Market Trends of Netherlands Last Mile Delivery Industry
Increase in Online Grocery Sales Driving the Market Growth
The Netherlands is home to plenty of grocery delivery services, and Albert Heijn, Jumbo, PLUS, Coop, etc., are some of the major online grocery shopping sites in the country. In addition, the pandemic fostered the demand for online grocery channels, which was majorly driven by changes in consumer behavior. Also, this shift further resulted in record growth of the competitive landscape as new players flooded the market, often backed by large investors.
Moreover, online grocery sales are witnessing significant growth in the Netherlands; according to industry experts, the country stands next to the United Kingdom and France in the European countries, where most of the consumers are willing to shop for online groceries from the advanced markets.
Meanwhile, to meet the growing demand from consumers, most of the players in the market are planning expansions. For instance, in September 2021, Picnic, an online grocery service based in the Netherlands, raised more than USD 706 million in funding to expedite its expansion strategies. Moreover, as per industry sources, in 2022, the Netherlands generated more than USD 6.7 billion in the online food sales market, from which more than 60% is contributed from online grocery sales. Thus, the growing online food sales require a huge last-mile delivery network support to meet consumer expectations, further driving the last-mile delivery market in the country.
Developing E-commerce Industry Fueling the Demand for Last Mile Logistics
The Netherlands witnessing significant growth in e-commerce sales, which was majorly driven by the pandemic-affected consumer shift. In 2021, as per the Dutch National Ecommerce Association study online spending was stronger when compared to the previous year. In 2021, the pandemic triggered online sales to experience a growth rate of more than 15% when compared to 2020.
Meanwhile, in the first half of 2022, consumers in the Netherlands spent more than USD 17 billion on e-commerce sales, which was up by nearly 9% when compared to the same period a year earlier. A rise in online sales of services mostly supported the growth. Moreover, in H1 2022, in total, Dutch consumers made 168 million purchases online.
On the other hand, the country’s retail sector also witnessed a significant number of sales; in February 2023, online retail turnover increased by more than 6% when compared to the same periods of the previous year. In addition, web shops recorded a turnover increase of 11%, and their core activity is selling goods and services over the Internet. Meanwhile, e-commerce sales majorly depend on delivery price and speed. Thus, the growing e-commerce sales will drive the demand for last-mile service providers in the country.
