Authored By: Sarah
11 Jul 2024

 Reverse Logistics Market Size to grow by USD 324.23 billion between 2023-2027

According to a research report “ Reverse Logistics Market” by Type (Recalls, Commercial and B2B returns, Repairable returns, End of use returns, End of life returns) End-user (E-commerce, Retail, Automotive, Healthcare, Others) Geography (APAC, North America, Europe, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 324.23 billion, at a CAGR of  7.8% during the forecast period. The e-commerce sector's expansion, driven by the expanding global Internet penetration and the proliferation of smartphones, is significantly influencing the logistics industry. With China and the US leading the charge as the largest e-commerce markets due to their large populations and burgeoning middle classes, the number of online consumers is poised to increase, resulting in a surge in parcel delivery demand. As consumers increasingly opt for online shopping, the first brand interaction often occurs at the doorstep with the delivery of their purchases. This trend underscores the importance of efficient and effective reverse logistics solutions to manage returns, repairs, and disposals, ensuring customer satisfaction and reducing operational costs.

Browse market data tables, figures, and in-depth TOC on “Reverse Logistics Market” by Type (Recalls, Commercial and B2B returns, Repairable returns, End of use returns, End of life returns) End-user (E-commerce, Retail, Automotive, Healthcare, Others) Geography (APAC, North America, Europe, Middle East and Africa, South America) Global Forecast to 2027. Download Free Sample

 

By Type, the Recalls segment is projected to dominate the market size in 2024

The e-commerce sector is experiencing significant growth due to the expanding global reach of the Internet and increasing smartphone usage. The United States and China, as two of the largest e-commerce markets, are particularly noteworthy. In China, the rapid expansion of the middle class population has fueled demand for consumer goods, which can be categorized as slow-moving consumer goods (SMCGs) and fast-moving consumer goods (FMCGs). FMCGs, with a shelf life under one year, consist of household and cleaning products, personal care items, tobacco, apparel and footwear, pet food, and pet care products. These goods are frequently purchased and involve recurring expenditures.

By End-user, E-commerce  segment is expected to hold the largest market size for the year 2024

In the realm of reverse logistics, product recalls represent a critical component of this process. When a company identifies a product defect or error, a recall initiative is initiated to retrieve the affected merchandise from the market and consumers. In 2022, notable recalls included 129,000 Bestar Wall Beds due to serious impact and crush hazards, 89,000 Sakar Dimensions Bluetooth Speaker Helmets due to potential head injury risks, and 19,000 Sirrus Bicycles with alloy cranks due to fall and injury hazards. This intricate process encompasses not only the return of goods by customers and unsold inventory from distribution partners, but also the reuse of packaging materials. A product recall necessitates a well-executed logistics strategy to ensure the safe and efficient retrieval and handling of the recalled merchandise.

APAC is forecasted to hold the largest market size by region in 2024

The reverse logistics market in the Asia Pacific (APAC) region is experiencing significant growth due to the increasing consumer base for food and beverage, as well as healthcare product suppliers. With rising disposable incomes and an aging population in countries like Japan and China, healthcare expenditure is witnessing robust growth rates. This trend is driving the demand for temperature-controlled healthcare products, such as biopharmaceuticals, vaccines, and clinical trial materials, which require specialized reverse logistics solutions. Additionally, the increasing preference for organic food products in countries like China, Australia, and New Zealand, fueled by health consciousness and certified organic dairy offerings, is boosting the demand for cold chain logistics services from both the healthcare and food industries. These solutions ensure the maintenance of product shelf life and quality, making them essential for businesses in the region.

The Reverse Logistics Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Aramex International LLC
  • Blue Dart Express Ltd.
  • C H Robinson Worldwide Inc.
  • CMA CGM SA
  • Core Logistic Pvt. Ltd
  • Deutsche Post AG
  • DTDC Express Ltd.
  • Ecom Express Pvt. Ltd.
  • FedEx Corp.
  • First Flight Courier Ltd.
  • GXO Logistics Inc.
  • Happy Returns LLC
  • Kintetsu Group Holdings Co. Ltd.
  • Nippon Yusen Kabushiki Kaisha
  • Pitney Bowes Inc.
  • Reverse Logistics GmbH
  • Safexpress Pvt. Ltd.
  • Shipbob Inc.
  • TCI Express Ltd.
  • United Parcel Service Inc.
.

For insights on company offerings- Request a sample report!

Research Analysis Overview

The Reverse Logistics Market is a critical component of the supply chain, focusing on the process of returning, repairing, and reselling or disposing of products. Recalls, a significant driver of reverse logistics, require efficient handling to minimize financial and reputational damage. Freight bill audits and invoice processing are essential for cost savings and accurate financial reporting. Confidentiality is crucial in third-party reverse logistics, ensuring manufacturer control over sensitive data. Digital transformation, including Bluetooth and Radio-frequency identification (RFID), streamlines reverse logistics by enabling real-time tracking and data analytics. e-Commerce returns, retail store returns, and direct returns require transparency and traceability for effective value recovery. Blockchain and IoT enhance supply chain efficiency by providing secure, tamper-proof data and real-time information. Product quality standards and recalls necessitate efficient reverse logistics, with data analytics and augmented reality aiding in identifying and addressing issues. Robotics, automation, and unwanted purchases reduction contribute to cost savings and improved retail sales, both online and in stores. The National Retail Federation reports e-commerce sales growth, emphasizing the importance of reverse logistics in the digital age.

Market Research Overview

The Reverse Logistics Market is a critical aspect of the supply chain, particularly for industries with high product returns, such as Car Subscription Services, FMCG, Electronics, Pharmaceuticals, and Automotive. Reverse logistics involves the process of managing and handling returns, recalls, and defective automobiles or products. This includes component failure, fire risk, and vehicle-related mishaps, which can lead to automotive safety recalls and the need for repairable returns. Third-party reverse logistics providers play a significant role in this market, offering freight bill audits, invoice processing, and confidentiality services. Manufacturers seek control over the reverse logistics process to maintain brand trust and ensure customer satisfaction. Digital transformation, including Bluetooth, RFID, machine learning, and IoT devices, is driving tech-driven reverse logistics. The e-commerce sector, with its high return volumes, is a significant contributor to this market. E-commerce transactions, online marketplaces, and direct-to-consumer brands require efficient reverse logistics solutions for returns management. The circular economy, with its focus on waste reduction and environmental consciousness, is also influencing the reverse logistics market. This includes end-of-life and end-of-use returns, as well as remanufacturing, refurbishment, and reselling. Operational complexities, such as lead time, warehousing capabilities, and reachability, are essential considerations for reverse logistics providers. Automation technologies, including augmented reality, robotics, and automation, are helping to streamline the process and improve supply chain efficiency. Government funding and sustainability initiatives are driving the adoption of reverse logistics solutions in various industries, from automotive to healthcare. The market is expected to grow significantly in the coming years, with a focus on cost management, electronic waste recycling, and transparency and traceability through technologies like blockchain and IoT.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

Read News Read Less
Interested in this report?
Get your sample now!
Technavio