Unlocking the Heart of Europe: Navigating the Czech Republic’s Logistics Landscape

At the heart of Europe, the Czech Republic’s logistics market is your ticket to exponential growth. From CEP market volumes skyrocketing to e-commerce’s steady rise, the Czech Republic’s investment potential is hard to ignore. But that’s just the beginning.

The Czech Republic's logistics provides investors with the perfect opportunity to take advantage of a fast-growing market. Sitting at the heart of Europe, the Czech Republic possesses great opportunities in the logistics market. Its endless business opportunities, thriving logistics market, and flourishing SME market represent the perfect investing opportunity for future investors, making it a hot commodity in Europe. With its high upside and steady track record, now is the perfect time to jump on this unique investing opportunity.

The Czech Republic's growing logistic field demonstrates its profitability from an investment standpoint. A perfect way to represent this growth would be to look at the Czech Republic's CEP market numbers over the past decade. Starting in 2014, the Czech Republic's volume was at 105.9 million parcels. This number grew each year leading up to 2019, where it grew to 177.2 million parcels. From then, production truly took off, with volume increasing to 226.5 million in 2020, and 276.8 million in 2021 respectively. This massive jump demonstrates the exponential growth in which the Czech Republic has gone through over the past few years, proving the need for investment soon for those who are looking to make a profit. 

On top of great growth in CEP, the Czech Republic also has been growing steadily in the e-commerce field. As of 2022, it has grown at a rate of 13.1% annually. This double-digit number should give investors a feeling of confidence, as it indicates strength in the market. It also suggests market expansion and maturity, proving that the country's development over the past decade was not a fluke. To put the Czech Republic's strong growth in e-commerce into perspective, let's examine at how it has done in the past half decade, and how it projects in the next 5 years. In 2018, it had 3.9 billion in annual revenue. This grew slowly over the next 5 years, leaving it at 6.5 billion today in 2023. By almost doubling the annual revenue, it is clear that there is massive growth in the e-commerce field, which is important to take advantage of as an investor. With this same level of growth, the Czech Republic projects to do just over 9 billion in revenue by 2027, proving that it is important to take advantage of this growth sooner rather than later.

The abundance of business opportunities should make current and future investors confident in their decision to invest in the country's logistics. To start, the overall population of the Czech Republic is growing, with a calculated growth percentage of 4.19% from the year 2021-2030. With the current population of 10.8 million set to only grow, there is clear room for improvement in many facets of business. With this growing population, there will not only be more people to increase business and sales, but also an increase of people in the workforce, demographic profiles, and long term market sustainability. Each of these factors are key when assessing the future of a country's economic state, showing positive signs for those who are looking at the long term view for investment. 

On top of the growing population, the Czech Republic also has a growing GDP. A rise in GDP can represent a variety of factors that relate to increased business opportunity, including market expansion, industry growth, infrastructure advancement, global market access, and a stable market. In the past decade, the country's GDP has increased by almost 100 billion USD, going from 211.7 billion in 2013 to 308.4 billion in 2023. This large increase shows the improvement in which the country has undergone in the past decade, with room to still improve in the future. With the current growth rate, it is expected that the GDP will increase by 6% each year, increasing to 367.5 billion USD by the end of 2026. This steady increase once again demonstrates the reliability of the Czech Republic to expand and improve. With multiple factors of business opportunity pointing in the positive direction, investors can feel confident about the country's future.

Lastly, the Czech Republic is home to a strong and expanding SME economy. Having a strong, thriving SME market is very important, representing a variety of factors such as job creation, high competition, innovation, and growth in a given market. As of 2022, there were a staggering 1.04 million SMEs in the Czech Republic, making up 99.85% of business’ in the country. This demonstrates the strong SME market in the country, with no monopolies dominating the market. In 2008, on average, SMEs added about 16.5 million euros. This number gradually increased over the decade and a half to present day, where they now add about 25 million euros in  value. This massive increase represents the growth that SMEs have had over the past decade in the Czech Republic, proving them to be a stable and thriving market. 

The Czech Republic has become an obvious choice for investors, with massive development over the past decade. This trend is projected to continue, with the logistics market continuing to improve, business opportunities increasing, and the SME market booming. Take advantage of this growing market with MBE. Contact us below.

(Photo: Radek Kozák
 on Unsplash)

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