Reverse Logistics Market Expected to Reach $947.7 Billion by 2032

Reverse Logistics Market

Report Code : A04829

quote By return type, the commercial returns and B2B returns segment dominated the global market in 2022 in terms of revenue and is expected to lead the market throughout the forecast period. By end user, the e-commerce segment accounted for the largest market share in 2022. At present, Asia-Pacific is the highest revenue contributor, followed by North America, Europe, Latin America, Middle East, and Africa. quote

Lalit Janardhan Katare - Manager
Automotive and Transportation at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Reverse Logistics Market," The reverse logistics market size was valued at $630.92 billion in 2022, and is estimated to reach $947.7 billion by 2032, growing at a CAGR of 4.3% from 2023 to 2032.

Reverse Logistics involves the management of return of goods from the end user back to the seller or manufacturer. It manages return of goods due to disposal, refurbishment, or replacement of the original product. It typically involves the movement of goods in reverse order from consumer to manufacturer or seller.

The global reverse logistics market has witnessed significant growth due to expansion of e-commerce industry, increased product recall due to stringent government rules for product quality in the automotive industry, rise of tech-driven reverse logistics services, and surge in adoption of IoT-enabled connected devices. Introduction of blockchain technology and reduction in losses owing to adoption of a multi-modal system are likely to create a growth opportunity for the industry. The lack of control of manufacturers on reverse logistics service and uncertainty in the reverse logistics processes are anticipated to hinder the reverse logistics market growth during the forecast period.

The reverse logistics market size is segmented into return type, end user, and region. On the basis of the return type, the reverse logistics market share is divided into recalls, commercial returns & B2B returns, repairable returns, end-of-use returns, and end-of-life returns. By end user, the reverse logistics market is segregated into e-commerce, automotive, pharmaceutical, consumer electronics, retail, luxury goods, and reusable packaging. By region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.

In addition, the reverse logistics market is highly competitive, with several key players dominating the industry. Prominent manufacturers focus on innovation, product differentiation, and strategic partnerships to maintain their market positions. Market leaders include companies such as C.H. Robinson Worldwide, Inc., RLG, Core Logistic Private Limited, DB Schenker, Deutsche Post DHL Group, FedEx Corporation, Kintetsu World Express, Inc., Safexpress Pvt. Ltd., United Parcel Service, Inc., and Yusen Logistics Co., Ltd.

The global logistics and e-commerce market has experienced tremendous growth in recent years owing to the rise in connectivity solutions. The growth in e-commerce and logistics industries drives the demand for time-efficient delivery and return services of products in reverse logistics market worldwide.

For instance, in May 2021, XPO Logistics, Inc. announced the launch of an automation solution in France. The automation solution is anticipated to facilitate high-volume reverse logistics for the French fashion e-commerce industry. The unprecedented growth of online shopping in recent years has promoted the development and adoption of reverse logistics services and solutions by the leading retail, e-commerce, and third-party logistics companies (3PLs). Moreover, in June 2021, Ruby, an e-commerce-based fulfilment company, launched an industry alliance, the DTC Consortium, with the support of multiple companies. The consortium is expected to enable the organizations to comprehensively navigate through their market strategies such as reverse logistics, marketing, fulfilment, and vertical-specific considerations. In the e-commerce industry, the reverse logistics segment has become essential component for its growth. E-commerce companies are increasingly developing their reverse logistics service to enhance customer experience.

Furthermore, the defective or returned products contribute to the sunk cost for a business and increase the overall operation cost of the business. The reverse logistics services are utilized by the businesses to recover the value from the returned products by recycling, reusing, refurbishing, or reselling the product.

The reduction in the cost of logistics and timely return of perishable goods in the FMCG or pharmaceutical industry have emerged as a challenge for reverse logistics service providers owing to the rise in the quantity of returned and defective products that have to be returned in a limited time period. Multi-modal transport uses the most efficient combination of transport modes for keeping the freight costs down and increasing the efficiency of the entire supply chain. The implementation of a multi-modal transportation system presents an opportunity for manufacturers to reduce their losses. Hence, the adoption of a multi-modal system poses exponential growth opportunities for the key players operating in the reverse logistics market growth.


  • By return type, the end of life returns segment is anticipated to exhibit significant growth in the reverse logistics market share in the near future.
  • By end user, the e-commerce segment is anticipated to exhibit significant growth in the reverse logistics market analysis in the near future.
  • By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

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quote Reverse Logistics Market by Return Type (Recalls, Commercial returns and B2B returns, Repairable returns, End of use returns, End of life returns), by End User (E-Commerce, Automotive, Pharmaceutical, Consumer electronics, Retail, Luxury goods, Reusable packaging): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

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