Global perishable freight transportation is projected to increase at a substantial rate in the future, with an estimated value of US$ 9.23 billion for the period from 2018 to 2024, which will increase at a CAGR of 8.8%. The increase in this market is mainly due to the growth in consumer demand for convenience food products and the increasing focus on reducing emissions with the help of affordable and better solutions.
Prominent players operating in its services market include AP Moller Maersk AS, C H Robinson Worldwide Inc., Deutsche Post AG, etc., reflecting a globally fragmented competitive scenario across numerous regional proliferation, including North America, Europe, APAC, South America, and the Middle East and Africa.
Drivers of the Market and Trends The primary driver is the increasing demand for sustainable solutions to transport perishable cargo using electric vehicles. Companies are starting to lean into a green profile, where technology can help enable this transition, such as with renewables and electric vehicles to reduce carbon footprints. Further, it is in line with the global trends focused on environmental sustainability, quality improvement, and the sustainability of the market.
Furthermore, developments in the cold supply chain, like refrigerated trucks and reefer containers, have an important role in maintaining product quality and safety during their journey. Emerging technologies like RFID tracking systems provide correct and accurate temperature control for the products, in addition to features like following regulations and meeting consumer expectations in terms of materials.
What are the risks and the regulatory framework? Despite the tremendous growth opportunities in perishable goods transportation, the market faces multiple challenges involving the product’s safety and quality control. Perishable goods are highly susceptible to temperature impacts and require special handling to avoid putrefaction and decay. Stringent regulations, including the FDA’s sanitary transport rules, dictate that the food industry adhere to the highest level of cleanliness and temperature control to ensure the protection of supply chains.
Besides, the market’s fragmented state poses operational issues that call for seamless coordination between stakeholders for efficient delivery and consumer satisfaction. Further, the expense of maintaining cold chain storage facilities and complying with food safety regulations adds to the operational challenges.
The Future Moving forward, the sector is anticipated to continue expanding due to the rising consumer inclination toward fresh and healthy cuisine fueled by advancements in online grocery and e-commerce. Additionally, the adoption of work methods or practices that are ecologically sustainable and friendly while utilizing digital innovations will make for a more robust and effective market.
In conclusion, while the perishable goods transportation market offers many profit-making growth prospects, stakeholders will have to deal with their share of challenges, such as existing regulatory hurdles and flow of operations disruptions, to maintain this anticipated growth and achieve product integrity. The efficient operation of light makes it quite possible to meet the requirements of its clients and meet the standards of climate impact on local Appalachia using the advances in technology and practicing eco-friendliness. The continuously changing perishable goods transportation industry is an important example of how strategic partnerships and innovation lead to sustainable development in the global value chain.
SOURCE Technavio