FMCG Logistics Market to Reach $1,400.80 Bn, Globally, by 2027 at 4.6% CAGR: Allied Market Research

- Growing penetration of e-commerce in the FMCG industry and changing lifestyles & consumer habits fuel the growth of the global FMCG logistics market

PORTLAND, Ore., July 8, 2021 /PRNewswire/ -- Allied Market Research published a report, titled, "FMCG Logistics Market by Mode of Transportation (Railways, Airways, Roadways, and Waterways), Product Type (Food & Beverages, Personal Care, Household Care, and Other Consumables), and Service Type (Transportation, Warehousing, and Value Added Services): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global FMCG logistics industry was estimated at $1,056.58 billion in 2019, and is anticipated to hit $1,400.80 billion by 2027, registering a CAGR of 4.6% from 2020 to 2027.

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Drivers, restraints, and opportunities-

Growing penetration of e-commerce in the FMCG industry, changing lifestyles & consumer habits, surge in disposable income, rise in tech-driven logistics services, and growing adoption of IoT-enabled connected devices fuel the FMCG logistics market. On the other hand, poor infrastructure, higher logistics costs, and lack of control of manufacturers and retailers on logistics services impede the growth to some extent. However, emergence of last mile deliveries coupled with logistics automation is expected to create multiple opportunities in the industry.

Covid-19 scenario-

• The breakout of the covid-19 virus hugely impacted the supply of goods and gave way to distorted supply chain. Additionally, countries across the world imposed nationwide shutdown of almost all retail outlets for the fast moving consumer goods. Accordingly, the global FMCG logistics market received a huge blow.
• However, the global situation is getting better at a gradual pace and the market is anticipated to revive soon.

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The roadways segment to maintain the lion's share-

Based on mode of transportation, the roadways segment accounted for around two-fifths of the global FMCG logistics market share in 2019, and is expected to lead the trail by the end of 2027. Roadways logistics transportation entails low capital investment as compared to other modes of transportation such as rail and air transportation system. This leads to the establishment of new companies, thereby propelling the segment growth. The waterways segment, on the other hand, would garner the fastest CAGR of 5.90% throughout the forecast period, owing to increasing popularity of containerization and rise in number of new ports.

The food and beverages segment to dominate by 2027-

Based on product type, the food & beverages segment contributed to more than four-fifths of the global FMCG logistics market revenue in 2019, and is anticipated to rule the roost by 2027. Increase in working population and the trend of healthy eating have made way for packaged food and enabled restaurants to grow their business. This factor drives the segment growth. Simultaneously, the personal care segment would manifest the fastest CAGR of 5.10% during the forecast period.

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Asia-Pacific, followed by North America, held the highest share in 2019-

Based on region, Asia-Pacific, followed by North America, held the highest share in 2019, garnering nearly half of the global FMCG logistics market. The same region would also portray the fastest CAGR of 5.10% from 2020 to 2027. This is attributed to the booming e-commerce industry in emerging economies. Moreover, increased adoption of outsourced logistics services in the region drives the market growth.

Key players in the industry-

• C.H. Robinson Worldwide, Inc.
• Deutsche Post AG (DHL Group)
• A.P. Moller – Maersk
• DSV (DSV Panalpina)
• FedEx
• Geodis
• Kuehne+Nagel
• DB SCHENKER (Deutsche Bahn Group (DB Group))
• United Parcel Service, Inc. (UPS)
• XPO Logistics, Inc.

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