How is the growth rate of the European and American overseas warehouse market? Analysis of the European and American overseas warehouse market

Analysis of the growth rate of the European and American overseas warehouse market

According to data compiled, as of December 31, 2022, the top ten countries or regions with the largest number of overseas warehouses are the United States, Germany, the United Kingdom, Canada, Japan, Australia (including New Zealand), Russia, Spain, France, and Italy, with a total of 2356 warehouses.

The number of overseas warehouses (in units) and growth rate (%) in major countries and regions from 2020 to 2022

Compared with the end of 2021 (1810), the number of overseas warehouses in 2022 increased by 30.17%, which is slower than the growth rate of the previous year (39.55%). There are several reasons for this speculation: First, global inflation was high in the past year, and residents’ consumption expenditures decreased, which led to a shrinking demand, especially in Europe; Second, the congestion in ocean shipping has eased, and prices have dropped back to pre-pandemic levels, which has reduced the demand for some sellers to stock up early, and weakened the advantage of stable supply chains of overseas warehouses; Third, the energy crisis in Europe has led to an increase in labor and electricity costs, indirectly raising the cost of building warehouses and managing warehouses.

In detail, as shown in the chart, although the growth rate of overseas warehouses in the United States in 2022 (27.35%) has decreased year-on-year, its number still leads by a significant margin, reaching 1178, which is equivalent to the total number of the other nine countries or regions in the top ten; Germany and the United Kingdom each have more than 200 overseas warehouses; Canada and Japan each have more than 100 warehouses. In terms of growth rate, Canada has the fastest growth rate, reaching 73.56%. Although it has fallen compared to the previous year (155.88%), it is still much higher than other countries or regions, which is related to the amazing growth of Canada’s e-commerce market in the past few years and its unbounded potential.

According to a tracking survey by Group M, the Canadian e-commerce market has achieved high-speed growth in the past three years under the impetus of the pandemic, with an annual compound growth rate of consumer e-commerce spending reaching 72%. However, with a similar online shopping penetration rate to the United States, the proportion of e-commerce sales in Canada’s total retail sales is only about 10%, which is still significantly lower than the United States (15%) and there is still a lot of room for growth. According to estimates by institutions, the size of the Canadian e-commerce market is expected to exceed 100 billion US dollars in 2025. In addition, Canada’s geographical location, economic level, and consumer habits, which are similar to the United States, have reduced the difficulty of e-commerce operations in Canada, making it convenient for sellers to replicate the successful experience in the United States in Canada, such as Pinduoduo Temu, which has made Canada its second stop for going abroad.

Germany has the second largest increase in overseas warehouses, reaching 44.33%, which is related to its advantageous geographical location. Germany is located in central Europe, adjacent to other EU countries, and can more conveniently, quickly, and cost-effectively deliver goods from Germany to other EU countries.

The above content is excerpted from the BusinessDialogue team’s “2023 Overseas Warehouse Blue Book Special Edition”. Follow the BusinessDialogue Observation public account to get more detailed content and industry-related information.

Note: The data on the number and area of overseas warehouses in various countries/regions comes from the BusinessDialogue official website and the backend data of the Yicang Technology WMS system. After deduplication by BusinessDialogue Observation, the data is sorted out, and the deadline is December 31, 2022.

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