Press release
Driving Growth In Grocery Transportation Through Online Grocery Shopping: Key Factor Driving The Growth In The Groceries Transportation Market
Groceries Transportation
What Is the Expected Groceries Transportation Market Size During the Forecast Period?
The groceries transportation market has experienced significant growth in recent years. It is expected to increase from $60.5 billion in 2024 to $64.99 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.4%. This growth in the past period can be attributed to the rise of online grocery shopping, urban area expansion, regulatory shifts, consumer preference for fresh goods, and the growth of retail chains.
The groceries transportation market is expected to grow strongly, reaching $85.74 billion by 2029 at a CAGR of 7.2%. Growth drivers include e-commerce expansion, sustainability initiatives, global supply chain developments, shifting consumer preferences, and environmentally friendly transport practices. Key trends include AI-driven logistics, advanced analytics, blockchain technology integration, cold chain technology improvements, and the adoption of autonomous vehicles.
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What Are the High-Growth Segments in the Groceries Transportation Market?
The groceries transportation market covered in this report is segmented -
1) By Product Type: Vegetables And Fruits, Dairy Products, Meat And Seafood, Other Product Types
2) By Transportation Mode: Roadways, Railways, Seaways, Airways
3) By Application: Retail, Food And Beverage, Consumer Goods, Other Applications
Subsegments
1) By Vegetables and Fruits: Fresh Vegetables, Fresh Fruits, Frozen Fruits and Vegetables
2) By Dairy Products: Milk, Cheese, Yogurt, Butter
3) By Meat and Seafood: Fresh Meat, Processed Meat, Fresh Seafood, Frozen Seafood
4) By Other Product Types: Baked Goods, Packaged Foods, Beverages
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What Key Drivers Are Expected to Influence Future Groceries Transportation Market Growth?
The expansion of online grocery shopping is boosting the grocery transportation market. Online grocery shopping is thriving due to the convenience of anytime access, home delivery, and broad product selection. Grocery transportation services ensure timely, fresh, and efficient delivery of these orders. According to the U.S. Census Bureau, in August 2024, total e-commerce sales in 2023 reached $1.12 trillion-up 7.6% from 2022-and accounted for 15.4% of all retail sales. This boom is increasing the need for robust grocery logistics solutions.
Which Companies Hold the Largest Share Across Different Groceries Transportation Market Segments?
Major companies operating in the groceries transportation market are Cargill Incorporated, A.P. Møller - Maersk A/S, SYSCO Corporation, Performance Food Group Company, DB Schenker, Kuehne + Nagel International AG, C.H. Robinson Worldwide Inc., Gordon Food Service Inc., J.B. Hunt Transport Inc., Ryder System Inc., SpartanNash Company, XPO Logistics Inc., Lineage Logistics Holdings LLC, Total Quality Logistics LLC, McLane Company Inc., Hellmann Worldwide Logistics GmbH & Co. KG, NFI Industries, Werner Enterprises Inc., Americold Realty Trust, US Xpress Inc., Lynden Incorporated, Greatwide Logistics Services, Trinity Logistics Inc., H&M Bay Inc., PSS Distribution Services, Domenico Transportation Co.
What Groceries Transportation Market Trends Are Gaining Traction Across Different Segments?
Key players in the grocery transportation market are prioritizing the incorporation of Artificial Intelligence (AI)-enabled logistics strategies such as route optimization to heighten customer satisfaction and increase the overall efficiency of their supply chains. Route optimization technology is an advanced system that employs machine learning (ML) techniques to proficiently streamline transportation routes and timetables. For instance, in March 2024, US retail company, Walmart Inc. which operates a network of hypermarkets, discount department stores, and grocery stores, unveiled Element, an AI-backed software solution targeted at enhancing the scheduling and optimization of truck delivery routes for products to its stores. This AI-empowered tech is projected to massively improve operational efficiency and augment customer experiences for Walmart's associates. The pricing model of the software is structured to be adaptable, pertaining to usage size and frequency, effectively tackling the challenges associated with the large-scale implementation of AI models. It also offers advantages like liberation from vendor restrictions, cost-efficiencies, and upgraded reliability, thereby simplifying the adoption of AI and ML strategies for businesses.
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What Are the Emerging Geographies for The Groceries Transportation Market Growth?
North America was the largest region in the groceries transportation market in 2024. The regions covered in the groceries transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Groceries Transportation Market?
2. What is the CAGR expected in the Groceries Transportation Market?
3. What Are the Key Innovations Transforming the Groceries Transportation Industry?
4. Which Region Is Leading the Groceries Transportation Market?
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