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The Europe - FMCG Logistics Market size is estimated to grow at a CAGR of 4.7% between 2023 and 2028. The market size is forecast to increase by USD 55.71 billion. Several factors play a crucial role in the market's growth, such as the increasing adoption of technology in the logistics industry, the growing FMCG industry in Europe and the growing e-commerce market in Europe.
The report includes a comprehensive outlook on the Europe FMCG Logistics Market, offering forecasts for the industry segmented by Product which comprises food and beverages, personal and beauty care, health and hygiene care and home care. Additionally, it categorizes Service into transportation, warehousing, and VA. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing adoption of technology in the logistics industry is notably driving market growth. Technological advances are transforming the Europe - FMCG logistics market supply chain. Logistics players are increasingly adopting new-age technologies such as IoT, robotics, analytics, and big data to streamline the overall FMCG supply chain. This growing technology trend has resulted in the implementation of various strategies such as collaboration, vertical integration, and M and A by logistics vendors and IT companies. The increasing demand for customization and the need for speedy delivery in the Europe - fast moving consumer goods (FMCG) logistics market has forced companies to implement various technologies to shorten lead time and reduce inventories.
In addition, logistics companies are collaborating with IT companies to improve warehouse management services. Thus, the increasing adoption of technologies in the logistics industry will help FMCG companies in the Europe - FMCG logistics market optimize their assets efficiently. Such factors will contribute to the growth of the Europe FMCG logistics market during the forecast period.
Growing focus on truck platooning by logistics companies is an emerging trend shaping the market growth. Truck platooning connects two or more trucks in a convoy to ensure connectivity and automated driving. This technology ensures that trucks maintain a set and close distance between each other when they are connected during a journey. The truck at the front acts as the leader, with the trailing vehicles reacting and adapting to changes according to their movement. This movement by trailing vehicles requires little or no action from drivers. Many governments are promoting the use of truck platooning in the logistics industry as it saves costs, reduces congestion on roads, and decreases carbon emissions.
For instance, in October 2017, the UK government allotted funding of around USD 11 million for truck platooning trials, which started at the end of 2018. Logistics companies are also involved in R&D investments to implement truck platooning in the logistics industry successfully. Thus, such developments will drive the growth of the Europe FMCG logistics market during the forecast period.
The lack of skilled drivers in the logistics industry is a significant challenge hindering the market growth. The logistics industry in Europe is facing a steady shortage of skilled drivers, which may have a radical effect on the business and distract the entire FMCG supply chain, where lead times are of critical importance. Some of the factors that contribute to the shortage of skilled drivers are low wages, lack of quality driver facilities, increasing adoption of autonomous vehicles, and lack of proper tanning provisions. Western European countries such as Germany and the UK are facing severe driver shortage issues.
Moreover, logistics companies are experiencing high transportation costs and operational difficulties due to the shortage of skilled drivers. With many companies in the Europe - fast moving consumer goods (FMCG) logistics market not able to absorb the cost, they are finding ways to shift the cost burden on their customers. The increasing gap between the demand and supply of skilled drivers may have a negative impact on the Europe - fast moving consumer goods (FMCG) logistics market. Hence, the shortage of skilled drivers is expected to present a major challenge for the Europe FMCG logistics market to a certain extent during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Europe FMCG Logistics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agility Public Warehousing Co. K.S.C.P - The company offers FMCG logistics solutions which include inventory management, order fulfillment, transpiration, and warehousing services for FMCG products.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The food and beverages segment is estimated to witness significant growth during the forecast period. The food and beverages industry is expected to grow due to the increase in income levels that are changing consumer preferences, improvement in standards of living, and an increase in the adoption of organic and packaged food and drinks.
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The food and beverages segment was the largest and was valued at USD 102.79 billion in 2018. As foods and beverages are perishable and have a limited shelf life, they must be refrigerated during transportation to retain their quality. Due to this, various companies offer cold chain logistics solutions to food and beverage enterprises. Cold chain management involves temperature-controlled transportation and storage of perishable products from manufacturers to retailers, wholesalers, and end-consumers. It includes refrigerated warehouses and refrigerated transportation to maintain a cold storage temperature, which helps in preserving products and improving their shelf life, without affecting their quality. As cold chain management is imperative to quality assurance, logistics services offering cold chain solutions will witness an increase in demand from the food and beverage industry. Therefore, the growth of the food and beverage industry will simultaneously drive the growth of the market during the forecast period.
The Europe FMCG Logistics Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Europe FMCG Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.7% |
Market Growth 2024-2028 |
USD 55.71 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.6 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, AUGUSTIN QUEHENBERGER GROUP GMBH, BDP International Inc., C H Robinson Worldwide Inc., CEVA Logistics S A, DACHSER SE, DB Schenker, Deutsche Post AG, DFDS AS, DSV AS, FedEx Corp., Freight Logistics Solutions, Frode Laursen AS, Hellmann Worldwide Logistics SE and Co KG, Kerry Logistics Network Ltd., Kintetsu World Express Inc., Kuehne Nagel Management AG, PF Whitehead Transport Services Ltd, RGF Logistics Ltd., and XPO Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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