FMCG Logistics Market Size - By Product, By Service, By Mode of Transportation, Analysis, Share, Growth Forecast, 2024 - 2032

FMCG Logistics Market Size

The global FMCG logistics market size was valued at USD 112.1 billion in 2023 and is projected to grow at a CAGR of 4.3% between 2024 and 2032. The increasing demand for convenience among consumers is a significant driver of the market. As preferences shift, businesses adapt their logistics strategies to incorporate on-demand delivery services and click-and-collect options, enhancing service flexibility. This trend pushes logistics providers to rethink supply chain operations, focusing on faster delivery times and improved customer experiences.
 

The integration of technology is crucial to facilitating smooth transactions, thereby boosting customer satisfaction. For instance, in September 2024, Swiggy Instamart announced 24x7 free delivery services in select metro areas, targeting the festive season's heightened demand. The platform aims to deliver groceries and essentials within 10-15 minutes and has partnered with FMCG companies to enhance logistics capabilities. This collaboration seeks to capitalize on late-night and last-minute orders, ensuring convenience for consumers during this busy period.
 

The FMCG logistics sector is also undergoing rapid transformation due to technological advancements that enhance operational efficiency and visibility. Innovations such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain are being adopted to optimize routing, track shipments in real-time, and improve inventory management. Automation, including the use of drones and autonomous vehicles, is also gaining traction, significantly reducing labor costs and increasing speed. These advancements enable logistics companies to better meet consumer demands, adapt to market changes, and maintain competitiveness in a dynamic landscape.
 

FMCG Logistics Market Trends

Sustainability is a key trend in the FMCG logistics sector. Companies are using eco-friendly practices such as electric vehicles, sustainable packaging, and energy-efficient warehousing to reduce their carbon footprint and meet regulations. By prioritizing sustainability, brands comply with environmental rules and connect with eco-conscious consumers. This connection boosts brand loyalty and strengthens their competitive edge in a market driven by responsible consumption. Companies see sustainability as a strategic asset that enhances customer loyalty and market share.
 

For instance, in October 2023, ITC announced plans to ramp up its green logistics initiative by increasing the use of electric vehicles (EVs) for last-mile FMCG logistics. The company aimed to more than double EV usage to achieve 75,000 trips in FY24, expanding the program from 30,000 trips in key cities. This initiative aligned with ITC's Sustainability 2.0 vision and India's net-zero goals, focusing on reducing carbon emissions and enhancing cost efficiency through renewable energy and optimized logistics.
 

The logistics industry is also undergoing a technological transformation. Companies are using advanced technologies to optimize operations and improve customer experiences. Digital tools such as real-time inventory systems and mobile apps help businesses and consumers interact seamlessly. These technologies lead to faster order processing, better supply chain visibility, and improved communication, resulting in higher operational efficiency.
 

As more consumers prefer online transactions, the logistics sector is adapting to meet their expectations for convenience and quick responses. For example, digital tools simplify order tracking and returns, making shopping easier for consumers. By integrating technology into their logistics strategies, companies can respond to demand changes and gain a competitive advantage.
 

The FMCG logistics industry faces challenges due to supply chain disruptions. Events such as natural disasters, geopolitical tensions, and global health crises, including pandemics, can stop operations and cause major delays. These disruptions can lead to inventory shortages, longer lead times, and lost sales. Additionally, rising operational costs—driven by higher fuel prices, labor shortages, and the need to follow changing regulations—put pressure on profit margins. Together, these challenges highlight the need for a more flexible and strong logistics strategy to handle today's complex supply chains.
 

FMCG Logistics Market Analysis

Based on products, the market is segmented into food & beverages, personal care, household care & other consumables. In 2023, the food & beverages segment accounted for over 40% of the market share and is expected to exceed USD 70 billion by 2032. Food and beverages focus on diverse offerings ranging from snacks to beverages, while personal care products emphasize hygiene and grooming. Household care includes cleaning and maintenance items, and other consumables cover a broad spectrum of everyday essentials.
 

Together, these categories reflect the diverse needs and preferences of consumers in the market. Each category is evolving, with a growing focus on health, sustainability, and convenience to meet changing consumer preferences. Companies are increasingly innovating their offerings to enhance product quality and align with the demand for eco-friendly solutions.
 

Based on the services, the FMCG logistics market is divided into transportation, warehousing, packaging services, inventory management and distribution. The transportation segment captured approximately 35% of the market share in 2023, driven by factors such as the growing demand for faster delivery, the expansion of e-commerce, and the increasing focus on efficient supply chain management. Additionally, advancements in technology, such as route optimization and real-time tracking, have enhanced operational efficiency. The rise in consumer preference for on-demand delivery services further emphasizes the need for robust transportation solutions in the FMCG sector.
 

In 2023, China's FMCG logistics market held a significant position within the Asia-Pacific region, projected to be USD 13.7 billion by 2032. This expansion is driven by rapid urbanization, a growing middle class, and increased disposable incomes, resulting in heightened consumer demand for diverse products. The surge in e-commerce, along with advancements in supply chain technology, is improving logistical efficiency and enabling quicker delivery times to meet the expectations of modern consumers throughout Asia-Pacific.
 

The FMCG logistics market in North America is poised for substantial growth, fueled by the flourishing e-commerce sector and an escalating demand for swift and efficient delivery services. The region's sophisticated supply chain infrastructure supports a wide range of products, from groceries to personal care items. As consumer expectations for faster delivery and seamless online shopping experiences rise, logistics providers are increasingly incorporating innovative technologies and strategies, reflected in the growing investments in automation and digital solutions aimed at enhancing operational efficiency and customer satisfaction.
 

Europe's FMCG logistics market is distinguished by a stringent regulatory framework and a strong emphasis on sustainability. The region's extensive transportation networks and diverse landscapes facilitate efficient cross-border movement of goods, addressing varying consumer needs. The heightened demand for eco-friendly practices has driven logistics companies to implement sustainable solutions, such as green packaging and energy-efficient transportation. Moreover, the rising popularity of local and organic products is reshaping supply chains, compelling providers to prioritize traceability and transparency to align with consumer expectations.
 

FMCG Logistics Market Share

DHL, Kuehne + Nagel, FedEx, DSV, C.H. Robinson, DB Schenker and UPS collectively held a substantial market share of around 32% in the FMCG logistics sector in 2023, reflecting their dominant presence. DHL is renowned for its expansive global footprint and specialized logistics solutions tailored for the FMCG sector, enhancing supply chain efficiency and product distribution. Kuehne + Nagel stands out through its innovative technology-driven approaches, offering customized solutions that improve operational agility and responsiveness to market demands.
 

UPS is recognized for its reliable transportation services, ensuring timely deliveries while maintaining a strong commitment to customer satisfaction. Together, these companies leverage their expertise and resources to meet the diverse logistics needs of FMCG brands.
 

FMCG Logistics Market Companies

Major players operating in the FMCG logistics industry are:

• C.H. Robinson
• CEVA Logistics
• DB Schenker
• DHL Supply Chain
• DSV
• FedEx
• Geodis
• Kuehne + Nagel
• UPS
• XPO Logistics
   

FMCG Logistics Industry News

• In December 2023, Cainiao, Alibaba’s logistics arm, introduced new supply chain services to optimize the FMCG sector. The offering include a goods labelling service and a consolidated B2B inventory and supplier management system. These services aim to simplify the export process by managing regulatory compliance and reducing operational costs by 10%.
   
• In October 2023, Rhenus Warehousing Solutions UK enhanced its logistics services for the FMCG sector, offering comprehensive supply chain solutions. The company specializes in contract logistics, providing B2B and B2C warehousing, fulfillment, and returns processing. Rhenus aims to address the unique challenges of the FMCG industry while prioritizing strong customer relationships and operational support.
   
• In July 2023, Swiggy acquired Lynk Logistics to enhance its FMCG logistics capabilities within India's expanding food and grocery retail market. The acquisition allows Swiggy to leverage Lynk's extensive network of 100,000 retail stores, optimizing its distribution model for FMCG brands. The partnership aims to drive growth through tech-driven logistics solutions.
   

The FMCG logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and tonnage (Tons) from 2021 to 2032, for the following segments:

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Market, By Product

• Food & beverages
• Personal care
• Household care
• Other consumables

Market By Service

• Transportation
• Warehousing
• Packaging services
• Inventory management
• Distribution

Market By Mode of Transportation

• Railways
• Airways
• Roadways
• Seaways

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa