Small and medium-sized enterprises (SMEs) in the Asia Pacific (APAC) region are highly confident in trade growth with Europe, with 85 percent planning to begin or expand trade with the continent in the next 12 to 24 months, according to a new survey released today by Federal Express Corp.
The express transportation company’s survey, conducted in September 2025, polled 850 SMEs across 13 APAC markets and over 1,200 SMEs across 9 European markets. It found a notable surge in European trade among APAC SMEs, with 76 percent reporting increased export volumes over the past year. The United Kingdom (42 percent), Germany (40 percent) and France (38 percent) were identified as the top three markets driving business growth for APAC firms.
Confidence is reciprocal, with 87 percent of European SMEs shifting their balance of trade toward APAC or maintaining current levels. European businesses view China (55 percent), Japan (36 percent) and South Korea (24 percent) as top growth markets over the next two years. This optimism reflects the broader market dynamics of the Asia–Europe trade lane, which has recorded 30 consecutive months of growth as of August 2025.
Driving this growth in APAC are factors such as strong consumer demand in Europe, improved price competitiveness for Asian products and services and strategic expansion opportunities, which 68 percent of respondents cited. For European businesses, strategic prospects, comprehensive logistics solutions and favorable trade agreements are key attractions in the APAC region.
Despite the strong enthusiasm, both APAC and European SMEs acknowledge challenges. Regulatory shifts, complex customs procedures and global market volatility are major concerns impacting the ability of 86 percent of APAC SMEs and 78 percent of European SMEs to conduct business.
To overcome these hurdles, 30 percent of APAC and 41 percent of European businesses seek digital tools to improve supply chain visibility streamline shipping and reduce delivery times. About 27 percent of APAC and 41 percent of European SMEs want greater customs expertise to navigate shifting regulations avoid delays and manage costs effectively.
“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 FedEx Philippines managing director Maribeth Espinosa.
“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,” she said.
To support the surging trade, FedEx added 5 weekly flights connecting Asia to Europe and 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. The company’s integrated air-and-road network, anchored by hubs in Paris France and Liege Belgium, supports over 550 pick-up and delivery stations across 45 countries and territories.
