The FMCG Logistics Market in Europe is being driven by Increasing adoption of technology in logistics industry
The FMCG Logistics Market in Europe is expected to grow at a CAGR of 4.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 65.6 billion. In the European FMCG market, which is characterized by its fragmentation and intense competition, 3PL companies provide indispensable logistics services to FMCG firms to cater to the escalating demands of consumers. To achieve operational efficiencies, these logistics providers are expanding their offerings and engaging in mergers and acquisitions. For instance, the acquisition of Combinex, a leading forwarder in the Benelux region, by C.H. Robinson signifies a strategic move to broaden the latter's European footprint, particularly in Western Europe, during the forecast period. This acquisition will enable C.H. Robinson to offer comprehensive logistics solutions for dry, fresh, and frozen goods, thereby strengthening its market position.
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The market is segmented based on
According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows:
However, the market also witnesses some limitations, which are as follows:
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Market Scope |
|
Report Coverage |
Details |
Page number |
203 |
Base year |
2024 |
Historic period |
2019-2023 |
Forecast period |
2025-2029 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.7% |
Market growth 2025-2029 |
USD 65.6 billion |
Market structure |
fragmentation |
YoY growth 2024-2025(%) |
4.4 |
Key countries |
Germany, France, Italy, UK, and Rest of Europe |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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The European FMCG logistics market is witnessing significant advancements with the integration of logistics automation and supply chain analytics. This includes delivery optimization through transport planning and inventory control, order tracking, and warehouse efficiency. Packaging design, food safety standards, and quality control are crucial elements, while supply chain resilience is ensured through demand planning, network design, and carrier management. Shipment tracking, returns processing, and transportation costs are key focus areas for enhancing on-time delivery and efficient distribution strategies. Logistic network, inventory levels, customer satisfaction, and supply chain risk are other significant factors influencing the market.
In the European FMCG logistics sector, the market encompasses revenue generated by companies offering air freight transportation, courier services, and comprehensive logistics solutions, including warehouse management systems, supply chain optimization, last mile delivery, and cold chain logistics. According to Technavio, the European FMCG logistics market size is determined by the earnings of these providers. Key growth drivers include the surge in cross-border e-commerce activities, necessitating efficient tracking of goods from origin to final delivery, and the increasing demand for temperature-controlled logistics solutions in the food and pharmaceutical industries.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
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