Perishable Goods Transportation Market Analysis US - Size and Forecast 2024-2028

US Perishable Goods Transportation Market Size 2024-2028

The US perishable goods transportation market is estimated to increase by USD 2.45 billion and grow at a CAGR of 9.45% between 2023 and 2028. The market is propelled by increasing demand for processed food and expanding end-user segments, alongside the rising popularity of reefer tracking technologies. However, challenges persist, including food safety concerns, heightened awareness regarding food wastage, and the substantial operating costs associated with reefers, which hinder market growth. Despite these obstacles, the industry remains focused on addressing these issues through enhanced food safety protocols, innovative waste reduction initiatives, and efforts to optimize reefer operations for greater efficiency and cost-effectiveness. As consumer preferences continue to evolve and sustainability concerns gain traction, companies are increasingly investing in technological advancements and strategic measures to overcome challenges and sustain growth in the reefer market.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market in the US is a significant sector, encompassing the supply chain of various temperature-sensitive products such as fresh produce, dairy products, meat, pharmaceuticals, and specialized items like fruits, vegetables, seafood, flowers, and medications. This industry prioritizes temperature-controlled transportation and specialized handling to maintain the optimal condition of these goods, thereby preventing spoilage and ensuring an extended shelf life. Key players in this market offer reliable temperature-controlled storage and refrigerated trucks, ensuring timely transportation and temperature monitoring. The fresh produce industry, in particular, relies heavily on this market, as fruits and vegetables require specific temperature conditions to preserve their quality. Temperature-controlled environments are crucial for food products like dairy and meat, as well as for temperature-sensitive medications, to prevent spoilage and maintain their efficacy. 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.

Key Market Driver

The rising demand for processed food is a key factor driving the growth of the market. The market has experienced expansion due to shifting consumer preferences towards convenient and diverse food options. Key drivers include health consciousness, urban delivery trucks, and meal delivery services such as meal kits. Temperature-sensitive goods like meats, poultry, game products, fish, bakery, and confectionery require energy-saving refrigerators and temperature-controlled containers for preservation.

Stakeholder cooperation, timely delivery, and RFID tracking systems are essential for maintaining freshness and minimizing wastage. Poor road networks and insufficient storage facilities pose challenges, while restrictive regulations impact the industry. Fuels and substitute packaging materials are critical considerations for energy efficiency and sustainability. Perishable goods are transported via various modes including rail, truck, ship, and aircraft using refrigerated and frozen transportation methods in ambient temperatures. Such factors will positively impact the growth of the market in the US during the forecast period.

Significant Market Trend

The introduction of cloud technologies, artificial intelligence, and the internet of things is the primary trend in the market growth. The market is projected to expand due to the establishment of new cold chain facilities, such as the one at Port Tampa Bay, Florida. This development will cater to agricultural imports and exports, as well as regional grocery stores and food industries. With seven temperature zones spread over 130,000 sq. ft, the demand for perishable goods transportation will rise.

Energy-saving refrigerators, substitute packaging materials, and stakeholder cooperation are essential for timely delivery of temperature-sensitive goods like meats, chilled food products, poultry, game products, fish, bakery, and confectionery. Urban delivery trucks and micro-fulfillment centers are crucial for fresh food and health-conscious consumers. However, challenges like poor road networks, insufficient storage facilities, restrictive regulations, and wastage necessitate the use of RFID tracking systems, temperature-controlled containers, and refrigerated transportation for ambient temperature goods. The transportation modes include rail, truck, ship, and aircraft. Such factors will increase the market growth during the forecast period.

Major Market Challenge

Food safety issues are a major challenge to the growth of the market. In the market, various factors influence the industry. Temperature-sensitive goods, such as meats and fresh produce, require energy-saving refrigerators to maintain optimal temperatures during transit. Fuel efficiency is crucial due to the high cost of refrigeration. Stakeholder cooperation, including timely delivery and sanitation of temperature-controlled containers, is essential for food safety. Urban delivery trucks and micro-fulfillment centers prioritize health consciousness and freshness, utilizing RFID tracking systems for efficient inventory management. Substitute packaging materials and insufficient storage facilities pose challenges. Poor road networks and restrictive regulations contribute to wastage.

Key players in the market include rail, truck, ship, aircraft, and refrigerated transportation providers. Chilled food products, such as poultry, game products, fish, bakery, and confectionery, require temperature-controlled containers for safe transport. Frozen transportation and ambient temperature options are also available. Constant monitoring and preventive maintenance are necessary to ensure the functioning of refrigerators and avoid failure. The FDA's 2016 rule for food transport further emphasizes the importance of maintaining hygienic conditions. This necessitates the need for preventive maintenance by inspecting refrigeration equipment before and during the transportation process. These factors will negatively impact the growth of the perishable goods transportation market in the US during the forecast period.

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

Market Customer Landscape

Key Companies & Market Insights

Companies 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.

Alliance Shippers Inc. - The company offers perishable goods transportation services such as arranging refrigerated shipments. Also, they offer global logistics and transportation solutions.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AIT Worldwide Logistics Inc.
• AP Moller Maersk AS
• Bay and Bay Transportation
• Burris Logistics Co.
• C H Robinson Worldwide Inc.
• CMA CGM SA Group
• Columbian Logistics Network
• COSCO Shipping International Co. Ltd.
• DB Schenker
• Deutsche Post AG
• FST Logistics
• Hapag Lloyd AG
• KLLM Transportation Services
• Lineage Logistics Holdings LLC
• Mara Labs Inc.
• Orient Overseas Container Line Ltd.
• Prime Fresh Handling LLC
• Swift Cargo Pvt. Ltd.
• VersaCold Logistics Services

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 market 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.

Market Segmentation 

The market share growth by the MPS segment will be significant during the forecast period. In the US, the increase in population, urbanization, and income have driven up the demand for perishable goods, including meat, dairy products, seafood, fresh produce, and pharmaceuticals. This demand necessitates efficient and reliable transportation and storage solutions to maintain the optimal condition of these temperature-sensitive items. Specialized transportation services, such as refrigerated trucks and reefer trucks, play a crucial role in temperature-controlled transportation. The fresh produce industry, fruits, and vegetables require timely and reliable transportation to ensure they reach retail outlets in the best possible condition. Spoilage is a significant concern for perishable goods, and food safety is paramount. 

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The MPS segment was valued at USD 1.40 billion in 2018 and continued to grow by 2022. The pharmaceutical sector relies on temperature-controlled units and storage facilities to preserve the efficacy of temperature-sensitive medications, vaccines, and medical supplies. The logistics network for perishable goods delivery includes e-commerce platforms, grocery delivery services, and third-party logistics providers. The floral industry also relies on temperature-controlled transportation and storage for cut flowers. Global vaccine distribution and online grocery shopping further expand the market for perishable goods transportation. The above factors will increase segment growth during the forecast period.

Segment Overview

The market 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.

• End-user Outlook
  • MPS
  • Dairy
  • Fruits and vegetables
  • Bakery and confectionery

• Mode of Transportation Outlook
  • Air transportation
  • Road transportation
  • Others

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• Perishable Goods Transportation Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, India - Size and Forecast
• Refrigerated Road Transportation Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Japan, Canada, UK - Size and Forecast
• Refrigerated Transportation Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, UK, Japan, Canada - Size and Forecast

Market Analyst Overview

The market in the US is a significant sector, driven by the increasing demand for fresh and temperature-controlled products. The market consists of various procurement, transportation, and logistics processes. The primary focus is on ensuring the timely and efficient delivery of perishable goods, including fruits, vegetables, dairy products, and pharmaceuticals. The market faces challenges such as the need for temperature control, ensuring product quality, and reducing transportation costs. However, advancements in technology, such as refrigerated trucks and cold storage facilities, are helping to address these challenges.

Additionally, the growing trend towards online grocery shopping and the increasing popularity of farm-to-table initiatives are expected to boost market growth. The market is expected to continue growing due to the increasing consumer preference for fresh and high-quality perishable goods. Furthermore, the increasing focus on reducing food waste and improving supply chain efficiency is also expected to drive market growth. Overall, the Perishable Goods Transportation Market in the US is a dynamic and evolving sector that plays a crucial role in ensuring the timely and efficient delivery of essential goods.

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

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across US
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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