Food Supply Chain Market to Grow by USD 59.51 Billion (2024-2028), Blockchain Integration Boosts Growth, Report with Market Evolution Powered by AI

NEW YORK, Feb. 4, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global food supply chain market size is estimated to grow by USD 59.51 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  7.86%  during the forecast period. Integration of blockchain in food supply chain is driving market growth, with a trend towards increasing mergers and acquisitions among market vendors. However, data security and cyber threats associated with food supply chain management  poses a challenge. Key market players include 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..

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Market Driver

The food supply chain market is experiencing significant trends in fresh and perishable foods, driven by growing consumer preferences for healthier options. Temperature-controlled logistics, including refrigerated transport technologies and cold chain management, are crucial for ensuring food safety and quality. E-commerce platforms are revolutionizing food trade, requiring temperature-controlled logistics and inventory management systems. Safety regulations are a top priority, with artificial intelligence and the Internet of Things used for monitoring and traceability. Blockchain technologies offer transparency and traceability from farm to table. Sustainability is a key concern, with customized logistics solutions and cold chain capabilities addressing economic growth and environmental concerns. Meats, dairy, fruits, vegetables, and processed foods all require specific handling and logistics considerations. Agriculture, food processing, and retail sectors are integrating to improve supply chain efficiency and reduce food waste and loss. Standards, funding, and technology investments in precision farming, data management, and product traceability are essential for consumer trust and provenance. Transportation infrastructure, multi-modal solutions, and trade liberalization are shaping the food supply chain landscape. Health and safety regulations, positioning systems, radio frequency identification, and warehouse management systems are critical components of the food supply chain ecosystem. Food retailers and food safety authorities must collaborate to ensure the highest standards and minimize contamination sources. 

The food supply chain market is experiencing significant growth due to mergers and acquisitions among vendors. Companies are combining resources and strengths to create more efficient and resilient supply networks. These alliances lead to improvements in logistics, traceability, and the adoption of innovative technologies like blockchain and IoT sensors. For instance, Dachser SE’s acquisition of Frigoscandia AB in February 2024 expands DACHSER’s food logistics network to the Nordic countries. Such partnerships help reduce costs, minimize waste, and ensure food safety and quality throughout the supply chain. Vendors are leveraging these collaborations to stay competitive in the global food industry. 

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 Market Challenges

•         The food supply chain market faces numerous challenges in providing fresh and perishable foods to consumers. Temperature-controlled logistics is crucial for meats, dairy, fruits, and vegetables, requiring advanced refrigerated transport technologies and cold chain management. E-commerce platforms have disrupted food trade, necessitating safety regulations and traceability. Consumer preferences for customized logistics solutions and sustainability drive the need for cold chain capabilities and logistics infrastructure. Food safety and health concerns require strict regulations, positioning systems, radio frequency identification, and warehouse management systems. Agriculture, processing stage, and food retailers must adhere to standards for nutrition, food waste reduction, and product traceability. Artificial intelligence, IoT, and blockchain technologies are transforming food supply chain integration, ensuring transparency, efficiency, and consumer trust through provenance and contamination source tracking. Economic growth and environmental concerns necessitate multi-modal transportation, inventory management, and trade liberalization. Agri-tech startups and funding are crucial for precision farming, data management, and addressing food loss and food waste.

•         Food supply chains are becoming more digitized and interconnected, bringing numerous benefits such as improved efficiency and transparency. However, this increased connectivity also exposes sensitive information to cybersecurity risks. Customer data, logistics details, and financial transactions are prime targets for cybercriminals. A successful breach can result in supply chain disruptions, compromised food safety, financial losses, and damage to brand reputation. The interconnected nature of modern food supply chains means that a security weakness in one part of the network can potentially compromise the entire system. Furthermore, the integration of Internet of Things (IoT) devices and sensors throughout the supply chain enhances tracking and monitoring capabilities but also increases the number of potential entry points for cyber-attacks. It is crucial for food supply chain businesses to prioritize cybersecurity measures to protect their operations and maintain customer trust.

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Segment Overview 

This food supply chain market report extensively covers market segmentation by  

1. Product Type

• 1.1 Packaged food
• 1.2 Fresh food

• 2.1 Households
• 2.2 Commercial
• 2.3 Industrial

• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Packaged food- The packaged food segment is expected to experience significant growth during the forecast period. This category, which includes processed foods, snacks, beverages, and ready-to-eat meals, is seeing a marked rise in demand in the United States. This is driven by shifting consumer lifestyles, urbanization, and the growing preference for convenient, long-lasting food options. The complex packaged food supply chain involves sourcing raw materials, manufacturing, packaging, distribution, and retail placement. Ensuring food safety and maintaining product quality remain top priorities, requiring advanced tracking and tracing systems. Companies are heavily investing in automation and Radio Frequency Identification (RFID) technology for smart packaging, which helps extend shelf life and preserve product integrity. Additionally, Warehouse Management Systems (WMS) and positioning systems are being utilized to optimize operations and improve efficiency.

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Research Analysis

The Food Supply Chain market encompasses the production, distribution, and consumption of fresh and perishable foods. This critical sector relies heavily on temperature-controlled logistics to ensure the quality and safety of goods. E-commerce platforms are revolutionizing food trade by enabling consumers to purchase fresh produce, meats, dairy, fruits, vegetables, and processed foods online. Safety regulations play a pivotal role in the food supply chain, with strict guidelines for handling, storage, and transportation of food items. Technological advancements such as artificial intelligence, Internet of Things, and blockchain technologies are being integrated into the food supply chain to enhance efficiency, transparency, and traceability. Transportation, cold chain management, and warehousing are essential components of the food supply chain, ensuring the timely and safe delivery of goods. Agriculture is the primary source of raw materials, with a focus on sustainable farming practices and reducing food waste. Positioning systems, Radio Frequency Identification (RFID), and Warehouse Management Systems are used to optimize inventory management and streamline operations. Consumer preferences for healthier, fresher, and more convenient food options continue to drive innovation in the food supply chain market.

Market Research Overview

The Food Supply Chain market encompasses the production, transportation, warehousing, and retail of fresh and perishable foods, including meats, dairy, fruits, and vegetables. Temperature-controlled logistics plays a crucial role in ensuring the safety and quality of these products. E-commerce platforms are revolutionizing food trade by offering consumers convenient access to a wide range of food items. Safety regulations, consumer preferences, and sustainability are key drivers in the food supply chain. Advanced technologies like artificial intelligence, the Internet of Things, and blockchain are transforming the industry by improving cold chain management, inventory management, and traceability. Transportation and logistics infrastructure are essential components of the food supply chain, with refrigerated transport technologies and multi-modal transportation playing important roles. Sustainability, economic growth, and environmental concerns are also significant factors, with a growing emphasis on customized logistics solutions and cold chain capabilities. Food waste and loss are major challenges in the food supply chain, with processing stage, food retailers, and standards all playing a role in minimizing these issues. Funding and agri-tech startups are also shaping the future of the food supply chain through precision farming, data management, and product traceability. Consumer trust and provenance are key considerations, with contamination sources and health and safety regulations also being closely monitored. Positioning systems, radio frequency identification, and warehouse management systems are all important tools used in the food supply chain to optimize operations and improve efficiency. Agriculture, food safety, online platforms, payment transactions, and nutrition are all interconnected aspects of the food supply chain, with economic growth and trade liberalization also impacting the industry.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product Type
• End-user
• Households
• Commercial
• Industrial
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio