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Smart Food Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·7-min read

The global smart food logistics market (henceforth referred to as the market studied) was valued at USD 8. 12 billion in 2020, and it is expected to reach USD 16. 78 billion by 2026, registering a CAGR of 13.

New York, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Smart Food Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06184961/?utm_source=GNW
42% during the period of 2021-2026. The market for smart logistics in the food industry has emerged from the benefits of facilitating the ‘Ease of procuring’ to tracking packages in transit. The ability to receive the items fresh with real-time access to the movement of food is where smart logistics powered by the internet of things (IoT) is making a huge difference.?

Key Highlights
Convergence of logistics and technology, along with cloud-based collaborative solutions that extend through the entire supply chain, has enabled a tight integration of warehouse, transport, and end consumer information and transparency through the supply chain; this, in turn, has been identified as a key driver towards the growth of the market studied.??
As the digital economy continues to grow, IoT technology has transitioned from a futuristic idea to a tactical tool for logistics companies to implement in their supply chain. Sensors and IoT tools are transforming traditional asset tracking to intelligent supply chains capable of earning logistics companies a higher ROI. For the food industry, these IoT-enabled sensors offer real-time knowledge of asset/fleet location, fleet motion speed, temperature conditions, and other crucial data sets.?
The sensors also help the allied stakeholders closely monitor food safety data points, thus ensuring efficient cold chain management. This data enables compliance adherence with local and global regulations. For instance, by using automated Hazard Analysis Critical Control Points (HACCP) checklists during the production, manufacturing, and transporting processes, companies attain access to consistent, meaningful data to implement food safety solutions.?
Likewise, varying food laws and regulations across regions, one being the Food and Drug Safety Act, has been realized as putting significant pressure on supply chains to record more information and increase transparency. ?
The COVID-19 pandemic severely disrupted almost all the end-user industries globally, affecting the supply chain management of businesses due to remote working conditions or complete lockdown, resulting in the halt of operations.? The disruption proliferated the use of technology and digitalization to its maximum to survive the pandemic and help prevent the disruption of their operations.??
The pandemic affected the logistics industry in various ways, as the Logistics Managers’ Index (LMI) for April 2020 fell to an all-time low. The LMI is based on eight unique components that involve inventory (levels and costs), warehousing (capacity, utilization, and prices), and transportation (capacity, utilization, and prices).??

Key Market Trends

Cold Chain Monitoring to Hold a Significant Share

The need to maintain the cold chain throughout the delivery process rose a significant barrier for many producers of perishable goods, artisanal food producers, and farmers with little or no logistic capacities of their own.

Rapidly changing food habits, heightened demand for packaged food, and stringent regulations regarding packing and storage have resulted in a power shift from manufacturers to retailers. Processes focusing on zero contamination, precise storage, and high-speed storage and retrieval operations are the key reasons driving automation and the adoption of the technologies in the food and beverage logistics process.?
A cold chain monitoring solution helps the food manufacturers efficiently manage the storage, shipment, and distribution of products requiring a temperature-controlled environment. Incomplete cooling chains caused by mechanical breakdowns, traffic delays, and other factors create changing temperatures that can affect perishable foods’ spoilage and safety. Also, a lack of real-time visibility of goods locations can contribute to inefficient operational processes.?
Hence, the adoption of cold chain monitoring ensures stable temperatures for the transport and storage of goods. Technologies like Bluetooth Low Energy (BLE) beacons with temperature sensors enable tracking goods locations at relevant checkpoints and tracing temperature data continuously and seamlessly, during shipment or throughout the supply chain.?
Multiple food logistics companies are engaging in expansion activities. For instance, in September 2020, third-party food logistics company FreezPak Logistics has announced its plans to build a 140,000 square-foot facility in the United States equipped with an automated storage and retrieval system. The location is to be outfitted with 12 robots that can automatically retrieve and store goods.?
Companies such as Walmart have been investing significantly in automated grocery selection robots. The company’s Alphabot makes order picking within the warehouse using autonomous carts to pick frozen and refrigerated items and groceries stored at room temperature. The robot locates an item, picks it, and brings it to a workstation to be checked by a staff member. Such automation trends in the industry are expected to create significant opportunities for the adoption of cold chain monitoring solutions.

North America Holds Major Share

The region is anticipated to hold the largest share in adopting smart logistics due to many vendors’ presence and increasing concern to eliminate wastage and optimize resources.

North America is one of the prominent asset tracking markets due to the strong presence of the manufacturing and transportation, and logistics industries, with several technological advancements in the region. Also, government initiatives and regulations in various end-user industries are expected to increase the region’s market growth.?
? The government toward the adoption of technologies to tackle wastage in the supply chain is also pushing the growth of the market in the region. For instance, the Federal Highway Association (FHWA), along with the American Association of State Highway and Transportation Officials (AASHTO), and state and local departments of transportation (DOTs), have been encouraging the application of asset tracking in the transportation and logistics industry.?
In June 2021, the US Department of Agriculture announced a USD 4 billion investment in the food supply chain, designed to support food production, improve processing, and invest in distribution and market opportunities. An additional USD 100 billion loan guarantee program fund was also paid for through the American Rescue Plan Act.
The region has a robust presence of players offering IoT solutions, and the investments made by the players in the region drive the growth of the market. In August 2021, Geotab announced the launch of Cold Chain, an offering for HGVs and vans with refrigeration capabilities that are designed to help resolve the challenges of ongoing temperature control and monitoring of refrigerated vehicles.
In the Canadian market ecosystem, players are adopting different organic and inorganic growth strategies to stay competitive. For instance, in August 2020, Rogers for Business and Roambee, a logistics solution player, announced a strategic partnership to provide businesses with real-time monitoring for shipments and assets outdoors, indoors, and on the go. With the continuation of COVID-19 to significantly impact the shipment of goods across borders, Roambee’s solution may allow businesses to have more visibility of their assets and control over their whole supply chain.

Competitive Landscape

The smart food logistics market is moderately fragmented. The major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. Some of the key developments in the market are:

Aug 2020 - Hacobu Co., Ltd. renewed its telematics service "MOVO Fleet"for the logistics industry. Hacobu is developing a cloud service, "MOVO,"with the aim of optimizing inter-company logistics. "MOVO Fleet"is a telematics service for the logistics industry that aims to grasp the vehicle position using a GPS terminal, reduce the work burden of operation managers, and streamline delivery work.
Oct 2020 - LYNA Logics AI automatic vehicle dispatch engine was adopted in "ZENRIN Logistics Service,"as it provides comprehensive support from AI-based vehicle dispatch planning to route guidance using Zenrin’s housing map data and management and analysis of business progress. By combining the technologies of both companies, Lyna Logics plans to realize optimal vehicle allocation planning and operation management that considers various restrictions at the site and strongly promotes the efficiency of a wide range of transportation and delivery operations from EC / home delivery to B2B transportation.
Sep 2021 - ORBCOMM Inc. announced that it had been selected by TLD Logistics Services Inc. (TLD), an independent subsidiary of Toyota Tsusho, to upgrade its fleet of trucks and refrigerated trailers with ORBCOMM’s advanced in-cab and cold chain telematics solutions for two-way temperature monitoring and control. The platform also helped the logistics company to ensure compliance with the FDA’s Food Safety Modernization Act (FSMA).

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06184961/?utm_source=GNW

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