US Retail 3PL Market Size

US Retail 3PL Market Analysis

The US Retail 3PL Market size is estimated at USD 51.94 billion in 2024, and is expected to reach USD 69.43 billion by 2029, growing at a CAGR of 6% during the forecast period (2024-2029).

• From USD 3.78 trillion in 2019, total retail sales climbed 6.9% to USD 4.04 trillion in 2020. Given the negative impact of the coronavirus epidemic on in-store buying, the significant increase in total retail sales may come as a surprise. However, digital sales accounted for the majority of retail growth. In 2020, e-commerce accounted for over three-quarters of all retail growth (74.6 percent), the greatest share of overall growth the online sector has ever had. Offline sales, which include stores, catalogs, and call centers, grew 2.1% in 2020, which was the same rate as the pandemic-free prior year.
• Meanwhile, in April 2023, the United States retail sales witnessed growth on both a month-over-month and year-over-year basis. However, clothing and clothing accessory stores continued to face challenges, with a 0.3% drop in sales compared to the previous month and a 4.1% decrease compared to the same period last year. The overall retail sales growth is majorly driven by resilient consumer spending despite the inflation fluctuation. In addition, moderate price levels, continued labor market strength, and wage gains have increased consumers’ ability to spend.
• Despite the increasing consumer spending, clothing and apparel sales have slightly declined, as consumers are becoming more aware of the quality of the products. Whereas, in 2022, according to the Specialty Food Association (SFA) study, specialty foods and beverage sales witnessed significant sales by more than 9.3%. The specialty market is composed of 63 food and beverage categories which combined account for nearly 22% of retail food and beverage sales. Thus, the growing retail sales are expected to create a huge demand for third-party logistics networks in the country.