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

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.