The European chemical logistics market is expected to record a CAGR of around 7.5% during the forecast period. Logistics is an essential segment of supply chain management. A safe and reliable logistics system is an important aspect of the chemical industry. The manufacturing and consumption geography of the chemical industry are mostly separated. Therefore, logistics plays a part in the chemical industries' efficient, competitive, and sustainable market development.
The COVID-19 pandemic had a negative impact on the EU chemical industry. During the first half of 2020 (January-June), chemical output in the EU27 dropped by 5.2% compared to 2019 levels, with the lowest point reached in April 2020. In June 2020, a 2.9% output growth was registered compared to May 2020, showing some early and modest signs of recovery. Output results of the first four months (January to April) of 2021 increased by 5.2% compared to the same period in 2020. This was due to disruptions in the supply chain of raw materials. As the lockdowns were relaxed, there was a recovery in the EU chemical industry output in the early months of 2021.
The European chemical industry is in a strong position. It is a EUR 650 billion industry made up of more than 28,000 companies, directly employing 1.2 million people and supporting a further 19 million jobs across its supply chain.
The chemical value chains are among the most resilient in Europe. The industry rose to expectations and delivered valuable support, such as with disinfectants supply. The chemical industry is Europe’s biggest industrial consumer of electricity. As the impact of climate change takes increasing significance over the coming three decades, economies will need to switch to more renewable energy sources. Europe already has a keen lead in many areas of this technology. The electricity consumption by the EU27 chemical industry has fallen by 21% since 1990.
There has been an increase in chemical imports and exports, driving chemical logistics in the EU. In 2020, EU27 exported nearly EUR 169.3 billion and imports worth almost EUR 128.8 billion, with chemical logistics playing a vital role in enhancing trade.
Europe has some of the biggest clusters of chemical parks. For example, Chempark is the largest chemical industry cluster in Europe, and every country has these clusters to transport raw materials, and end product transportation plays a vital role.
In 2009, China became the world’s largest chemicals producer for the first time, accounting for 23.6% of global chemical sales, followed by Europe, which accounted for 23.4% of global sales. China has continued to gain market share since 2009 to the detriment of Europe. The global chemicals turnover was valued at EUR 3,471 billion in 2020. Global sales decreased by 4.3% from EUR 3,628 billion in 2019 to EUR 3,471 billion in 2020. With EUR 1,547 billion in 2020, China was still the largest chemicals producer globally, accounting for 44.6% of global chemical sales in 2020. With 14.4% or EUR 499 billion, the European chemical industry ranked second in total sales, while the US contributing 12.3%, stood third. Global competition has changed significantly over the last ten years, as emerging countries in Asia now hold the top ranks in sales. BRICS countries (Brazil, Russia, India, China, and South Africa) accounted for 50.2% of global chemical sales in 2020. Together with the EU27 and the US, BRICS accounted for more than three-quarters of global chemical sales in 2020. The remaining quarter of global chemical sales was generated mainly by emerging countries in Asia. European chemical sales dropped by 8.1% from 2019 to 2020. Germany and France are the two largest chemicals producers in Europe, valued at EUR 227.4 billion, followed by Italy and the Netherlands. These four countries accounted for 65.2% of EU27 chemical sales in 2020, valued at EUR 325.3 billion. The share rose to 82.6%, or EUR 412.3 billion, when including Spain, Belgium, and Austria. The remaining 20 Member States of the EU accounted for 17.7% of EU27 chemical sales in 2020, with Poland and Sweden being the biggest. Increasing production and sales of chemicals is the primary driver for the chemical logistics market in Europe.
Output from the European Union chemical industry covers three broad product areas - base chemicals, specialty chemicals, and consumer chemicals. Base chemicals, also known as commodity chemicals, cover petrochemicals and their derivatives (polymers) along with basic inorganics. They are produced in large volumes and sold in the chemical industry itself or to other industries.
Base chemicals represented 58% of total EU chemical sales in 2020. The inorganic basic chemicals sub-sector includes producing chemical elements, inorganic acids such as sulphuric acid, bases such as caustic soda, alkalis, and other inorganic compounds such as chlorine.
The petrochemicals sub-sector covers the manufacturing of chemicals using basic processes, such as thermal cracking and distillation. Polymers in primary forms are, in most cases, integrated into petrochemical sites. Plastics in primary forms embrace the manufacturing of resins, plastic materials, and elastomers. Specialty chemicals cover areas such as paints and inks, crop protection, dyes and pigments, and auxiliaries for industries (other chemicals such as glues, essential oils, and gelatine).
Specialty chemicals are produced in small volumes, but they still represented 28.3% of total European Union chemical sales in 2020. Consumer chemicals, such as soaps and detergents and perfumes and cosmetics, are sold to final consumers. They represented 13.4% of total European Union chemical sales in 2020. Petrochemicals and specialty chemicals accounted for the majority, amounting to 54.7%, of European Union chemical sales that year. In 2020, almost 66% of these chemicals produced were EU 27 home sales and Intra-EU 27 sales, while 34% were exported to countries outside Europe.
The European chemical logistics market is quite fragmented and localized with the presence of many regional players. With the presence of both international and regional players in the market, the competition in the global chemical industry is intensifying, and vendors are seeking an edge by continuously adapting to the changing marketplace. Some of the existing major players in the market include Agility Public Warehousing Co., CH Robinson Worldwide Inc., CEVA Logistics AG, DHL, DSV Panalpina AS, FedEx Corp., DB Schenker BTT, BDP International Inc., Schneider National Inc., Univar Inc., Chemical Express, and APL Logistics. There have been large numbers of mergers and acquisitions taking place. For example, in May 2021, CH Robinson acquired Combinex Holdings BV to expand its presence in the European market. H Essers acquired Gebroeders Hoefnagels Transport and the logistics activities of Dutch Meeus Group to expand its chemical logistics.
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The COVID-19 pandemic had a negative impact on the EU chemical industry. During the first half of 2020 (January-June), chemical output in the EU27 dropped by 5.2% compared to 2019 levels, with the lowest point reached in April 2020. In June 2020, a 2.9% output growth was registered compared to May 2020, showing some early and modest signs of recovery. Output results of the first four months (January to April) of 2021 increased by 5.2% compared to the same period in 2020. This was due to disruptions in the supply chain of raw materials. As the lockdowns were relaxed, there was a recovery in the EU chemical industry output in the early months of 2021.
The European chemical industry is in a strong position. It is a EUR 650 billion industry made up of more than 28,000 companies, directly employing 1.2 million people and supporting a further 19 million jobs across its supply chain.
The chemical value chains are among the most resilient in Europe. The industry rose to expectations and delivered valuable support, such as with disinfectants supply. The chemical industry is Europe’s biggest industrial consumer of electricity. As the impact of climate change takes increasing significance over the coming three decades, economies will need to switch to more renewable energy sources. Europe already has a keen lead in many areas of this technology. The electricity consumption by the EU27 chemical industry has fallen by 21% since 1990.
There has been an increase in chemical imports and exports, driving chemical logistics in the EU. In 2020, EU27 exported nearly EUR 169.3 billion and imports worth almost EUR 128.8 billion, with chemical logistics playing a vital role in enhancing trade.
Europe has some of the biggest clusters of chemical parks. For example, Chempark is the largest chemical industry cluster in Europe, and every country has these clusters to transport raw materials, and end product transportation plays a vital role.
Key Market Trends
Europe is the Second-largest Chemical Producer Globally since 2009
In 2009, China became the world’s largest chemicals producer for the first time, accounting for 23.6% of global chemical sales, followed by Europe, which accounted for 23.4% of global sales. China has continued to gain market share since 2009 to the detriment of Europe. The global chemicals turnover was valued at EUR 3,471 billion in 2020. Global sales decreased by 4.3% from EUR 3,628 billion in 2019 to EUR 3,471 billion in 2020. With EUR 1,547 billion in 2020, China was still the largest chemicals producer globally, accounting for 44.6% of global chemical sales in 2020. With 14.4% or EUR 499 billion, the European chemical industry ranked second in total sales, while the US contributing 12.3%, stood third. Global competition has changed significantly over the last ten years, as emerging countries in Asia now hold the top ranks in sales. BRICS countries (Brazil, Russia, India, China, and South Africa) accounted for 50.2% of global chemical sales in 2020. Together with the EU27 and the US, BRICS accounted for more than three-quarters of global chemical sales in 2020. The remaining quarter of global chemical sales was generated mainly by emerging countries in Asia. European chemical sales dropped by 8.1% from 2019 to 2020. Germany and France are the two largest chemicals producers in Europe, valued at EUR 227.4 billion, followed by Italy and the Netherlands. These four countries accounted for 65.2% of EU27 chemical sales in 2020, valued at EUR 325.3 billion. The share rose to 82.6%, or EUR 412.3 billion, when including Spain, Belgium, and Austria. The remaining 20 Member States of the EU accounted for 17.7% of EU27 chemical sales in 2020, with Poland and Sweden being the biggest. Increasing production and sales of chemicals is the primary driver for the chemical logistics market in Europe.
Base Chemical Production Accounts for 58% of European Union Chemical Sales
Output from the European Union chemical industry covers three broad product areas - base chemicals, specialty chemicals, and consumer chemicals. Base chemicals, also known as commodity chemicals, cover petrochemicals and their derivatives (polymers) along with basic inorganics. They are produced in large volumes and sold in the chemical industry itself or to other industries.
Base chemicals represented 58% of total EU chemical sales in 2020. The inorganic basic chemicals sub-sector includes producing chemical elements, inorganic acids such as sulphuric acid, bases such as caustic soda, alkalis, and other inorganic compounds such as chlorine.
The petrochemicals sub-sector covers the manufacturing of chemicals using basic processes, such as thermal cracking and distillation. Polymers in primary forms are, in most cases, integrated into petrochemical sites. Plastics in primary forms embrace the manufacturing of resins, plastic materials, and elastomers. Specialty chemicals cover areas such as paints and inks, crop protection, dyes and pigments, and auxiliaries for industries (other chemicals such as glues, essential oils, and gelatine).
Specialty chemicals are produced in small volumes, but they still represented 28.3% of total European Union chemical sales in 2020. Consumer chemicals, such as soaps and detergents and perfumes and cosmetics, are sold to final consumers. They represented 13.4% of total European Union chemical sales in 2020. Petrochemicals and specialty chemicals accounted for the majority, amounting to 54.7%, of European Union chemical sales that year. In 2020, almost 66% of these chemicals produced were EU 27 home sales and Intra-EU 27 sales, while 34% were exported to countries outside Europe.
Competitive Landscape
The European chemical logistics market is quite fragmented and localized with the presence of many regional players. With the presence of both international and regional players in the market, the competition in the global chemical industry is intensifying, and vendors are seeking an edge by continuously adapting to the changing marketplace. Some of the existing major players in the market include Agility Public Warehousing Co., CH Robinson Worldwide Inc., CEVA Logistics AG, DHL, DSV Panalpina AS, FedEx Corp., DB Schenker BTT, BDP International Inc., Schneider National Inc., Univar Inc., Chemical Express, and APL Logistics. There have been large numbers of mergers and acquisitions taking place. For example, in May 2021, CH Robinson acquired Combinex Holdings BV to expand its presence in the European market. H Essers acquired Gebroeders Hoefnagels Transport and the logistics activities of Dutch Meeus Group to expand its chemical logistics.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
2 RESEARCH METHODOLOGY
4 MARKET INSIGHTS
5 MARKET DYNAMICS
6 MARKET SEGMENTATION
7 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- XPO Logistics
- CEVA Logistics AG
- DHL
- DSV Panalpina AS
- FedEx Corp.
- DB Schenker BTT
- BDP International Inc.
- Schneider National Inc.
- Univar Inc.
- Broekman Logistics
- Rhenus Logistics
- APL Logistics
- Log4Chem
- Chemical Express
- JCL Logistics
- H Essers
- RMI Global Logistics Services
Methodology
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