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Europe FMCG Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • January 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5529549

The Europe FMCG Logistics Market is expected to grow at a CAGR of around 5% during the forecasted period. Logistics is an essential segment of the supply chain management. With FMCG being essential products, their production, demand and supply has remained constant during Covid-19 pandemic as well. The transportation segment in the FMCG logistics market in Europe deals with the movement of goods from the point of origin to the point of storage or consumption through various modes of transport such as road, rail, air, and sea. Since these products have a short shelf life, the logistics service providers have pre-set efficient map routes set up to guarantee timely and protected delivery of these goods.

Key Market Trends

Growing Third Party Logistics (3PL) Market in Europe

Logistics management is an important component of many companies’ profitability and overall success. While some companies manage their own logistics, others find it more efficient to hire specialized logistics companies to manage their logistics for them. 3PL service providers handle activities such as designing and planning supply chains, designing facilities, warehousing, transporting and distributing goods etc. The primary motivation for taking 3PL services is not cost but flexibility. This is true especially for FMCG companies or retailers that need preparation of less-than-full-case orders - 3PLs are more price-competitive in simpler full-case or full-pallet orders. A 3PL service provider will have more ability to absorb volume increases and fluctuations than an in-house operation. The ability to share facilities and labour allows 3PL company to move resources around and respond in ways the manufacturer cannot. This has strong appeal to FMCG companies that have intense launch and promotional cycles that can create distortions in regular flows. The FMCG sector has seen no decrease in the demand and production of its products during Covid-19 and is likely to remain strong post Covid-19 as well. In 2018, the European third-party logistics market generated revenue of around 181.7 billion US dollars and is likely to grow further.

FMCG E-commerce Sales to Rise at a High Pace

The online food and grocery market in Europe has been growing from the past few years, as people are looking for ways to multitask and save time. In Europe, in 2009 the online food and grocery shopping accounted for 13% of the ordered goods and services online. Since 2009 until 2018 the share of food and grocery e-shopping has almost doubled (92% growth) and in 2018, 25% of online orders were made for food and groceries. This is a clear indicator of potential growth as consumers are starting to embrace online shopping of FMCG and other essentials. The countries with the highest growth in online purchase of FMCG goods from 2009 to 2018 are Greece, Czechia, Malta, Latvia and Sweden, they increased e-food and grocery orders to 5 times in 2018 compared to 2009 as a percentage of online ordered goods and services. Slovakia, Estonia, Finland, Lithuania also did well and were doing online orders for food and grocery by over 3 times more. The top 4 countries where the share of online purchases is above 30% as a share of all online orders as the UK, Czechia, Estonia and Lithuania. The United Kingdom, France, Germany and Spain are predicted to have the highest online grocery market sizes in Europe. With increasing online sale of FMCG goods, the FMCG Logistics market is expected to grow along with booming E-commerce.

Competitive Landscape

The Europe FMCG Logistics Market is highly competitive and is highly fragmented with presence of many players. With Increasing FMCG sales worldwide, the demand for efficient logistics service providers has also increased with the increasing sales. As FMCG products are essentials in nature, their demand is likely to keep growing with coming years. The opportunity for FMCG logistics service providers is expected to grow in coming years. Some of the existing major players in the market include - DHL Group, C.H. Robinson Worldwide Inc., Kuehne + Nagel International AG, Agility Logistics, CEVA Logistics, FedEx, XPO Logistics, Nippon Express, DB Schenker, Hellmann Worlwide Logistics and APL Logistics.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Value Chain / Supply Chain Analysis
4.3 Technological Trends
4.4 Investment Scenarios
4.5 Government Regulations and Initiatives
4.6 Insights on 3PL market in Europe (Market Size and Forecast)
4.7 Impact of Covid-19 on FMCG Logistics Market
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitutes
5.4.5 Intensity of Competitive Rivalry
6.1 By Service
6.1.1 Transportation
6.1.2 Warehousing, Distribution, and Inventory Management
6.1.3 Other Value-added Services
6.2 By Product Category
6.2.1 Food and Beverage
6.2.2 Personal Care
6.2.3 Household Care
6.2.4 Other Consumables
6.3 By Country
6.3.1 Germany
6.3.2 United Kingdom
6.3.3 Netherlands
6.3.4 France
6.3.5 Italy
6.3.6 Spain
6.3.7 Poland
6.3.8 Belgium
6.3.9 Sweden
6.3.10 Rest of Europe
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 DHL Group
7.2.2 C.H. Robinson Worldwide Inc.
7.2.3 Kuehne + Nagel International AG
7.2.4 Agility Logistics
7.2.5 CEVA Logistics
7.2.6 FedEx
7.2.7 XPO Logistics
7.2.8 Nippon Express
7.2.9 DB Schenker
7.2.10 Hellmann Worlwide Logistics
7.2.11 APL Logistics*