According to a report from Savills, an additional 8.6m sq m of warehouse space is required by parcel companies in Europe by 2025 to keep up with growing e-commerce demand.
A report from Effigy Consulting shows that a total of 12.3 billion parcels were delivered in Europe during 2019.
Applying data from OFCOM’s parcel delivery, which shows an annualized growth of 9.1% in the number of UK parcels, the next five years in Europe will require a significant development pipeline.
Regarding the needed pipeline for Europe, assuming that 20% of goods bought online are returned over this period.
Thus, an estimated 1.7m sqm of this space will be required to accommodate and process returns from parcel delivery companies.
