Market Size of Retail 3PL Industry
Study Period | 2024 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 4.50 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America and Europe |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Retail 3PL Market Analysis
The Global Retail 3PL Market is valued at about USD 455 billion and is expected to register a CAGR of more than 4.5% during the forecast period. The report offers the market sizes and forecast for the Global 3PL Market in value (USD billion) for all the above segments.
- The growth of the logistics services market is anticipated to be bolstered during the analysis period by the expanding e-commerce sector and the rising need for speedy delivery among customers globally. In addition, the expanding inventory management policy is anticipated to increase the need for logistic services across a variety of industries, which is expected to support market expansion throughout the projected period. In addition, more people are embracing contemporary technology like artificial intelligence. During the projected period, the industry is anticipated to see tremendous development prospects thanks to technologies like machine learning and blockchain. The lack of adequate infrastructure and logistics professionals, however, could limit market expansion for the duration of the predicted timeframe.
- A growing trend in the US 3PL business is the use of blockchain technology in the logistics sector. A digital platform called blockchain technology provides a distributed transaction ledger. The stakeholders' multiple computer systems can readily keep identical copies of the ledger. The blockchain, in general, is a system that uses a thread of records that are cryptographically protected and detail all transactions for all parties involved in the supply chain. Using blockchain technology, a reliable and cost-effective supply chain may be created.
- Inflation will cause a 5% increase in worldwide retail sales in US dollars in 2023, but decreased sales volumes and rising prices will hurt retailers' profits. In 2023, retailers' profits will be constrained by 6.4% worldwide inflation and flat demand. They will have to deal with growing labour and energy costs in addition to increased raw material and logistical costs. Retail salaries have increased more quickly than average private-sector wages in several nations, particularly in Europe, where wholesale electricity tariffs have also increased.
- 86% of consumers buy products in physical stores and online, while 14% do so only occasionally, according to Neilsen IQ. Less than 1% of consumers only make internet purchases. Omnichannel is a persistent and significant fixture of consumer behaviour, far from being a fad. Globally, 30% of customers said their priorities have entirely changed, impacting their purchasing behaviour, and 59% are reassessing their priorities. In the United States, 81% of customers are changing their priorities or already doing so.
Retail 3PL Industry Segmentation
Third-party logistics, often known as 3PL, is a system in which a company offers inventory management and delivery services to another company. A 3PL company is frequently used by a company (client) that does not have its own logistics department. In turn, the 3PL takes care of some or all of the client's logistics needs. The global retail 3PL market is segmented By Product (Foods and Beverages, Personal and Household Care, Apparel, Footwear, and Accessories, Furniture, Toys and Hobby, Electronic and Household Appliances, and Other Products), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, and Department Stores, Specialty Stores, Online, and Other Distribution Channels), and Geography (Asia-Pacific, North America, Europe, Middle-East and Africa, and Latin America). The report offers market size and forecasts for the Global Retail 3PL Market in Value (USD Billion) for all the above segments. It also covers a comprehensive background analysis of the Global Retail 3PL Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. The report offers the market sizes and forecast for the Global 3PL Market in value (USD billion) for all the above segments.
By Product | |
Foods and Beverages | |
Personal and Household Care | |
Apparel, Footwear, and Accessories | |
Furniture, Toys, and Hobby | |
Electronic and Household Appliances | |
Other Products |
By Distribution Channel | |
Supermarkets/Hypermarkets, Convenience Stores, and Department Stores | |
Specialty Stores | |
Online | |
Other Distribution Channels |
By Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
|
Retail 3PL Market Size Summary
The global retail third-party logistics (3PL) market is experiencing significant growth, driven by the expanding e-commerce sector and the increasing demand for rapid delivery services worldwide. This growth is further supported by the adoption of advanced technologies such as artificial intelligence, machine learning, and blockchain, which are enhancing supply chain efficiencies. However, challenges such as inadequate infrastructure and a shortage of logistics professionals may hinder market expansion. The market is characterized by a mix of global and local players, with major companies like DSV Panalpina, DHL, and Ceva Logistics leading the charge. The Asia-Pacific region, in particular, is witnessing robust growth due to its burgeoning e-commerce industry, with China and India playing pivotal roles in driving logistics demand across various sectors.
The retail 3PL market is also influenced by changing consumer behaviors, with a significant shift towards omnichannel shopping experiences. This trend is evident in the United States, where a large percentage of consumers are altering their purchasing priorities. The market's expansion is further fueled by the increasing importance of e-commerce, with online sales expected to continue their upward trajectory. Companies are investing in infrastructure and technology to enhance customer service and streamline operations, particularly in the Asia-Pacific region. The market's fragmented nature presents both opportunities and challenges, as new entrants continue to emerge in response to the growing demand for logistics services.
Retail 3PL Market Size - Table of Contents
-
1. Market Dynamics And Insights
-
1.1 Current Market Scenario
-
1.2 Market Dynamics
-
1.2.1 Drivers
-
1.2.2 Restraints
-
1.2.3 Opportunities
-
-
1.3 Value Chain / Supply Chain Analysis
-
1.4 Industry Policies and Regulations
-
1.5 General Trends in the Warehousing Market
-
1.6 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics, Etc.
-
1.7 Insights on E-commerce Business
-
1.8 Technological Developments in the Logistics Sector
-
1.9 Industry Attractiveness - Porter's Five Forces Analysis
-
1.10 Impact of COVID-19 on the Market
-
-
2. Market Segmentation
-
2.1 By Product
-
2.1.1 Foods and Beverages
-
2.1.2 Personal and Household Care
-
2.1.3 Apparel, Footwear, and Accessories
-
2.1.4 Furniture, Toys, and Hobby
-
2.1.5 Electronic and Household Appliances
-
2.1.6 Other Products
-
-
2.2 By Distribution Channel
-
2.2.1 Supermarkets/Hypermarkets, Convenience Stores, and Department Stores
-
2.2.2 Specialty Stores
-
2.2.3 Online
-
2.2.4 Other Distribution Channels
-
-
2.3 By Geography
-
2.3.1 Asia-Pacific
-
2.3.1.1 China
-
2.3.1.2 Japan
-
2.3.1.3 India
-
2.3.1.4 South Korea
-
2.3.1.5 Rest of Asia-Pacific
-
-
2.3.2 North America
-
2.3.2.1 United States
-
2.3.2.2 Canada
-
2.3.2.3 Mexico
-
-
2.3.3 Europe
-
2.3.3.1 United Kingdom
-
2.3.3.2 Germany
-
2.3.3.3 France
-
2.3.3.4 Russia
-
2.3.3.5 Rest of Europe
-
-
2.3.4 Middle-East and Africa
-
2.3.4.1 Saudi Arabia
-
2.3.4.2 United Arab Emirates
-
2.3.4.3 Qatar
-
2.3.4.4 South Africa
-
2.3.4.5 Rest of Middle-East and Africa
-
-
2.3.5 Latin America
-
2.3.5.1 Chile
-
2.3.5.2 Brazil
-
2.3.5.3 Mexico
-
2.3.5.4 Argentina
-
2.3.5.5 Colombia
-
2.3.5.6 Rest of Latin America
-
-
-
Retail 3PL Market Size FAQs
What is the current Global Retail 3PL Market size?
The Global Retail 3PL Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in Global Retail 3PL Market?
DSV Panalpina, Kuehne + Nagel, C.H. Robinson, DHL Supply Chain & Global Forwarding, UPS Supply Chain Solutions and CEVA Logistics are the major companies operating in the Global Retail 3PL Market.