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The food and beverage warehousing market size is estimated to grow at a CAGR of 18.76% between 2022 and 2027 and the size of the market is forecast to increase by USD 366.29 billion. The growth of the market depends on several factors, such as the demand for warehouse automation, demand from multiple sources, and the growing demand for refrigerated warehousing.
This food and beverage warehousing market report extensively covers market segmentation by application (meat/ fish/ seafood, dairy and frozen desserts, bakery/ confectionery/ beverages, fruits and vegetables, and grains and others), end-user (processing factories, distributors, and retailers), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Food and Beverage Warehousing Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for warehouse automation is the key factor driving the global food and beverage warehousing market growth. Through automation, warehouse control software reduces transportation costs and manages orders by consolidating different orders from the same retailer or wholesaler. Technologies used for warehouse automation include warehouse management system software, warehouse control system software, and automated storage and retrieval system "ASRS". Rising demand for warehouse automation is, therefore, one of the major factors expected to boost the growth of the global food and beverages market during the forecast period.
Along with all this, the demand for warehousing in the food and beverage sector comes from multiple sources such as large retailers, small stores, e-commerce, and home delivery. The growth of APAC's organized retail sector is also fueling the demand for warehousing. An organized retail store has licensed stores that sell a variety of products in one store. It consists of a number of franchises owned by central entities. Consumer preferences have shifted from traditional retail to organized retail. Because organized retail offers a wide variety of products from a single source, this demand for organized retail also drives demand for food and beverage warehouses, as most organized retail products fall into the food and beverage category.
The business strategies adopted by vendors will fuel the global food and beverage warehousing market growth. Increasing partnerships and collaborations are expected to drive the growth of the market during the forecast period. The vendor partners and collaborates with end-users and distributors to improve sales channels and expand product portfolios. This is anticipated to drive the growth of the market during the forecast period. Vendors are focusing on expanding storage facilities. They invest in new technology and upgrade their storage facilities. For example, in June 2020, Americold Realty Trust announced its intention to invest approximately USD 45 million in expansion plans for its Dalgety facility in Auckland, New Zealand. The expansion will add approximately 4.6 million cubic feet of site capacity and approximately 27,000 pallets.
Similarly, Preferred Freezer Services (now acquired by Lineage Logistics Holdings LLC) invested approximately USD 60 million to build its 200,000-square-foot refrigeration facility in Virginia. The new facility will be used to import, export, process, and distribute a wide range of food products and will enable the company to meet the growing demand for refrigerated storage. Such business strategies increase the revenues of the vendors and drive the growth of the food and beverages warehousing market during the forecast period.
The power consumption in cold storage can majorly impede the growth of the market. The high energy consumption and labor requirements are major concerns for cold storage operators. High energy consumption can be reduced by using VFDs in cold stores. A VFD provides the necessary requirements, such as cooling or heating, necessary to maintain a constant temperature or humidity with minimal power consumption. It is estimated that VFDs can reduce energy consumption in cold storage warehouses by more than 30%. One of the 25 largest public refrigeration facilities in America, the interstate refrigeration facility employs VFD technology to reduce power consumption. As a public cold storage warehouse, the facility has numerous rotating loads.
Therefore, high voltage is required for continuous operation. When connected to this load, the VFD reduces power consumption and increases the efficiency of various systems within its various units such as Compressor capacity control, condenser and evaporative fan control, refrigeration, and temperature control. It is estimated that about 4% of cold stores in the US use VFDs to reduce power consumption. Therefore, cold storage power consumption is likely to pose a major challenge to the growth of the food and beverage warehousing market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agility Public Warehousing Co: The company offers food and beverage warehousing services which include freight forwarding, contract logistics, project logistics, transportation, and fairs and events logistics.
Ahearn and Soper Inc: The company offers food and beverage warehousing services. It also offers barcode software and hardware solutions in manufacturing and distribution.
We also have detailed analyses of the market’s competitive landscape and offer information on 18 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The meat/fish/seafood segment will contribute a major share of the market, due to the increasing global demand for meat, fish, and seafood. The meat/ fish/seafood segment showed a gradual increase in market share with USD 50.82 billion in 2017 and continued to grow by 2021. The meat/fish/seafood products have a very short shelf life. Most meat and fish products are susceptible to the growth of pathogens such as bacteria. Therefore, such products are stored at a certain temperature. Additionally, the high demand for meat exports from Middle Eastern countries such as Saudi Arabia, Turkey, and Qatar contributes to the growth of this segment. China, Japan, and India are the countries with the largest imports and exports of meat and seafood.
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The storage of meat and fish products presents challenges such as refrigeration of products during storage. The temperature changes prior to shipment and during transit can cause fluctuations in product quality during distribution and at the end of shelf life, and can lead to premature spoilage, leading to food waste and economic loss. These factors make the storage of meat/fish/seafood products essential. Rising demand for warehousing will therefore drive the growth of the segment in the food and beverages warehousing market during the forecast period.
Food processing plants are one of the most important end users of warehousing. The increasing demand for various food products has increased the demand for warehousing from various food processing industries. Food processors can reduce the risk of contamination and spoilage by adopting good food storage practices. Additionally, there is a significant increase in demand for warehousing in food processing factories to ensure timely product delivery and effective food distribution. Warehouse management provides a centralized location for these industries, making it easier to track and manage inventory. By investing in warehouses, processors can ship and distribute their products more efficiently. Businesses can pack and sort food in their warehouses according to regulatory standards and customer requirements. This type of facility can be a great location for distribution as it eliminates the need to arrange pickup or hire staff to handle fulfillment. Therefore, increasing the number of processing plants will increase the demand for warehouses to manage inventory efficiently, driving the growth of the processing factories segment of the food and beverage warehousing market during the forecast period.
North America is estimated to contribute 28% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The food and beverage storage market in the North American region is mature and saturated. The major contributor to this market is the US, which generates the highest revenue in the North American region. The high revenue is due to its large population of people with high disposable income, increased consumption of meat and beverages, and the presence of major vendors in the region. Additionally, effective public-private partnerships provide North American providers with a large amount of logistical support. Increasing consumer demand for vegetables and fruits is another factor contributing to the growth of the market in this region.
In 2020, the COVID-19 pandemic caused a significant drop in market sales. Additionally, pandemic-related lockdowns on a global scale negatively impacted demand for food and beverage storage facilities. Many consumers preferred home-cooked food to fast food, negatively impacting normal grocery retail demand for food and beverage warehouses. However, lockdown restrictions were lifted in late 2020 following massive vaccination campaigns globally. Also, food and beverage industry operations resumed in the first half of 2021 due to increased demand for various food and beverages from various end-users such as hotels, restaurants, retail stores, and individual consumers. This has increased demand for food and beverage warehouses in the second half of 2021.
The food and beverage warehousing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Food and Beverage Warehousing Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.76% |
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Market growth 2023-2027 |
USD 366.29 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
16.98 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 28% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Ahearn and Soper Inc., AIT Worldwide Logistics Inc., Amazon.com Inc., Americold Realty Trust Inc., Burris Logistics Co., Cargo partner GmbH, Conestoga Cold Storage, John Swire and Sons Ltd., Lineage Logistics Holdings LLC, Net Logistik S.A. de C.V, Nichirei Corp., Penske Corp., Ryder System Inc., Snowman Logistics Ltd., VersaCold Logistics Services, Walmart Inc., Warehousing Express Logistics Pvt. Ltd., Congebec Logistics Inc., and Toyota Industries Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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