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

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  • 120 Pages
  • January 2022
  • Region: North America
  • Mordor Intelligence
  • ID: 5529550
UP TO OFF until Sep 30th 2023

The North America FMCG Logistics Market is expected to grow at a CAGR of around 5% during the forecasted period. Fast-moving consumer goods (FMCG) include food and beverages, personal care, home care, and other consumer goods. FMCG logistics comprises the storage, warehousing, and value-added services provided to FMCG companies by logistics vendors. Changing lifestyles, rapidly evolving consumer habits, and ease of access are the key growth drivers for the consumer goods industry. Consumers expect a large variety of items to be available at local and online retailers at all times. To accomplish this demand, the FMCG companies require highly efficient, flexible, and sustainable global supply chains services from logistics service providers.

Key Market Trends

Growing E-Grocery Sales in United States driving FMCG Logistics

The market size of the Grocery Stores and Supermarkets industry is expected to reach $682 billion in revenue by end of 2020. There are many factors affecting the growth of E-Grocery Sales. The market is expected to grow with the rising millennial population, growing e-commerce market, expansion of business models by major players, integration of voice technology, rising demand for grocery apps, etc. However, the growth of the market is restrained by factors such as escalating storage and delivery cost, lack of personal verifiability of groceries, price fluctuation of grocery items, etc. Currently, in grocery shopping, online channels account for a small proportion of the total grocery market in the US, but expectations are made that the market would gain momentum over the next five years i.e. 2021 to 2025. The US online grocery market is in its nascent stage and market share is dominated by only a few major players such as Walmart, Amazon.com, The Kroger Co, and Costco Wholesale Corporation. Till today, a vast majority of grocery shopping still takes place in traditional brick-and mortar stores. But with new tech-savvy retailers now offering grocery delivery options for their customers in the United States, the market is gathering momentum. In total, U.S. online grocery sales amounted to about 17.5 billion U.S. dollars in 2018 and are expected to rise to nearly 30 billion U.S. dollars by 2021.

Packaged Food Segment Experienced Maximum Growth during Covid-19

With the onset of Covid-19, many sectors of the economy have experienced a setback except for FMCG and Pharmaceutical Sectors. These 2 sectors have experienced an increase in demands as they are a part of essential goods category. With Social Distancing rules, the Retail e-commerce industry has witnessed a surge in their revenues. The Retail e-commerce revenue from food and beverage sales amounted to almost 7.3 billion U.S. dollars in 2019 and has been increasing since. Among all the online food and beverage retailers, the e-commerce giant Amazon had the highest market share, followed by Walmart and Kroger. The use of virtual grocery stores has still a large growth potential as more and more time-strapped consumers are looking for innovative ways to make their lives easier. However, a significant hurdle for online grocers remains freshness as many customers still prefer to see and touch the produce before purchase. To tackle this hurdle, Amazon has introduced Amazon Fresh and Prime Pantry, two online grocery shopping services. Amazon’s food and beverage sales are projected to rise from approximately 14.5 billion dollars in 2018 to over 23 billion dollars in 2021. In 2020, among all the food & beverages categories, Packaged Foods segment has registered the highest growth percentage followed by are Frozen Foods and Dairy segments. Dollar sales of packaged foods increased by approximately 32 percent (compared to the previous year), followed by frozen foods and dairy, increasing by around 27 and 26 percent respectively. Therefore, currently packaged, frozen foods and dairy segments are the major drivers of FMCG Logistics.

Competitive Landscape

The North America 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 Worldwide Logistics and APL Logistics.

Additional Benefits:

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

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 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 North America (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 Geography
6.3.1 United States
6.3.2 Canada
6.3.3 Mexico
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*