The Indian logistics sector is growing at an exponential rate and is expected to reach $380 billion by 2025. In 2021, the size of the logistics market was estimated to be around $250 billion. The logistics market is growing at a compound rate of 10 to 12% per year. The Indian logistics sector contributes 14.4% of the country's GDP.
The Indian logistics sector is currently dominated by the transportation industry with an 85% share. Unfortunately, the logistics sector in India is highly fragmented as there are a large number of unorganized players. Only 10% of the Indian logistics market is owned by organized players. Nevertheless, the logistics sector is considered to be the lifeline of India.
Let's look at a few facts about the various industries in the logistics sector:
Courier and Parcel
- The global CEP (Courier, express, and parcel) market was worth $376 billion in 2021. The forecast is that it will reach $675 billion by 2027. (Source: Mordor Intelligence)
- Gartner predicts that by 2030, there will be a 78% increase in demand for urban last-mile deliveries. This will lead to 36% more delivery vehicles congesting the roads. (Source: Gartner)
- By 2023, 50% of product-centric companies worldwide would have invested in transportation visibility platforms that offer visibility in real-time. (Source: Gartner)
FMCG
- The global FMCG market is expected to grow by $310 billion from 2022 to 2026. (Source: Report Linker)
- The global FMCG market is forecasted to reach about $15, 361 billion by 2025. (Source: Allied Market Research)
- The FMCG packaging market is expected to grow at a CAGR of 4.68% from 2022 to 2028. (Source: Zion Market Research)
- The FMCG market was worth nearly $691 billion in 2021 and is projected to reach $955 billion by 2028. (Source: Zion Market Research)
- Dairy
- The global dairy industry was valued at $871 billion in 2021. It is projected to grow to $1128 billion by 2026. (Source: Statista)
- India is the country with the maximum number of milk cows. It is also the largest milk producer in the world, accounting for 22% of the global milk production. (Source: FAO)
- 216 MT of milk is produced every day worldwide. (Source: Statista)
- New Zealand, at $7.8 billion, was the main exporter of milk worldwide in 2021. Germany was second, exporting $3.2 billion worth of milk last year. (Source: World's top exports)
- Milk production worldwide is expected to grow by 177 tonnes by 2025. (Source: FAO)
E-commerce
- The global e-commerce logistics market was valued at $233 billion in 2020. It is expected to grow to $861 billion by 2027, growing at a 20.5% CAGR over 2020-2027. (Source: BusinessWire)
- Transportation services are expected to grow at 21.1% CAGR reaching $582 billion by the end of 2027. (Source: BusinessWire)
- Warehousing and distribution services are expected to grow at a rate of 19.2% over the period 2020-2027. (Source: BusinessWire)
- By 2026, North America would have the largest regional market share taking over countries in the Asia Pacific region that are currently dominating the scene. (Source: TI-Insight)
- 46.8% of the e-commerce logistics market is made up of global fulfillment, while the last mile constitutes 53.2% in 2021. (Source: TI-Insight)
- Online retail sales are expected to reach $6.17 trillion by 2023, with e-commerce websites accounting for 22% of total retail sales. (Source: Shopify)
- China leads the global e-commerce market. 52% of all retail e-commerce sales worldwide come from China. 38% of global digital buyers are also from China. (Source: Shopify)
- It is estimated that 95% of all sales will happen through e-commerce by 2040. (Source: Thrive my way)
- The B2B e-commerce market is expected to expand by 17.5% by 2027. (Source: Thrive my way)
- There are more than 26 million e-commerce websites in the world. US has the most number of e-commerce sites in the world. (Source: Markin Blog)
Sources:
- https://www.financialexpress.com/express-mobility/indian-logistics-sector-is-expected-to-reach-380-billion-mark-by-2025-nilesh-ghule-truckbhejo/2466424/
- https://www.statista.com/statistics/1288177/india-size-of-logistics-market/#:~:text=In%20financial%20year%202021%2C%20the,between%2010%20to%2012%20percent.
- https://www.mordorintelligence.com/industry-reports/courier-express-and-parcel-cep-market
- https://www.gartner.com/doc/reprints?id=1-2A4NFYRP&ct=220526&st=sb&__hstc=193804210.8df57c084830910709447720b6c7d848.1657514328526.1657514328526.1657514328526.1&__hssc=193804210.1.1657514328526&__hsfp=2585854636&hsCtaTracking=9f88c9b4-ceba-4232-a989-e137cb704014%7C4933d313-9943-48e8-8e85-eb992f1ad0fe
- https://www.gartner.com/en/articles/gartner-predicts-the-future-of-supply-chain-technology
- https://www.ibef.org/industry/fmcg
- https://www.alliedmarketresearch.com/fmcg-market
- https://www.imarcgroup.com/dairy-industry-in-india
- https://www.nddb.coop/information/stats/milkprodindia
- https://www.statista.com/topics/4649/dairy-industry/
- https://www.fao.org/dairy-production-products/production/en/
- https://www.fil-idf.org/wp-content/uploads/2016/12/FAO-Global-Facts-1.pdf
- https://www.businesswire.com/news/home/20211015005203/en/Global-E-commerce-Logistics-Industry-to-2027---Growing-Internet-Penetration-Provides-Drives-Growth-of-Online-Shopping---ResearchAndMarkets.com
- https://www.ti-insight.com/product/global-e-commerce-logistics/
- https://glginsights.com/articles/analyzing-the-indian-e-commerce-logistics-market/