Market Trends of United Kingdom Chemical Logistics Industry
The Impact of Brexit on Trade with the United Kingdom
Chemical products imported into the United Kingdom have severely declined, indicating an effect of Brexit. According to industry experts, while transactions worth USD 13.22 billion were done in 2021, only USD 10.02 billion was done in 2022. The country saw a decline of almost 24% in the period.
Business transactions between China and the UK have taken a turn. The import value of chemical products has fallen sharply from USD 6.0 billion in 2021 to USD 2.95 billion in 2022.
The United Kingdom's exports to non-EU countries, particularly to the United States, have performed poorly. Partially, this is due to the United Kingdom being in a weaker position to benefit from increased demand, as it seems to be declining mainly in non-exporting markets. The export value of miscellaneous chemical products to the United States has fallen from USD 1.25 billion in 2021 to USD 1.11 billion in 2022.
Chemical Consumption in the United Kingdom
The United Kingdom’s import value of fertilizers has been rising, indicating the country's consumption of chemicals and the need for logistics. According to Statista, in 2022, the United Kingdom imported USD 2.62 billion worth of fertilizers.
Croda International Plc is the largest chemical company in the United Kingdom in terms of revenue, followed by Johnson Matthey Plc. According to industry experts, their 2022 net income in the United Kingdom was GBP 193.9 million (USD 244.12 million) and GBP 177 million (USD 222.84 million), respectively. This indicates the value of the country's consumption of chemicals.
Also, in November 2023, LyondellBasell, a supplier of polyolefins in the chemical industry, announced that it is setting up a new distribution center for its grades in the United Kingdom. As part of their commitment to improve the customer experience by placing stocks in customers' facilities, which reduces lead times for orders, this strategic move is a continuation of these efforts. This distribution hub in the United Kingdom is an integral part of LyondellBasell's global footprint.
