|Base Year Market Size
|USD XX Billion
|Forecast Year Market Size
|USD XX Billion
|Fastest Growing Market
The global FMCG logistics market size was valued at USD 1,059 billion in 2021, growing at a CAGR of 4.86%, and is envisioned to reach USD 1,549 billion during the forecast period.
Logistics is the coordination and movement of assets, like equipment, food, liquids, inventory, materials, and other goods, from one location to storage or the desired destination. It is the approach to managing the flow of goods from their origin to their point of consumption to meet customer demand. Logistics management for fast-moving consumer goods or FMCG focuses on the effective and efficient management of daily activities involving the transport of goods used daily from one location to another. The growth of the global FMCG logistics market is driven by factors such as the increasing infiltration of e-commerce in the FMCG logistics sector, changing lifestyles, continually developing consumer habits, rising disposable income, and the rise of tech-driven logistics services, and the increasing adoption of IoT-enabled connected devices.
FMCG logistics is a component of supply chain management; it plans, implements, and controls the efficient, effective forward and reverse flow of goods and their storage. Logistics consists primarily of various services, including third-party logistics (3PL), fourth-party logistics (4PL), inbound logistics, outbound logistics, reverse logistics, green logistics, construction logistics, digital logistics, military logistics, and other logistics services. Moreover, inadequate infrastructure, higher logistics costs, and a lack of manufacturer and retailer oversight over logistics services impede the global market expansion. However, last-mile deliveries, logistics automation, cost reductions, and lead time reductions due to adopting a multi-modal system are anticipated to present lucrative growth opportunities for the global FMCG logistics market share.
The Rapid Penetration of E-Commerce to Augment Market Growth Prospect
Internet-based purchasing and selling of products are referred to as e-commerce. It is reshaping the global retail industry by offering exposure to inventory status, anticipated delivery schedule, and a range of delivery options, including tracking options and straightforward returns. In addition, online grocery stores and retailers like Big Basket, Flipkart, and Amazon, facilitate the availability of FMCG products to consumers through various discounts, festive sales, and same-day delivery options. In addition, the advent of the "direct-to-consumer" initiative by FMCG companies, whereby consumers can request FMCG products online and have them delivered directly to their homes, also contributes to the market expansion. PepsiCo, a leading beverage company, launched two direct-to-consumer websites in May 2020, where customers can order various products, including snacks and beverages. Additionally, companies like Flipkart and Amazon have begun listing FMCG items on their specific marketplaces, like groceries. Consequently, retail brands and e-commerce platforms collaborate with logistics providers to expedite and reduce the cost of product delivery, which drives the growth of the market.
Transformation of Consumer Lifestyles and Habits with Rising in Disposable Income to Aid Growth
Previously, consumers purchased products by going to the store; however, shifting consumer habits have led to online ordering and online processes. The awareness of personal care products, the adoption of health & wellness products, and the growing popularity of cosmetics, among other factors, have contributed to the popularity and sales of consumer goods. In addition, rising disposable income, alterations in consumption patterns and lifestyles, and improved purchasing power augur well for the market. Moreover, income growth, urbanization, and the expansion of modern retail drive food and beverage consumption among consumers. It is anticipated that these factors will increase the demand for consumer goods products and services, thereby creating ample opportunities for the FMCG logistics market share.
Poor Infrastructure and Higher Cost of Logistics to Hinder Market Growth
Infrastructure, supply chain, and trade facilitation are required for logistics. Without them, businesses must amass more significant stock reserves and working capital, negatively impacting national and regional competitiveness due to their high financial costs. In addition, a lack of infrastructure hinders the logistics market because it increases costs and decreases supply chain reliability, such as significant inefficiencies in transport, deteriorating storage infrastructure, a complex tax structure, a low rate of technology adoption, and inadequate skills among logistics professionals. Moreover, a shortage of skilled IT standards and equipment and poor system integration have been the primary causes of the supply chain's underdevelopment. Infrastructure has a direct impact on transport costs and an indirect impact on inventory levels and, consequently, financial costs. Consequently, inadequate infrastructure, high inventory costs, and a lack of storage space are anticipated to hinder the FMCG logistics market growth.
Growth of Last Mile Deliveries to Boost Market Opportunities
Last-mile logistics refers to the final delivery step from a distribution hub or facility to the final consumer. The logistics industry is experiencing a significant upswing in the delivery of effective last-mile deliveries as the number of e-commerce companies continues to rise. In addition, they were receiving a package on the same day as the shipment is now nearly the norm, resulting in the expansion of last-mile delivery services. In addition, due to the increase in FMCG, like groceries, foodstuffs, and food & beverages, e-commerce industries are placing a greater emphasis on last-mile delivery options within logistics industries. This creates various opportunities for the players to advance in the market.
The region-wise segmentation of the global FMCG logistics market includes North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific will command the market with the largest share growing at a CAGR of 5.35% during the forecast period. The regional market expansion is primarily attributable to the flourishing e-commerce sector in emerging economies. In addition, the greater adoption of outsourced logistics services in the region fuels the expansion of the market in Asia-Pacific. Moreover, government support for the growth of the region's logistics infrastructure is substantial, contributing to market expansion. China is the biggest logistics market in the region as a result of the country's enormous population and large industrial base. In addition, Asia-Pacific will account for 42% of the world's total retail and 70% of digital commerce sales in the coming years. The growth of the global FMCG logistics market is anticipated to be supported by these developments in the logistics industry, which are anticipated to generate lucrative opportunities.
North America will hold a share of USD 358 billion, growing at a CAGR of 4.25%. The rising availability of foreign goods in emerging economies such as Indonesia, Thailand, and India, particularly those imported from North American nations, is one of the major forces driving the expansion of the FMCG logistics market share in the region. Expanding e-commerce activities also contribute to the expansion of the regional market. In addition, this region has witnessed a rise in the popularity of healthy eating. People are more concerned about their health due to the increased number of obese individuals and other chronic diseases resulting from poor dietary habits. They have begun adhering to specific dietary regimens centered on maintaining healthy body weight and composition. Many Americans have begun avoiding foods high in sugar, sodium, Trans fat, and artificial ingredients like aspartame. The emergence of new products that are rejuvenating and made with organic ingredients is anticipated to create growth prospects for the market in North America due to increased product transportation.
|By Product Type
|By Service Type
|By Mode of Transportation
|A.P. Moller – Maersk C.H. Robinson Worldwide, Inc. DB SCHENKER (Deutsche Bahn Group (DB Group) Deutsche Post AG (DHL Group) FedEx Geodis Kuehne+Nagel United Parcel Service, Inc. (UPS) XPO Logistics, Inc.
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global FMCG logistics market is classified based on product type, service type, mode of transportation, and region.
The segments include food & beverages, personal care, household care, and other consumables based on product type.
Food and Beverages to Capture Maximum Market Share in the Upcoming Years
The segment of food and beverages is expected to hold the largest market share during the forecast period growing at a CAGR of 4.61%. The food and beverage segment of the market for fast-moving consumer goods is driven by an increase in disposable income, cross-cultural interaction, and population growth. The tendency to eat healthily has been a significant factor in expanding the food and beverage industry. Consumers are becoming increasingly health-conscious, and a growing number of individuals have adopted "special" diets and desire to enjoy these healthier options at home and dining out. Quality and health are becoming progressively synonymous and significant in people's purchasing decisions. This increased demand for high-quality consumables expands the global FMCG logistics market demand.
The personal care segment will hold the second-largest share. The importance of personal care and hygiene in the lives of men and women in various parts of the world has increased in popularity over the past decade. Rising disposable income, expanding middle-class aspirational spending, and a desire for higher-quality products have been the most influential factors in the global demand for personal care and hygiene products.
The segments include transportation, warehousing, and value-added services based on service type.
The transportation segment is most likely to hold the largest market share during the forecast period growing at a CAGR of 4.51%. Transportation is a fundamental economic concept that involves the flow of goods and services in exchange for payment or the exchange of goods and services between parties. Over the forecast period, it is anticipated that the FMCG logistics industry will experience significant growth due to rising trading across the region, increased trade-related contracts, and technological developments in the transportation sector. Moreover, the FMCG logistics market growth is directly correlated with the development of international trade and the current economic climate. It requires integrating data, transportation, inventory, storage, material handling, packaging, and security.
The warehousing segment will hold the second-largest share. The FMCG industry's warehouses are designed to preserve product quality to deliver fresh goods to the market. Numerous factors that have contributed to the expansion of the market have contributed to the growth of the FMCG industry's warehousing sector. The benefits of warehousing include the consistent availability of products, ample storage space, and decreased likelihood of product damage. In addition, consumers' demand for fresh products contributes to the segment's global expansion.
Based on the mode of transportation, the segments include railways, airways, roadways, and waterways.
Increase in the Import and Export of Goods and Materials to Boost Segment Growth
The segment of roadways will hold most of the share during the forecast period growing at a CAGR of 3.51%. Roadways involve the movement of goods from one location to another via roads. The most frequently utilized mode of logistics transit is roadway transport. Compared to other transportation modes, such as rail and air, logistics transportation via roadways requires a low capital investment. This results in the formation of new businesses and increases the segment's market presence. In addition, an increase in the import and export of goods and materials is expected to propel the FMCG logistics market on the roadways.
The waterways segment will hold the second-largest share. Waterways refer to transporting goods or products via watercraft such as a boat, ship, or sailboat across sea, ocean, canal, or river. Water is the cheapest and oldest mode of transportation. The initiation of containerization has significantly altered the waterways logistics industry. The FMCG logistics market growth has been influenced by the popularity of containerization and the expansion of new ports. In addition, new technological advancements, such as machine-to-machine communication, have radically altered waterway transport, which is anticipated to increase demand for waterways logistics transport.