How Is the Food Logistics Market Adapting to Changing Consumer Preferences?

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.

Food Logistics Market size was valued at USD 122.19 Billion in 2023 and is poised to grow from USD 130.62 Billion in 2024 to USD 221.08 Billion by 2032, growing at a CAGR of 6.9% during the forecast period (2025-2032).

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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.

Food Logistics Market Segments Analysis:

Global Food Logistics Market is segmented by Transportation Mode, by Service, by Product, by Storage Facility and by Region.

Based on Transportation Mode, the market is segmented into Roadways, Railways, Airways, Waterways.
Based on Service, the market is segmented into Transportation services, Warehousing & distribution services, Value-added services.
Based on Product, the market is segmented into Fish, shellfish, & meat, Vegetables, fruits, & nuts, Cereals, bakery, & dairy products, Beverages and edible oils, Others.
Based on Storage Facility, the market is segmented into Cold chain, Non-cold chain.
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Food Logistics Market Key Players:Food Logistics Market Regional Insights:

Based on region, Asia - Pacific has held the highest market share in terms of revenue in 2022, which accounted for approximately two-fifths of the global food logistics market revenue. And it is also anticipated to maintain its dominance in this forecast period. This region has been estimated to project the highest CAGR of 9.1% between 2024 to 2031 driven by the rapid urbanisation, shift in food choices from traditional food diets to increasing urge for western food as well as rising disposable incomes. Southeast Asia is emerging as a hub for growth opportunities for the consumer goods market, as stated by SF Express, China's leading express delivery company, acquiring Kerry Logistics for USD 2.3 billion in 2021 to expand its network in the region. In India, the emergence of e-grocery platforms such as BigBasket and Grofers, offering a wide range of food products and fast delivery have also changed the market by reaching customers across different areas.

Top Players in Food Logistics Market:

DHL
FedEx
DB Schenker
C.H. Robinson
Kuehne + Nagel
XPO Logistics
A.P. Moller-Maersk Group
AmeriCold Logistics LLC
Lineage Logistics
Sysco
Yusen Logistics
Expeditors International
Agility (DSV)
CEVA Logistics
J.B. Hunt Transport Services
Geodis
Schneider National
Nippon Express
Deutsche Bahn (DB) Schenker AG

Recent Developments:

CJ Logistics in March 2023 launched a joint venture with Beez Logistics in Saudi Arabia to enter the local market. CJ Logistics operates in various sectors like food, pharmaceuticals, health, etc along with contract logistics, cold chains, and last-mile delivery services.

DHL Global Forwarding opened a new facility in Brisbane in March 2023, with motives to focus on the export of Australian perishable goods by investing USD 11.5 million (AUSD 17 million) over 10 years.

In February 2023, Lineage Logistics introduced Lineage Fresh in Europe which offers curated cold storage solutions for fresh produce. Lineage aims to lower the risks and waste of perishable products using advanced technology.

On August 20, 2022, the Regional Centre of Excellence against Hunger and Malnutrition (CERFAM) signed an agreement with HELP Logistics. Extension of the platform collaboration in various technological, scientific, and educational research is the main objective. The activities of this platform would focus on strengthening agri-food value chains and the overall adaptability of communities in Africa in the context of socio-economic shocks.

In November 2022, Lineage Logistics, the division of Lineage Logistics Holdings, LLC, commendably opened its Cool Port II cold storage facility located in Port of Rotterdam, Netherlands. Such an entry joins a major European port to the top-tier global network of Lineage cold storage facilities. The warehouse has full automation with 60,000 pallet locations, three truck unloading systems, and full-service warehousing including the safe storage and efficient distribution of the food products to markets.

Food Logistics Key Market Trends:

The changing consumer food preferences such as increased demand for fresh and organic food produce provide an immense opportunity for food logistics companies. Solutions to keep food fresh and clean during transit will be of the utmost importance as the organic eating trend lifts off around the world.

With the rise of e-commerce and online grocery shopping options, there will be a greater focus on optimizing last-mile delivery solutions to enhance speed, accuracy, and convenience for consumers while reducing delivery costs and environmental impact.

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Looking ahead, the Food Logistics Market is poised for continued growth, driven by evolving consumer preferences and ongoing innovations. The trend towards sustainability is expected to strengthen, with more consumers seeking products that align with their values. Additionally, the integration of advanced technologies and digital platforms will likely further enhance market accessibility and consumer engagement. The global Food Logistics Market is a dynamic and evolving landscape, shaped by a confluence of trends and factors.

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