Canada Last Mile Delivery Market - Growth, Share, Trends, Demand and Analysis Report Forecast 2021-2025

Posted by aartimurkute on June 26th, 2023

The global last mile delivery market is anticipated to witness a skyrocketing rise, driven by the pronounced impact of COVID-19 on the e-tailing sector, reveals a comprehensive study conducted by Fairfield Market Research. The research report highlights that the market is expected to experience a remarkable growth rate of 16% as online shopping increasingly replaces conventional retail.

For More Industry Insights Read: https://www.fairfieldmarketresearch.com/report/last-mile-delivery-market

Key Highlights:

• Last mile delivery market poised for 16% growth as online shopping gains traction

• Home care products and groceries remain vital end users due to COVID-19 disruptions

• Same-day delivery emerges as a focus for last mile vendors to secure a loyal consumer base

• Asia Pacific region to witness increased demand fueled by a large consumer base

The surge in demand for home care products and groceries, driven by panic buying during the pandemic's sudden lockdowns, has significantly bolstered the need for last mile delivery services. The rapid rise in online purchases during the first two quarters of 2020 presented a unique opportunity for the global market. Last mile delivery vendors encountered the challenge and opportunity of catering to a massive consumer base for the first time. Fairfield Market Research predicts that COVID-19 will further accelerate digitization, even in rural areas, creating favorable conditions for retail and logistics businesses reliant on last mile delivery solutions.

Consumer behavior is shifting towards online shopping, indicating a willingness to accept higher delivery charges for same-day delivery. E-commerce and logistics sectors are thus prioritizing same-day delivery to meet consumer demands, becoming the prime focus of vendors in the market.

Although the global market may face certain restraints due to COVID-19, impacting business sustainability, the easing of lockdown measures in various parts of the world has facilitated the resumption of operations, boosting the demand for last mile delivery services. While the pandemic may have caused temporary disruptions, it is expected to prove lucrative for the market in the long run.

The fast-moving consumer goods (FMCG) segment is projected to retain its leading position in the global market with a 37% share, driven by the rise of e-commerce platforms. Increased demand in the food and beverage sector, coupled with the closure of restaurants for dining, has contributed to the growth. Widespread internet access has also facilitated the convenience of online shopping, becoming a key driver for the last mile delivery market.

The Asia Pacific region is expected to take the lead in the global market with a 40% share, benefiting from a flourishing Millennial and Generation Z population with disposable income and a preference for online shopping. Asian countries are witnessing the rise of e-commerce platforms catering to the vast consumer base in the region. Foreign investments are also anticipated to have a positive impact on the last mile delivery market. 

Key players in the market are actively enhancing and modifying their services to meet customer needs, leading to increased competition and the entry of new players with efficient delivery business models. Market players are adopting strategies such as mergers and acquisitions, joint ventures, and collaborations. For instance, Uber and other ride-hailing services are leveraging their resources to establish last mile delivery services.

Prominent players operating in the global last mile delivery market include Cargo Carriers, CJ Logistics, CEVA Logistics, Concargo Private Ltd, DB SCHENKER, Interlogix Pty Ltd., DHL Paket GmbH, Estes Express Lines, FedEx Corporation, Kuehne + Nagel, Nippon Express Co., Ltd., J&J Global Limited, KART, SNCF Geodis, Swift Transportation, TNT Holding B.V., Procet Freight, Tuma Transport, Yamato Holdings Co., Ltd., and United Parcel Service Inc., among others.

As Canada's last mile delivery market gears up for exponential growth, businesses are encouraged to adapt to the evolving landscape and capitalize on the emerging opportunities. With the market poised for significant expansion, stakeholders in the industry can position themselves for success by staying ahead of the curve.

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