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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 notable trend is the integration of blockchain technology into food supply chains, which enhances transparency, traceability, and security. Another trend is the increasing number of mergers and acquisitions among market competitors, leading to consolidation and intensified competition. However, data security and cyber threats remain significant challenges, as food supply chain management involves handling vast amounts of sensitive information. Addressing these challenges through cybersecurity measures and collaboration among stakeholders is essential for ensuring the integrity and safety of the food supply chain.
The market encompasses the production, transportation, warehousing, and distribution of fresh foods and perishable items such as meats, dairy, fruits, vegetables, and processed foods. Temperature-controlled logistics plays a crucial role in this market due to the sensitivity of these products to external conditions. E-commerce platforms have significantly impacted the food supply chain by increasing the demand for quick and efficient delivery. Safety regulations are a major concern in the food supply chain, ensuring the health and safety of consumers. Technologies like Artificial Intelligence, Internet of Things, Blockchain, and Positioning Systems are being adopted to enhance cold chain management, warehouse management, and transportation. Radio Frequency Identification and Warehouse Management systems streamline the tracking and monitoring of food products. Agriculture is the primary source of food production, and the food supply chain connects it to consumers. The market is driven by consumer preferences for fresh and high-quality food. The transportation sector plays a vital role in ensuring timely delivery, while cold chain management maintains the required temperature conditions for perishable items. Overall, the market is a complex system that requires efficient coordination between various stakeholders to meet the growing demand for food while ensuring safety and quality.
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.
The packaged food segment is estimated to witness significant growth during the forecast period. The food supply chain encompasses the production, transportation, warehousing, and distribution of fresh and perishable foods, including meats, dairy, fruits, vegetables, and processed foods. This market is expanding due to the increasing demand for consumer preferences towards fresh and healthier food options, driven by economic growth, urbanization, and changing lifestyles. Temperature-controlled logistics plays a crucial role in the food supply chain, with the integration of advanced refrigerated transport technologies, cold chain management capabilities, and sustainability initiatives. E-commerce platforms and trade liberalization have significantly impacted the food trade, requiring customized logistics solutions and multi-modal transportation to ensure the safe and efficient delivery of perishable goods.
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The packaged food segment was valued at USD 54.22 billion in 2018. Safety regulations and consumer health concerns are prioritized through the implementation of food safety standards, and traceability systems using technologies such as positioning systems, Radio Frequency Identification (RFID), and warehouse management systems. Artificial intelligence, Internet of Things (IoT), and Blockchain technologies are revolutionizing the food supply chain by enhancing inventory management, supply chain integration, and cold chain capabilities. Agriculture and food production are also adopting these technologies to optimize yields, reduce waste, and improve overall efficiency. Sustainability and environmental concerns are increasingly important considerations, driving the adoption of renewable energy sources and reducing carbon footprints throughout the food supply chain.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavioâs analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is a critical sector that encompasses payment transactions between various stakeholders, including food processors, retailers, and farmers. A significant challenge in this market is food waste and loss, which can occur at various stages, from farming to retail. To mitigate these issues, standards and funding for precision farming and data management are essential. These technologies enable product traceability, ensuring consumer trust through provenance and contamination source identification. Agri-tech startups are playing a pivotal role in advancing these solutions, leveraging technology to optimize farming practices and reduce food loss. By focusing on these areas, the market can improve efficiency, reduce waste, and enhance consumer confidence.
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.
Integration of blockchain in food supply chain is notably driving market growth. The market encompasses the production, transportation, warehousing, and distribution 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 refrigerated transport technologies and cold chain management being essential components. E-commerce platforms have significantly impacted food trade, necessitating customized logistics solutions and efficient inventory management. Safety regulations and consumer preferences continue to shape the food supply chain, with an increasing focus on sustainability and traceability. Artificial intelligence and the Internet of Things are being integrated into food supply chain operations to optimize cold chain capabilities and logistics infrastructure.
Blockchain technologies are revolutionizing the industry by enhancing traceability and food safety through real-time tracking and an immutable record of each step in the supply chain. This includes positioning systems, radio frequency identification, and warehouse management systems, enabling instant verification of origin, processing, and distribution. Transportation and multi-modal logistics solutions are essential for the efficient movement of food products, with economic growth and environmental concerns influencing the industry's evolution. Agriculture and food supply chain integration are critical areas of focus, with trade liberalization and online platforms playing increasingly significant roles. Overall, the market is undergoing significant transformation, driven by advancements in technology and evolving consumer demands. Thus, such factors are driving the growth of the market during the forecast period.
Increasing mergers and acquisitions among market companies is the key trend in the market. The market is experiencing significant growth due to mergers and acquisitions among market participants. These strategic alliances enable companies to combine complementary strengths, pool resources, and establish more effective and adaptable supply networks. The resulting improvements in logistics, traceability, and technology adoption, such as blockchain and IoT sensors, are crucial. For instance, in February 2024, DACHSER SE, a German freight company, acquired Frigoscandia AB, a food logistics provider, to expand its food logistics presence in the Nordic countries. Such collaborations can lead to cost savings, reduced waste, and enhanced food safety and quality throughout the supply chain. In the context of the food industry, which includes fresh and perishable foods like meats, dairy, fruits, and vegetables, as well as processed foods, these advancements are essential. The integration of supply chain systems, cold chain capabilities, and logistics infrastructure is vital for ensuring the sustainability and economic growth of food trade.
Additionally, consumer preferences for fresh and nutritious food, along with increasing health and safety regulations, necessitate the adoption of advanced technologies and customized logistics solutions. The implementation of refrigerated transport technologies, inventory management systems, and positioning systems, such as Radio Frequency Identification (RFID), further enhances the efficiency and transparency of food supply chains. Furthermore, environmental concerns and trade liberalization require multi-modal transportation and traceability systems to ensure the sustainability and ethical sourcing of food products. Overall, the market is undergoing a transformative period, driven by technological advancements, regulatory requirements, and evolving consumer preferences. Thus, such trends will shape the growth of the market during the forecast period.
Data security and cyber threats associated with food supply chain management is the major challenge that affects the growth of the market. The food supply chain, encompassing fresh and perishable foods, has witnessed significant advancements with the integration of technology and e-commerce platforms. Temperature-controlled logistics plays a crucial role in ensuring the quality and safety of meats, dairy, fruits, vegetables, and processed foods. Cold chain management, including refrigerated transport technologies and warehousing, is essential for maintaining the freshness and nutritional value of these products. Sustainability and customized logistics solutions are also becoming important considerations, driven by consumer preferences and economic growth. Advancements in technology, such as artificial intelligence, the Internet of Things, and blockchain technologies, offer improved cold chain capabilities, inventory management, and traceability.
However, these technologies also introduce new challenges, particularly in the area of cybersecurity. With the increasing digitization of food trade, there is a heightened risk of cyber-attacks, which can disrupt supply chains, compromise food safety, result in financial losses, and damage brand reputation. The interconnected nature of modern food supply chains means that a security breach in one part of the network can potentially affect the entire system. Additionally, the integration of IoT devices and sensors throughout the supply chain provides more entry points for cybercriminals. As such, it is imperative to prioritize cybersecurity measures and ensure the implementation of rising safety regulations and positioning systems, such as radio frequency identification and warehouse management systems, to mitigate these risks. Agriculture and food supply chain stakeholders must collaborate to address these challenges and maintain the integrity and security of the food supply chain. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovatorâs stage to the laggardâs 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 analysis strategies.
Customer Landscape
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.
Archer Daniels Midland Co. - The company offers a comprehensive range of services within the food supply chain. Also, the company specializes in the procurement of high-quality ingredients, ensuring their timely delivery through efficient logistics management.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
Food supply chain marketing encompasses the promotion and management of the transportation, warehousing, and distribution of fresh foods and perishable items. Temperature-controlled logistics plays a crucial role in ensuring the quality and safety of meats, dairy, fruits, vegetables, and processed foods during food trade. E-commerce platforms have significantly impacted the food industry by providing consumers with convenient access to a wide range of food products. Safety regulations are essential in food supply chain marketing to maintain consumer trust and adhere to health and safety standards. Artificial intelligence and the Internet of Things are being integrated into food supply chain management for efficient inventory management and cold chain capabilities. Blockchain technologies offer transparency and traceability, enabling consumers to track the origin of their food from farm to table.
Sustainability and customized logistics solutions are also becoming increasingly important in food supply chain marketing, as economic growth and environmental concerns continue to shape consumer preferences. Refrigerated transport technologies and multi-modal transportation are critical components of food supply chain infrastructure, ensuring the timely and efficient delivery of perishable goods. Agriculture and food supply chain integration are also key areas of focus, as positioning systems, radio frequency identification, and warehouse management systems streamline operations and improve supply chain efficiency. Nutrition and health concerns continue to drive demand for safe and high-quality food products, making food safety a top priority in food supply chain marketing. Trade liberalization and the implementation of health and safety regulations are also shaping the future of the food supply chain industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
202 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.86% |
Market growth 2024-2028 |
USD 59.51 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.8 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, Germany, Canada, China, France, India, Japan, UK, Italy, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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, and YUSEN LOGISTICS CO. LTD. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Product Type
9 Market Segmentation by End-user
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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