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What are the recent trends in market size and growth for the groceries transportation market?
The groceries transportation market size has grown strongly in recent years. It will grow from $60.5 billion in 2024 to $64.99 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to the rise of online grocery shopping, the expansion of urban areas, regulatory changes, consumer demand for freshness, and the expansion of retail chains.
The groceries transportation market size is expected to see strong growth in the next few years. It will grow to $85.74 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to e-commerce expansion, sustainability initiatives, globalization of supply chains, changing consumer preferences, and environmentally friendly transportation practices. Major trends in the forecast period include AI-driven logistics, the adoption of advanced analytics, the integration of blockchain technology, advancements in cold chain technology, and advancements in autonomous vehicles.
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Which major factors have contributed to the expansion of the groceries transportation market?
The expansion of online grocery shopping is expected to propel the growth of the grocery transportation market going forward. Online grocery shopping refers to purchasing groceries and household essentials through digital platforms and delivering them to one’s doorstep. The expansion of online grocery shopping is driven by the convenience of 24/7 availability, doorstep delivery, and access to a wide selection of products. Groceries transportation services ensure timely delivery, maintain product freshness, and meet customer expectations for reliable service in online grocery shopping. For instance, in August 2024, according to a report published by the United States Census Bureau, a US-based professional governmental organization, in 2023, total e-commerce sales reached approximately $1,118.7 billion, marking a 7.6% increase from 2022 and representing 15.4% of total sales, up from 14.7% the previous year. Therefore, the expansion of online grocery shopping will drive the growth of the grocery transportation market.
How is the groceries transportation market segmented?
The groceries transportation market covered in this report is segmented –
1) By Product Type: Vegetables And Fruits, Dairy Products, Meat And Seafood, Other Product Types
2) By Transportation Mode: Roadways, Railways, Seaways, Airways
3) By Application: Retail, Food And Beverage, Consumer Goods, Other Applications
Subsegments
1) By Vegetables and Fruits: Fresh Vegetables, Fresh Fruits, Frozen Fruits and Vegetables
2) By Dairy Products: Milk, Cheese, Yogurt, Butter
3) By Meat and Seafood: Fresh Meat, Processed Meat, Fresh Seafood, Frozen Seafood
4) By Other Product Types: Baked Goods, Packaged Foods, Beverages
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Who are the top competitors in the groceries transportation market?
Major companies operating in the groceries transportation market are Cargill Incorporated, A.P. Møller – Maersk A/S, SYSCO Corporation, Performance Food Group Company, DB Schenker, Kuehne + Nagel International AG, C.H. Robinson Worldwide Inc., Gordon Food Service Inc., J.B. Hunt Transport Inc., Ryder System Inc., SpartanNash Company, XPO Logistics Inc., Lineage Logistics Holdings LLC, Total Quality Logistics LLC, McLane Company Inc., Hellmann Worldwide Logistics GmbH & Co. KG, NFI Industries, Werner Enterprises Inc., Americold Realty Trust, US Xpress Inc., Lynden Incorporated, Greatwide Logistics Services, Trinity Logistics Inc., H&M Bay Inc., PSS Distribution Services, Domenico Transportation Co.
Which key trends are expected to influence the groceries transportation market in the coming years?
Major companies operating in the grocery transportation market are focusing on integrating artificial intelligence (AI)-powered logistics solutions such as route optimization, to enhance customer convenience and improve overall efficiency in the supply chain. Route optimization technologies refer to advanced systems that use machine learning (ML) techniques to optimize transportation routes and schedules efficiently. For instance, in March 2024, Walmart Inc., a US-based retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, launched Element, an AI-powered software solution aimed at optimizing truck delivery routes and schedules for goods to its stores. This AI-powered technology is expected to boost operational efficiency and enhance customer experiences for Walmart’s partners. The software’s pricing model is designed to be flexible based on usage volume and frequency, addressing the complexities of deploying AI models at scale. It also offers benefits such as freedom from vendor lock-in, cost savings, and improved reliability, making it easier for businesses to adopt AI and ML solutions.
Which regional trends are influencing the groceries transportation market, and which area dominates the industry?
North America was the largest region in the groceries transportation market in 2024. The regions covered in the groceries transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Groceries Transportation Market Report 2025 Offer?
The groceries transportation market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Groceries transportation refers to the logistics and distribution processes involved in moving food and household products from suppliers or wholesalers to retail stores, supermarkets, or directly to consumers through online grocery platforms. This includes efficient management of perishable goods, ensuring timely deliveries to maintain product freshness, and optimizing routes to minimize transportation costs and environmental impact.
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