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

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.