USD 109 billion
Report ID:
SQMIG25AG2020 |
Region:
Global |
Published Date: March, 2024
Pages:
223
|Tables:
65
|Figures:
65
FMCG Logistics Market size was valued at USD 112.99 Billion in 2023 and is poised to grow from USD 117.13 Billion in 2024 to USD 156.15 Billion by 2032, growing at a CAGR of 3.66% during the forecast period (2025-2032).
The global FMCG logistics market is influenced by several factors, including the increasing presence of e-commerce in the industry, evolving consumer habits, changing lifestyles, and rising disposable incomes. The market's growth is further driven by the adoption of technology-driven logistics services and IoT-enabled connected devices. However, challenges such as poor infrastructure, higher logistics costs, and manufacturers' and retailers' limited control over logistics services can hinder market growth.
Despite the challenges, opportunities arise in the form of last-mile deliveries, logistics automation, cost-cutting measures, and lead time reduction through multi-modal systems adoption. Embracing these opportunities can fuel the expansion of the global FMCG logistics market, enabling efficient and effective transportation of goods to meet customer requirements.
US FMCG Logistics Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 109 billion
Largest Segment
Railways
Fastest Growth
Seaways
Growth Rate
3.66% CAGR
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The global FMCG logistics market is segmented on the basis of mode of transportation, product type, region. By mode of transportation the market is segmented into railways, airways, roadways, and seaways. By product type, the market is segmented into food & beverages, personal care, household care, and other consumables. By Region, the market is segmented into North America, Europe, Latin America, Asia- Pacific, Middle East and Africa.
FMCG Logistics Market Analysis By Mode of Transportation
The roadway segment currently holds the largest market share and is expected to maintain its dominant position from 2023 to 2030. Road transportation is widely distributed across Europe, Asia, Africa, and North America, making it one of the most commonly used and economical means of transportation. Its seamless movement of goods between states and countries through a single customs paperwork process contributes to its continued market dominance.
The seaways segment is projected to exhibit the highest compound annual growth rate (CAGR) during the period 2023-2030. This growth is attributed to improved infrastructure, such as canals shortening trade routes, increasing trade agreements, and rising consumer disposable income, which boost the global demand for international goods. As a result, the seaways segment is expected to maintain its second-leading position throughout the forecast period.
FMCG Logistics Market Analysis By Product
The food & beverage sector commands the largest market share due to its diverse range of products, such as dry packaged goods, beverages, dairy products, frozen foods, and meat processors. Food & beverage executives are embracing new supply chain processes, backed by strategic investments in advanced technologies to achieve lower operating costs and improved logistics functionality. Key necessities in food & beverage logistics include air-conditioned storage & transportation, advanced warehouse management systems, advanced packaging solutions, and product safety tracking technologies.
The personal care products segment holds the second-largest position, encompassing skincare, haircare, and oral care products. Personal care products benefit from various distribution channels, including specialty stores and beauty salons. The market experiences robust growth, fueled by increasing male consumers' focus on skincare, investments in R&D, and consumer preferences for vegan, organic, and eco-friendly cosmetics. Growing awareness of personal and household hygiene after the COVID-19 pandemic is expected to drive demand for laundry and home care products.
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Between 2023 and 2030, the Asia Pacific region is expected to dominate the FMCG logistics market, driven by the rising purchasing power of the middle class and lower production costs due to commercialization. China and other emerging markets are projected to experience rapid growth in value-added services, fueled by the increasing demand for expensive consumer goods and perishables that require efficient logistics management for safety and handling. Southeast Asia, in particular, is emerging as a hotbed of growth opportunities for the consumer goods market, as evidenced by SF Express, China's leading express delivery company, acquiring Kerry Logistics for USD 2.3 billion in 2021 to expand its network in the region.
North America holds the second-largest position in the market, benefiting from its diverse coastlines and cruising destinations. The region is witnessing a rising demand for green logistics, driven by environmental concerns. The growing e-commerce sector and the trend of online shopping in countries like the United States and Canada are expected to drive the market between 2023 and 2030. Additionally, the adoption of low-emission FMCG logistics, especially through the use of electric vehicles, is expanding. Maersk's acquisition of 110 electric Volvo VNR trucks for North America in 2022 exemplifies this trend.
Europe is poised to be the fastest-growing region in the coming years, fueled by its expanding fast-moving consumer goods industry, growing e-commerce market, and increasing adoption of advanced logistics technologies. However, challenges such as a shortage of skilled drivers, high operating costs, and significant technology investment costs may hamper the market's growth in the region. To succeed, vendors must focus on opportunities in fast-growing segments while maintaining their positions in slower-growing ones.
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FMCG Logistics Market Drivers
International Trade
Population Growth and Urbanization
FMCG Logistics Market Restraints
Rising Operational Costs
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The global Fast-Moving Consumer Goods (FMCG) Logistics market features a highly competitive landscape characterized by the presence of numerous established players and emerging regional providers. Key logistics companies, such as DHL, C.H. Robinson, Kuehne + Nagel, DB Schenker, and UPS, dominate the market with their extensive global networks and comprehensive service offerings. These major players constantly engage in strategic initiatives like mergers, acquisitions, and partnerships to expand their market presence and gain a competitive edge. Collaborations with FMCG manufacturers and retailers enable them to offer integrated end-to-end supply chain solutions, enhancing their value proposition.
Moreover, technological advancements have become a critical factor in maintaining a competitive position. Leading logistics companies invest significantly in advanced technologies like IoT, AI, and big data analytics to optimize their operations, improve efficiency, and offer real-time tracking and visibility to customers. In addition to established players, regional logistics providers are also gaining traction in their respective markets, catering to the specific needs of local FMCG businesses. These regional players leverage their local expertise and understanding of regional regulations to provide tailored logistics solutions.
The competitive landscape is further intensified by the entry of tech-driven start-ups that offer innovative last-mile delivery solutions and on-demand services. These disruptors challenge traditional logistics models and force established players to adapt to changing customer demands and preferences.
FMCG Logistics Market Top Player’s Company Profiles
FMCG Logistics Market Recent Developments
In January 2024, Blue Dart, a logistics company, declared another partnership with French Express, a notable courier service in South India. This collaboration incorporates our domestic priority and APEX (AirPackages Express) services, which assist us with growing in a calculated manner. As a component of this partnership, we've added more than 1000 new areas to our organization in the southern locale. This shows our commitment to giving first-rate courier services and assists us with filling in significant business sectors.
In November 2023, CONCOR (Container Corporation of India) reported plans to transport fast-moving consumer goods (FMCG) freight on domestic courses.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our FMCG logistics market Analysis, the global Fast-Moving Consumer Goods (FMCG) Logistics market is witnessing significant growth and evolution. The FMCG sector is experiencing increasing demand due to population growth, urbanization, and rising disposable incomes in emerging economies. This surge in demand is driving the need for efficient and streamlined logistics solutions. Technology is playing a crucial role in transforming FMCG logistics. Automation, artificial intelligence, and data analytics are enhancing supply chain visibility, optimizing inventory management, and reducing transportation costs. Sustainability is gaining prominence in the FMCG logistics domain. Companies are adopting eco-friendly practices to reduce their carbon footprint and meet consumer demands for environmentally responsible products.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 109 billion |
Market size value in 2031 | USD 150.64 billion |
Growth Rate | 3.66% |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the FMCG Logistics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the FMCG Logistics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the FMCG Logistics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the FMCG Logistics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG25AG2020
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