Market Research Reports - Ken Research Growth Kuwait Express Logistics Industry

Kuwait Logistics Market is Anticipated to Grow at a CAGR of around 5% during 2018-2022:
Ken Research
Increasing Government initiatives in Various Sectors, Increasing Prominence of 3PL Services
backed up with Trade Scenario of the Country are the key factors driving growth in Kuwait
Logistics Market.
Rising e-commerce industry in the country has triggered the demand for logistics and
warehousing services in past few years. This has also accelerated the market size of express
delivery. Majority of the companies in the country have tie ups with logistic companies to ship
their products from warehouses to the end customers. The rise in demand for freight
forwarding services from the factory units to the retail stores has also aided the overall market
growth of the logistics industry. The warehousing companies have increasingly gained
prominence in the market owing to high demand for storage of retail goods.
The oil sector plays a dominant role in the Kuwaiti economy, with the country estimated to own
roughly 6.0% of the world’s oil reserves. Oil exports account for over 90% of Kuwaiti
government revenues and 50% of nominal GDP. After the decline in oil prices since 2015, the
logistics industry in Kuwait has witnessed decline in growth rate majorly owing to fall in trade of
the country. Owing to dip in oil prices, the government of Kuwait has been largely focusing on
economic diversification which has opened gates for several key projects in the power,
transportation and health sectors which sustain spending and imports of materials such as ores
and metals. Additionally, increase in the retail stores, super & hyper marts in the country has
triggered the demand for logistics & warehousing space.
In Kuwait, the freight forwarding market is highly prevailing on account of expanding e-
commerce, retail & manufacturing and express delivery industries. Rising e-commerce industry
in the country has triggered the demand for logistics and warehousing services in the past few
years. This has also accelerated the market size of express delivery, as all the companies in e-
commerce industry in the country are offering the express delivery services. The demand for
fresh and processed fruits & vegetables, meat, dairy and others are on rise with the increase in
the urban and affluent population supported by change in their consumption habits which has
aided the cold chain logistics industry revenue.
The report titled “Kuwait Logistics Market by Service Mix (Freight Forwarding Market,
Warehousing Market and Value Added Services), by Third Party Logistics, By Cold Chain
Logistics and by Industries (Oil & Gas, Engineering Equipment, Food & Beverages, Metals,
Automotive and Others) - Outlook to 2022” by Ken Research suggested that increasing
demand for cold storage goods and express delivery services will result in market growth at a
positive CAGR in revenues in Kuwait logistics market in next 5 years till 2022.