The FMCG logistic market is set to progress at a CAGR of 4.1% through 2034. The eCommerce sector within FMCG logistics is shaking the demand. The propulsion of the retail sector bodes well for FCMG logistics. Moreover, the adoption of green logistic practices is giving an eco-friendly look to the market. Following these trends, market players can expect the market to rise from USD 117.1 billion in 2024 to USD 175.0 billion by 2034
| Attributes | Details |
|---|---|
| FMCG Logistic Market Size, 2024 | USD 117.1 billion |
| Market Size, 2034 | USD 175.0 billion |
| Value CAGR (2024 to 2034) | 4.1% |
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Expansion of the eCommerce industry and developments
Rapid expansion of the eCommerce industry is pushing the FMCG logistics market forward. Consumer preferences are moving toward online shopping for FMCG products in the current period. Several investors are increasingly investing in the industry as a result of this shift. With the integration of better technology and convenience, the market is anticipated to gain much potential during the forecast period.
Activities related to research and development are growing across the world, and the FMCG industry is no exception. FMCG companies are actively investing in research and development activities to provide convenience to their consumers.
Furthermore, urbanization is making a significant contribution to multiplying the market share in the industry. As more people move to urban areas, the demand for products such as packaged beverages, food, and others keeps on going.
Disposable Income and Retail Industry Landscape
The rate of disposable income among middle-class people is on the rise. Individuals are spending money on beverages, personal care products, and others significantly, which is ominously contributing to market growth.
Furthermore, lifestyle changes of contemporary people are also making a significant contribution to market share during the forecast period. For instance, working professionals, millennials, and Gen Z populations prefer ready-to-eat meals and snacks. Therefore, the demand for FMCG logistic services is increasing.
The retail landscape is changing considerably in the current period. By offering a wide range of FMCG products, retailers such as supermarkets, hypermarkets, and online stores have become popular in recent years. Considering the hype of the retail segment, there could be a high demand for FMCG logistics over the period.
| Attributes | Details |
|---|---|
| Mode of Transportation | Roadways |
| Market CAGR from 2024 to 2034 | 3.9% |
With the need for efficient and timely deliveries of consumer goods, the roadway mode of transportation is becoming increasingly popular for logistic providers. To make transportation more reliable and efficient, logistics providers are moving their preferences toward roadway transportation.
Technological advancements are also contributing to the segment's growth. Market players are integrating the latest technologies, such as real-time tracking and AI, to make roadway transportation more competent.
| Attributes | Details |
|---|---|
| Product Type | Food & Beverages |
| Market CAGR from 2024 to 2034 | 3.7% |
The rise of eCommerce and online food delivery is carrying the segment’s growth upward. People are increasingly ordering food through online platforms. Thus, the demand for FMCG logistic services is at its peak in this field. The perishable nature of foods is giving the segment an edge in the current period, as food products require special transportation.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| United States | 4.3% |
| China | 4.8% |
| United Kingdom | 5.1% |
| Japan | 5.6% |
| South Korea | 6.0% |
The United States has a well-known retail market in the world, with key players like Walmart operating here. According to our source, total retail sales reached USD 7.24 trillion in 2023 in the United States. There is a huge need for greater logistics, as retailers in the United States are expanding their product offerings and their footprints in the country.
FMCG companies are increasingly investing in sustainable supply chains to reduce carbon footprints and make the industry more eco-friendly in the country.
The development of new and innovative technology in the transportation sector has been seen in the United States. Logistics and suppliers are upgrading their systems with the integration of AI, the Internet of Things, and blockchains to improve supply visibility and reduce costs.
The FMCG logistics market in China has witnessed steady growth in recent years. Massive investment in FMCG logistics in China is currently being observed. As a technologically advanced country, logistics providers are increasingly improving their services with advanced technology in China.
The expansion of the eCommerce industry in China is leading to market growth. Services such as rapid home deliveries are gaining popularity in the country. Moreover, the government of China is actively improving the logistic infrastructure in the country, including ports, railways, and highways.
Changing preferences toward green logistics in the United Kingdom are a key market trend. The government in the United Kingdom is actively promoting sustainability initiatives in the current period. Thus, logistic providers are searching for innovative ways to cope with these initiatives in their services without harming the environment.
The FMCG packaging industry in the United Kingdom is on the rise, which is positively impacting the market. In urban areas, the adoption of the latest technologies in packaging and transportation has been seen in the United Kingdom. The trend of online shopping has gained much popularity in the country, sparking market growth.
Demand for convenience products has increased over the years in Japan. The delivery needs for these products are fueled by the FMCG market growth in the country. Research and development activities are rapidly growing in the region to maintain innovative standards and meet the changing needs of consumers.
FMCG companies in South Korea are actively looking to develop products that are eco-friendly as the government is implementing sustainability and eco-friendly initiatives in the country. Individuals are seeking instant deliveries of their products. Thus, logistics providers are focusing on improving their services according to consumer preferences.
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Market players are looking to improvising consumer experience by implementing new marketing strategies. The market is anticipated to gain exponential growth during the forecast period owing to innovations and research activities by top players. These players are investing in their logistics services to improve their services and gain maximum share in the market.
Many governments and governmental bodies are offering financial support to logistics providers to boost their research and development activities. Several strategies, like partnerships, mergers, and acquisitions, are changing the market landscape by disrupting traditional logistics methods and introducing unique methods.
Partnerships and Collaborations
In 2023, C.H. Robinson Worldwide, Inc. formed a strategic partnership with Waymo Via with the aim of driving the development of autonomous trucking solutions for supply chain management. This partnership plans to bring about significant advancements in the field of self-driving technology, particularly for long-haul trucking.
Through this collaboration, C.H. Robinson and Waymo Via are going to work together to explore new possibilities for integrating autonomous technology into the logistics industry. The ultimate motive is to improve efficiency, reduce costs, and enhance safety across the supply chain.
Recent Developments
The CAGR of the FMCG logistic market in the United States from 2024 to 2034 is estimated to be 4.3%.
The FMCG logistic market is expected to develop at a CAGR of 4.1% from 2024 to 2034.
The FMCG Logistic Market size is expected to be worth USD 117.1 billion in 2024.
The CAGR of the FMCG logistic market in China from 2024 to 2034 is estimated to be 4.8%.
The FMCG logistic market is estimated to get as big as USD 10.7 billion in 2034.
The FMCG logistic market can be divided by mode of transportation, product type, and region.
| Market Size (2023) | USD 443.1 billion |
|---|---|
| Market Size (2033) | USD 778.7 billion |
| Market CAGR (2023 to 2033) | 5.8% |
| Market CAGR (From 2023 to 2033) | 17.8% |
|---|---|
| Market Size (2023) | USD 626.23 billion |
| Market Size (2033) | USD 3221.36 billion |
| Market Size (2023) | USD 8.28 billion |
|---|---|
| Market Size (2033) | USD 38.13 billion |
| Market CAGR (2023 to 2033) | 16.5% |
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FMCG Logistic Market
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