Overview: Indian Chemical Logistics Market

Global chemicals logistics market was valued at over US $ 265 billion in 2021 and is projected to be worth over US$ 371 billion by 2030, growing with 4% CAGR. As for the global chemical industry, the market size is currently valued at around US$ 4.5 trillion. This puts the chemical logistics market at approximately 6% of the global chemical industry market size. At the same time, India's chemical industry is potentially looking at US $ 1 trillion market size in the next decade. According to the Government figures, the chemical sector will become US $ 304 billion industry by 2025, growing at CAGR of over 9% from US$ 178 billion in 2019. Although there is lack of credible data on chemical logistics market size in India but looking at the global numbers and the higher transportation cost in the country, Indian chemical logistics' current market size can be estimated in the region of US$ 15 billion, and potentially US$ 70-75 billion market in the next decade. Be it short, medium or long term, outlook for the Indian chemical industry remains strong driven by an underserved domestic market, shifts in consumer demand and new technologies.

For petrochemicals, India's 'planned and announced capacity addition stands at over 158 mtpa, almost four-times more than the current volume (42.50 mtpa). India is expected to account for 20% of the global capacity additions and 33% of Asian capacity additions by 2030 in the petrochemical sector. Given the projected growth across every possible sub- segments of chemical industry in India, the chemical logistics market is in a massive tailwind. As the country embarks on a massive capacity addition and growth in the chemical sector in the coming years, chemical logistics is not only a tremendous opportunity but also one fraught with challenges and concerns.

However, despite promising market trends and micro and macro indicators, gaps in chemical logistics can severely constrain growth and development of the sector. Therefore, for the sector to realize this growth and for the country the much- talked about 'Atmanirbhar' (Self-reliance), enabling logistical infrastructure to support chemical industry growth will be a critical imperative.

Indian Chemical News forthcoming 'ChemConnect' Conference on Indian Chemicals and Petrochemicals Logistics' has lined up so far the country's most comprehensive dialogue on the topic that is scheduled on September 21, 2022, cutting across a number of Business Sessions, will help develop the most meaningful and business enabling idea exchange that will seek to further Government and industry's growth aspirations.

The discussions will help curate a comprehensive review of the chemical logistics sector, understanding the challenges as well as the opportunity that the segment offers. It also aims to develop a synthesis of ideas on policy initiatives and support, long and medium- term action for the sector from within and outside in order to bring in momentum and catalyze an action plan that is the need of the hour.

* The focus is to create a meaningful and collaborative platform by bringing all the key stakeholders on a common platform and help chart out a mission for growing the chemicals and petrochemicals sector.