Asia, 11 November 2025 – A recent Asia-Europe Trade Report by FedEx revealed that 85% of Asia Pacific (APAC) SMEs surveyed plan to either enter or scale their business into Europe over the next period of 12 to 24 months.
The survey, which was carried out in September 2025 by Milieu Insight and Mortar Research, collected responses from 850 SMEs in APAC and 1,205 SMEs in Europe, covering business sentiment, challenges, and preparedness for cross-border expansion among APAC SMEs into Europe, and vice-versa.
It polled 13 APAC markets including Malaysia, Japan, Indonesia, Hong Kong SAR, China, New Zealand, Australia, Singapore, Philippines, Taiwan, South Korea, Vietnam, and Thailand. For European markets, it examined the UK, Spain, France, Turkey, the Netherlands, Italy, Poland, Germany, and Belgium.
Key Findings of Asian-Europe Trade Report
- Around 76% of APAC SMEs recorded growth in export volumes to Europe in the last year.
- 57% of APAC businesses cited logistics cost as the main challenge to export to Europe.
- For 86% of APAC firms and 78% of European SMEs, trade volatility and regulatory changes affected their ability to do business.
- 87% of European SMEs trading with APAC expect to maintain or change their trade balance towards outbound shipments to the region, with China (55%), Japan (36%), and South Korea (24%) as the leading growth markets for the coming two years.
- The top European markets for the next two years for APAC are UK (42%), Germany (40%), and France (38%). It is noted that Turkey is the leading European market trading partner for APAC, with more than one in 10 customers (12%) coming from this region.
Challenges & Opportunities
While logistics and changing regulations remain key hurdles for trade, 30% of APAC and 41% of European respondents, reported requiring innovative digital tools to enhance transparency in the supply chain, streamline shipping, and improve delivery. Additionally, 27% of APAC and 41% of European businesses seek better customs expertise to help them manage time, costs, as well as changes in regulations.
Amid the challenges, strong consumer demand is the primary contributor for market expansion, according to 68% of APAC and 57% of European firms. Both regions rely on competitive promotions and holidays like e-commerce festivals to drive growth. APAC SMEs prioritise localised products (38%) and enhancement in customer service (34%), while European SMEs plan to raise market spending (33%) and improve order fulfillment and delivery (33%).
The Asia-Europe trade lane, once dominated by multi-national supply chains, is increasingly driven by SMEs leveraging e-commerce and logistics automation. The FedEx survey shows that while strong consumer demand continues to fuel growth, challenges such as logistics costs, regulatory shifts, and trade volatility remain significant.
However, as both APAC and European firms are actively seeking solutions, from digital supply chain tools to greater customs expertise, it demonstrates their continuous strong commitment and confidence in cross-border expansion in the Asia-Europe corridor.
Source: FedEx
