In terms of national logistics spending, the Korean logistics industry has steadily expanded since 1990 on the back of growing logistics volume, an increase in value-creating logistics activities, growth in logistics outsourcing and government efforts to enhance the logistics infrastructure. Improving transportation infrastructure, increasing investment activities in industries such as pharmaceutical, e-commerce, retail, FMCG and technological advancement in the country has supported revenue growth in South Korea logistics market. Logistic services in the country have been successful in connecting different export and import markets of various countries across the world. Furthermore, over the past five years, investment by the government of South Korea towards development of logistics infrastructure, growing e-commerce and retail industry, expanding manufacturing industry, increasing demand for refrigerated products have majorly driven the logistics market of South Korea.
In South Korea, the freight forwarding market is highly prevailing on account of expanding e-commerce, retail & manufacturing and express delivery industries. Rising e-commerce industry in the country has triggered the demand for logistics and warehousing services in the past few years. This has also accelerated the market size of express delivery, as all the companies in e-commerce industry in the country are offering the express delivery services. Moreover, increasing domestic consumption, growing demand for imports of food and pharmaceutical products, and government initiatives have positively augmented South Korea cold chain market. The demand for fresh and processed fruits & vegetables, meat, dairy and others are on rise with the increase in the urban and affluent population supported by change in their consumption habits which aids the cold chain logistics industry revenue.
The report titled “South Korea Logistics Market Outlook 2021 – Increasing Investment Activity and E-Commerce Logistics to Drive Future Growth” by Ken Research suggested a growth at a CAGR of 1.0% in revenue in South Korea Logistics Market in next 5 years till 2021. It is expected that South Korea will witness huge growth in e-commerce industry by 2021. Freight forwarding services will majorly contribute in the overall market of logistics with the share of 80.6% by 2021.
Ankur Gupta, Head Marketing & Communications