Food and Beverage Warehousing Market Size 2024-2028

The food and beverage warehousing market size is estimated to grow by USD 508.7 billion at a CAGR of 21.22% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing demand for automation in warehousing operations. companies are adopting advanced business strategies, such as implementing robotics and IoT technologies, to enhance efficiency and reduce labor costs. Another key trend is the rising power consumption in cold storage facilities, necessitating the adoption of energy-efficient solutions. The F&B industry's reliance on just-in-time inventory management and the need for temperature-controlled storage has further fueled the market's expansion. However, challenges such as high capital investments, complex supply chain networks, and regulatory compliance requirements pose significant hurdles for market growth. Despite these challenges, the F&B warehousing market is expected to continue its upward trajectory, driven by the need for efficient and cost-effective storage solutions.

What will be the Size of the Food and Beverage Warehousing Market During the Forecast Period?

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Technavio’s Exclusive Food and Beverage Warehousing Market 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 Food and Beverage Warehousing Market Customer Landscape

Market Dynamics

The Food and Beverage Warehousing Market plays a crucial role in ensuring the timely and efficient storage and delivery of Finished Goods. The market encompasses various sectors, including Meat, Fish & Seafood, Dairy & Frozen Desserts, Vegetables, Grains, and Beverages Warehousing. These sectors require specialized storage conditions due to their Temperature Sensitivity and Perishability. Beverages Warehousing, for instance, demands specific temperature control to maintain Freshness. Similarly, Meat, Fish & Seafood, and Dairy & Frozen Desserts require refrigeration to preserve their quality. Inventory management is essential in this market, with Stock Keeping Units (SKUs) used to track and manage products. Supply chain transparency and Product traceability are essential in the Food Supply Chain. Monetary policy tightening and Disinflation can impact the market, while Climate disasters can disrupt operations. The processing factories are integral to the market, as they contribute to the production of Finished Goods. Refrigeration technology is a significant trend in the market, ensuring optimal conditions for temperature-sensitive products. The market is expected to grow due to increasing demand for Food and Beverage products and the need for efficient Supply Chain Management. 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 demand for warehouse automation is the key factor driving the global food and beverage warehousing market growth. Through automation, warehouse control software reduces transportation costs and manages orders by consolidating different orders from the same retailer or wholesaler. Technologies used for warehouse automation include warehouse management system software, warehouse control system software, and automated storage and retrieval system "ASRS". Rising demand for warehouse automation is, therefore, one of the major factors expected to boost the growth of the global food and beverages market during the forecast period.  

Along with all this, the demand for warehousing in the food and beverage sector comes from multiple sources such as large retailers, small stores, e-commerce,  and home delivery. The growth of APAC's organized retail sector is also fueling the demand for warehousing. An organized retail store has licensed stores that sell a variety of products in one store. It consists of a number of franchises owned by central entities. Consumer preferences have shifted from traditional retail to organized retail. Because organized retail offers a wide variety of products from a single source, this demand for organized retail also drives demand for food and beverage warehouses, as most organized retail products fall into the food and beverage category.

Significant Market Trends

The business strategies adopted by companies will fuel the global food and beverage warehousing market growth. Increasing partnerships and collaborations are expected to drive the growth of the market during the forecast period. The vendor partners and collaborates with end-users and distributors to improve sales channels and expand product portfolios. This is anticipated to drive the growth of the market during the forecast period. companies are focusing on expanding storage facilities. They invest in new technology and upgrade their storage facilities. For example, in June 2020, Americold Realty Trust announced its intention to invest approximately USD 45 million in expansion plans for its Dalgety facility in Auckland, New Zealand. The expansion will add approximately 4.6 million cubic feet of site capacity and approximately 27,000 pallets.

Similarly, Preferred Freezer Services (now acquired by Lineage Logistics Holdings LLC) invested approximately USD 60 million to build its 200,000-square-foot refrigeration facility in Virginia. The new facility will be used to import, export, process, and distribute a wide range of food products and will enable the company to meet the growing demand for refrigerated storage. Such business strategies increase the revenues of the companies and drive the growth of the food and beverages warehousing market during the forecast period. 

Major Market Challenge

The power consumption in cold storage can majorly impede the growth of the market. The high energy consumption and labor requirements are major concerns for cold storage operators. High energy consumption can be reduced by using VFDs in cold stores. A VFD provides the necessary requirements, such as cooling or heating, necessary to maintain a constant temperature or humidity with minimal power consumption. It is estimated that VFDs can reduce energy consumption in cold storage warehouses by more than 30%. One of the 25 largest public refrigeration facilities in America, the interstate refrigeration facility employs VFD technology to reduce power consumption. As a public cold storage warehouse, the facility has numerous rotating loads.

Therefore, high voltage is required for continuous operation. When connected to this load, the VFD reduces power consumption and increases the efficiency of various systems within its various units such as Compressor capacity control, condenser and evaporative fan control, refrigeration, and temperature control. It is estimated that about 4% of cold stores in the US use VFDs to reduce power consumption. Therefore, cold storage power consumption is likely to pose a major challenge to the growth of the food and beverage warehousing market during the forecast period. 

Who are the Major Food and Beverage Warehousing Market Players?

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.

Agility Public Warehousing Co: The company offers food and beverage warehousing services which include freight forwarding, contract logistics, project logistics, transportation, and fairs and events logistics.

Ahearn and Soper Inc: The company offers food and beverage warehousing services. It also offers barcode software and hardware solutions in manufacturing and distribution.

We also have detailed analyses of the market’s competitive landscape and offer information on 18 market companies, including:

• AIT Worldwide Logistics Inc.
• Amazon.com Inc.
• Americold Realty Trust Inc.
• Burris Logistics Co.
• Cargo partner GmbH
• Conestoga Cold Storage
• John Swire and Sons Ltd.
• Lineage Logistics Holdings LLC
• Net Logistik S.A. de C.V
• Nichirei Corp.
• Penske Corp.
• Ryder System Inc.
• Snowman Logistics Ltd.
• VersaCold Logistics Services
• Walmart Inc.
• Warehousing Express Logistics Pvt. Ltd.
• Congebec Logistics Inc.
• Toyota Industries Corp.

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Market Segmentation by Application, End-user, and Geography 

Application Analysis

The meat/fish/seafood segment will contribute a major share of the market, due to the increasing global demand for meat, fish, and seafood. The meat/ fish/seafood segment showed a gradual increase in market share with USD 58.3 billion in 2018. The meat/fish/seafood products have a very short shelf life. Most meat and fish products are susceptible to the growth of pathogens such as bacteria. Therefore, such products are stored at a certain temperature. Additionally, the high demand for meat exports from Middle Eastern countries such as Saudi Arabia, Turkey, and Qatar contributes to the growth of this segment. China, Japan, and India are the countries with the largest imports and exports of meat and seafood.

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The storage of meat and fish products presents challenges such as refrigeration of products during storage. The temperature changes prior to shipment and during transit can cause fluctuations in product quality during distribution and at the end of shelf life, and can lead to premature spoilage, leading to food waste and economic loss. These factors make the storage of meat/fish/seafood products essential. Rising demand for warehousing will therefore drive the growth of the segment in the food and beverages warehousing market during the forecast period. 

End-user Analysis

Food processing plants are one of the most important end users of warehousing. The increasing demand for various food products has increased the demand for warehousing from various food processing industries. Food processors can reduce the risk of contamination and spoilage by adopting good food storage practices. Additionally, there is a significant increase in demand for warehousing in food processing factories to ensure timely product delivery and effective food distribution. Warehouse management provides a centralized location for these industries, making it easier to track and manage inventory. By investing in warehouses, processors can ship and distribute their products more efficiently. Businesses can pack and sort food in their warehouses according to regulatory standards and customer requirements. This type of facility can be a great location for distribution as it eliminates the need to arrange pickup or hire staff to handle fulfillment. Therefore, increasing the number of processing plants will increase the demand for warehouses to manage inventory efficiently, driving the growth of the processing factories segment of the food and beverage warehousing market during the forecast period. 

Regional Analysis

North America is estimated to contribute 30% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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The food and beverage storage market in the North American region is mature and saturated. The major contributor to this market is the US, which generates the highest revenue in the North American region. The high revenue is due to its large population of people with high disposable income, increased consumption of meat and beverages, and the presence of major companies in the region. Additionally, effective public-private partnerships provide North American providers with a large amount of logistical support. Increasing consumer demand for vegetables and fruits is another factor contributing to the growth of the market in this region.

Segment Overview

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

• Application Outlook
  • Meat/ fish/ seafood
  • Dairy and frozen desserts
  • Bakery/ confectionery/ beverages
  • Fruits and vegetables
  • Grains and others

• End-user Outlook
  • Processing factories
  • Distributors
  • Retailers

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market plays a crucial role in ensuring the timely and efficient distribution of finished goods. This sector focuses on the storage of various perishable items, including meat, fish & seafood, dairy & frozen desserts, bakery, confectionery, fruits, vegetables, grains, and beverages. Perishability and temperature sensitivity are significant challenges in this market. Cold storage facilities and temperature-controlled storage are essential for maintaining freshness and product quality. Rainbow pallets and meal preparation kits are innovative solutions that help optimize inventory and delivery. E-commerce has significantly impacted the food and beverage warehousing industry, requiring more efficient and cost-effective solutions for processed food products and retailers. Monetary policy tightening and climate disasters can also affect the market, leading to disinflation and increased demand for refrigerated warehousing services. Meat exports and fish & seafood, dairy, frozen desserts, bakery, confectionery, and beverages are major segments of the food and beverage warehousing market. Processing factories play a vital role in ensuring the timely delivery of these products to retailers and consumers. In conclusion, the food and beverage warehousing market is a critical component of the food supply chain, ensuring the delivery of fresh and high-quality products to consumers while addressing challenges such as temperature sensitivity, perishability, and e-commerce demand.

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What are the Key Data Covered in this Food and Beverage Warehousing Market Research Report?

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

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