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The Global Smart Foods Logistics Market which was valued at USD 7.3 Billion during 2019, is expected to reach USD 14.8 Billion by 2025. This market has emerged from the benefits of enabling the ease of procuring to the tracking of packages in transit.
As a result of the ability to receive fresh items with real access to the movement of food, this market pioneered by Internet of Things (IOT), is making a huge difference.
What are the key drivers behind the growth of the Smart Foods Logistics Market?
This market has grown rapidly owing to the converging of logistics and technology as well as cloud- based software thus enabling each of warehouse, transport and consumer information to be connected tightly through the supply chain.
With the continued growth of the digital economy, the Internet of Things
(IOT) Technology has transformed from a futuristic idea to a tactical tool which can be utilized by logistics companies in their supply chains. Hence through sensors and IOT tools, traditional asset tracking is being transformed to intelligent supply chains which are capable of earning logistics companies a higher Return on Investment (ROI).
A major benefit for the food industry, is that these IOT enabled sensors are offering real time knowledge of asset fleet location, fleet motion speed, temperature conditions and other crucial data sets.
In addition, the sensors assist allied stakeholders in monitoring food safety data points, thus ensuring efficient cold chain management.
This data enables compliance adherence with local and global regulations. Through using Automated Hazard Analysis Critical Control Points (HACCP) checklists during each of the production, manufacturing, and transporting processes, access to meaningful data can be obtained by companies, which is necessary for implementing food safety solutions.
Further, food laws such as the Food and Drug Safety Act, has exerted significant pressure on supply chains to record additional information, thereby increasing transparency.
How has the COVID-19 Pandemic affected the Supply Chain Management of Businesses
With the pandemic having drastic effects on the global economy, all end-user industries were heavily disrupted. Due to either remote working conditions or complete lockdowns and the halting of operations, the supply chain management SCM) of businesses were also hard hit.
In order to prevent their operations from being disrupted, businesses intensified their use of technology and digitalization to maximum levels.
The Logistics industry was also severely affected in several ways, with the Logistics Managers Index (LMI), falling to its lowest figure during April,2020 – this index being based on 8 key components involving inventory, warehousing and transportation.
What are the key market trends in light of the pandemic?
Cold Chain Monitoring to Hold a Significant Share
Factors in rapidly changing food habits, increased demand for packaged food and strict regulations regarding packing and storage, have resulted in a major shift from manufacturers to retailers. Hence, the key reasons driving automation and the adopting of technologies in the logistics processes for foods and beverages, have been the processes focusing on zero contamination, precise and high -speed storage, in addition to retrieval operations.
A Cold Chain Monitoring solution, assists food manufacturers in managing the storage, shipment and distribution of products requiring a temperature- controlled environment in an efficient manner. Hence adopting cold chain monitoring will guarantee stable temperatures for the storage and transportation of goods.
Technologies like Bluetooth Low Energy (BLE) beacons with temperature sensors enable tracking the location of the goods at relevant checkpoints and the continuous tracing of temperature data during shipment, or throughout the supply chain.
Multiple food logistics companies are engaging in expansion activities.
Major Share held by North America in the Smart Logistics Market
With the presence of many vendors and increasing concerns to optimize resources and eliminate waste, this region is expected to hold the largest share in adopting Smart Logistics. Due to the strong presence of the manufacturing, transportation and logistics industries, North America is considered one of the most prominent asset tracking markets. Further, government initiatives and regulations in several end-user industries are expected to be key factors in enhancing the region’s market growth.
In addition to having a robust presence of players offering IOT solutions, the region has witnessed partnerships between government agencies and leaders engaged with public, private and non- profit organizations in resolving food wastage issues due to concerns regarding this matter.
Competitive Landscape
With the smart food logistics market being moderately divided, major players with prominent market shares are focusing on expanding their customer base across foreign countries. In order to increase their shares and profitability, these companies are leveraging on strategic collaboration initiatives
