Food and Beverages Logistics Market Research Reports

"Sustaining Growth in Food and Beverage Logistics: An In-Depth Look at Market Dynamics and Future Trends (2024 Market Size: USD 3.9 trillion)"!

Food and Beverages Logistics Industry Overview

The dynamic and essential nature of the food and beverage logistics market significantly influences the global supply chain. This market has been confronted with a variety of challenges and opportunities as of 2023, which are influenced by macroeconomic factors, technological advancements, and changing consumer preferences. The global food and beverage logistics market size is USD 3.9 trillion in 2024 and will be USD 6.8 trillion by 2031, will grow at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031. The food and beverage industry's expansion of e-commerce and the growing demand for perishable products are the primary drivers of this growth. The growth of online grocery purchasing has been substantial, with an increase in online food and beverage sales to USD 150 billion by the end of 2024 from USD 110 billion in 2023. 

Consumers' preference for convenience and the proliferation of direct-to-consumer (DTC) models are the primary factors driving this trend. In 2023, the cold chain logistics market, which is essential for perishable products, was valued at USD 233 billion and will be USD 272 billion in 2024. The increased demand for fresh and frozen commodities and advancements in refrigeration technology primarily drive this growth. Companies are being compelled to adopt sustainable logistics practices due to environmental concerns. In 2023, 62% of food and beverage companies made investments in environmentally friendly packaging and transportation methods. This trend is to persist into 2024, with an emphasis on the reduction of pollution and carbon footprints. Technological innovations are transforming the market. 

In 2023, the efficacy and accuracy of logistics operations were enhanced by the implementation of automation, AI, and IoT. As per our research analyst, by 2024, AI-driven solutions will be implemented by 45% of logistics providers to enhance supply chain management. The necessity of resilient supply chains was underscored by the disruptions caused by the COVID-19 pandemic. In 2023, 70% of food and beverage companies reported investing in the diversification of their supplier base and the improvement of supply chain visibility and this trend will continue in 2024, underscoring the significance of risk management and agility.

Top Countries Contributing in Food and Beverages Logistics Market

United States (Market Size: USD 600 billion)

The United States food and beverage logistics market size was USD 600 billion in 2023 and will grow at a rate of 6.8% in 2024. The rapid expansion of e-commerce is the primary driver of this market, with online grocery sales surpassing USD 45 billion in 2023 and will increase to USD 55 billion in 2024. Retail chains, restaurants, and food service providers are the primary users of this market, with retail accounting for 40% of the logistics demand. With a global market share of 17% in food and beverage logistics, the United States occupies a dominant position. The cold chain logistics segment, which is essential for the transportation of perishable products, was valued at USD 65 billion in 2023 and will increase to USD 75 billion in 2024. The implementation of AI and IoT solutions by 50% of logistics providers to improve efficiency is indicative of the significant impact of automation and technological advancements. In 2023, transportation expenses will increase by 12%, and the market is confronted with challenges such as labor shortages and increasing costs.

China (2024 Market Size: USD 538 billion)

The China's food and beverage logistics market share is 14% of the total revenue generated and its market size was USD 500 billion in 2023 and will be USD 538 billion in 2024, will grow at a compound annual growth rate (CAGR) of 7.5%. Retail, e-commerce, and food processing industries are the primary sectors that employ logistics services, with e-commerce alone accounting for 35% of the logistics demand. The cool chain logistics market, which is essential for the preservation of perishable products, was valued at USD 55 billion in 2023 and will be USD 62 billion in 2024. With 45% of logistics firms implementing AI and automation technologies, technological advancements are essential. The market is also committed to sustainability, with 60% of companies investing in eco-friendly logistics practices.

Germany (2024 Market Size: USD 191 billion)

According to cognitive market research, Germany's food and beverage logistics market was valued at USD 180 billion in 2023, and will be USD 191 billion in 2024 with a growth rate of 6.3% in 2024. The retail market, food manufacturing, and hospitality are among the key sectors that utilize logistics services, with retail accounting for 38% of the demand. Germany's market share in the global food and beverage logistics market is 5%. In 2023, the cold chain logistics market size was USD 25 billion and will be USD 28 billion in 2024. AI and IoT are employed by 48% of logistics companies to improve operations in the German market, which is distinguished by its advanced technological adoption. The market is also recognized for its strong emphasis on sustainability, with 65% of companies implementing green logistics solutions.

Japan (2024 Market Size: USD 159 billion)

The Japan food and beverage logistics market share is 4% of the total revenue generated and its market size was USD 150 billion and will be USD 159 billion in 2024, with a compound annual growth rate (CAGR) of 5.9%. Retail, food service and food manufacturing are the primary markets that employ logistics services, with the retail sector accounting for 36% of the demand. In 2023, the cold chain logistics segment was valued at USD 20 billion and will be USD 23 billion in 2024. In Japan, 50% of logistics providers have implemented automation and AI technologies, which is indicative of the substantial technological progress that has been made. The market is also confronted with challenges such as stringent regulatory compliance and high operational costs.

United Kingdom (2024 Market Size: USD 128 billion)

As per cognitive market research, The United Kingdom food and beverage logistics market size was USD 120 billion in 2023 and will be USD 128 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. Retail, food services and food manufacturing are the primary markets that utilize logistics services, with retail accounting for 37% of the demand. The United Kingdom holds a 3.5% share of the global market. In 2023, the cold chain logistics market size was USD 18 billion and will be USD 21 billion in 2024. The adoption of AI and IoT solutions by 47% of logistics companies underscores the importance of technological innovation. The market also prioritizes sustainability, with 60% of companies investing in green logistics practices.

France (2024 Market Size: USD 117 billion)

The France food and beverage logistics market share is 3% of the total revenue generated and its market size was USD 110 billion in 2023 and will be USD 117 billion in 2024, with a growth rate of 6.4%. Culinary manufacturing, culinary services, and retail comprise the primary markets that employ logistics services, with retail constituting 35% of the demand. In 2023, the cold chain logistics segment was valued at USD 16 billion and will be USD 19 billion in 2024. AI and automation technologies are implemented by 45% of logistics providers, indicating that technological advancements are significant. Additionally, the market prioritizes sustainability, with 62% of organizations implementing environmentally favorable procedures.

Canada (2024 Market Size: USD 107 billion)

The Canada food and beverage logistics market size was USD 100 billion in 2023 and will be USD 107 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. Retail, food services and food manufacturing are the primary sectors that utilize logistics services, with retail accounting for 34% of the demand. Canada occupies 2.8% of the global market. In 2023, the cold chain logistics market was valued at USD 15 billion and will be USD 18 billion in 2024. 46% of logistics companies have implemented AI and IoT solutions, indicating that technological innovation is substantial. The market also prioritizes sustainability, with 60% of companies investing in green logistics practices.

Italy (2024 Market Size: USD 96 billion)

According to cognitive market research, the Italy food and beverage logistics market share is 2.5% of total revenue generated and its market size was USD 90 billion in 2023 and will be USD 96 billion in 2024, with a growth rate of 6.2%. Retail, food services and food manufacturing are the primary sectors that employ logistics services, with retail accounting for 33% of the demand. In 2023, the cold chain logistics segment was valued at USD 14 billion and will be USD 16 billion in 2024. AI and automation technologies are implemented by 44% of logistics providers, indicating that technological advancements are significant. Additionally, the market prioritizes sustainability, with 61% of organizations implementing environmentally responsible procedures.

Brazil (2024 Market Size: USD 86 billion)

Brazil's food and beverage logistics market was valued at USD 80 billion in 2023 and will be USD 86 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. Retail, food services and food manufacturing are the primary sectors that employ logistics services, with retail accounting for 32% of the demand. Brazil occupies 2.2% of the global market. In 2023, the cold chain logistics market was worth USD 13 billion and will be USD 15 billion in 2024. AI and IoT solutions are implemented by 43% of logistics organizations, which underscores the significance of technological innovation. The market also prioritizes sustainability, with 59% of companies investing in green logistics practices.

India (2024 Market Size: USD 75 billion)

The India's food and beverage logistics market size is USD 70 billion in 2023 and will be USD 75 billion in 2024, and will grow at a rate of 7.4%, Retail, food services and food manufacturing are the primary sectors that employ logistics services, with retail accounting for 30% of the demand. India accounts for 2% of the global market. The 2023 valuation of the cold chain logistics segment was USD 12 billion and will be USD 14 billion in 2024. AI and automation technologies are implemented by 42% of logistics providers, indicating that technological advancements are significant. Additionally, the sector prioritizes sustainability, with 58% of organizations implementing environmentally favorable procedures.

PESTEL Analysis of Food and Beverages Logistics Market

Political

The food and beverage logistics market is substantially affected by the political landscape. International relations, trade regulations, and government policies are indispensable variables. Trade policies, such as tariffs and import/export regulations, influence the cost and efficacy of logistics operations. For example, the disruption of supply chains and the subsequent increase in costs can result from trade tensions between major economies such as the United States and China with enhanced tariffs. Another critical political factor is food safety regulations. In order to guarantee the safety and purity of food products, governments worldwide implement rigorous regulations. In order to prevent contamination and guarantee product quality, it is necessary to implement robust logistics processes, such as temperature control and traceability systems, in order to comply with these regulations. Serious penalties and reputational harm may ensue as a consequence of noncompliance. Subsidies and incentives offered by governments can also influence the market. Subsidies for green logistics initiatives, for instance, can motivate organizations to allocate resources toward sustainable practices. The political stability of a given region significantly influences logistics operations. Supply chains can be disrupted, risks can be increased, and costs can be elevated as a result of political instability, conflicts, or corruption. 

Economical

Economic factors significantly influence the food and beverage logistics market. The demand for logistics services is directly influenced by the overall economic health, which is defined by GDP growth, inflation rates, and consumer expenditure. During periods of economic expansion, the demand for food and beverage products is augmented by increased consumer expenditure, which in turn stimulates logistics activities. The cost structure of logistics operations is influenced by inflation. Elevated petroleum prices, labor costs, and raw material prices may substantially elevate operational expenses. In order to preserve profitability, organizations must effectively manage these expenses. The logistics market is extremely susceptible to fluctuations in fuel prices, which are influenced by global oil prices and local fuel taxes. Transportation costs and overall pricing strategies are significantly influenced by fuel costs, which account for a significant portion of logistics expenses. Interest rates are also a significant factor. The capacity of logistics companies to invest in infrastructure, technology, and fleet expansion is impacted by the increased financing costs associated with higher interest rates. In contrast, investment and expansion activities may be facilitated by reduced interest rates. International logistics operations are contingent upon currency exchange rates. 

Social

Social factors significantly influence the food and beverage logistics market. Demand is significantly influenced by evolving consumer preferences and demographics. The rise of e-commerce and an increasing emphasis on convenience have resulted in a significant increase in online grocery purchasing, necessitating the implementation of efficient logistics solutions for home delivery. The aging population also influences the market in numerous developed countries, as older consumers may favor home delivery services over traditional purchasing methods. The food and beverage market is being transformed by health and wellness trends. Robust logistics systems are required to manage perishable goods, as consumers are increasingly pursuing fresh, organic, and locally sourced products. The demand for sophisticated cold chain logistics is driven by this trend, which is necessary to guarantee the safety and freshness of these products. Another substantial social influence is urbanization. The demand for efficient logistics solutions to accommodate densely populated cities is on the rise as more individuals relocate to urban areas. In order to satisfy the requirements of urban consumers, urban logistics, which encompasses last-mile delivery, becomes indispensable. 

Technological

In the food and beverage logistics market, technological advancements are a driving force, transforming operations and augmenting efficiency. Warehousing and distribution have been transformed by automation and robotics. Automated warehouses that are equipped with robots for the purpose of picking and packing products have the potential to reduce labor costs and enhance their accuracy and speed significantly. The utilization of artificial intelligence (AI) and machine learning (ML) in logistics operations facilitates predictive analytics for inventory management, route optimization, and demand forecasting. AI-driven systems can predict fluctuations in demand and optimize supply chains to increase efficiency and reduce waste. The real-time tracking and monitoring of products is significantly influenced by the Internet of Things (IoT). Real-time data on temperature, humidity, and location is provided by IoT devices installed in vehicles and storage facilities, thereby guaranteeing the safety and quality of perishable food products throughout the supply chain. The food and beverage logistics market is increasingly utilizing blockchain technology to improve transparency and traceability. Blockchain technology establishes a secure and immutable record of transactions, thereby ensuring the authenticity and safety of food products by verifying their origin and voyage. Advanced transportation management systems (TMS) are essential for the efficient operation of logistics. 

Environmental

The food and beverage logistics marekt is being increasingly influenced by environmental factors, which is prompting companies to implement sustainable practices and mitigate their environmental impact. Logistics operations encounter substantial obstacles as a result of climate change. Supply chains can be disrupted, infrastructure can be damaged, and extreme weather events, including hurricanes, floods, and heatwaves, can increase transportation costs. In order to mitigate the risks associated with climate change, companies must establish resilient logistics strategies. The marekt prioritizes sustainability. Consumers and regulatory bodies are increasingly prioritizing the reduction of environmental impact and carbon footprints. Eco-friendly practices are being implemented by logistics companies, including the utilization of electric and hybrid vehicles, the optimization of routes to reduce petroleum consumption, and the implementation of energy-efficient warehousing. The cold chain logistics segment, which is responsible for the transportation and storage of perishable products, encounters distinctive environmental challenges. Significant energy consumption is necessary to maintain temperature control. Companies are investing in advanced refrigeration technologies that are more environmentally benign and energy-efficient. Another critical area of focus is packaging. The industry is transitioning to sustainable packaging solutions, which encompass biodegradable, recyclable, and reusable materials. 

Legal

The food and beverage logistics market is significantly impacted by legal factors, which comprise a variety of regulations and laws that companies must navigate in order to operate efficiently and avoid penalties. In this ,market, food safety and hygiene regulations are of the utmost importance. In order to guarantee the safety and quality of food products during transportation and storage, companies are required to adhere to rigorous standards established by regulatory bodies. These regulations frequently require the implementation of specific temperature controls, hygiene practices, and traceability measures to safeguard consumers and prevent contamination. Another critical legal factor is labor laws. Logistics operations are influenced by regulations that govern working hours, wages, occupational health and safety, and employee rights. It is imperative to adhere to these laws in order to preserve a stable and productive workforce and prevent legal disputes. Logistics companies must adhere to transportation regulations, which encompass vehicle standards, driver qualifications, and service hours. These regulations guarantee the safety and efficacy of transportation operations. Operational disruptions, legal liabilities, and fines may be the consequence of noncompliance. Environmental laws and regulations are becoming more stringent. Companies are required to comply with regulations that are designed to reduce greenhouse gas emissions, manage pollution, and conserve resources.

Key Players of Food and Beverages Logistics Market

DHL Supply Chain & Global Forwarding

DHL Supply Chain & Global Forwarding, a division of Deutsche Post DHL Group, is a significant participant in the food and beverage logistics market DHL's revenue from its food and beverage logistics operations was USD 5.2 billion in 2023 and will be USD 5.6 billion in 2024, representing a compound annual growth rate (CAGR) of 7.7%. DHL has been making substantial investments in research and development, with an USD 200 million allocated for 2023 and 2024. This investment has been focused on automation and ecological logistics. DHL's primary business segments consist of international express delivery, freight transportation, and supply chain management. The food and beverage logistics market is a substantial component of its supply chain management division. DHL's food and beverage logistics services comprise a variety of solutions, such as temperature-controlled transportation, warehousing, and last-mile delivery. The company's efficient handling of perishable products is facilitated by its advanced cold chain logistics infrastructure and global network. DHL maintains its competitive advantage by capitalizing on its extensive global presence and technological advancements, which account for an estimated 10% of the global food and beverage logistics market.

C.H. Robinson Worldwide, Inc.

C.H. Robinson Worldwide, Inc. is a premier logistics company that specializes in a variety of sectors, including food and beverage logistics. C.H. Robinson's revenue from food and beverage logistics was USD 3.8 billion in 2023 and will be USD 4.1 billion in 2024, with a growth rate of 7.9%. The organization has prioritized the development of its technology platforms, allocating USD 150 million to research and development over the past two years to enhance its supply chain management and logistics solutions. Freight brokerage, transportation management, and warehousing services comprise C.H. Robinson's principal business segments. The food and beverage logistics segment is a critical sector that offers services such as refrigerated transport, inventory management, and distribution. Thanks to its strategic partnerships with carriers and suppliers and its extensive network, C.H. Robinson holds 8% share of the global food and beverage logistics market.

XPO Logistics, Inc.

XPO Logistics, Inc. is a prominent participant in the logistics industry, with substantial operations in the food and beverage market. In 2023, XPO's revenue from food and beverage logistics was USD 2.7 billion, and will be USD 2.9 billion in 2024, with a growth rate of 7.4%. The company's research and development initiatives concentrate on sustainable logistics solutions, digital freight management, and automation, with an investment of USD 130 million in 2023 and 2024. Transportation, logistics, and supply chain management comprise XPO's business segments. The food and beverage logistics segment is essential, as it offers temperature-controlled transport, warehousing, and supply chain optimization. XPO provides dependable and efficient services by leveraging its sophisticated technology and robust network, which account for an 6% of the global food and beverage logistics market.

Kuehne + Nagel International AG

Kuehne + Nagel International AG is a prominent global logistics corporation that has a significant presence in the food and beverage logistics market. The company's revenue from this ,market was USD 2.9 billion in 2023 and will be USD 3.2 billion in 2024, with a compound annual growth rate (CAGR) of 8.1%. Over the past two years, Kuehne + Nagel has allocated an USD 120 million to research and development, with a particular emphasis on sustainability and digital logistics solutions. Sea freight, air freight, contract logistics, and transcontinental transportation comprise Kuehne + Nagel's principal business segments. Offering services such as temperature-controlled storage, distribution, and supply chain management, the food and beverage logistics segment is a critical element of its contract logistics division. Capitalizing on its extensive global network and innovative logistics solutions, Kuehne + Nagel holds 7% of the global food and beverage logistics market.

Americold Logistics, LLC

Americold Logistics, LLC is a global leader in temperature-controlled warehousing and logistics, with a focus on the food and beverage industry. The revenue generated by Americold's food and beverage logistics division was USD 2.5 billion in 2023 and will be 2.7 billion in 2024, with an annual growth rate of 8%. The organization prioritizes the improvement of its infrastructure and technology, with an USD 100 million in research and development expenditures over the next two years. Temperature-controlled warehousing, transportation, and supply chain solutions comprise Americold's principal business segments. Refrigerated storage, transportation, and value-added services such as packaging and processing are all provided by the food and beverage logistics market, which is essential to its operations. Americold's specialized expertise and extensive cold storage network are utilized to provide high-quality logistics solutions, resulting in an estimated 6% share of the global food and beverage logistics market.

Recent developments in Food and Beverages Logistics Market

• In May 2023, CJ Logistics Corporation executed a Memorandum of Understanding (MOU) for the Logistics Project Collaboration with Beez Logistics, a Saudi Arabian logistics company. The objective of this strategic maneuver is to forge a presence in the Saudi Arabian logistics market. CJ Logistics provides contract logistics, cold chain logistics, and last-mile delivery services to a variety of industries, including pharmaceuticals, health & cosmetics, and food and beverage.
• March 2023: DHL Global Forwarding, the freight specialist division of Deutsche Post DHL Group, opened its most recent facility in Brisbane in March 2023 to meet the growing demand for the export of Australian perishable products. Over ten years, this initiative will require a substantial investment of $11.5 million (AU$17 million). (Source- https://www.dhl.com/in-en/home/press/press-archive/2023/dhl-global-forwarding-opens-facility-in-brisbane-to-meet-surging-demand-for-perishable-goods-export.html)

Conclusion

Both 2023 and 2024 were banner years for the food and beverages logistics industry, which saw massive changes and expansion.The global food and beverage logistics market size is USD 3.9 trillion in 2024 and will be USD 6.8 trillion by 2031, will grow at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031. The rising demand for cold chain logistics, which saw sales increase from USD 233 billion to USD 272 billion in the same period, and the meteoric rise of online grocery shopping, which saw sales increase from USD 110 billion in 2023 to an USD 150 billion in 2024, are important factors propelling the industry forward.

As a result of technological developments, supply chain management will be optimized by 2024 with the help of AI-driven solutions by about 45 percent of logistics providers. Furthermore, 62% of businesses are making investments in environmentally friendly packaging and transportation systems, demonstrating a strong commitment to sustainability. In addition to a 30% gap in available workers, the industry is also dealing with a 15% spike in logistics costs as a result of increased transportation and gasoline costs. Americold Logistics, DHL Supply Chain & Global Forwarding, C.H. Robinson Worldwide, XPO Logistics, and Kuehne + Nagel International are some of the major participants in the industry. To illustrate the competitive landscape, consider that DHL has a 10% share and C.H. Robinson has an 8% share. The logistics industry for food and drink is well-positioned for continued innovation and resilience in the years to come. In order to stay competitive and meet customer demands, businesses will likely keep pouring money into automation and AI. Reducing waste and carbon footprints will likely become more of a priority in sustainability efforts.