The global food and beverage logistics sector is facing many challenges, from extreme weather, to geopolitical turbulence and the expected US tariffs on imported goods, which Trump has announced he will impose this Wednesday. So, what does the future hold?
Ti forecasts that the global food and beverages logistics market size will grow by 5.9% year-on-year, to a forecast €2,430,172m in 2025. Forecasting out to 2029, the market size is expected to reach €2,996,667m, with a 2024-2029 CAGR of 5.5%.
The region with the most significant market size increase is forecast to be Sub-Saharan Africa, with the food and beverages logistics market spend expected to grow 13.1% year-on-year from €158,451 in 2024 to a forecast €178,934 in 2025. It has the highest regional 2024-2029 CAGR of 11.1%. According to the World Bank, the agri-business sector in Africa could be worth a trillion-dollars by 2030 – it currently accounts for nearly 50% of Africa’s economic activity. Sub-Saharan African countries could emerge as major exporters of rice, feed grains, poultry, dairy and vegetable oils and there is a growing energy drinks market – South Africa holds the largest share, with Nigeria experiencing the most rapid growth. However, Sub-Saharan African countries need investment in electricity, technology and irrigation, as there are significant problems with the food supply chain at present – the Food and Agriculture Organization (FAO) estimates that 30-40% of food produced in Africa is lost before it reaches consumers.
It’s notable that the region with the second biggest increase in food & beverages logistics market size from 2023-2024 was Russia – 8% year-on-year. Russia’s drinks sector was one of the fastest growing segments in the entire Russian food and beverages’ market – mainly exporting spirits, to Western markets – but the Russian-Ukranian war and the subsequent ban on exports of Russian drinks has slowed growth to a forecast 5.9% in 2025.
The region with the second highest regional 5-year CAGR is the Middle East and North Africa (MENA), at 7.4%. 2024 market size is €88,979 and this is forecast to grow to €127,019 in 2029. New technologies, a focus on developing cold chain facilities, the regions’ advantageous position as a global hub for the food and beverage trade between Asia and Europe, and the rapid expansion of logistics providers across the Gulf, are all factors driving this growth.
Asia Pacific had the largest market size regionally in 2024 of €988,996, but growth is slowing, from 6.3% in 2024 down to a forecast 5.9% in 2025, with a 2024-2029 CAGR of 5.5% which is equal to Russia and South America. China is by far the world’s leading agricultural producer, according to the Food and Agriculture Organization (FAO) of the United Nations. Asia Pacific remains amongst the largest food importers globally, driven by expanding demand from growing populations, changing dietary preferences among more affluent population segments and the growth of e-commerce platforms.
The region with the lowest growth year-on-year is forecast to be North America. Whilst it currently has the second highest market size after Asia Pacific, at €458,122 in 2024, it is forecast to only grow by 3% by 2029, to a market size of €536,363 with a 2024-2029 CAGR of 3.2%. The US is the world’s top food exporter thanks to high crop yields and extensive agricultural infrastructure.
The South American food and beverages market size is forecast to grow by 6% in 2025. According to the Food and Agriculture Organisation of the United Nations, Brazil is the world’s fourth-ranked agricultural producer. The Brazilian economy has historically focused on agriculture, particularly sugarcane, but the proportion of the workforce employed in agriculture has declined steadily over the past three decades. Brazil is currently the top global exporter of soybeans, raw sugar, and poultry.
Europe comes in third in the regional rankings, with a global food and beverage logistics market size of €352,620 in 2024, which is forecast to grow to €430,601 in 2029. The 2024-2029 CAGR is forecast to be 4.1%, the second lowest regionally after North America. Food and beverages is the largest manufacturing industry in the EU. There is hope that the imminent Trump tariffs will not have too much of an impact, as according to the EU Commission, only 12% of EU food and drinks exports are to the US. The majority of these exports are higher margin products such as meat, alcohol and confectionary, which can more readily absorb cost increases.
Author: Julia Swales
Source: Ti Insight
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