Food Logistics Market - By Service (Transportation Services, Warehousing & Distribution Services, Value-added Services), By Transportation Mode, By Product, By Storage Facility & Forecast, 2024 - 2032

Food Logistics Market Size

Food Logistics Market was valued at USD 122.9 billion in 2023 and is projected to grow at a CAGR of over 7.8% between 2023 and 2032. The increasing consumer preference for fresh produce, organic foods, and health-conscious choices is driving the growth of the market. This trend necessitates efficient and specialized logistics solutions to ensure timely and precise delivery, maintaining product quality.
 

The demand for advanced cold chain logistics and temperature-controlled storage is rising to preserve freshness and extend shelf life. Additionally, organic products require careful handling and transportation to meet quality standards, prompting higher investments in specialized logistics infrastructure. Consequently, these evolving demands create opportunities for innovation and expansion within the food logistics sector.
 

Moreover, the rise of e-commerce and online grocery shopping significantly drives the food logistics market. As more consumers choose online platforms for grocery purchases, the demand for efficient and reliable delivery of food products, including perishables, has increased among its end-users. This shift requires advanced logistics solutions, such as improved cold chain management and rapid fulfilment processes, to ensure timely and safe deliveries. Additionally, the growth of e-commerce encourages investments in warehousing and distribution infrastructure to manage higher order volumes. Innovations in last-mile delivery and tracking technologies enhance customer experience and operational efficiency, further boosting the food logistics sector.
 

In March 2022, the International Monetary Fund (IMF) issued a report on the increased consumer expenditure online. It highlighted the proportion of total online spending surged from 10.3% in 2019 to 14.9% during the height of the pandemic. Presently, this share remains higher than pre-pandemic levels in roughly half of the economies, spanning from prominent emerging markets including Brazil and India to various middle-income nations such as Bahrain and Jamaica. These figures underscore the notable growth in the e-commerce sector, consequently driving the expansion of the market.
 

The perishable nature of products in the food logistics market presents significant challenges. Fresh produce, dairy, meat, and seafood require stringent temperature control throughout the supply chain to prevent spoilage, necessitating advanced cold chain logistics. Any disruption in refrigeration, delays, or mishandling can lead to substantial product loss, financial setbacks, and food safety issues. Additionally, maintaining a cold chain involves high operational costs for energy, specialized equipment, and compliance with rigorous health regulations. These factors collectively increase the complexity and cost of logistics operations, making it challenging for companies to ensure timely and safe delivery while maintaining profitability.
 

Food Logistics Market Trends

Food logistics are witnessing significant technological advancements in cold chain technology. Innovations such as real-time temperature monitoring, IoT-enabled sensors, and advanced refrigeration systems enhance the efficiency and reliability of temperature control. These technologies enable precise tracking of conditions throughout the supply chain, reducing spoilage and ensuring compliance with safety standards. Automation and data analytics optimize logistics operations, improve inventory management, and enhance predictive maintenance, leading to cost savings and better service. Enhanced technology further supports scalability, allowing companies to manage larger volumes and meet increasing consumer demand for fresh and frozen products efficiently.
 

For instance, in May 2024, The National Food Agency (Bapanas) in Indonesia strengthened food logistics distribution nationwide using cold chain technology to regulate and maintain food quality. Cold chain technology extends the shelf life of food products, which is an important factor in supporting food distribution to all regions. By investing in cold chain infrastructure, Bapanas aims to strengthen Indonesia's food ecosystem and industry, ensuring food security and availability throughout the country.
 

Food Logistics Market Analysis

Based on the transportation mode, the market is segmented into roadways, railways, airways, and waterways. In 2023, the roadways segment accounted for a market share of over 52% and is expected to exceed USD 127.8 billion by 2032. This segment holds the largest market share in the market due to its extensive reach and flexibility. Trucks and lorries provide essential door-to-door delivery for perishable food items, ensuring timely transportation to maintain freshness. Additionally, road transport offers adaptable routes and schedules, facilitating the efficient movement of food products across both short and long distances, including rural and urban areas. Further, advancements in refrigerated trucks ensure temperature control for sensitive products. The well-established road infrastructure in many regions and the growing demand for quick and reliable food delivery services further bolster the dominance of the roadways segment in food logistics.
 

Based on the storage facility, the market is divided into cold chain and non-cold chain. The cold chain segment held around 57% market share in 2023. This type of logistics holds the largest market share in the food logistics market due to the critical need for temperature-controlled environments to preserve perishable goods. Increasing consumer demand for fresh produce, dairy, meat, seafood, and frozen foods necessitates advanced cold storage solutions. Additionally, stringent food safety regulations and high-quality standards drive the adoption of sophisticated cold chain logistics. Technological advancements in refrigeration and monitoring systems further enhance efficiency and reliability, ensuring food products maintain their quality throughout the supply chain. Further, the rise of e-commerce and online grocery shopping boosts the need for robust cold chain infrastructure to meet quick delivery requirements for temperature-sensitive items.
 

In 2023, the North America region accounted for a market share of over 33% and is expected to exceed USD 79 billion by 2032. The region’s food logistics industry thrives on robust infrastructure and a strong demand for both fresh and processed foods. The U.S. and Canada lead in adopting advanced cold chain technologies to meet stringent food safety standards. Additionally, the surge in e-commerce and online grocery shopping has intensified the need for efficient food logistics services. Further, innovations in transportation and warehousing, along with a focus on sustainability and reducing food waste, are driving the market's growth. Major players such as C.H. Robinson and Americold dominate the regional landscape, ensuring efficient supply chain management.
 

Moreover, the food logistics market in Europe thrives on its robust infrastructure and stringent food safety regulations. The region's demand for fresh, organic, and processed foods drives this growth, supported by a vital cold chain network for perishables. Countries such as Germany, the UK, and France dominate the market due to their advanced logistics systems and substantial food trade. Moreover, technological advancements in tracking and automation, coupled with the rise in e-commerce grocery trends, bolster the market, ensuring efficient and timely food deliveries across Europe.
 

Furthermore, the market in the Asia Pacific region is experiencing robust growth, driven by rapid urbanization, a growing middle-class population, and increasing demand for processed and frozen foods. Key markets such as China, India, and Japan are heavily investing in cold chain infrastructure to meet the rising demand for fresh and high-quality food products. Additionally, advancements in logistics technology and the expansion of e-commerce platforms are further propelling market growth. Government initiatives to improve food safety and supply chain efficiency further contribute to the strong market dynamics in this region.
 

The food logistics market in Latin America is expanding due to infrastructure improvements, increasing food exports, and rising demand for processed foods. Key markets include Brazil, Argentina, and Mexico, with significant investments in cold chain logistics. Similarly, the MEA region is experiencing growth in food logistics, driven by rising food imports, investments in cold storage facilities, and growing urbanization. Key markets in this region include the UAE, Saudi Arabia, and South Africa, which are expected to create lucrative opportunities for the market growth.
 

Food Logistics Market Share

DHL Supply Chain & Global Forwarding, FedEx Corporation, and United Parcel Service (UPS) held a significant market share of over 9% in 2023. DHL utilizes advanced technology and temperature-controlled solutions to maintain food quality during transit. Their strategy emphasizes end-to-end visibility, real-time tracking, and sustainable practices, including reducing carbon emissions and optimizing routes. By collaborating with local suppliers, DHL ensures efficient last-mile delivery and compliance with food safety regulations.
 

FedEx leverages its extensive network and advanced logistics systems to ensure timely and safe delivery of perishable food products. Their strategy includes specialized packaging solutions, temperature control, and real-time monitoring. FedEx emphasizes sustainability by investing in electric vehicles and optimizing delivery routes to reduce carbon footprints.
 

UPS focuses on comprehensive cold chain logistics to support the food industry. Their strategy involves leveraging advanced tracking technologies, temperature-controlled transportation, and specialized packaging. UPS prioritizes sustainability through investments in eco-friendly vehicles and route optimization to minimize environmental impact, ensuring efficient and safe delivery of food products.
 

Food Logistics Market Companies

Major players operating in the food logistics industry are:

• DHL Supply Chain & Global Forwarding
• FedEx Corporation
• United Parcel Service (UPS)
• Kuehne + Nagel International AG
• C.H. Robinson Worldwide, Inc.
• DB Schenker
• Americold Logistics, LLC
• J.B. Hunt Transport Services, Inc.
• Hellmann Worldwide Logistics
• XPO Logistics, Inc.
   

Food Logistics Industry News

• In February 2024, DACHSER announced the acquisition of Frigoscandia AB, a leading provider of temperature-controlled and frozen food logistics in the Nordic region. This acquisition aims to enhance DACHSER's Food Logistics network across Europe and expand its presence in the Nordic markets, where it previously had no operations in Sweden, Norway, or Finland.
   
• In April 2024, DACHSER announced its acquisition of Brummer Logistik GmbH in Germany and Brummer Logistic Solutions GmbH & Co KG in Austria, enhancing its food logistics network in Europe. This acquisition encompasses the entire operational business of the Brummer Group, a notable player in temperature-controlled food transport.
   

The food logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion), and volume (000’tons) from 2021 to 2032, for the following segments:

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Market, by Service

• Transportation services
• Warehousing & distribution services
• Value-added services

Market, by Transportation Mode

• Roadways
• Railways
• Airways
• Waterways

Market, by Product

• Fish, shellfish, & meat
• Vegetables, fruits, & nuts
• Cereals, bakery, & dairy products
• Beverages and edible oils
• Others

Market, by Storage Facility

• Cold chain
• Non-cold chain

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA