Market Overview:
Food Logistics Market Size Was Valued at USD 116.3 Billion in 2022, and is Projected to Reach USD 230.04 Billion by 2030, Growing at a CAGR of 8.9% From 2023-2030.
Food logistics is defined as the process of controlling, executing, and planning the movement of food-related materials, and services. These services consist of activities such as material handling, packaging, transportation, inventory, security, and warehousing, which are scaled according to customer needs and market conditions. Logistics service providers are responsible for the delivery of materials or goods from manufacturers to consumers. The food logistics industry deals with the business of delivering food and groceries to a desired location.
Advancements in technology have led to the rapid growth of third-party ordering & delivery services, which is driving the growth of the market. In addition, transport companies operating in the market are incorporating new warehousing services in various countries which are propelling the market growth for the storage & warehousing segment. Penetration of fully automated warehousing distribution systems is extremely low, which is expected to provide a remarkable growth opportunity for the key players operating in the food logistics market. Providers of logistics services carry out a variety of duties and services for other businesses, acting as a middleman between the customer and the final consumer. Currently, logistics service providers offer much more than the simple delivery or storage of material or goods; they also handle customs, labeling, assembly, shipping, and other services.
Top Key Players Covered in The Food Logistics Market:
- Agility
- AmeriCold Logistics LLC
- C.H. Robinson Worldwide, Inc
- CJ Logistics
- DB Schenker
- DHL International GmbH
- Hellmann Worldwide Logistics SE & Co. KG
- Lineage Logistics
- XPO Logistics
- Yusen Logistics, and Other Major Players.
Market Dynamics and Factors:
The rapid growth of e-commerce and online grocery shopping has reshaped the way food products are distributed and delivered. This shift has increased the demand for efficient and temperature-controlled transportation and storage solutions to ensure the freshness and quality of perishable goods. Additionally, consumers' heightened awareness of food safety and sustainability has led to stricter regulations and requirements in the food supply chain, further driving the need for advanced logistics solutions.
Advancements in technology, such as the use of IoT (Internet of Things) sensors, blockchain, and data analytics, have revolutionized food logistics. These technologies provide real-time tracking and monitoring of food products, ensuring transparency and traceability throughout the supply chain. Furthermore, automation and robotics are being employed in warehouses and distribution centers to streamline operations and reduce labor costs. These dynamics are creating a competitive landscape in the food logistics market, with companies striving to offer innovative solutions that meet the evolving needs of both businesses and consumers while also addressing sustainability and environmental concerns.
The Food Logistics Market Report Highlight:
- By Mode of Operation, The food logistics market, and roadways play a pivotal role in the mode of operation, facilitating the transportation of food products from farms, processing facilities, distribution centers, and ultimately to consumers. With a vast network of trucks and delivery vehicles, logistics companies efficiently transport perishable goods, ensuring timely deliveries while adhering to temperature-controlled requirements, safety regulations, and supply chain transparency.
- By Product, the controlled-release fertilizer segment is anticipated to have a significant market share throughout the forecast period. By osmosis and diffusion through the coating, controlled-release fertilizers (PCFs) like polymer-coated fertilizers (PCFs) release nutrients. The polymer's outer layer is permeable to water, which dissolves the nutrients inside. Then, in response to a gradient in their concentration, nutrients pass through the coating (high concentration inside the coating, low concentration outside the coating).
- By Product Type, the transportation and storage of fish products play a crucial role due to their perishable nature and the need for precise temperature control. Companies in this segment often invest in specialized refrigeration and cold chain logistics to maintain the freshness and quality of fish during transportation from fishing grounds or aquaculture facilities to distribution centers and ultimately to consumers.
- By Service Type, the cold chain segment within the food logistics market encompasses a crucial range of services that ensure the safe and temperature-controlled transportation, storage, and distribution of perishable goods. These services encompass refrigerated and frozen storage facilities, specialized transportation fleets equipped with temperature monitoring systems, and a comprehensive network of logistics operations designed to maintain the integrity and freshness of food products from farm to fork.
- By Region, The Asia Pacific is anticipated to hold the major market share over the forecast period. In population is exceptionally large, and its growing middle-class segment has led to increased consumption of diverse and perishable food products. Secondly, the expansion of e-commerce and online grocery shopping has boosted demand for efficient and timely food deliveries, requiring sophisticated logistics infrastructure. Additionally, the diversity of climates and agricultural production in APAC necessitates complex supply chains, further emphasizing the importance of food logistics.
Key Industry Development:
- In May 2023, CJ Logistics Corporation signed a Logistics Project Collaboration Memorandum of Understanding (MOU) with Beez Logistics, a Saudi Arabian logistics company. This strategic move aims to establish a presence in the Saudi Arabian logistics market. CJ Logistics caters to diverse industries like food and beverage, pharmaceuticals, and health & beauty, providing services encompassing contract logistics, cold chain logistics, and last-mile delivery.
- In March 2023, DHL Global Forwarding, the freight specialist division of Deutsche Post DHL Group, inaugurated its latest facility in Brisbane to cater to the increasing demand for exporting Australian perishable goods. This initiative represents a significant investment of $11.5 million (AU$17 million) over ten years.
- In February 2023, Lineage Logistics, LLC, a part of Lineage Logistics Holdings, LLC, launched Lineage Fresh, a strategic service available in Europe. Presented at the Fruit Logistica trade show in Berlin, Lineage Fresh offers fresh storage solutions tailored to major importers, grocers, and producers of fresh fruits and produce. By leveraging Lineage's advanced cold storage technology and extensive logistics network, Lineage Fresh aims to reduce hurdles, risks, and spoilage for products with a limited shelf life.
The Food Logistics Market Segmentation:
By Mode of Operation
- Storage
- Roadways
- Seaways
By Product Type
- Fish, Shellfish, and Meat
- Vegetables, Fruits, and Nuts
- Cereals, Bakery and Dairy Products
- Coffee, Tea, and Vegetable Oil
By Service Type
- Cold Chain
- Non-Cold Chain
By Business Type
- Warehouse
- Distribution
- Value added services
For this report, Introspective Market Research has segmented the Food Logistics Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
