Food Logistics Market- Latest Advancement And Analysis

Global Food Logistics Market Synopsis

Global Food Logistics Market Size Was Valued at USD 125.52 Billion in 2023 and is Projected to Reach USD 228.91Billion by 2032, Growing at a CAGR of 7.8% From 2024-2032.    

Food logistics is the term used to describe the process of managing, implementing, and planning the movement of food-related goods and services. These services consist of operations such as material handling, packaging, transportation, storage, security, and storage, scaled according to customer needs and market conditions.

The delivery of materials or goods from producers to consumers is facilitated by logistics service providers. The food logistics industry deals with the delivery of food and groceries to the desired location. Advances in technology have led to rapid growth in third-party ordering and delivery services, which is fueling market growth. In addition, Transport companies operating in the market are introducing new warehousing services in different countries, which is boosting market growth in the warehousing and storage segment.

A significant potential for growth in the food logistics industry, as few players use fully automatic storage systems. Logistics service providers perform various tasks and services for other companies, acting as an intermediary between the customer and the end user. Nowadays, logistics service providers offer much more than just the delivery or storage of material or goods; they are also engaged in customs, labeling, assembly, transportation, and other services.

Global Food Logistics Market Trend Analysis

The logistics industry will benefit from technological advancements that improve speed, efficiency, and visibility

• The competition for autonomous vehicles has drawn in automakers and technology firms. As prototypes are tested, widespread adoption of autonomous cars and trucks seems inevitable. Although other industries will experience advantages, the logistics industry appears to be the clear winner. The use of autonomous vehicles in closed environments such as warehouses and port complexes offer an immediate opportunity. As progress continues, these vehicles are expected to revolutionize last-mile delivery and simplify routine tour operations. In 2020, distribution centers will likely be more automated, and the availability of roads will depend on public demand and cooperation from manufacturers and legislators.
• Blockchain technology was initially created for Bitcoin and its ledger. However, it has enormous potential for logistics companies and shippers too. Its advanced network of computing nodes can revolutionize supply chains by facilitating the real-time transfer of goods and records across multiple layers of the logistics process. Blockchain's transparency benefits both clients and auditors while providing greater security for all stakeholders. Transactions on blockchain platforms transparently track important information such as purchase contracts, customs information, property exchanges, and shipment movements. The
• The logistics industry is on the verge of a major transformation with the advent of driverless vehicles and Blockchain technology. With prototypes already being tested, autonomous cars and trucks are expected to be widely adopted soon. Among various sectors, logistics is leading the way in utilizing the potential of autonomous vehicles within enclosed environments such as warehouses and port complexes.

Significant increase in the number of e-commerce platforms recently.

• As online commerce becomes more prevalent, the food logistics sector is poised to reap significant profits. As consumers increasingly turn to online shopping for their grocery needs, the demand for efficient and reliable grocery logistics services has risen. E-commerce platforms offer convenience and a wide range of options that attract more customers to buy food online. Due to the increasing trend, there is a need for more robust logistics solutions to ensure the timely and secure transportation of perishable goods, which could lead to increased opportunities for food logistics industry players to expand their services and reach broader audiences.
• Additionally, the growth of digital commerce has resulted in a more fiercely competitive food market. To stay ahead in this dynamic market, companies must improve their supply chain and optimize their logistics operations. This has resulted in a rise in investment in food logistics technology and infrastructure, leading to innovation and efficiency. Using advanced technologies such as real-time tracking systems, route optimization software, and temperature-controlled transport, logistics service providers can meet the growing demands of online retailers and ensure seamless delivery of food to consumers.

Global Food Logistics Market Segment Analysis:

Global Food Logistics Market Segmented based on Transportation Mode, Product Type, and Service Type.

By Transportation Mode, Roadways segment is expected to dominate the market during the forecast period

• The food logistics industry heavily depends on road transport due to its adaptability to changing customer preferences, extensive network coverage, and efficient delivery capabilities. Road transport enables the trucks to reach remote areas and distribute food, whether it be fresh produce, packaged products, or perishable goods. They can navigate various terrains and complex routes, ensuring timely delivery to various destinations. The food sector relies on this flexibility to ensure that products remain fresh and high-quality for longer periods during delivery.

By Product Type, Fish and shellfish segment held the largest share in 2022

• The food logistics industry dominates the market for fish, shellfish, and meat due to several factors. These perishable goods require special handling and transportation to maintain their freshness and quality throughout the supply chain. Effective logistics is crucial for ensuring food safety and customer satisfaction since fish, shellfish, and meat are prone to spoilage and contamination.
• The increasing global demand for seafood and meat products is driven by population growth, rising incomes, and changing eating habits, there is a growing need for reliable and efficient logistics solutions to transport these products from production facilities to distribution centers and ultimately to consumers, both domestically and internationally.

Global Food Logistics Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• North America is a leading force in the global food logistics market due to its advanced infrastructure and technology. The region has well-developed transportation and distribution networks, including road, rail, air, and sea routes, which allow for the efficient and safe transportation of food products across large distances.
• The United States, in particular, is a dominant player in the market thanks to its extensive transportation infrastructure. With a vast network of highways, railways, ports, and airports, the country can move goods quickly and cost-effectively across the nation and globally. This infrastructure plays a significant role in transporting food products from farms and production facilities to distribution centers and ultimately to consumers, both domestically and internationally.

Global Food Logistics Market Top Key Players:

• AmeriCold Logistics LLC(US)
• C.H. Robinson Worldwide, Inc. (US)
• Schneider National (US)
• CaseStack (US)
• A.N. Deringer, Inc (US)
• Echo Global Logistics, Inc (US)
• Evans Distribution Systems, Inc (US)
• Matson Logistics (US)
• XPO Logistics, Inc (US)
• Landstar System, Inc
• Odyssey Logistics & Technology Corporation (US)
• J.B. Hunt Transport Services, Inc (US)
• NFI Industries, Inc. (US)
• Swift Transportation Company (US)
• Werner Enterprises, Inc (US)
• Penske Truck Leasing Co., L.P(US)
• United Parcel Service, Inc (US)
• FedEx Corporation (US)
• Deutsche Bahn (DB) Schenker AG(Germany)
• Hellmann Worldwide Logistics SE & Co. KG (Germany)
• DHL Supply Chain (Germany)
• Maersk (Denmark)
• DB Schenker (Germany)
• Nagel International AG (Switzerland)
• CEVA Logistics (Netherlands), and Other Major Players

Key Industry Developments in the Global Food Logistics Market:

• In February 2024, Shipping giant MK announced they were considering acquiring DB Schenker, the logistics arm of Deutsche Bahn. This move could significantly impact the food logistics landscape if it goes through. MK aims to expand its end-to-end services, and DB Schenker's global reach would be a major asset.
• 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.