United Kingdom Warehousing and Distribution Logistics Market Report and Forecast 2024-2032

United Kingdom Warehousing and Distribution Logistics Market Outlook

The United Kingdom warehousing and distribution logistics market size reached approximately USD 234.60 billion in 2023. The market is projected to grow at a CAGR of 4.9% between 2024 and 2032, reaching a value of around USD 364.20 billion by 2032.

Key Takeaways

Warehousing and distribution logistics refers to activities concerned with the physical movement of products during the time of receipt and shipment and developing the strategy to ensure time-efficient deliveries to end-users for further use and final consumption.

The Golden Triangle region, comprising certain parts of the Midlands region, along with the east of England and Yorkshire and the Humber, is significantly driving the United Kingdom warehousing and distribution logistics market expansion. The market is also being driven by several factors, including the emergence of the UK as an attractive business destination and the growth and expansion of existing warehousing and distribution facilities in the region. For instance, in February 2024, Becketts Foods announced its plans to build a 1,200 sq ft (111.5 sq m) warehouse and distribution hub in Coventry.

Key Trends and Developments

Expansion of e-commerce; increase in demand for distribution services; technological innovations; and the growing adoption of EVs are positively impacting the market growth.

United Kingdom Warehousing and Distribution Logistics Market Trends

There is a growing popularity of online shopping platforms in the country due to their accessibility and ease of returns and exchanges. In 2021, online shopping constituted 38% of all retail sales in the UK. This is positively impacting warehouse construction in the UK, with orders worth 5.6 billion pounds being received in 2021.

Freight transport by road, along with postal and courier activities, constitutes a major portion of all transport and storage business premises. Apart from the east of England and Yorkshire, parts of the Midlands have also witnessed a significant growth in demand for distribution services, which is aiding the United Kingdom warehousing and distribution logistics market growth.

Market Segmentation

“United Kingdom Warehousing and Distribution Logistics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Value added services are expected to dominate the United Kingdom warehousing and distribution logistics market share as they enhance the operations of warehousing and distribution logistics

Value added services are expected to account for a major market share in the forecast period. Value added services enhance the efficiency of overall operations and improve the transparency and reliability of all shipments. They include services like labelling, packaging, managing returns, assembling, and shelf service, among others.

Functional testing is also a value-added service that upgrades logistical processes, though it does not increase the value of the shipment. Value added services are important as they not only improve the visibility of supply chain operations but also benefit all parties involved in the delivery of goods from the manufacturer to the end user.

Warehouse and distribution businesses are also expected to account for a significant market share in the forecast period. This can be attributed to the rising demand for mail and parcel delivery services across the United Kingdom, as well as the growth of small and medium size enterprises. As the UK government eases restrictions surrounding the legal business environment, the United Kingdom warehousing and distribution logistics market is expected to grow significantly in the forecast period.

Competitive Landscape

Mergers and acquisitions by major players are positively influencing the market

Other key players in the United Kingdom warehousing and distribution logistics market are Kuehne + Nagel International AG, AP Moeller - Maersk A/S, Schenker AG, RETHMANN SE & Co. KG, Yusen Logistics Co., Ltd., Fullers Holdings Ltd., and CDL Group, among others.

Key Highlights of the Report