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

The Asia-Pacific FMCG Logistics Market is expected to grow at a CAGR of around 5.5% 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 Cold Storage and Refrigerated Warehouses Market Worldwide

With increasing Fast-Moving Consumer Goods (FMCG) and Pharmaceutical sales in the current scenario, the need for cold storage warehouses has been rapidly increasing. Several warehouses comprising cold chain systems are usually designed to ensure the ideal storage and transportation conditions for temperature-sensitive products. The global cold chain logistics market was worth almost 160 billion U.S. dollars in 2018 and is expected to exceed 500 billion U.S. dollars by 2025. Cold chain logistics involves the transportation of temperature-controlled products along a supply chain using refrigerated packaging solutions to preserve the quality of products such as fresh agricultural goods, seafood, frozen food or pharmaceutical products. Multiple export industries are dependent on the vital links that cold chain solutions provide. Businesses invest millions of dollars in their cold chain operations to create effective, efficient, and reliable processes, as an end-to-end cold chain security is the weak link in the system. Single breakdown in the cold chain logistics chain can lead to catastrophic losses of products and capital. Globally, the number of refrigerated warehouses are increasing owing to surge in demand for food and pharmaceuticals products, which in turn is boosting the Asia-Pacific cold chain logistics statistics. In 2018, India had the largest capacity of refrigerated warehousing in the world, with 150 million cubic meters. The total capacity of refrigerated warehouses worldwide amounted to 616 million cubic meters in that year and has grown since.

Fats and Oils leading Food and Beverages Industry in the Asia Pacific Region

Asia-Pacific is set to become the world’s biggest consumer of Food & Beverages by 2030 and will be the leader in Packaged Food industry as well in future. Countries such as India, China and Japan play an essential role in terms of demand and consumption, with rapid urbanization and changing preferences and modernization resulting in greater demand projections. During the forecast period Fats and Oils food segment is likely to witness the maximum growth of 8.3 percent followed by Dairy products with 4.4 percent and Pulses, Grains and Cereals with 3.7 percent. In Fats and Oils market, Asia-Pacific (8.3 percent) is way ahead of its closest competing region the Middle-East (3.4 percent). With the onset of Covid-19 pandemic, the Food and Beverages industry has grown and with it the Packaged Food industry as well. With growing demands for FMCG, the Third Party Logistics providers are working at full pace to meet the demand and are implementing measures to facilitate a contact less and efficient delivery of Fresh Produce, Frozen Foods, Packaged Goods and dairy Products.

Competitive Landscape

The Asia-Pacific 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