
The Rise Of Asia-Europe Trade – And What It Means For APAC SMEs
By FedEx | May 28, 2025
With demand for Asian exports rising in Europe, now’s the perfect time for SMEs to explore new markets, expand across borders, and build global reach.
- Amid global trade shifts, commercial activity between Asia and Europe is poised for change in 2025, signaling new and exciting possibilities for Asia-Europe trade.
- Rising consumer demand for Asian exports, a reconfigured geopolitical landscape, and a unified EU market are creating a wealth of Asia-Europe trade opportunities.
- To succeed in the EU, Asia Pacific SMEs need to become experts at interpreting regional consumer differences and tailor their growth strategies to each market.
Paris, Berlin, Copenhagen, Barcelona – they’re some of Europe’s dreamiest travel destinations and cultural hotspots. But what do you know about their consumer base?
While global supply chains adjust to recent disruptions, Asia-Europe trade continues to present exciting new opportunities. In fact, the World Trade Organization (WTO) expects Chinese exports to Europe to rise by 6% this year alone. And that’s not just a bump in volume – it’s a sign that European demand for Asian exports is growing.
Whether you’re shipping handmade goods from Vietnam or high-tech components from Taiwan, Europe offers several fast-growing market segments. At FedEx, we’re seeing more small and medium-sized businesses across Asia Pacific tapping into this trend – and we’re here to help foster new growth.
We explore what’s behind major Asia-Europe trade opportunities, why timing matters, and how Asian businesses can make the most of them.
Why Europe deserves a spot on your expansion roadmap
The European market can seem like a big leap for Asian SMEs focused on cross-border growth closer to home. But here’s the reality: Europe is one of the most lucrative regions for Asian exports today.
Home to nearly 450 million people across 27 countries, the European Union (EU) gives Asian SMEs access to a vast and varied customer base. One of the biggest advantages? It functions as a single market. Once your products enter one EU member state, you can move them across borders without extra customs duties or quotas. Get started in one market, and you have a clear path to expand across the region.
And Asia-Europe trade is already going strong. ASEAN, for example, is the EU’s third-largest trading partner outside Europe – after China and the United States – with about €258.7 billion of trade in goods in 2024. The biggest Asian exports to the EU include machinery and appliances, textiles, and chemical products.
Europe also relies on chip imports from Asia. Chip production is highly concentrated in Asia, with 73% of all chip manufacturing done in China, Japan, South Korea, and Taiwan.
At the same time, Europe’s push for sustainability is gaining momentum, and Asia is well-positioned to supply green tech and eco-friendly products, from solar panels to energy-saving tools. Even Asian snacks and desserts, like mochi and milk tea, are making waves in Europe thanks to their distinctive flavors and textures.
But there’s a larger trend at play: As global trade flows shift, Asia-to-Europe trade opportunities are becoming more attractive than ever. And it’s not just for the big players – FedEx has supported many small businesses in making the leap, offering support with customs, optimizing delivery times, and reaching European buyers where they are. Now’s a good time to diversify and de-risk by expanding your market reach.
What Europe wants: Understanding European consumer demand trends
To succeed in a new market, you need to understand who you’re selling to. While the EU functions as a single market, the European market isn’t one-size-fits-all. Just like Asia, its member states are incredibly diverse.
So, how can you decode these preferences?
Look at top-performing categories in your sector across different countries to see where your products fit best. Keep an eye on seasonal trends too, as what’s popular in France during Q2 might not be the same in Germany or Poland. It also helps to explore local marketplaces and social channels popular with European shoppers, like Zalando, Otto, or even TikTok Shop in some regions.
Many of our customers in the region start small, testing products in one country or buyer segment, then scaling as they learn.
How Asian SMEs can expand to Europe
Breaking into Europe isn’t just about having the right product. You need the right approach. Here are a few key tips to help you get started.
1. Tailor your entry strategy
Every European country has different rules, purchase behaviors, and even logistics infrastructure. What works in Spain might not work in Sweden.
Start by choosing one or two European markets to focus on. From there, you can tailor your approach, localizing product descriptions, packaging, and even pricing to suit regional preferences. It also pays to track performance by country using analytics or online sales platforms, so you can see what’s working and adjust your strategy as you grow.
2. Treat Europe as a diverse market
It bears repeating: While the EU operates as a single market, the region is immensely diverse. Age, language, income levels, and shopping habits vary widely. Urban habits differ from those in rural areas. The more you tailor your approach, the better your results.
For example, in Italy alone, you’re marketing to various mini-markets within the country. Up north, consumers are more brand-conscious, digitally active, and value-driven, with a focus on product quality and sustainability. Down south, consumers value word-of-mouth marketing and traditional values, with a focus on relationships, pricing, and familiarity.
Here’s another insight: In France, 72% of consumers will ditch a brand over poor app experiences, such as slow loading, bugs, or unintuitive navigation. Think of each new market as its own micro-business opportunity. That way, you’ll stand out from competitors who take a more blanket approach.
3. Work with logistics providers
One common concern among Asia Pacific SMEs is the complexity of international shipping. Customs paperwork, delivery delays, and returns can be overwhelming. But this is where working with logistics providers like FedEx makes a big difference.
For example, we help businesses prepare for customs clearance, offer delivery timeframes that meet European customer expectations, and set up convenient return solutions that build trust and boost customer satisfaction.
You focus on growing your brand. We move your products where they need to go, quickly and reliably.
4. Think long-term with supply chain planning
As your business grows, it’s worth exploring ways to streamline your logistics. You might consider using fulfillment centers in Europe to speed up delivery times. Batch-shipping products can help cut down on transport costs. You can also offer various shipping options to match different customer preferences.
These steps help you become more efficient while meeting the expectations of your growing European customer base. Some of our APAC customers started with one box a month to a single country. Now, they’re sending multiple shipments a week across the continent.
The time for Asia-Europe trade is now
Asia-to-Europe trade opportunities are growing fast. At FedEx, we’ve seen firsthand how Asian SMEs turn European expansion into a major growth engine. From providing reliable international shipping to advising on customs, we’re here to help businesses bridge the gap between Asia and Europe.
If you’ve been thinking about Europe but haven’t taken the first step, perhaps now is the right time. The demand is there, the tools are available, and support is just a click away. Let’s connect Asia to Europe, and help your business grow beyond borders.
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