Majority of small and medium enterprises (SMEs) across 13 markets in the Asia Pacific (APAC), including the Philippines, reported increased export volumes on its trade with Europe, which is drawn to APAC’s strategic prospects, comprehensive logistics solutions, and favorable trade agreements, according to a new survey.
The Federal Express Corporation, one of the world’s largest express transportation companies, released insights from the new survey examining trade lane trends between APAC and Europe.
Conducted in September 2025, the survey polled 850 SMEs across 13 APAC markets and over 1,200 SMEs across nine European markets, exploring business sentiment, readiness, and challenges for cross‑border expansion among APAC firms expanding into Europe and European firms exploring opportunities in APAC.
The survey findings reveal a notable surge in European trade among APAC small and medium businesses, with 76 percent of respondents reporting increased export volumes over the past year. The United Kingdom (42%), Germany (40%), and France (38%) emerged as the top three markets driving business growth.
Confidence is equally strong among European SMEs, with 87 percent of businesses shifting their balance of trade toward APAC or maintaining current levels. China (55%), Japan (36%) and South Korea (24%) were seen as among the top growth markets over the next two years. This reciprocal optimism among SMEs reflects broader market dynamics, with the Asia–Europe trade lane recording 30 consecutive months of growth as of August 2025, demonstrating remarkable growth momentum along this vital trade corridor for businesses of all sizes.
Emerging opportunities for SMEs
The growth in Asia-Europe trade is being driven by several key factors. In APAC, strong consumer demand in Europe, improved price competitiveness for Asian products and services, and strategic expansion opportunities are major contributors, with 68 percent of respondents attributing growth to these factors. A significant 85 percent of APAC businesses plan to begin or expand trade with Europe in the next 12–24 months.
Meanwhile, European businesses are drawn to APAC due to strategic prospects, comprehensive logistics solutions, and favorable trade agreements.
While there is strong enthusiasm by APAC and Europe SMEs to expand cross‑border trade, they are also aware of the challenges ahead. Regulatory shifts, complex customs procedures and global market volatility are major concerns impacting 86 percent of APAC SMEs and 78 percent of European SMEs’ ability to conduct business.
To overcome these challenges, SMEs are looking for solutions. 30 percent of APAC and 41 percent of European businesses want digital tools to improve supply chain visibility, streamline shipping, and reduce delivery times. Additionally, 27 percent of APAC and 41 percent of European SMEs seek greater customs expertise to navigate shifting regulations, avoid delays, and manage costs effectively.
PH SMEs
“The strong confidence among Philippine SMEs in expanding trade with Europe is a clear signal of the country’s growing role in global commerce. As international trade dynamics evolve, local businesses are seizing new opportunities beyond borders,” said Maribeth Espinosa, managing director, FedEx Philippines. “At FedEx, we are committed to fueling this momentum by delivering reliable logistics, intuitive digital tools, and adaptive trade expertise that help businesses navigate shifting regulations and thrive in the dynamic Asia-Europe corridor.”
To better support surging trade growth, FedEx added five weekly flights connecting Asia to Europe this month. Additionally, FedEx enhanced connectivity between Vietnam to Europe reducing shipment time by one day. FedEx now operates 26 weekly flights connecting APAC shipments to Europe, delivering express shipments to major European destinations in as little as 48 hours[1].
The company’s integrated air-and-road network is one of the fastest in Europe, enabling quick deliveries across the region. Anchored by key logistics hubs in Paris, France and Liege, Belgium, the network supports over 550 pick-up and delivery stations across 45 countries and territories and facilitates the sorting of more than two million packages every day.
