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Extensive research carried out by the analyst at Technavio has shown that the global CPG logistics market will grow at a steady CAGR of close to 6% over the forecast period. The growing demand for logistics services from the e-commerce sector is one of the most significant factors propelling the growth prospects for this market in the coming years. Rapid urbanization and increasing disposable income of consumers are likely to have a positive influence on the CPG and retail sector. Efficient inventory management and quick delivery are some of the key aspects of achieving operational success. The rapid growth of the e-commerce industry led to an increasing need for efficiency in delivery systems, inventory management, and freight forwarding. As the market continues to expand, the demand for CPG logistics facilities will also increase during the predicted period.
In this industry research report, the analysts have estimated factors such as the growing demand for value-added services by CPG vendors to be one the emerging trends propelling the growth prospects for this market. CPG logistics providers offer value-added services along with the regular logistics services. These services differentiate the contract logistics providers from the in-house and regular logistics providers and are incorporated for operations management, supply chain management, system capabilities, and logistics engineering expertise. The CPG vendors optimize the processes and help in achieving improved efficiency through the incorporation of technology into their process framework.
During 2015, the transportation segment dominated the market and accounted for close to 48% of the market share in terms of revenue. Transportation includes the movement of CPG products from one location to another through different modes like road, rail, and sea. Much of this segment’s growth can be attributed to the transportation service provider’s utilization of IT-enabled services and integration of big analytics for supply chain management, which will help in the development of an enhanced supply chain model for CPG firms.
In terms of geography, EMEA led the global CPG logistics market and is expected to reach more than USD 15 billion by 2020. The major factor contributing to the growth of the CPG logistics market in Europe is the retail logistics services market in the UK, which generates close to 70% of the total revenue. Moreover, with the rapid proliferation of the e-commerce market in Europe, this market’s growth prospects will have a positive outlook until the end of 2020.
The global CPG logistics market is highly fragmented and competitive due to the presence of several well diversified global and regional vendors. Although the market has several international players, it is mostly dominated by local and regional vendors. However, several companies are entering into M&As, which is leading to market consolidation.
Key vendors in this market are -
Other prominent vendors in this market are APL Logistics, C.H. Robinson, Eagle Global Logistics, Exel, Menlo Worldwide, Nexus Distribution, Nippon Express, NYK Logistics, Panalpina, Penske Logistics, and Star Distribution Systems.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by logistics services
PART 07: Geographical segmentation
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Appendix
PART 15: Explore Technavio
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