USD 114.4 billion
Food Logistics Market Size, Share, Growth Analysis, By Transportation Mode (Roadways, Railways), By Service (Transportation services, Warehousing & distribution services), By Product (Fish, Shellfish & Meat), By Storage Facility, By Region - Industry Forecast 2024-2031
Report ID:
SQMIG30B2043 |
Region:
Global |
Published Date: May, 2024
Pages:
197
|Tables:
119
|Figures:
77
Food Logistics Market Insights
Global Food Logistics Market size was valued at USD 114.4 billion in 2022 and is poised to grow from USD 122.19 billion in 2023 to USD 206.81 billion by 2031, growing at a CAGR of 6.9% during the forecast period (2024-2031).
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.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Roadways
Fastest Growth
Roadways
Growth Rate
6.9% CAGR
Global Food Logistics Market ($ Bn)
Country Share for North America Region (%)
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Food Logistics Market Segmental Analysis
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.
Global Food Logistics Market By Transportation
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Food Logistics Market Regional Insights
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.
Global Food Logistics Market By Region
- Largest
- Fastest
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Food Logistics Market Dynamics
Drivers
The rise of e-Commerce.
- The rapid expansion of e-commerce has influenced the food logistic market as it has propelled the demand for door-to-door smooth and fast delivery of both perishable and non-perishable food items. During the pandemic, the surge in online grocery shopping in the US fuelled the growth of food delivery services. Many companies like DoorDash and Instacart saw an increase in their orders encouraging them to expand their logistics operations as well as investing in technologies that can ease their delivery processes.
The demand for Fresh and Organic Foods:
- The growing consumer preference for fresh and locally sourced organic food products has boosted the demand for specialized logistics solutions to maintain the quality as well as the freshness of the produce throughout the supply chain.
Globalization and international trade.
- Globalization and the strengthening of international trade are also slated to benefit the demand for cross-border logistics mechanism that promotes the transport of food products globally. In Brazil, firms like Maersk Container Shipping are at the forefront of providing logistics services for the export of agricultural products, such as soybean, sugar, and beef. Maersk's integrated logistics solutions include ocean shipment, customs clearance, and inland transportation, making the process of food products shipment to the global markets smooth and easy.
Restraints
Seasonal Variability and Weather-related risks.
- One of the restraints that can disrupt the supply chain and challenge inventory management is seasonal variability and weather-related risks for different types of food products. Severe seasonal fluctuations and harsh weather events like earthquakes, floods, droughts, etc. can hamper food production and thereby slow down food logistics market growth as well.
Infrastructure Limitations.
- Poor transportation infrastructure like inadequate roads, airports, and railways can cause disruption in smooth flow in the supply chain, creating delays, shortages in food products, and increases in food prices.
Regulatory Compliance
- Strict regulations related to food safety, labelling, and import/export restrictions intended by the government and different health organizations can be a challenge for food logistics companies, which can lead to the stretching of the complexity and additional costs.
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Food Logistics Market Competitive Landscape
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
- DHL
- FedEx
- DB Schenker
- C.H. Robinson
- Kuehne + Nagel
- XPO Logistics
- A.P. Moller–Maersk Group
- AmeriCold Logistics LLC
- Lineage Logistics
- Sysco
- Yusen Logistics
- Expeditors International
- Agility (DSV)
- CEVA Logistics
- J.B. Hunt Transport Services
- Geodis
- Schneider National
- Nippon Express
- Deutsche Bahn (DB) Schenker AG
Recent Developments
- CJ Logistics in March 2023 launched a joint venture with Beez Logistics in Saudi Arabia to enter the local market. CJ Logistics operates in various sectors like food, pharmaceuticals, health, etc along with contract logistics, cold chains, and last-mile delivery services.
- DHL Global Forwarding opened a new facility in Brisbane in March 2023, with motives to focus on the export of Australian perishable goods by investing USD 11.5 million (AUSD 17 million) over 10 years.
- In February 2023, Lineage Logistics introduced Lineage Fresh in Europe which offers curated cold storage solutions for fresh produce. Lineage aims to lower the risks and waste of perishable products using advanced technology.
- On August 20, 2022, the Regional Centre of Excellence against Hunger and Malnutrition (CERFAM) signed an agreement with HELP Logistics. Extension of the platform collaboration in various technological, scientific, and educational research is the main objective. The activities of this platform would focus on strengthening agri-food value chains and the overall adaptability of communities in Africa in the context of socio-economic shocks.
- In November 2022, Lineage Logistics, the division of Lineage Logistics Holdings, LLC, commendably opened its Cool Port II cold storage facility located in Port of Rotterdam, Netherlands. Such an entry joins a major European port to the top-tier global network of Lineage cold storage facilities. The warehouse has full automation with 60,000 pallet locations, three truck unloading systems, and full-service warehousing including the safe storage and efficient distribution of the food products to markets.
Food Logistics Key Market Trends
- The changing consumer food preferences such as increased demand for fresh and organic food produce provide an immense opportunity for food logistics companies. Solutions to keep food fresh and clean during transit will be of the utmost importance as the organic eating trend lifts off around the world.
- With the rise of e-commerce and online grocery shopping options, there will be a greater focus on optimizing last-mile delivery solutions to enhance speed, accuracy, and convenience for consumers while reducing delivery costs and environmental impact.
Food Logistics Market SkyQuest Analysis
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 2022 | USD 114.4 billion |
| Market size value in 2031 | USD 206.81 billion |
| Growth Rate | 6.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Food Logistics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Food Logistics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
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.
Analyst Support
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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