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Groceries Transportation Market Analysis: $85.07 Billion by 2029 With a CAGR of 7.1%
Stay informed on tariff shifts, macro trends, and global economic changes-use code ONLINE30 to enjoy 30% off our global market reports.Groceries Transportation Market Value Projection: How Much Will the Market Size by 2025?
In recent times, the market size of grocery transportation has witnessed a strong rise. The market is set to expand from $60.5 billion in 2024 to $64.63 billion in 2025 with a compound annual growth rate (CAGR) of 6.8%. This significant growth in the earlier times can be credited to factors such as the popularity of online grocery shopping, the enlargement of urban territories, changes in regulations, the customer's preference for freshness, and the broadening of retail chains.
What Will Be the Market Growth Forecat for Groceries Transportation in 2029?
The market size for transportation of groceries is predicted to see significant expansion in the coming years, surging to $85.07 billion in 2029 with a compound annual growth rate (CAGR) of 7.1%. This predicted growth within the forecast period is due to factors such as the growth of e-commerce, efforts towards sustainability, expansion of global supply chains, shifts in consumer choices, and green transportation methods. Key trends likely to shape this forecast period include logistics aided by artificial intelligence, the use of advanced analytics, the implementation of blockchain technology, progress in cold chain technology, and the development of autonomous vehicles.
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What Are the Core Competitive Drivers in the Groceries Transportation Industry?
The growth of the grocery transportation market is projected to be spearheaded by the surge in online grocery shopping. Online grocery shopping denotes buying groceries and household essentials via online platforms for home delivery. Its expansion is fueled by the advantages it offers, such as round-the-clock availability, home delivery, and the vast range of products. Transportation services for groceries play a critical role in ensuring punctual delivery, upholding the freshness of products, and meeting consumer expectations for reliable service when it comes to online grocery shopping. In 2023, total e-commerce sales recorded an estimated $1,118.7 billion, showing a 7.6% rise from 2022. This represented 15.4% of all sales, a slight rise from 14.7% in the previous year, as stated in an August 2024 report by the United States Census Bureau, a professional governmental organization based in the US. Consequently, the growth of the grocery transportation market will be triggered by the proliferation of online grocery shopping.
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Which Groceries Transportation Market Segment Is Projected to See the Fastest Growth?
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
Which Trends Are Opening New Opportunities in the Groceries Transportation Market?
Leading firms in the grocery transportation market are prioritizing the incorporation of AI-based logistics solutions such as route optimization, aiming to increase customer simplicity and boost overall supply chain efficiency. These route optimization technologies are sophisticated systems that utilize machine learning techniques to successfully streamline transportation paths and timings. For example, in March 2024, Walmart Inc., an American retail corporation with a network of hypermarkets, discount department stores, and grocery outlets, introduced Element, an AI-driven software solution engineered to optimize cargo delivery routes and timetables for products to its outlets. This AI-enabled technology is projected to amplify operational efficiency and augment customer experiences for Walmart's associates. The pricing scheme for the software is versatile depending on usage amount and regularity, addressing the challenges of executing AI models on a bigger scale. It also provide perks like freedom from vendor lock-in, cost reduction, and improved dependability, thus simplifying the process of businesses adopting AI and ML solutions.
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Who Are the Leaders in the Groceries Transportation Market?
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.
Which Regional Groceries Transportation Markets Offer the Greatest Growth Potential?
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.
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