The Latest Distribution Industry Statistics Explained
The global distribution and wholesale market reached a value of nearly $27.55 trillion in 2020.
The statistic indicates that the overall global distribution and wholesale market generated a total value of approximately $27.55 trillion in the year 2020. This figure represents the total revenue generated through the buying and selling of goods and services on a wholesale level across various industries and regions around the world. The market encompasses transactions between manufacturers, suppliers, distributors, and retailers, highlighting the scale and importance of the wholesale sector in facilitating the movement of goods on a global scale. The substantial size of the market value underscores its significant contribution to the global economy and trade network, reflecting the interconnectedness and complexity of the modern supply chain system.
The Asia Pacific region is the largest region for the distribution and wholesale market, accounting for 59.8% of the global market in 2020.
This statistic indicates that the Asia Pacific region holds the largest market share in the distribution and wholesale industry worldwide, making up 59.8% of the total global market in 2020. This highlights the significant presence and dominance of businesses operating in the Asia Pacific region in supplying goods on a wholesale level. It suggests that the region is a major player in global distribution networks, likely benefiting from factors such as population size, economic growth, and strategic geographic location, making it a key area for businesses looking to expand their market reach in the wholesale industry.
E-commerce accounted for nearly 12% of global retail sales in 2020, thus having a significant impact on the distribution industry.
The statistic reveals that e-commerce sales constituted approximately 12% of total worldwide retail sales in 2020, indicating a substantial presence and influence of online retail on the distribution industry. This suggests a significant shift in consumer behavior towards purchasing goods and services through digital platforms, which has been accelerated by factors such as the COVID-19 pandemic and technological advancements. The growth of e-commerce has disrupted traditional retail models, leading to changes in supply chain management, logistics, and consumer shopping habits. As e-commerce continues to expand its share of the retail market, businesses in the distribution industry must adapt and innovate to remain competitive and meet evolving customer expectations in a rapidly changing landscape.
The global third-party logistics market size was valued at USD 925.31 billion in 2020.
This statistic indicates that the total value of the global third-party logistics market in 2020 was USD 925.31 billion. Third-party logistics involves the outsourcing of logistics and supply chain management functions to specialized companies. The market size represents the total revenue generated by third-party logistics service providers globally in 2020, reflecting the significant role these companies play in facilitating the movement and management of goods and materials across various industries. This figure serves as a key indicator of the scale and importance of the third-party logistics industry in supporting the efficient and effective functioning of supply chains on a global scale.
The distribution industry faced a sharp contraction of 3.3% due to the Covid-19 Pandemic in 2020.
The statistic indicates that the distribution industry experienced a significant decline of 3.3% in its overall economic activity as a direct result of the Covid-19 pandemic in the year 2020. This contraction likely reflects reduced consumer demand, supply chain disruptions, and operational challenges faced by distribution companies during the pandemic. The impact of the pandemic on the distribution industry demonstrates the vulnerability of certain sectors to external shocks and highlights the importance of adapting business models and operations to withstand unforeseen events in the future.
The warehousing and storage market in the USA was valued at $22 billion in 2019.
The statistic indicates that the warehousing and storage market in the USA had a total value of $22 billion in the year 2019. This value represents the total revenue generated by businesses engaged in providing warehousing and storage services throughout the country during that particular year. The size of the market suggests a significant demand for such services, likely driven by factors such as the growth of e-commerce, increasing globalization of supply chains, and the need for efficient inventory management by businesses across various industries. Analyzing and understanding this statistic can provide insights into the overall economic activity in the warehousing and storage sector in the USA, as well as potentially serving as a benchmark for future market trends and developments.
The global warehouse automation market size was valued at $15 billion in 2019 and is expected to grow at a compounded annual growth rate of 14% from 2020 to 2025.
This statistic indicates that the global warehouse automation market was worth $15 billion in 2019 and is projected to expand significantly over the next five years, with a compound annual growth rate (CAGR) of 14% from 2020 to 2025. The high growth rate suggests a strong and increasing demand for warehouse automation technology and solutions, driven by factors such as increasing e-commerce activities, the need for efficient supply chain management, and efforts to improve operational efficiency and reduce costs in warehousing operations. This growth trend indicates a promising market opportunity for businesses operating in the warehouse automation sector, as the market is expected to reach a higher valuation by 2025.
Around 94% of distributors report that competition has increased in the last five years.
The statistic indicates that a significant majority of distributors, around 94%, have observed an increase in competition over the past five years. This finding suggests a trend of growing competition within the distribution industry, which could be attributed to various factors such as market globalization, technological advancements, or shifting consumer preferences. The high percentage of distributors reporting increased competition may indicate that firms in the industry are facing challenges in differentiating themselves and capturing market share. Understanding and responding to this intensified competitive landscape will be crucial for distributors to sustain growth and profitability in the future.
Nearly 78% of US distribution companies plan to increase their spending on technology.
The statistic that nearly 78% of distribution companies in the US plan to increase their spending on technology indicates a significant trend towards investing in technological advancements within the industry. This high percentage suggests that a majority of distribution companies recognize the importance of leveraging technology to improve their operational efficiency, enhance customer service, and stay competitive in the market. By increasing their investment in technology, these companies aim to adopt innovative solutions such as automation, data analytics, and digital tools to streamline their processes, optimize inventory management, and meet the evolving needs of their customers. This statistic reflects a strategic shift towards embracing digital transformation as a key driver for growth and sustainability among distribution businesses in the US.
Rising costs are the biggest challenge for 68% of distributors, followed by finding new customers (65%) and retaining existing ones (61%).
The statistic indicates that among distributors, the greatest challenge faced by 68% of them is the rising costs they encounter in their operations. This signifies a significant concern within the industry, likely suggesting challenges with maintaining profitability and managing expenses. Additionally, the statistic highlights the importance of customer acquisition and retention, with 65% of distributors citing finding new customers as a key challenge and 61% indicating that retaining existing customers is also a prominent issue. This underscores the competitive nature of the distribution sector and the need for companies to continuously attract and retain customers to remain successful in the market.
North American industrial distribution sector is dominated by about 50 companies that make up 50% of the market share.
This statistic suggests that in the North American industrial distribution sector, a relatively small number of companies hold significant power and influence over the market. Specifically, approximately 50 companies collectively control half of the market share in this sector, indicating a high level of concentration and potential oligopolistic tendencies. These companies likely have substantial resources, economies of scale, and market presence that allow them to have a competitive advantage over smaller players in the industry. This dominance can impact pricing, competition, and overall dynamics within the sector, potentially posing challenges for smaller companies looking to gain a foothold or expand their market share.
E-commerce makes up about 10.2% of total revenues for distributors in North America.
This statistic indicates that electronic commerce, or e-commerce, accounts for approximately 10.2% of the overall revenue generated by distributors in North America. This suggests that a significant portion of their sales and business transactions are conducted through online platforms and digital channels rather than traditional brick-and-mortar stores. This trend reflects the increasing reliance on the internet and technology for conducting business and highlights the growing importance of e-commerce in the distribution sector in North America. It also implies that distributors in the region are adapting to changing consumer preferences and technological advancements to remain competitive and meet the demands of the market.
50% of distributors indicate using a customer relationship management (CRM) system.
This statistic indicates that 50% of distributors report utilizing a customer relationship management (CRM) system within their operations. A CRM system is a technology tool that helps businesses manage interactions with customers and potential customers, typically using data analysis and automation to streamline processes such as sales, marketing, and customer service. By employing a CRM system, distributors can effectively track customer interactions, manage leads and opportunities, personalize marketing efforts, and enhance overall customer satisfaction. The fact that 50% of distributors indicate using a CRM system highlights the prevalence of this technology within the distribution industry and suggests that it is seen as a valuable resource for enhancing customer relationships and driving business growth.
U.S. wholesalers sold $7.4 trillion worth of merchandise in 2019.
The statistic stating that U.S. wholesalers sold $7.4 trillion worth of merchandise in 2019 is indicative of the significant economic activity within the wholesale industry in the United States during that year. This high value represents the total revenue generated from the sale of goods by wholesalers to retailers, businesses, and other customers. It highlights the vast scale and importance of the wholesale sector in facilitating the distribution of products across various industries. The statistic also serves as an essential indicator of overall economic health and consumer demand within the U.S. market, showcasing the substantial volume of goods being bought and sold at the wholesale level.
Almost 50% of the distributors are looking to increase their logistics staff in 2020.
The statistic indicates that a significant portion of distributors, specifically almost half, are planning to expand their logistics teams in the coming year. This suggests a trend towards growth and increased demand for distribution services in 2020. The decision to increase logistics staff may be driven by factors such as expanding operations, enhancing efficiency, meeting growing customer demands, or adapting to changes in the industry landscape. Overall, this statistic highlights a positive outlook for the distribution sector and signals potential opportunities for job seekers in logistics roles in the upcoming year.
82% of distribution companies plan to increase wages for their workers.
The statistic ‘82% of distribution companies plan to increase wages for their workers’ indicates that a significant majority of companies in the distribution industry are intending to raise the pay of their employees. This high percentage suggests a strong trend towards wage growth within this sector, potentially reflecting factors such as a competitive labor market, increasing cost of living, or a desire to attract and retain talented staff. Such wage increases could have positive implications for employees, enhancing their financial well-being and job satisfaction, while also potentially benefiting the companies themselves through improved employee morale, productivity, and retention rates. This statistic highlights a widespread movement towards better compensation practices within distribution companies, which could contribute to overall economic growth and stability.
References
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