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The perishable goods transportation market in US is estimated to grow at a CAGR of 8% between 2022 and 2027. The size of the market is forecast to increase by USD 1,873.75 million. The growth of the market depends on serval factors, including the rising demand for processed food, the growing end-user segments, and the growing popularity of reefer tracking.
This report extensively covers market segmentation by end-user (MPS, dairy, fruits and vegetables, and bakery and confectionery) and mode of transportation (air transportation, road transportation, and others). 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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Technavio categorizes the perishable goods transportation market in the US as a part of the global air freight and logistics market within the global transportation market. The parent global air freight and logistics market cover revenue generated by companies providing air freight transportation; courier; and logistics services, including package and mail delivery and customs agents. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising demand for processed food is notably driving the market growth, although factors such as food safety issues may impede the market growth. 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.
Key Perishable Goods Transportation Market Driver in US
The rising demand for processed food is a key factor driving the growth of the perishable goods transportation market in US. The increase in the level of disposable income has changed people spending behavior. They have developed an urge to try and experience different food varieties irrespective of their price. In addition, trade liberalizations have helped in the transport of varieties of processed foods, such as tinned vegetables and ready meals, which drives the demand. Another factor contributing to the growth of the perishable goods transportation market in the US is the increase in the working woman population in developing countries.
For instance, in developing countries such as Brazil, the working women population has grown significantly. Processed foods are preferred because they are safe, convenient, and save time. These products can be stored and preserved as per the requirement because of the longer shelf life. Such factors will positively impact the growth of the perishable goods transportation market in the US during the forecast period.
Significant Perishable Goods Transportation Market Trend in US
The introduction of cloud technologies, artificial intelligence, and the internet of things is the primary trend in the perishable goods transportation market growth in US. With the evolution of big data analytics, improved decisions can be made in freights. As most companies use the latest technologies, such as sensors for the real monitoring of temperature and humidity, a huge amount of data is generated. This data can be used in predictive analytics and can give information about the number of instances the reefer has failed and the time of failure. This enables the company to identify the time when the reefer requires maintenance and thus make informed decisions in terms of the proper management of the freight.
Companies such as Intratab have introduced applications and tags that can perform the real-time monitoring of shipped perishable goods. The platform, Freshtime SP, connects the near-field communication (NFC) and radio-frequency identification (RFID) tags to smartphones, systems, and cloud databases. The application provides the user with information regarding hours of freshness, temperature, and shelf life, thereby improving the security and integrity of goods. Such factors will increase the market growth during the forecast period.
Major Perishable Goods Transportation Market Challenge in US
Food safety issues are a major challenge to the growth of the perishable goods transportation market in US. Perishable goods are highly susceptible to damage and spoilage. These products must be handled with care during transportation. Failure of any operating point can result in food safety issues. Shipped perishables must be refrigerated prior to shipment in a freezer. A direct transfer without cooling will affect product quality. Refrigerated containers must be maintained and sanitized prior to shipment to maintain hygiene. The function of refrigerated containers must be constantly monitored to avoid breakdowns. This necessitates the need for preventive maintenance by inspecting refrigeration equipment before and during the transportation process.
For Instance, in April 2016, the Food and Drugs Administration (FDA) published a rule for the transport of food to ensure food safety. The rule requires shippers to have documented sanitary practices when transporting food items. Other laws introduced were the Sanitary Food Transportation Act in 2005 and the Food Safety Modernization Act in 2011. In the case of pharmaceuticals and drugs, the FDA introduced regulations such as Prescription Drug Marketing Act-Drug sample storage and handling requirements. There is a standard scale of temperature to be followed while transporting different categories of goods. These factors will negatively impact the growth of the perishable goods transportation market in the US during the forecast period.
Key Perishable Goods Transportation Market in US Customer Landscape
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 Perishable Goods Transportation Market in US Customer Landscape
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.
Alliance Shippers Inc. - The company offers perishable goods transportation services such as arranging refrigerated shipments. Also, under this segment, the company offers global logistics and transportation solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the MPS segment will be significant during the forecast period. This category of perishable goods is more susceptible to microbial contamination when compared with other food products. Therefore, extra care has to be taken during transportation. These products have to be pre-cooled before moving to containers to retain the same temperature levels. Seafood, meat, and poultry must be carried at regulated temperature levels to preserve quality and freshness. Also, these food products have to be frozen at the given temperature standards. Cooling the product at a lower temperature than the standard value will affect texture, appearance, and moisture content.
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The MPS segment was valued at USD 1,315.37 million in 2017 and continue to grow by 2021. Meat production and consumption have increased significantly over the years owing to population growth, urbanization, and income growth in the US. The rise in seafood consumption can be attributed to the growing awareness of its health benefits. Seafood is rich in omega-3 acids, proteins, and other vital vitamins. Owing to these benefits, people have started consuming more seafood, thereby leading to the demand for seafood in the US. This growing demand, in turn, impacts the demand for perishable goods transport. Therefore, these goods have to be transported and stored appropriately to maintain quality and freshness. Any careless handling in the entire cold chain can result in meat and seafood spoilage, making them non-consumable. The above factors will increase segment growth during the forecast period.
The 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.
Perishable Goods Transportation Market Scope in US |
|
Report Coverage |
Details |
Page number |
135 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
Market growth 2023-2027 |
USD 1,873.75 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.75 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AIT Worldwide Logistics Inc., Alliance Shippers Inc., AP Moller Maersk AS, Bay and Bay Transportation, Burris Logistics Co., C H Robinson Worldwide Inc., CMA CGM SA, Columbian Logistics Network, COSCO Shipping 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., and VersaCold Logistics Services |
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. |
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 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 End-user
7 Market Segmentation by Mode of Transportation
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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