China Logistics and Warehousing Market, China Logistics and Warehousing Industry: Ken Research

How Is China Logistics Market Positioned?

The China logistics and warehousing industry is at a growth stage and is increasingly being supported by modern infrastructure and integrated supply chain. The cost of industry accounts for 10-11% in China’s GDP. China logistics market has shown an impressive growth rate in past few years owing to the expanding manufacturing & retail sector, increasing disposable income, growing investments by large players and increasing value of exports and imports in the country.

Moreover, Emergence of digital freight aggregators, improving infrastructure, rising technological innovations along with increase in use of internet and rising mobile penetration have also led to this boom in the market.

Market: The logistics market has seen significant growth in the last few years, recording a CAGR of ~% during 2015-2020 primarily due to increasing infrastructure investment, e commerce and rising logistics demand in China.

China currently ranks 24th in the Logistics Performance Index Ranking by World Bank (2020).

The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. Value Added services also contribute a significant proportion to the overall logistics market in China.

China Logistics and Warehousing Market

By Service Mix: The logistics industry has evolved over the years in terms of integration and digitalization of supply chain which has led to better productivity and efficiency creating sustainable modes of transporting goods from one place to another. The market is segmented on the basis of service mix, geography and normal and express delivery. The freight forwarding segment is driven by changing consumer preference, rise in e-commerce and growing trade activities. Value added services contributing a significant portion, majorly dominated by Freight Forwarding Agency Services along with Stevedoring and Port Handling Activities.

China Freight Forwarding Market Segmentation

By Mode of Service: China freight forwarding market was dominated by road freight in terms of revenue as well as volume. Road and Rail Freight are majorly used for domestic transportation for Bulk & Non bulk commodities.

china-logsitics-market

By End Users

Non- Agricultural Products segment dominate the Freight Forwarding Market of China with commodities and FMCG Products categories in the segmentation taking the largest revenue share.

By FTL/LTL: Majority of the Volume transported by road is done on FTL basis by Revenue with Average prices charged in case of LTL is ~% higher than FTL basis.

Cost Component analysis

Out of the total operating cost, ~ % is held by Fuel, ~% is held by salary and ~% by Toll earning ~% margin by trucking companies.

China Warehousing Market Segmentation

By Business Model: The industrial and retail warehouses dominate the overall China warehousing market basis area as well as revenue share. This is primarily due to increasing demand of Industrial parks as well as high real estate developers’ investments in logistics space. This is followed by ICD’s /CFS near the ports.

By Warehousing Space Segmentations: Out of the total warehousing space in China, ~% is held by tech enabled warehouses, ~% by organized warehouses and ~% by racked warehouses.

By Regions: The largest end users of warehousing services in China include FMCG and Commodities (such as Steel, cement, etc.) industry which provides maximum revenue. These are followed by Agriculture, Electronic, Automotive, Pharmaceutical, etc. sectors. The pharmaceutical companies generally prefer their own warehouses due to the extra precautions measures needed.

China Warehousing Future Market Size: Land supply for building large warehouses is on the decline in China. Melbourne, Sydney is running out of prime lands to build quality large warehouses. Traditionally, single storied warehouses are the norm in China. It is expected that to solve the problem of space crunch, multi storied warehouses are expected to be built across China. Technology integration is expected to improve efficiency and effectiveness in Warehouses with more companies looking to integrate various technologies into their warehouses.

Competitive Scenario in China Logistics and Warehousing Market

The Transportation and warehousing market of China is highly fragmented in nature with large number of Domestic as well as international players. Companies are focusing on providing value added services along with trucking and warehousing. Major Transportation Players in China include Sinotrans, Toll Group, DB Schenker, DHL, SF Express, Deppon Logistics, JD Logistics, CN Logistics, Yusen Logistics, among others. Major Warehouse companies include GLP, Vanke, CNLP, Maple Tree, Prologis, Li & Fung and more.

The parameters at which the companies are competing are Pricing, Location, fleet size, Warehousing space, Clientele, service portfolio, Technology and more.

China Logistics and Warehousing Future Outlook and projections

The China logistics and warehousing industry is expected to increase at a CAGR of ~% during 2020 to 2025. The revenue is expected to increase from RMB ~ trillion in 2020 to RMB ~ trillion in 2025. The freight forwarding market will continue to dominate the China logistics industry with ~% market share by 2025. The government has launched various programs in order to develop the infrastructure of the country hence facilitating the logistics market growth in the future years. Rising retail and FMCG industry of the country will accelerate the demand for warehouses storage and transportation & logistics facility. Industry will move towards a digital growth with the introduction of cloud logistics, drone facilities, automation and more.

Key Segments Covered:-

By Mode of Service- Freight Forwarding Market (Revenue and Volume)

Road Freight

Sea Freight

Rail Freight

Air Freight

By Type of Load- Road Freight Forwarding Market (Revenue)

LTL

FTL

By  Type of End Users – Road Freight Forwarding Market (Revenue)

Agriculture

Non- Agriculture

Commodities

FMCG Products

Electronic Equipments

Chemicals

Automotive Products

Pharmaceutical Products

By Business Model-Warehousing Market (Revenues)

Industrial Retail

Cold Storage

IFS/ICD

Grain Storage

By End User-Warehousing Market (Revenues)

FMCG Products

Commodities

Agricultural Products

Pharmaceutical and Medical Devices

Automotive Products

Electronics

Others

Companies Covered:-

(Freight Forwarding Companies)

SF Express

ZTO

Deppon Logistics

Yuancheng Group Co Ltd

Fujian Shengfeng

Leaping Express Group

Shandong Jiayi Logistics Co

Shanghai Zeyi Logistics

Aneng Logistics

Topone Logistics

Sinotrans Hi-Tech Logistics

Topwin Logistcs

Tianjin Datian Group

HOAU Logistics Co.

Yuantong Express Co. (YTO)

Shenghui Logistics Group Co.

Guangzhou Xinzhihong Logistics

Dazhong Transportation Group

Toll Global Logistics

Shandong Taian Transportation Group

Guangzhou City Star Transportation

Tianjin Lion Bridge

Beijing Xianglong Logistics Group

JD Logistics

CN Logistics

Zhejiang Xinbang Logistics Co

DB Schenker

Noatum Logistics

Best Freight

Dadi Logistics

PG Logistics

Shanghai Jiao Yun Co.

Transfar Logistics

Yusen Logistics China

(Warehousing Companies)

GLP

Vanke (VX Logistics Properties)

JD Logistics

China Logistics Property Holdings

Maple Tree Logistics

Proligis

Sinotrans

Li & Fung

SF Holdings

Kerry Logistics

COSCO SHIPPING Logistics

DB Schenker

DCH Holdings Ltd.

Changa Minsheng APLL Logistics

Bollore

(FMCG Companies)

WH Group

Pesico

Yili Group

Mengniu Group

Master Kong (Tingyi Holding Corp.)

Nestle

P&G

Coca Cola

China Resource Beer

Unilever

Nongfu Spring

Want Want China Holdings Ltd

Johnson and Johnson

Beijing Sanyuan Foods Company Limited

Mars Group

Nestle Waters

Key Target Audience:-

Industry Associations and Consulting Companies

Third Party Logistic Providers

Potential Market Entrants

Freight Forwarding and Warehousing Companies

Time Period Captured in the Report:-

Historical Period: 2015-2020

Forecast Period: 2020-2025

Key Topics Covered in the Report:-

Comprehensive analysis of China Logistics Market and its segments.

Listed major players and their positioning in the market.

Identified major industry developments in last few years and assessed the future growth of the industry.

For More Information On the research report, refer to below link:-

China Logistics and Warehousing Market

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Turkey Logistics And Warehousing Market Outlook To 2025 – By Domestic And International Freight Forwarding Throughput, Revenue & Flow Corridor (Road Freight And Pipelines, Sea, Air And Rail Freight), By Warehousing (Industrial / Retail, Container Freight / Inland Container Depot & Cold Storage), By 3PL, Courier Express & Parcel, Domestic And Cross Border E-Commerce Logistics

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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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