New York, United States, Jan. 11, 2024 (GLOBE NEWSWIRE) -- Logistics is the coordination and movement of assets such as equipment, food, liquids, inventory, materials, and other items from one location to storage or the desired location. It is the method of managing the flow of goods from their origin to their point of consumption to satisfy customer demand. Logistics management for fast-moving consumer goods (FMCG) focuses on the effective and efficient management of daily activities involving the transport of frequently used goods from one location to another. The growth of the global FMCG logistics market is driven by factors such as the increasing penetration of e-commerce into the FMCG logistics sector, changing lifestyles, continuously evolving consumer habits, rising disposable income, and the rise of tech-driven logistics services, and the growing adoption of IoT-enabled connected devices.
FMCG logistics is a component of supply chain management; it plans, implements, and controls the forward and reverse flow of goods and their storage. Logistics primarily consists of various services, such as 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. Inadequate infrastructure, higher logistics costs, and a lack of manufacturer and retailer oversight over logistics services further inhibit the global market expansion. However, last-mile deliveries, logistics automation, cost reductions, and lead time reductions due to adopting a multimodal system are projected to present lucrative growth opportunities for the global FMCG logistics market.
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The Rapid Penetration of E-Commerce and Transformation of Consumer Lifestyles and Habits with the rise in Disposable Income to Drive the FMCG Logistics Market
E-commerce refers to the Internet-based buying and selling of goods. It is reshaping the global retail industry by providing visibility into inventory status, expected delivery schedule, and various delivery options, including tracking options and simple returns. In addition, online grocery stores and retailers such as Big Basket, Flipkart, and Amazon facilitate the availability of FMCG products to consumers through various discounts, holiday sales, and same-day delivery. In addition, the advent of the "direct-to-consumer" initiative by FMCG companies, whereby consumers can order FMCG products online and have them delivered directly to their homes, contributes to the expansion of the market. PepsiCo, a leading beverage company, launched two direct-to-consumer websites in May 2020, where customers can order various PepsiCo products, including snacks and beverages. In addition, companies such as Flipkart and Amazon have started to list FMCG products, such as groceries, on their respective marketplaces. Consequently, retail brands and e-commerce platforms collaborate with logistics providers to expedite and reduce the cost of product delivery, driving the expansion of the FMCG logistics market.
Previously, consumers purchased products by physically visiting a store; however, shifting consumer habits have resulted in online ordering and online processes. In addition to other factors, the awareness of personal care products, the adoption of health & wellness products, and the rising popularity of cosmetics have contributed to the popularity and sales of consumer goods. In addition, rising disposable income, alterations in consumption patterns and lifestyles, and enhanced purchasing power are positive indicators for the FMCG logistics market. Additionally, income growth, urbanization, and the expansion of modern retail drive consumer consumption of food and beverages. It is anticipated that these factors will increase the demand for consumer goods products and services, creating numerous opportunities for the FMCG logistics market.
Growth of Last Mile Deliveries to Create Market Opportunities
According to Straits Research, “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 by 2030 during the forecast period.” Last-mile logistics refers to the final delivery step from a distribution center or facility to the end-user. As the number of e-commerce companies continues to rise, the logistics industry is experiencing a significant increase in the delivery of efficient last-mile shipments. Additionally, receiving a package on the same day as the shipment is now almost a norm, resulting in the expansion of last-mile delivery services. In addition, e-commerce industries are placing a greater emphasis on last-mile delivery options within logistics industries due to the rise in FMCG, such as groceries, food products, and food & beverages. This creates various opportunities for the players to advance in the FMCG logistics market.
Regional Insights
Asia-Pacific will command the market with the largest share growing at a CAGR of 5.35% during the forecast period. The regional market's growth is primarily attributable to the flourishing e-commerce sector in emerging economies. Additionally, the increased adoption of outsourced logistics services in the region drives the growth of the FMCG logistics market in Asia-Pacific. In addition, government support for developing logistics infrastructure in the region is substantial, contributing to market expansion. China has the largest logistics market in the region as a result of the country's enormous population and industrial size. In addition, Asia-Pacific is anticipated to account for 42% of global retail sales and 70% of digital commerce sales. The growth of the global FMCG logistics market is anticipated to be bolstered by these developments in the logistics industry, which are predicted to create lucrative opportunities.
North America's FMCG Logistics industry will grow at a CAGR of 4.25%. The increasing availability of foreign goods in emerging economies such as Indonesia, Thailand, and India, particularly those imported from North American nations, is one of the primary factors driving the growth of the FMCG logistics market in the region. The expansion of e-commerce also contributes to the growth of the regional market. In addition, there has been an increase in the popularity of healthy eating in this region. People are more concerned about their health due to the rise in the prevalence of obesity and other chronic diseases caused by poor dietary habits. They have begun adhering to dietary regimens centered on maintaining healthy body weight and composition. Numerous Americans have begun avoiding foods high in sugar, sodium, trans fat, and artificial ingredients such as aspartame. It is anticipated that the emergence of new revitalizing products made with organic ingredients will create growth opportunities for the FMCG logistics market in North America due to an increase in product transportation.
Key Highlights
- Based on product type, the segment of food and beverages is expected to hold the largest share during the forecast period growing at a CAGR of 4.61%.
- Based on service type, the transportation segment is most likely to hold the largest share during the forecast period growing at a CAGR of 4.51%.
- Based on the mode of transportation, the segment of roadways will hold the majority of the share during the forecast period growing at a CAGR of 3.51%.
- Based on regional analysis, Asia-Pacific will command the market with the largest share growing at a CAGR of 5.35% during the forecast period.
Competitive Players in the Market
- P. Moller – Maersk
- 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.
Market News
- In 2022, A.P. Moller – Maersk acquired ResQ to strengthen Maersk training's offerings within safety training and emergency preparedness.
- In 2022, C.H. Robinson Worldwide, Inc. and Waymo Via entered into a strategic partnership to advance the development of autonomous trucking for supply chains.
Global FMCG Logistics Market: Segmentation
By Product Type
- Food & Beverages
- Personal Care
- Household Care
- Other Consumables
By Service Type
- Transportation
- Warehousing
- Value-Added Services
By Mode of Transportation
- Railways
- Airways
- Roadways
- Waterways
By Region
- North America
- Asia-Pacific
- Europe
- LAMEA
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