Germany's Warehousing Market Booms: E-commerce Drives Demand, Infrastructure Adapts (2022-2024)

HAMBURG, Germany - Feb. 24, 2024 - PRLog -- Strong Demand Despite Falling Short of Record Year

The German warehousing and logistics market experienced significant growth in 2022, with a total uptake of 8.5 million square meters. While falling short of the previous year's record of 8.67 million square meters, this figure surpasses the five-year average by a substantial 19%, indicating sustained demand for warehouse facilities within the country.

E-commerce Drives European Warehouse Space Needs

This surge aligns with the broader European trend, largely driven by the e-commerce boom. The COVID-19 pandemic accelerated the shift towards online shopping, demanding increased storage and distribution facilities to meet the surge in online orders and home delivery services. Savills forecasts an additional 8.6 million square meters of warehouse space needed across Europe by 2025 to meet this escalating demand.

Beyond E-commerce: Reverse Logistics and Warehouse Diversification

Interestingly, e-commerce isn't the only factor driving warehouse needs. Reverse logistics, specifically managing returned packages, is expected to occupy 20% (1.7 million square meters) of the projected additional space. This highlights the growing importance of efficient systems for handling returns in the e-commerce landscape.

Germany's Strategic Advantage in Trade and Logistics

Germany, a key player in European trade, has seen steady growth in both exports and imports since 2018. This fuels the logistics and warehousing sector, particularly for commodities like medical equipment, fishery products, and pet food.

Diversifying Warehouse Usage for Evolving Needs

While e-commerce drives a significant portion of the demand, warehouse usage is diversifying. This diversification includes reverse logistics and caters to a broader range of industries beyond just storing products for purchase.

Germany's Well-Established Cold Chain Infrastructure

Germany boasts a well-established cold chain infrastructure, with 133 cold storage facilities as of January 2024. This strategic positioning, especially in central Europe, facilitates the transit of perishable goods across the continent, bolstering international trade.

Industrial Construction Boom and Rising Rents

Industrial construction witnessed a surge in 2022, with new construction volume doubling compared to the previous year. However, increased construction costs have led to rising prime rents for large warehousing spaces in major logistics regions like Hamburg, Berlin, and Munich.

Adapting to the Evolving Landscape

The e-commerce surge reshaped Europe's warehousing landscape, and Germany, with its robust infrastructure and central location, is well-positioned to capitalize on this growth. This trend necessitates not only increased warehouse capacity but also evolving logistics strategies to adapt to changing consumer preferences and market dynamics.

To Know More:
Germany Warehousing and Cold Storage Market Size and Forecast (2020-2030) (https://www.makreo.com/report/germany-warehousing-cold-st...)

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