PUBLISHER: The Business Research Company | PRODUCT CODE: 1566701
PUBLISHER: The Business Research Company | PRODUCT CODE: 1566701
Groceries transportation involves the logistics and distribution processes for moving food and household items from suppliers or wholesalers to retail outlets, supermarkets, or directly to consumers via online grocery platforms. This sector focuses on efficiently managing perishable goods, ensuring timely deliveries to preserve product freshness, and optimizing routes to reduce transportation costs and environmental impact.
The primary product types in groceries transportation include vegetables and fruits, dairy products, meat and seafood, and other categories. The transportation of vegetables and fruits involves handling fresh produce such as leafy greens, root vegetables, berries, and tropical fruits, which requires refrigerated transport and careful handling to maintain freshness and quality. The transportation modes encompass roads, railways, seaways, and airlines, serving various applications such as retail, food and beverage, consumer goods, and more.
The groceries transportation market research report is one of a series of new reports from the business research company that provides groceries transportation market statistics, including groceries transportation industry global market size, regional shares, competitors with an groceries transportation market share, detailed groceries transportation market segments, market trends and opportunities, and any further data you may need to thrive in the groceries transportation industry. This groceries transportation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The groceries transportation market size has grown strongly in recent years. It will grow from $56.48 billion in 2023 to $60.5 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to the rise of online grocery shopping, the expansion of urban areas, changes in regulations, increased consumer demand for fresh products, and the expansion of retail chains.
The groceries transportation market size is expected to see strong growth in the next few years. It will grow to $80.08 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to the expansion of e-commerce, sustainability initiatives, globalization of supply chains, shifting consumer preferences, and the adoption of environmentally friendly transportation practices. Major trends in the forecast period include AI-driven logistics, the use of advanced analytics, blockchain technology integration, innovations in cold chain technology, and developments in autonomous vehicles.
The growth of online grocery shopping is anticipated to drive the expansion of the grocery transportation market in the future. Online grocery shopping involves ordering groceries and household essentials through digital platforms and having them delivered directly to one's home. The rise in online grocery shopping is fueled by its convenience, including 24/7 availability, doorstep delivery, and a broad selection of products. Grocery transportation services play a crucial role in ensuring timely delivery, maintaining product freshness, and meeting customer expectations for reliable service. For example, Adobe reported in March 2023 that the e-grocery market grew significantly, with online spending reaching $73.7 billion in 2020 and growing by 103% year on year to $79.2 billion in 2021. Additionally, consumers now spend an average of $6.7 billion monthly on groceries, up from $3.1 billion before the pandemic. Hence, the expansion of online grocery shopping is expected to drive growth in the grocery transportation market.
Key players in the grocery transportation market are focusing on integrating artificial intelligence (AI) into logistics solutions, such as route optimization, to enhance customer convenience and improve supply chain efficiency. Route optimization technologies use machine learning (ML) techniques to efficiently plan transportation routes and schedules. For instance, in March 2024, Walmart Inc., a US-based retail corporation operating hypermarkets, discount department stores, and grocery stores, introduced Element, an AI-powered software solution for optimizing truck delivery routes and schedules. This AI technology aims to improve operational efficiency and enhance customer experiences for Walmart's partners. The software's flexible pricing model, based on usage volume and frequency, addresses the complexities of large-scale AI deployment, offering benefits such as freedom from vendor lock-in, cost savings, and enhanced reliability.
In June 2021, Lineage Logistics, a US-based temperature-controlled warehouse real estate investment trust, acquired Kloosterboer Group for an undisclosed amount. This acquisition strengthens Lineage's position as a leading global provider of temperature-controlled logistics, expanding its geographic reach, advancing its sustainability initiatives, and enhancing its innovative capabilities to better serve customers worldwide. Kloosterboer Group, based in the Netherlands, is a transportation provider specializing in temperature-controlled food products, including groceries.
Major companies operating in the groceries transportation market are Cargill Incorporated, A.P. Moller - Maersk A/S, SYSCO Corporation, Performance Food Group Company, DB Schenker, Kuehne + Nagel International AG, C.H. Robinson Worldwide Inc., Gordon Food Service Inc., J.B. Hunt Transport Inc., Ryder System Inc., SpartanNash Company, XPO Logistics Inc., Lineage Logistics Holdings LLC, Total Quality Logistics LLC, McLane Company Inc., Hellmann Worldwide Logistics GmbH & Co. KG, NFI Industries, Werner Enterprises Inc., Americold Realty Trust, US Xpress Inc., Lynden Incorporated, Greatwide Logistics Services, Trinity Logistics Inc., H&M Bay Inc., PSS Distribution Services, Domenico Transportation Co.
North America was the largest region in the groceries transportation market in 2023. The regions covered in the groceries transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the groceries transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The groceries transportation market consists of revenues earned by entities by providing services such as last-mile delivery services, temperature-controlled transportation, logistics and supply chain management, packaging, and handling services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Groceries Transportation Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on groceries transportation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for groceries transportation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The groceries transportation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.