Food Supply Chain Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Germany, Canada, China, France, India, Japan, UK, Italy, South Korea - Size and Forecast 2024-2028

Food Supply Chain Market Size 2024-2028

The food supply chain market size is forecast to increase by USD 59.51 billion at a CAGR of 7.86% between 2023 and 2028.

• The market is experiencing significant growth, driven by several key trends and challenges. One of the major trends transforming the industry is the integration of blockchain technology into food supply chain management. This innovation enhances transparency, traceability, and security, enabling consumers to access detailed information about the origin and journey of their food. Another significant trend is the increasing number of mergers and acquisitions among market participants, which is intensifying competition and leading to the formation of larger, more efficient supply chains. However, data security and cyber threats remain critical challenges for market players, necessitating strong security measures to safeguard sensitive information and protect against potential breaches. These factors, among others, are shaping the future of the market.

What will be the Size of the Food Supply Chain Market During the Forecast Period?

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• The market encompasses the production, transportation, warehousing, and distribution of a diverse range of food products, including fresh fruits, vegetables, meats, dairy, and processed foods. This market is characterized by its intricate nature, involving temperature-controlled logistics, cold chain management, and adherence to stringent safety regulations. E-commerce platforms have significantly disrupted traditional food trade channels, necessitating advanced technologies such as artificial intelligence, the Internet of Things, and blockchain technologies to ensure efficient and secure food supply.

• Agriculture remains a critical upstream component, while downstream activities include transportation, warehousing, and warehouse management systems utilizing positioning systems and radio frequency identification for real-time tracking and inventory management. Consumer preferences for healthier, safer food options continue to shape market dynamics, driving innovation and investment In the sector.

How is this Food Supply Chain Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product Type
  • Packaged food
  • Fresh food
• End-user
  • Households
  • Commercial
  • Industrial
• Geography
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • South America
  • Middle East and Africa

By Product Type Insights

• The packaged food segment is estimated to witness significant growth during the forecast period.

The food supply chain encompasses various sectors, including fresh and perishable foods, food trade, temperature-controlled logistics, e-commerce platforms, and sustainability. Perishable foods, such as meats, dairy, fruits, and vegetables, require specialized handling and cold chain management to ensure safety and quality. E-commerce platforms and consumer preferences for convenience have led to increased demand for customized logistics solutions and multi-modal transportation. Temperature-controlled logistics and cold chain capabilities are crucial for maintaining food safety regulations and product integrity. Advancements in technology, such as artificial intelligence, the Internet of Things, blockchain technologies, and precision farming, are revolutionizing the food supply chain. These technologies enable better inventory management, traceability, and transparency, enhancing consumer trust and product provenance.

Sustainability and economic growth are essential considerations, with a focus on reducing food waste and loss throughout the supply chain. The food supply chain is complex, involving agriculture, food processing, transportation, warehousing, and food retailers. Standards and regulations, including health and safety, positioning systems, radio frequency identification, and warehouse management systems, play a critical role in ensuring food safety and quality. Funding and investment in food supply chain innovation are essential to addressing the challenges of meeting consumer demands while maintaining efficiency, safety, and sustainability.

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The packaged food segment was valued at USD 54.22 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 47% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market In the Asia Pacific (APAC) region is witnessing significant growth due to several key factors. Urbanization and rising disposable incomes are driving the demand for diverse and high-quality food products, leading to the expansion and modernization of the food supply chain infrastructure. This includes the development of temperature-controlled logistics facilities for fresh and perishable foods, advanced refrigerated transport technologies, and digital tracking systems for improved inventory management and traceability. The increasing adoption of e-commerce platforms for food trade is also reshaping distribution channels. Furthermore, government initiatives to ensure food safety and reduce food waste are gaining momentum, contributing to market growth.

As a result, the APAC market is projected to continue its upward trajectory, presenting lucrative opportunities for players specializing in meats, dairy, fruits, vegetables, processed foods, and sustainability. The integration of technologies such as artificial intelligence, the Internet of Things, blockchain, and cold chain capabilities into logistics infrastructure is further enhancing supply chain efficiency and consumer trust through product traceability and provenance. The market growth is also influenced by economic growth, environmental concerns, and consumer preferences for healthier and more customized food solutions.

Market Dynamics

Our researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise In the adoption of Food Supply Chain Industry?

Integration of blockchain in food supply chain is the key driver of the market.

• The market is undergoing significant transformation due to technological advancements and changing consumer preferences. Perishable foods, including meats, dairy, fruits, and vegetables, require temperature-controlled logistics to ensure freshness and safety. E-commerce platforms are increasingly popular for food trade, necessitating cold chain management capabilities and customized logistics solutions. Safety regulations are a top priority, with artificial intelligence and the Internet of Things (IoT) used for monitoring temperature, positioning systems, and radio frequency identification (RFID) for inventory management. Blockchain technologies offer enhanced traceability and food safety by creating an immutable record of each step In the supply chain, from agriculture to food retailers.
• Sustainability is a growing concern, with funding for agri-tech startups and precision farming driving innovation In the industry. Consumers demand transparency and product traceability, with provenance and contamination sources becoming essential factors In their purchasing decisions. Cold chain management, warehousing, transportation, and multi-modal logistics are essential components of the food supply chain, with refrigerated transport technologies and warehouse management systems playing critical roles. Economic growth and environmental concerns are driving the need for more efficient and eco-friendly solutions. Online platforms facilitate payment transactions, reducing food waste and loss at the processing stage. Health and safety regulations are stringent, with strict standards for food safety and handling.

What are the market trends shaping the Food Supply Chain Industry?

Increasing mergers and acquisitions among market companies is the upcoming market trend.

• The market experiences continuous expansion due to mergers and acquisitions among companies. These alliances enable companies to combine strengths, and resources, and create more efficient and strong supply networks. The resulting improvements include enhanced logistics, traceability, and the implementation of advanced technologies such as blockchain and IoT sensors. Consumer preferences for fresh and perishable foods, including meats, dairy, fruits, and vegetables, drive the demand for temperature-controlled logistics and cold chain management.
• Sustainability and customized logistics solutions are also essential considerations In the food supply chain. Key market dynamics include economic growth, environmental concerns, and the integration of technology, such as artificial intelligence, precision farming, and inventory management systems. Safety regulations, nutrition, and food retailers play significant roles in shaping the market landscape. Food waste and loss are critical issues addressed by the processing stage and the adoption of advanced refrigerated transport technologies. The market is further influenced by trade liberalization, multi-modal transportation, and the implementation of standards and funding opportunities. Agri-tech startups and the adoption of technologies like positioning systems, radio frequency identification, warehouse management systems, and product traceability are transforming the food supply chain.

What challenges does the Food Supply Chain Industry face during its growth?

Data security and cyber threats associated with food supply chain management is a key challenge affecting the industry's growth.

• The market encompasses the trade and logistics of fresh and perishable foods, including meats, dairy, fruits, vegetables, and processed foods. Temperature-controlled logistics plays a crucial role in ensuring the safety and quality of these products. With the rise of e-commerce platforms, there is an increasing demand for customized logistics solutions and cold chain capabilities. Safety regulations are a top priority In the food supply chain, with a focus on health, safety, and traceability. Artificial intelligence and the Internet of Things are being integrated into food supply chains to improve inventory management, cold chain management, and transportation efficiency. Blockchain technologies offer enhanced transparency and product traceability, increasing consumer trust and confidence In the provenance of their food.
• Consumer preferences for fresh and sustainable food options are driving economic growth In the market. Environmental concerns and nutrition are also key factors influencing market trends. Refrigerated transport technologies and cold chain management are essential for maintaining the quality and safety of perishable foods during transportation and warehousing. Sustainability is a growing concern In the food supply chain, with a focus on reducing food waste and loss at the processing stage. Multi-modal transportation and supply chain integration are also important for optimizing logistics infrastructure and reducing transportation costs. Food safety regulations and traceability requirements are increasingly stringent, necessitating the use of positioning systems, radio frequency identification, and warehouse management systems.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Archer Daniels Midland Co.
• AWL India Pvt. Ltd.
• Best Food Logistics
• Burris Logistics Co.
• C H Robinson Worldwide Inc.
• Cargill Inc.
• DACHSER SE
• DB Schenker
• Eight Point Distributors
• Gordon Food Service Inc.
• International Business Machines Corp.
• Lineage Inc
• Nishimoto Co. Ltd.
• Olam Group Ltd.
• Oracle Corp.
• Radhakrishna Foodland Pvt Ltd.
• SAP SE
• Schneider National Inc.
• SITRA
• Sysco Corp.
• VersaCold Logistics Services
• WayCool
• YUSEN LOGISTICS CO. LTD.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market encompasses the entire process from production to consumption of fresh and perishable foods. This intricate system involves various players, including farmers, processors, distributors, retailers, and consumers. The food trade relies heavily on temperature-controlled logistics to ensure the quality and safety of perishable items. E-commerce platforms have significantly disrupted the food supply chain, enabling consumers to purchase fresh produce and other perishable goods online. However, ensuring the safety and integrity of these products during transportation and storage poses challenges. Safety regulations play a crucial role In the food supply chain, with stringent guidelines for temperature control, inventory management, and traceability.

Moreover, consumer preferences for fresh, healthy, and sustainable food options continue to drive innovation In the market. Advancements in technology, such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain technologies, are transforming the food supply chain. These technologies enable real-time monitoring and tracking of food products, improving cold chain management and ensuring food safety. Transportation is a critical component of the food supply chain, with refrigerated transport technologies playing a significant role in maintaining the quality and safety of perishable goods. Cold chain capabilities and logistics infrastructure are essential for ensuring the efficient movement of food products from production to consumption.

Furthermore, sustainability is a growing concern In the food supply chain, with a focus on reducing food waste and loss at all stages of the process. Customized logistics solutions and supply chain integration are key strategies for optimizing the food supply chain and reducing environmental impact. Economic growth and trade liberalization have led to increased demand for food products, necessitating multi-modal transportation and efficient logistics networks. Traceability and transparency are essential for building consumer trust and ensuring the provenance of food products. Food safety remains a top priority, with ongoing efforts to address contamination sources and improve standards. Funding and investment in agri-tech startups and precision farming technologies are driving innovation In the food supply chain, with a focus on data management and product traceability.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the industry during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the market growth of industry companies

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