Page 22 - ITLN May June 2023 Magazine

Spotlight
Perishable
Logistics

Making

perishable

logistics better

Now that the great Indian summer has begun, ITLN takes stock of how
the perishable logistics sector is rising to the myriad challenges it
faces amidst the booming demand for fresh products that have risen
exponentially in the last few years.

Lakshmi Ajay

ccording to a report patterns have changed dramatically in
titled "Perishable Goods the post-pandemic new normal and
Transportation Market by this is true even in Tier 2 and 3 cities
AEnd-user and Geography where consumption of the quick-service
- Forecast and Analysis 2022-2026" restaurant (QSR) segment has increased,
released by leading market research creating a huge need for perishable
and advisory company Technavio last logistics and a need for supportive
year, the market size of perishable infrastructure that can deliver at scale.
goods transportation is slated to grow Contrast this with the fact that the
by $6.43 billion, accelerating at a CAGR UN has estimated that about 40% of
of 7.22% during the forecast period. food produced in India is wasted at
Interestingly, 42% of the market the cost of billions of dollars per year,
growth will come from APAC (Asia owing to fragmented food systems,
Pacific) during the forecast period, lack of infrastructure, and inefficient
owing to a growing demand for fresh, supply chains.
convenient processed, and packaged Sakthivarman R, VP of Operations
food and lifestyle items. at Snowman Logistics told the
Changing dietary and food Indian Transport & Logistics
consumption patterns and India’s News, “Yes, capacity issues,
growing working-class population lack of reefer trucks, and
has made the demand for processed inadequate infrastructure
foods grow by leaps and bounds. for cold storage facilities
These figures bode well for India, are major challenges
which is part of the APAC and among for perishable logistics,
the economies that have a thriving especially in emerging
perishable logistics market. economies. The demand
The perishable logistics sector in for processed food,
India is currently in a high growth stage fresh fruits, vegetables,
and highly competitive with transporters meat, seafood, and
and logisticians continuously striving bio-pharmaceuticals
to improve their efficiency by means of in export as well
technology adaptation, a slow trickle of domestic markets
private investment coupled with the Indian has increased
government’s latest reforms and policies post-pandemic
that are looking to benefit this segment. and these
challenges
Changing consumer behaviour are not
Consumers' consumption or buying helping.”
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May - June 2023 www.itln.in