Europe - FMCG Logistics Market is to grow by USD 40.18 billion from 2022 to 2027, Increasing adoption of technology in the logistics industry to drive the growth - Technavio

NEW YORK, Oct. 2, 2023 /PRNewswire/ -- The Europe MCG logistics market in Europe is expected to grow by USD 40.18 billion from 2022 to 2027. However, the growth momentum of the market will progress at a CAGR of 4% during the forecast period. The market is segmented by service (transportation, warehousing, and VAS), and product (food and beverages, personal and beauty care, health and hygiene care, and home care). The increasing adoption of technology in the logistics industry is a key factor driving market growth. Technological advances are transforming the FMCG supply chain in Europe. To streamline the entire supply chain of FMCG products, logistics operators continue to adopt new technologies such as the Internet of Things, robotics, analytics, and big data. In response to this emerging technology trend, logistics operators and IT firms have put in place different strategies like collaboration, horizontal integration as well as mergers and acquisitions. Additionally, the growing need for customization and need for quick delivery in the FMCG sector has forced suppliers to deploy various technologies to shorten delivery times and reduce inventory. For example, DHL Group's digital freight platform, known as Saloodo in the UK, aims to connect shippers and transport service providers through an online platform. Hence, these factors are expected to drive market growth during the forecast period. The report analyses the market size and growth and provides accurate predictions on the growth of the market. View a Free PDF Sample 

Key Highlights:

• The report recognizes the following as some of the key players in the FMCG logistics market in Europe: Agility Public Warehousing Co. K.S.C.P, Bertelsmann SE and Co. KGaA, Brambles Ltd., C H Robinson Worldwide Inc., CEVA Logistics AG, DACHSER SE, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Hellmann Worldwide Logistics SE, and Co KG, Kuehne Nagel Management AG, Nippon Express Holdings Inc., PSA International Pte Ltd., SNCF Group, United Parcel Service Inc., UNIVERSAL LOGISTICS HOLDINGS INC., and XPO Logistics Inc.
• The FMCG Logistics Market in Europe is fragmented in nature.
• Market to observe 3.58% YOY growth in 2023.

Market Dynamics:

Major Trend

• The growing focus on truck platooning by logistics companies is a major trend in the market.
• To ensure connectivity and autonomous driving, two or more trucks in a convoy are joined by a truck platoon.
• This technology ensures that when linked during the trip, trucks remain within a set distance and near each other.
• The use of truck platooning in the logistics sector is being encouraged by several governments, as it saves costs, reduces road congestion, and mitigates carbon emissions.
• In addition, logistics companies such as FedEx, DHL, and DB Schenker also participate in investing in R&D to successfully deploy truck platooning in the logistics field.
• Hence, these factors are expected to drive market growth during the forecast period.

Significant Challenge

• The high cost of operations in the FMCG industry is a significant challenge restricting market growth.
• The costs of freight and cold chain logistics in the FMCG sector are high.
• Procurement of suitable land for strategic locations is a lengthy process and requires appropriate approvals which in turn increases the costs associated with setting up cold storage facilities.
• Another important concern that challenges Cold Chain Providers is an increase in oil prices and rising energy costs.
• Furthermore, the increased operating costs are due to the use of high-quality tracking and trace technology on trucks and warehouses.
• Hence, these factors are expected to restrict market growth during the forecast period.

The report also covers information on upcoming trends and challenges. Explore detailed information by purchasing a report

Keg Segments:

• The market share growth by the transportation segment will be significant during the forecast period. An activity known as transport involves the transfer of goods by physical means from one place to another. Moreover, they consider things like the best route to delivery, safe packaging, and suitable modes of transport. In the logistics sector, four different types of transportation are used to transport consignments including trucks, trains, planes, and ships. In addition, to increase their business in the region, those market players focused on this area are putting a focus on enhancing transport links. For example, the launch of a new intercontinental flight from Europe to Japan was announced in October 2021 by FedEx Express, a subsidiary of FedEx Corporation. Hence, these factors are expected to drive segment growth during the forecast period.

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The Asia Pacific (APAC) Logistics Market size is estimated to grow at a CAGR of 5.25% between 2022 and 2027. The market size is forecast to increase by USD 145.4 million.

The intermodal freight transportation market size is estimated to grow at a CAGR of 6.64% between 2022 and 2027. The market size is forecast to increase by USD 56.12 billion.

ToC:

Executive Summary

Market Landscape

Market Sizing

Historic Market Sizes

Five Forces Analysis

Market Segmentation by Service

Market Segmentation by Product

Market Segmentation by Geography

Customer Landscape

Geographic Landscape

Drivers, Challenges, & Trends

Company Landscape

Company Analysis

Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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