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

The Asia-Pacific customs brokerage market is estimated to register a CAGR of approximately 3% during the forecast perid (2022-2027).

The coronavirus disease (COVID-19) pandemic has had a significant negative impact on global trade and supply chains with many vulnerable economies in low-income countries being disproportionately affected. Although developing Asia’s trade recovered somewhat in the latter half of 2020, mainly due to the People’s Republic of China (PRC), the rebound was less pronounced in other economies in the region. This also had an impact on customs brokerage market in the region.

However, now the Asia-Pacific customs brokerage market has been steadily expanding, and this trend is expected to continue throughout the forecast period. The Asia-Pacific region is very important in global trade, the region accounts for a large portion of global imports and exports. The region's top trading nations are China, Japan, India, Australia, and South Korea. According to the Ministry of Finance of the People's Republic of China, China collected CNY 2.01 trillion in custom duties in 2021. The Central Taxes and Customs Board of India states that the total customs duties collected in 2020-2021 were INR 1.3 trillion, and the total customs duties collected by the Japan Customs Authority in FY 2019 was JPY 9.2 trillion, accounting for 14.9% of total national tax revenues.

Customs brokerage is a highly competitive market, with a large number of brokers operating, particularly along borders. The major players, however, control a sizable portion of the market. Companies that offer customs brokerage services are investing in R&D to gain a competitive advantage in the market. R&D spending is expected to rise over the forecast period as demand grows for streamlined and more effective customs clearance processes with quick turnaround times.

Key Market Trends

Increasing Chinese Imports Driving the Growth of the Market

The Chinese economy is the second-largest economy globally and was the largest in the world in terms of share of global PPP-based GDP in 2021, accounting for 18.62% of global GDP. China has the largest consumer market in the Asia-Pacific region With a population base of 1.4 billion. China's total goods imports and exports expanded 21.4% year on year to CNY 39.1 trillion in 2021. China's top imports in 2021 were, Electrical machinery, equipment (24.8% of total imports), Mineral fuels including oil Ores (14.7%), slag, ash (10.4%), Machinery including computers (8.6%), Optical, technical, medical apparatus (4.1%), Vehicles (3.3%), Plastics, plastic articles (3.1%), Gems, precious metals (2.9%), Copper (2.4%), Organic chemicals (2.3%).

According to the General Administration of Customs, tax revenue exceed CNY 2 trillion (about USD 313.75 billion) for the first time in 2021. Taxes collected reached CNY 2.01 trillion, up 17.7% from 2020, data from the administration showed. This growth in the imports and the customs tax collected shows the growth of the Asia-Pacific customs brokerage market.

Maritime Trade Driving the Growth of the Market

Maritime freight transport is the most important mode of international goods transport. The number of customs entries by mode is highest for sea transport, as is the revenue of the customs brokerage market. According to the United Nations Conference on Trade and Development (UNCTAD), sea transport accounts for roughly 80% of global trade by volume and 70% by value.

Around two-thirds of global trade in goods takes place in developing countries. In 2020, developing countries, including the transition economies of Asia, accounted for 60% of global goods loaded (exports) and 70% of goods discharged (imports). Much of this growth has been in East Asia, especially China, and there has also been a surge in volumes on the Transpacific containerized trade route linking East Asia to North America. Asia’s predominance in global maritime trade strengthened in 2020, as it maintained a 41% share of total goods loaded, increased its volume of goods discharged and remained the largest seafarer supply region in the world.

Competitive Landscape

The market for Customs Brokerage in Europe is fragmented in nature. With a large number of customs brokers operating in the market, the competition is high. The major players in the market include Geodis Logistics, JAS Worldwide Logistics, DHL Logistics, Yusen Logistics, HTH Logistics, etc.

Additional Benefits:

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

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