Food and Beverage Warehousing Market to Grow by USD 508.7 Billion (2024-2028) as Warehouse Automation Increases, with AI Driving Market Transformation- Technavio

NEW YORK, Oct. 15, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The Global Food and Beverage Warehousing Market size is estimated to grow by USD 508.7 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 21.22% during the forecast period. Demand for warehouse automation is driving market growth, with a trend towards business strategies adopted by vendors. However, power consumption in cold storage poses a challenge - Key market players include Agility Public Warehousing Co. K.S.C.P, Ahearn and Soper Inc., AIT Worldwide Logistics Inc., Amazon.com Inc., Americold Realty Trust Inc., Burris Logistics Co., Cargo partner GmbH, Conestoga Cold Storage, Congebec Logistics Inc., 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, Toyota Industries Corp., VersaCold Logistics Services, Walmart Inc., and Warehousing Express Logistics Pvt. Ltd..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now

Key Market Trends Fueling Growth

The food and beverages warehousing market is experiencing growth due to an increasing number of partnerships and collaborations among vendors, end-users, and distributors. Vendors are expanding their warehouse facilities and investing in new technologies to upgrade their storage capabilities. For instance, Americold Realty Trust announced a USD45 million expansion of its Dalgety site in New Zealand, increasing capacity by approximately 4.6 million cubic feet and 27,000 pallet positions. Preferred Freezer Services (now acquired by Lineage Logistics Holdings LLC) invested USD60 million in a new 200,000-square-foot cold storage warehouse in Virginia. These business strategies enable vendors to meet the growing demand for cold storage space and expand their product offerings, ultimately increasing revenue and driving the growth of the food and beverages warehousing market. 

The Food and Beverage Warehousing market is experiencing notable trends in various sectors. Fish & Seafood and Dairy & Frozen Desserts are popular categories, requiring temperature-sensitivity and refrigeration for perishability. Monetary policy tightening and climate disasters pose challenges, but disinflation offers relief. Beverages Warehousing demands temperature-controlled storage for beverages, fruits, and vegetables. Refrigerated warehousing services are essential for Meat exports, Meat, Fish, and Seafood, ensuring freshness and product traceability. Processing factories for Bakery, Confectionery, and Fruits & Vegetables require inventory management for Stock Keeping Units of finished goods. Retailers prioritize delivery, inventory, and cold storage facilities for perishable foods like Meal preparation kits. Grains storage also requires temperature control to maintain quality. E-commerce growth fuels demand for processed food products' warehousing. Rainbow pallets optimize space for diverse offerings. 

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

• The Food and Beverage Warehousing Market is experiencing significant growth due to the increasing demand for processed food items such as meat, fish, frozen food products, and ready-to-eat items. Cold storage warehouses are key players in this market, and many are expanding their facilities to meet the growing demand. Government initiatives, including excise duty exemptions for refrigeration machinery installation, further boost market growth in APAC countries. However, energy consumption and manpower requirements are major concerns for cold storage warehouse vendors. To address this, VFDs (Variable Frequency Drives) are being adopted to reduce energy consumption by up to 30%. Interstate Cold Storage, a leading public cold storage company in the Americas, has implemented VFD technology to reduce power usage and increase efficiency. Despite the benefits, only around 4% of cold storage warehousing in the US currently utilizes VFDs. As energy consumption remains a significant challenge for the market's growth during the forecast period, the adoption of energy-efficient technologies like VFDs is crucial.
• The Food and Beverage Warehousing market faces several challenges in sectors like Fish & Seafood, Dairy & Frozen Desserts, and Beverages. Monetary policy tightening and climate disasters add to the complexity. Perishable items, including Fish, Seafood, Dairy, Frozen Desserts, Fruits, Vegetables, Meat, and processed food products, require temperature-sensitivity and refrigeration. Temperature-controlled storage, like cold storage facilities, is crucial for maintaining freshness. Processing factories and retailers rely on stock keeping units, inventory, and product traceability. Monetary policy tightening and disinflation impact costs, while climate disasters and perishability increase risk. Rainbow pallets and meal preparation kits require specialized handling. Meat exports and retailer delivery schedules add to the complexity. Beverages warehousing services must manage temperature-controlled storage for various beverages. E-commerce growth demands efficient storage and delivery systems for perishable foods.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview 

This food and beverage warehousing market report extensively covers market segmentation by

1. Application 
• 1.1 Meat/ fish/ seafood
• 1.2 Dairy and frozen desserts
• 1.3 Bakery/ confectionery/ beverages
• 1.4 Fruits and vegetables
• 1.5 Others
2. End-user 
• 2.1 Processing factories
• 2.2 Distributors
• 2.3 Retailers
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Meat/ fish/ seafood- The meat, fish, and seafood products segment is a significant contributor to the global food and beverage warehousing market. This segment is projected to expand due to the rising global demand for these perishable items. Meat, fish, and seafood have a short shelf life and require specific temperature conditions for storage to prevent bacterial growth and maintain product quality. Major exporting countries in the Middle East, such as Saudi Arabia, Turkey, and Qatar, contribute to the segment's growth due to their high demand for meat exports. China, Japan, and India are key players in the Asia Pacific region for both imports and exports of these products. However, challenges exist in warehousing these items, including maintaining temperature during storage and transport to prevent spoilage and food waste. The importance of proper warehousing for meat, fish, and seafood is crucial to ensure product quality and reduce economic losses, making it an essential component of the global food and beverage warehousing market.

Download complimentary Sample Report to gain insights into AI's impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2017 - 2021) 

Research Analysis

The Food and Beverage Warehousing market plays a crucial role in ensuring the timely and efficient delivery of finished goods from processing factories to consumers. With the increasing demand for freshness, product traceability, and supply chain transparency, temperature-controlled warehouses have gained significant importance in the market. Perishable items like meat, fish & seafood, dairy & frozen desserts require specialized handling and storage conditions to maintain their freshness and quality. Monetary policy tightening and climate disasters pose challenges to the market, while disinflation provides some relief. Beverages warehousing also requires careful handling due to temperature sensitivity and perishability. Stock Keeping Units (SKUs) continue to increase, driven by the growing variety of food and beverage products. Refrigeration and temperature control systems are essential for maintaining the quality of vegetables, grains, and other food items during storage. The food supply chain relies heavily on warehousing to ensure the smooth flow of goods from processing factories to consumers.

Market Research Overview

The Food and Beverage Warehousing market plays a crucial role in ensuring the timely and efficient storage and delivery of finished goods. With the increasing popularity of meal preparation kits and e-commerce, there is a growing demand for temperature-controlled storage solutions to maintain the freshness and quality of perishable foods like meat, fish & seafood, dairy & frozen desserts, fruits, vegetables, and beverages. The market is also impacted by various factors such as monetary policy tightening, climate disasters, and disinflation. Rainbow pallets and Stock Keeping Units (SKUs) are used for efficient inventory management in these warehouses. Temperature sensitivity and perishability require the use of advanced refrigeration systems and climate control technologies. Processing factories and retailers rely on refrigerated warehousing services for the storage of processed food products, including bakery, confectionery, and grains. Meat exports also require specialized warehousing facilities to maintain the required temperature and humidity levels. Overall, the Food and Beverage Warehousing market is a critical component of the food supply chain, ensuring the delivery of high-quality products to consumers while minimizing waste and maximizing efficiency.

Table of Contents:

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

• Application
• Meat/ Fish/ Seafood
• Dairy And Frozen Desserts
• Bakery/ Confectionery/ Beverages
• Fruits And Vegetables
• Others
• End-user
• Processing Factories
• Distributors
• Retailers
• Geography
• North America
• Europe
• APAC
• 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
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio