical Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. ASEAN Chemical Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
