USD 114.4 billion
Report ID:
SQMIG30B2043 |
Region:
Global |
Published Date: November, 2024
Pages:
197
|Tables:
119
|Figures:
77
Food Logistics Market size was valued at USD 122.19 Billion in 2023 and is poised to grow from USD 130.62 Billion in 2024 to USD 221.08 Billion by 2032, growing at a CAGR of 6.9% during the forecast period (2025-2032).
The global food logistics market has witnessed stable and significant growth due to a rise in global food consumption and changes in consumer preferences Increasing urbanization has catalysed the demand for convenient and processed foods, which is slated to augment market growth as well. At the same time, technological evolution has spurred the amplification of third-party ordering and delivery services. Transport companies are progressively introducing new technologies and solutions that could redefine the global food logistics market outlook in the future. Although there is plenty of room for automation in the logistics space, fully automated warehousing distribution systems and other automated solutions still have a lot of scope to expand across the forecast period.
Logistics service providers are not just focusing on delivery and storage but also providing services such as customs clearance, labelling, assembly and shipping. The rapid surge in demand for online sales and e-commerce around the world is also forecasted to bolster the demand in the long run. The use of advanced technologies such as GPS and real-time monitoring will also open new avenues of opportunities for companies in the future.
After the COVID-19 pandemic, there has been a significant surge in the e-commerce sector as consumers are increasingly opting for home delivery of food and groceries, prompting companies to expand their offerings to meet the demand. This shift has also led to changes in consumer food habits, with a growing interest in veganism driving up demand for perishable items such as fruits and vegetables, necessitating the need for cold-chain logistics services.
Major key players in the market are actively shaping the logistics landscape to ensure smooth and efficient supply chains. For example, AmeriCold Logistics made a strategic investment in Dubai-based cold storage company RSA Cold Storage in March 2023 to bolster its capabilities in this area.
Additionally, there has been a rise in the popularity of ready-to-eat food products, catering to the demands of fast-paced modern lifestyles. Logistics companies have responded by developing efficient supply chain solutions for the transportation and distribution of these products. An example of this is the partnership between Indian food chain Ammamma’s and logistics company Green Drive Mobility, which launched a line of nutritious ready-to-eat foods in March 2023, available for purchase on e-commerce platforms like Zepto and Bigbasket in regions such as Karnataka, Andhra Pradesh, and Telangana.
Global Market Size
USD 114.4 billion
Largest Segment
Roadways
Fastest Growth
Roadways
Growth Rate
6.9% CAGR
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Global Food Logistics Market is segmented by Transportation Mode, by Service, by Product, by Storage Facility and by Region. Based on Transportation Mode, the market is segmented into Roadways, Railways, Airways, Waterways. Based on Service, the market is segmented into Transportation services, Warehousing & distribution services, Value-added services. Based on Product, the market is segmented into Fish, shellfish, & meat, Vegetables, fruits, & nuts, Cereals, bakery, & dairy products, Beverages and edible oils, Others. Based on Storage Facility, the market is segmented into Cold chain, Non-cold chain. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Transportation Type
The global food logistics market is segmented into four types, including roadways, railways, airways, and seaways. The roadways stand out to be the largest segment among the four and the reason behind its largest market share is due to its flexibility, efficiency, and accessibility for transportation. Roadways provide door–to–door connectivity which is not supported by other transport systems making it indispensable for the transportation of perishable items like dairy products, fruits, vegetables, meat, etc. At the same time, the extensive networks of roads allow direct and swift delivery of goods from the suppliers to the distributors and the retail outlets making it more reliable than others.
The railways are said to be the fastest-growing transportation sector after railways. They are renowned for their cost-effectiveness and capacity to move a massive quantity of goods over long distances making them ideal for carrying bulk food commodities such as grains, oils, and processed foods. With growing concerns about environmental sustainability, they are considered more eco-friendly making them the preferred choice for environmentally conscious consumers and businesses. Moreover, many countries are investing in the expansion of their rail infrastructure to improve their connectivity, reliability, and efficiency in the food logistics market globally which further drives the growth in the market.
The seaways are the heart of the international food supply chain, providing a channel for global trade in food items, especially large volumes of bulk commodities like grains, edible oils, and frozen foods. Seaways are the most economical method for cargo ships to bring lots of goods from one continent to another. Whereas Airways is of immense importance for transferring high-priced and quickly perishable food items, providing the fastest delivery option and reaching hard-to-reach areas easily making it one of the fastest growing modes for transportation of food products. It not only is efficient for delivering goods to distant markets in a short period but also offers global connectivity.
Analysis by Product Type
The global food logistics market is segmented into fish, shellfish and meat, vegetable, fruits and nuts, cereals, bakery and dairy products, coffee, tea and vegetable oils and others.
The segment containing fish, shellfish, and meat holds the most significant part of the market share due to its requirement for specialized handling and transportation because of its short-lived nature. The transportation of fish, shellfish, and meat is mostly based on refrigerated storage and cold transporting facilities to maintain its quality. It highly involves the linkage of the fishing areas and farms with the processing plants and involves many international trades due to high demand.
Vegetables, fruits, and nuts is the fastest growing segment. There are several reasons which drive the demand for these products. Firstly, there is growing consciousness regarding health and nutrition, and these products serve the demand for consumer choices for fresh and healthy food habits. Additionally, changing dietary preferences including the rise of veganism and vegetarianism are further driving the popularity of plant-based foods. Furthermore, globalization and improved trade infrastructure have created easy consumer access to a diverse range of produce from around the world, creating demand for fresh and exotic fruits, vegetables, and nuts year-round which boosts the demand in this market segment.
Analysis by Service Type
Based on the service type, the market is segmented into non- cold chains and cold chains.
The non-cold chain segment holds a massive share of the global food logistics market due to its diverse range of products, lower costs, wider market reach and simple logistics processes. Non-cold chain logistics is more accessible and cost-effective as it doesn’t require specialized facilities or equipment which makes it preferable for a wider range of food products. The simplicity of non-cold chain logistics process, further contributes to its dominance in the market, gaining attraction from businesses of all sizes seeking efficient and cost-effective transportation and distribution solutions for their non-perishable food items.
Meanwhile, the cold chain segment is witnessing the fastest growth in the global food logistics market due increasing consumer demand for packaged and frozen food products. Increasing demand for highly perishable items such as fish, meat, vegetables, dairy products etc. will contribute to the growth of this segment going forward. With increase in globalization of food supply chains, there is an increasing volume of perishable food items being transported over long distances. Cold chain logistics is a favourable choice for this as it ensures that these goods remain fresh and safe for consumption during transit.
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Based on region, Asia – Pacific has held the highest market share in terms of revenue in 2022, which accounted for approximately two-fifths of the global food logistics market revenue. And it is also anticipated to maintain its dominance in this forecast period. This region has been estimated to project the highest CAGR of 9.1% between 2024 to 2031 driven by the rapid urbanisation, shift in food choices from traditional food diets to increasing urge for western food as well as rising disposable incomes. Southeast Asia is emerging as a hub for growth opportunities for the consumer goods market, as stated by SF Express, China's leading express delivery company, acquiring Kerry Logistics for USD 2.3 billion in 2021 to expand its network in the region. In India, the emergence of e-grocery platforms such as BigBasket and Grofers, offering a wide range of food products and fast delivery have also changed the market by reaching customers across different areas.
North America holds the second-largest position in the market due its diverse coastlines and cruising destinations providing access to diverse food choices. The growing purchasing power of consumers, the rise of the e-commerce and the strong demand for on time last-mile delivery has also contributed to the market growth. Companies like Walmart Grocery, Amazon Fresh etc have expanded their grocery delivery services to meet the consumer demands. The region is witnessing a rising demand for eco-friendly logistics due to rising sustainability concerns among consumers and business.
The food market in Europe also shows a diverse food culture. The region focuses on food quality and safety standards, which serves the demand for advanced logistic solution specially for dealing with perishable food items. There are several investments in cold chain infrastructure, innovative packaging solutions, and sustainable transportation technologies in response. The "Green Deal" initiative of Netherlands aims to create a circular food system, while companies like Tesco in the UK are implementing measures to reduce food waste in their supply chains through improved logistics and distribution practices.
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Drivers
The rise of e-Commerce.
The demand for Fresh and Organic Foods:
Globalization and international trade.
Restraints
Seasonal Variability and Weather-related risks.
Infrastructure Limitations.
Regulatory Compliance
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The global Food Logistics market features a diverse set of competitors consisting of giant logistics players and emerging regional providers. Many major companies such as DHL, Kuehne + Nagel, and UPS are leading this market with the help of their extensive global networks and comprehensive service offerings. At the same time, companies are heavily investing in new cutting-edge technologies to maintain their competitive positions. They are integrating with advanced techs such as IoT, AI, and big data analytics to track their operations and improve their efficiency. Regional logistics providers are also gaining traction in their markets by catering to local businesses' specific needs. These regional players leverage their local expertise and understanding of regional demands and regulations to provide tailored logistics solutions. New technology-based startups are also challenging the traditional logistics business by offering on-demand services and last-mile delivery solutions. This forces the established players to adapt to the changing consumer demands and choices.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per our Skyquest analysis, the market is witnessing significant growth driven by factors such as rapid urbanization, expansion of e-commerce, and a switch in consumer preferences for fresh, organic, and convenient food options. The major trends like governmental programs, tech innovation, strategic partnerships, and expansion of the cold chain infrastructure represent the industry’s response to the new challenges and opportunities. Besides, the Covid-19 pandemic has also uncovered the importance of food logistics in food security and supply chain management. The priority for the industry stakeholders is food standards as well as health and safety measures. The global food logistics market is expected to continue its expansion and innovation, driven by the adoption of technology, growth of international food trade, and more investments in infrastructure and sustainability measures. The market is observing a significant strategic combination of mergers, acquisitions, and investments from major players as part of their strategy to improve business and achievements regarding new customers and fulfil their needs in various ways.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 122.19 Billion |
Market size value in 2032 | USD 221.08 Billion |
Growth Rate | 6.9% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Food Logistics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Food Logistics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Food Logistics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Food Logistics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG30B2043
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