SME  /  E-COMMERCE

By FedEx | Novmeber 5, 2025

Is your business ready to grow in Europe? FedEx’s new Asia-Europe Trade Report reveals exclusive insights on market trends, key challenges, and winning strategies to help APAC businesses expand successfully. Download the full report here for in-depth insights.

• Strong demand from European customers is spurring APAC businesses to expand, with a whopping 85% of SMEs planning to enter or scale in Europe within the next two years.
• The biggest obstacles are shipping-related, with 57% of APAC businesses citing logistics costs as their main barrier to exporting to Europe. 
• Regulatory changes and trade volatility have also disrupted the ability of 86% of APAC SMEs to do business with Europe.

Amid global uncertainty, new opportunities are emerging for Asia’s businesses. As policy changes disrupt traditional trade routes, SMEs are exploring fresh paths to growth – and many are turning to Europe’s rich potential.

FedEx’s new Asia-Europe Trade Report highlights this growing trend – a striking 85% of Asia Pacific (APAC) SMEs we surveyed plan to enter or expand further into Europe within the next 12 to 24 months.

But success in Europe’s diverse markets requires the right strategy, support and insights. Our report uncovers key trends shaping Asia-Europe trade – from both enterprise and consumer perspectives: How are brands attracting cross-border customers? What challenges do they face? And what support do they need to succeed?

We surveyed 850 SMEs across 12 APAC markets and over 1,200 SMEs in nine European markets to find the answers.

To get the full insights, download the Asia-Europe Trade Report here, and the Europe market report here.

Here's a snapshot of our top findings:

Rising cross-regional trade interest between Asia and Europe

European consumers are showing growing interest in made-in-Asia goods, and APAC’s small businesses are responding quickly. About 76% of APAC SMEs report increased export volumes to Europe over the past year.

In turn, European SMEs are also looking to Asia for growth. Among those currently trading with APAC, 87% expect to maintain or shift their trade balance towards exports to the region. They’ve identified China (55%), Japan (36%), and South Korea (24%) among their top growth markets in the next two years.

Meanwhile, APAC businesses see the UK (42%), Germany (40%), and France (38%) as key European markets for expansion over the next two years. Currently, however, Turkey stands out as the leading European market trading with APAC, with more than one in 10 customers coming from the region.

What’s fueling the Asia-Europe trade growth?

Strong consumer demand is a major driver of this cross-border expansion, with 68% of APAC and 57% of European SMEs naming it as a key reason for expanding into new markets. Other reasons include strategic growth opportunities and favorable trade agreements between regions.

To capture cross-border customers, 42% of APAC and 34% of European SMEs will use competitive promotions as a key strategy. APAC businesses will also prioritize localized products (38%) and improved customer service (34%), while European businesses will focus on increased marketing spend (33%) and better order fulfillment and delivery (33%).

E-commerce festivals like 11.11 and Black Friday will play a major role too. The majority of SMEs surveyed – 91% in APAC and 86% in Europe – say these mega events are key to achieving their holiday sales goals. On average, internationally trading APAC SMEs expect 36.2% of their holiday sales to come from European e-commerce customers, while European SMEs anticipate 36.9% from markets outside their continent.

Optimism runs high, with 71% of APAC and 81% of European SMEs expecting stronger holiday sales than last year. Moreover, 84% of SMEs across both regions say they are confident in meeting international delivery deadlines during the peak season.

Logistics challenges remain a key barrier to Asia-Europe trade

While APAC SMEs are eager to expand into Europe, the complexity of international shipping stands in their way. 57% of our respondents highlight logistics costs as the top hurdle that prevents them from exporting to Europe.

Recent regulatory shifts and global market volatility have added to the challenge of Asia-Europe shipping. 86% of APAC and 78% of European SMEs say these factors have impacted their ability to conduct business.

It’s clear that businesses want more than just traditional support. 30% of APAC and 41% of European SMEs seek innovative digital tools to improve supply chain visibility, streamline shipping, and speed up delivery. Meanwhile, 27% of APAC and 41% of European SMEs say they need greater customs expertise to navigate changing regulations, avoid delays, and manage costs.

Download our report for in-depth insights into Asia-Europe trade

Trade between Asia and Europe is gaining momentum. At FedEx, we’re expanding our network to support this growth. We recently added five weekly flights from China to France and improved connectivity from Vietnam to Europe, cutting shipment times by one day.

We now operate 26 weekly flights between APAC and Europe, helping businesses deliver to major European destinations in as little as 2 days.

Check out our Asia-Europe Trade Report for exclusive insights on emerging market trends, shifting consumer expectations, and key strategies for attracting more cross-border customers.

Download the full report below.