Food Logistics Procurement Intelligence Report 2025-2030

Food Logistics Demand Overview

The rising demand for temperature-controlled logistics solutions, coupled with the expansion of e-commerce in the food sector, is propelling food logistics procurement market. The Asia-Pacific region dominates the market due to its large consumer base and rapid urbanisation. Technological advancements, such as IoT-enabled tracking and automation, are further enhancing operational efficiency, while sustainability efforts are encouraging the adoption of eco-friendly practices.

Food Logistics Cost Structure

The cost modeling of food logistics includes labour cost, transportation, storage, packaging, and technology investments. Transportation costs, particularly for cold-chain logistics, form the largest expense, influenced by fuel prices and delivery distances. Storage costs involve temperature-controlled warehousing to maintain food quality and comply with regulations.

Packaging costs vary based on the type of food products, requiring durable and eco-friendly materials to ensure safety during transit. Technology costs include IoT-enabled monitoring systems and automated handling equipment to enhance efficiency and reduce spoilage. Providers aim to optimise these costs while maintaining high-quality standards in food logistics.

Food Logistics Pricing Trends

As per the food logistics procurement report, pricing models in the food logistics market is influenced by factors such as fuel costs, labour expenses, and the rising demand for temperature-sensitive transportation. The increasing adoption of advanced technologies, such as real-time tracking and automation, helps mitigate operational inefficiencies and long-term costs.

Sustainability initiatives, including the use of electric vehicles and eco-friendly packaging, are contributing to higher initial investments but aligning with global regulatory standards. Providers are balancing costs with consumer expectations for timely and reliable food deliveries.

Food Logistics Procurement Best Practices

The food logistics procurement report focuses on ensuring reliability, scalability, and compliance with food safety standards. Businesses often establish long-term contracts with providers to secure consistent service quality and favourable pricing. Supplier diversification helps mitigate risks associated with supply chain disruptions.

Sustainability is increasingly prioritised, with companies opting for providers that offer eco-friendly solutions, such as green warehouses and electric transportation. The integration of digital tools, including predictive analytics and blockchain, enables efficient supplier evaluation, demand forecasting, and cost management. These practices ensure seamless operations, reduced waste, and enhanced service quality in the food logistics procurement report.

Key Players in the Food Logistics Industry

Recent Developments in the Food Logistics Procurement Report

• In November 2024, DACHSER inaugurated a new logistics facility in Le Havre, northern France. The site integrated a Contract Logistics warehouse and a DACHSER Air & Sea Logistics branch, strategically situated within France's largest freight port.
• In July 2024, DACHSER signed a lease agreement for a new food logistics distribution centre in Waddinxveen, marking a significant step in its ongoing growth in the Netherlands. The new warehouse and cross-dock facility were planned to become operational in the third quarter of 2025.
• As per the food logistics procurement report, in April 2024, Americold has commenced construction on a new USD 127 million cold storage facility in Kansas City, Missouri. The 335,000-square-foot facility is part of a strategic collaboration with Canadian Pacific Kansas City (CPKC) to co-locate Americold warehouse facilities within the CPKC network. 
• In December 2023, Americold, through its joint venture RSA Cold Chain in Dubai, announced plans to construct and operate a USD 35 million state-of-the-art cold storage facility with 40,000 pallet positions in the Jebel Ali Free Zone (Jafza) at the Port of Jebel Ali in Dubai. This investment built upon the strategic collaboration between Americold and DP World, a global leader in smart end-to-end supply chain logistics and port infrastructure.