Food and Beverage Warehousing Market Report Overview
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The global food and beverage warehousing market size was USD 236910 million in 2022 and market to touch USD 569074 million in 2031, at a CAGR of 10.2% during the forecast period.
Food and beverage warehousing is a business activity that involves keeping finished goods in storage until they are prepared for delivery to stores or eateries. Food and beverage warehousing is significant because it enables companies to maintain a consistent inventory of goods, which supports their ability to remain in operation.
The food and beverage supply chain moves quickly and constantly changes. The market is evolving quickly to keep up with changing consumer wants. Although change is nothing new, the rate at which it occurs poses particular difficulties for the food and beverage industry's warehouses and distribution hubs. As a result of tightening food safety rules, demand from consumers, merchants, and government organizations advocating for product traceability and supply chain transparency is steadily rising. Although the purpose of these regulations is to make food items safer, they frequently cause additional challenges for the supply chain.
Consumers desire to diversify their diets in addition to having concerns about the freshness of their food. Moving forward, warehouses and fulfilment centers will need to discover new ways to manage more SKUs with smaller product quantities as a result of the shift toward greater diversity, which inevitably leads to the proliferation of more complicated SKUs. Similar to this, there is a rising demand for mixed-SKU cases and pallets, sometimes known as "rainbow" pallets. The pandemic has increased demand for individualized meal preparation kits from businesses like Hello Fresh and Blue Apron. Manufacturers must package each meal with all the necessary ingredients; hence this complicates the kitting procedure for these activities.
COVID-19 Impact: Disruption in Supply Chain to Impede Market Expansion
It is projected that the COVID-19 pandemic will impede market growth due of restrictions in the food supply chain during the outbreak. According to data published by the United Nations Office on Drugs and Crime, for instance, the successful measures used to curb the COVID-19 pandemic's spread have eventually had a negative influence on the food supply chain. Many countries throughout the world have reported a general shortage of different raw materials and vegetables at the retail level. The market for consumer services is expected to suffer as a result of problems with the supply chain that influence the production and transportation of food and other items.
Latest Trends
"Demand For Cold Storage Facilities to Augment Market Growth"
Seafood, meat, and other perishable foods must be stored under specific conditions to preserve their freshness and safety. At the retail level, meat, fish, and seafood are typically kept in temperature-controlled spaces like cold stores or chilled cabinets. The demand for cold storage facilities has increased over the past few years due to the expansion of the global meat industry; this trend is anticipated to continue over the forecast period due to factors like population growth and rising disposable incomes in emerging economies across various regions supporting food and beverage warehousing market growth.
Food and Beverage Warehousing Market Segmentation
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- By Type Analysis
According to type, the market can be segmented into meat, fish, and seafood warehousing, dairy and frozen desserts warehousing, fruits and vegetables warehousing, bakery and confectionery warehousing, beverages warehousing, and other.
In terms of product, bakery and confectionery warehousing is the largest segment.
- By Application Analysis
Based on application, the market can be divided into processing factory, retailers and other.
In terms of application, processing factory is the largest segment.
Driving Factors
"Demand For Temperature-Controlled Food Products to Uplift Market Profile"
The demand for temperature-controlled food products has been rising due to customer concerns about their health on a global scale, which can be ascribed to this rise. It is anticipated that increasing e-commerce will increase demand. Due to the expanding global adoption of online payments and the increasing prevalence of internet users, the global e-commerce market is anticipated to expand at a healthy CAGR. Better food and beverage warehousing infrastructure would result from this, which would further fuel the market's expansion throughout the projection period.
"Processing Industrial Segment to Lead the Market"
The processing industrial segment dominated the market for food and beverage warehousing globally. This is a result of an increase in packaged food product demand across a number of continents, including North America and Europe. The processed foods include jams, pickles, canned meat and fish, as well as other sauces that are frequently available in restaurants or other eating establishments. Due to increased consumer disposable income, particularly in emerging markets., the retailer’s application category is anticipated to have considerable expansion over the course of the projection period. Customers enjoy making purchases from merchants who offer a large selection of products online together with outstanding customer service assistance that enables them to address questions about product availability at the time of purchase.
Restraining Factors
"Sophisticated Supply Chain to Impede Market Expansion"
The food supply chain has expanded quickly in recent years, and consumers now anticipate having exotic delicacies on their plates year-round, fresh. Due to this, the supply chain is now longer and more sophisticated than ever, extending globally and including numerous more parties. If things weren't already difficult enough, the multi-year COVID pandemic shutdown that occurred in 2020 put even more strain on supply chains by closing down numerous restaurant and food service supply chains and putting more strain on retail chains and direct-to-consumer food delivery.
Food and Beverage Warehousing Market Regional Insights
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"North America to Dominate the Market Due to High Demand from End-Use Industries"
Due to the high demand from end-use industries such food and beverage, retail, and logistics, North America held a considerable part of the global food and beverage warehousing market share. Due to growing investments made by businesses in the construction of cutting-edge cold storage facilities that can preserve perishable foods at little temperature fluctuation, the region is predicted to maintain its supremacy during the forecast period.
Due to the quick changes occurring in the food industry sectors, such as processed foods and fresh fruit and vegetable storage services, it is anticipated that this region will experience one of the quickest growth rates over the forecast period. Additionally, it is anticipated that as disposable income levels rise, demand for these services will increase. This will be advantageous for companies operating in this industry as well as consumers who prefer to buy goods from reputable suppliers rather than street vendors or grocery stores that sell products with shorter shelf lives at higher prices.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled
- Americold (U.S.)
- Lineage Logistics (U.S.)
- John Swire & Sons (U.K.)
- Preferred Freezer Services (U.S.)
- Oxford Cold Storage (Australia)
- Nichirei Logistics Group (Japan)
- Kloosterboer (Canada)
- VersaCold Logistics Services (Netherlands)
Report Coverage
This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 236910 Million in 2022 |
Market Size Value By |
US$ 569074 Million by 2031 |
Growth Rate |
CAGR of 10.2% from 2022 to 2031 |
Forecast Period |
2024-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global food and beverage warehousing market expected to touch by 2031?
The global food and beverage warehousing market is expected to touch USD 569074 million by 2031.
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What CAGR is the food and beverage warehousing market expected to exhibit during 2022-2031?
The food and beverage warehousing market are expected to exhibit a CAGR of 10.2% over 2022-2031.
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Which are the driving factors of the food and beverage warehousing market?
Demand for temperature-controlled food products and processing industrial segment are the driving factors of the food and beverage warehousing market.
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Which are the top companies operating in the food and beverage warehousing market?
Americold, Lineage Logistics, John Swire & Sons, Preferred Freezer Services, Oxford Cold Storage, Nichirei Logistics Group, Kloosterboer, VersaCold Logistics Services, Partner Logistics, Nordic Logistics and Warehousing, Cloverleaf Cold Storage, Conestoga Cold Storage, Congebec, Snowman Logistics are the top companies operating in the food and beverage warehousing market.
