China Third Party Logistics (3PL) Market Overview, 2028

China has two largest 3PL markets in the world. The industry's growth is driven by the country's huge population and its role as a global manufacturing and export hub. Given its global trade prominence, Chinese 3PL providers are experts in cross-border logistics, managing customs clearance, and ensuring compliance with international trade regulations. China is continuously investing in transportation infrastructure, including ports, railways, and highways. This ongoing development enhances the efficiency of 3PL services and supply chain networks. With urbanization on the rise, there is a growing demand for efficient last-mile delivery solutions in China's major cities. 3PL providers are innovating in this space, often using electric vehicles and smart logistics systems. As environmental concerns gain prominence globally, many Chinese 3PL providers are focusing on green logistics practices, such as the use of electric vehicles and sustainable packaging materials. The diversification of industries in China has led to an increasing need for customized logistics solutions tailored to the specific requirements of different sectors, such as automotive, aerospace, and healthcare. Chinese 3PL providers are optimizing reverse logistics processes, managing product returns efficiently and minimizing waste to reduce the environmental impact of returns. China has several special economic zones and free trade zones that promote international trade and investment. 3PL providers often establish a presence in these zones to better serve global clients. China is the world's largest automotive market, and the automotive sector continues to grow. Chinese 3PL providers play a pivotal role in managing the logistics operations of this industry, including the transportation of vehicles and components. China is a global manufacturing powerhouse, producing a wide range of goods from electronics to textiles. This manufacturing diversity ensures that 3PL providers must be versatile and capable of handling a variety of product types. The growth of air cargo services is notable, particularly for time-sensitive and high-value goods. 3PL providers collaborate with air cargo companies to ensure efficient and secure air transportation.

According to the research report “China Third-Party Logistics (3PL) Market Overview, 2028," published by Bonafide Research, the China Third-Party Logistics (3PL) market is anticipated to add more than USD 80 Billion from 2023 to 2028. Blockchain technology is being employed to enhance transparency and traceability in the supply chain. It allows for secure and immutable record-keeping, making it easier to track products from source to destination. This is especially valuable for industries with complex supply chains, such as food and pharmaceuticals. With the rise of omnichannel retail, 3PL providers are developing solutions that seamlessly integrate online and offline channels. This includes synchronized inventory management, flexible fulfillment options, and efficient order routing to meet the demands of modern consumers. Collaboration is on the rise in the 3PL sector. 3PL providers are forming strategic partnerships and alliances to create collaborative logistics networks. These networks enhance coverage, capacity, and service quality, enabling providers to offer more comprehensive solutions to their clients. Micro-fulfillment centers are compact, automated facilities located close to urban centers. They are designed to improve last-mile delivery efficiency, making it easier for 3PL providers to meet the demands of e-commerce and urban consumers. Subscription box services are a growing trend, covering various industries such as beauty, food, and entertainment. 3PL providers are specializing in efficiently managing the assembly and delivery of subscription boxes, ensuring timely and accurate deliveries to subscribers. The pharmaceutical, food, and healthcare sectors require specialized temperature-controlled logistics. 3PL providers are expanding their capabilities in this area to ensure the safe and compliant transportation of temperature-sensitive products, including vaccines and perishable goods. The 3PL industry is witnessing a significant number of mergers and acquisitions as companies seek to expand their global reach, capabilities, and service offerings. These strategic partnerships help 3PL providers offer a wider range of services and reach new markets.

China has an extensive and well-developed road network that covers vast distances across the country. This road infrastructure is crucial for domestic transportation, enabling efficient movement of goods from manufacturing centers to distribution points and end-users. China's rapid urbanization and densely populated cities have led to increased demand for local and regional distribution services. Roadways offer a reliable and flexible mode of transport for last-mile delivery and transportation within urban areas. Road transport is a preferred mode for delivering goods to retail stores and supermarkets across China. This applies to a wide range of industries, from consumer electronics to fast-moving consumer goods (FMCG). Road transport provides flexibility for businesses to reach even remote and less accessible areas of the country, including rural regions. This is especially important for industries like agriculture and pharmaceuticals. Furthermore based on end user the market is segmented into Manufacturing, Healthcare, Retailing, E-commerce, Automotive, Food & Groceries, Technological and Others. China has witnessed a massive surge in e-commerce, with the retailing sector at the forefront. Online shopping platforms like Alibaba's Taobao and JD.com have become major marketplaces, and traditional retailers have also embraced e-commerce. The demand for efficient logistics support for e-commerce businesses is a primary driver for the Retailing segment in the 3PL market. Retailers frequently experience seasonal fluctuations in demand, such as during holiday seasons and promotional events. 3PL providers offer scalable solutions to help retailers manage these fluctuations effectively without maintaining excess resources year-round.

China has the world's largest population, and it encompasses vast geographic areas. The DTM segment is crucial for efficiently moving goods within the country's extensive borders, connecting manufacturers, distributors, and consumers. DTM provider’s help businesses optimize their domestic supply chains by offering transportation solutions that reduce transit times, minimize transportation costs, and improve overall supply chain efficiency. DTM providers often offer multi-modal transportation solutions, allowing businesses to select the most cost-effective and efficient modes of transportation for their domestic shipments, whether by road, rail, or a combination of modes. DTM services are highly flexible, allowing businesses to scale their transportation needs up or down to adapt to fluctuations in demand, such as seasonality or promotional events. Visibility into the domestic supply chain is crucial for tracking and monitoring shipments in real time. DTM providers offer advanced tracking and monitoring systems that provide businesses with detailed information on the movement of goods. DTM providers specialize in managing risks associated with domestic transportation, including issues such as traffic congestion, adverse weather conditions, and other factors that can disrupt the transportation process.

Recent Developments:
• In April 2023, JD Logistics and the Green Supply Chain Committee of the All-China Environment Federation proudly introduced the world's first Supply Chain Emission Management Platform (SCEMP) specifically for the logistics sector. With unparalleled resolution, this innovative logistics transportation carbon footprint monitoring tool evaluates carbon emissions based on actual truck routes.
• In November 2022, Nestlé China and Cainiao Network ("Cainiao"), the logistics affiliate of Alibaba Group Holding Limited, established a strategic partnership. Increasing cooperation throughout Nestlé's smart supply chain and brands—including Starbucks at Home, Hsu Fu Chi, Wyeth, and Totole—will be the main focus of the partnership. Nestlé's primary areas of focus are its B2C and B2B fulfilling operations, digitalized supply chain, sustainability, and improvements to direct-to-consumer (DTC) fulfilment, logistics automation, and Internet of Things (IoT) technology.



Considered in this report:
• Geography: China
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• China Third-Party Logistics (3PL) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Mode of Transport
• Roadways
• Railways
• Waterways
• Airways

By Services
• Domestic Transportation Management (DTM)
• International transportation management (ITM)
• Dedicated contract carriage (DCC)
• Warehousing & Distribution (W&D)
• Value-Added Logistics By Services (VALs)

By End User
• Manufacturing
• Healthcare
• Retailing
• E-commerce
• Automotive
• Food & Groceries
• Technological
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.