About the Consumer Packaged Goods (CPG) Logistics Market
CPG logistics is a business process that involves the management and movement of consumer packaged goods from the point of origin to the point of consumption. It is a core part of supply chain management (SCM) and includes services such as freight forwarding and multimodal transport through air, ship, truck, and rail. It also provides customs brokerage, warehousing and storage, tracking, and tracing of freight goods services.
Technavio’s analysts forecast the global consumer packaged goods (CPG) logistics market to grow at a CAGR of 5.98% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global consumer packaged goods (CPG) logistics market for 2016-2020. To calculate the market size, the report considers revenue generated by contract logistics service provider for the CPG industry.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Consumer Packaged Goods (CPG) Logistics Market 2016-2020
Technavio recognizes the following companies as the key players in the global consumer packaged goods (CPG) logistics market: Agility, CEVA Holdings, Deutsche Bahn, Expeditors, FedEx, Ryder System, Schneider National, UPS, and UTi Worldwide.
Other Prominent Vendors in the market are: APL Logistics, C. H. Robinson, Eagle Global Logistics, Exel, Menlo Worldwide, Nexus Distribution, Nippon Express, NYK Logistics, Panalpina, Penske Logistics, and Star Distribution Systems.
Commenting on the report, an analyst from Technavio’s team said: “One trend that is impacting the market positively is the dominance of integrated service providers. The CPG logistics market is experiencing the development of integrators. The market is characterized by vendors that are engaged in providing either asset-type or non-asset-type services. However, integrators are a combination of both asset-type and non-asset-type providers. While asset-type providers own truck fleets or warehouses, non-asset-type providers act as forwarders or consultant firms. Integrators provide all types of logistics services and can act as both 3PL and 4PL providers.”
According to the report, a key growth driver is the increased outsourcing of logistics services. Building a logistics infrastructure is a capital-intensive process and the investment is blocked for a long time. Therefore, companies outsource their logistics services to reduce operational costs. The outsourcing of logistics and other SCM-related operations to contract logistics or 3PL providers allows CPG companies to improve the efficiency of their business by focusing on their core competencies. Shippers achieve huge savings by avoiding expenses related to warehousing, vehicles, and machinery. 3PL providers also offer value addition to the SCM needs of shippers by customizing services as per requirements. This allows shippers to outsource their logistics requirements and carry out the remaining functions in-house.
Further, the report states that one challenge that could restrict market growth is high operational costs and competitive pricing. With increasing demand for value-added services and specialized professional supply chain solutions, the CPG logistics industry is becoming highly competitive in terms of the pricing of services.
Agility, CEVA Holdings, Deutsche Bahn, Expeditors, FedEx, Ryder System, Schneider National, UPS, UTi Worldwide, APL Logistics, C. H. Robinson, Eagle Global Logistics, Exel, Menlo Worldwide, Nexus Distribution, Nippon Express, NYK Logistics, Panalpina, Penske Logistics, Star Distribution Systems.