Food & Beverage Logistics/Delivery Market Size

Part
01
of two
Part
01

Market Size - Beverage Logistics/Delivery Market

The size of the United States beverage logistics market is estimated to be $14.4 billion.

MARKET SIZE

  • The beverage logistics market in the United States is valued at $14.4 billion.
  • The size of the United States transportation and logistics market in 2018 was $1,640 billion. Therefore, beverage logistics accounts for nearly 1% ($14.4B/ $1,640B) of the total logistics market.
  • The food and beverage industry accounts for roughly 5% of the US GDP.
  • There are multiple factors driving an increase in beverage logistics costs in the United States: an increase in fuel prices, federal regulation on driver hours, and a tight labor market.

RESEARCH STRATEGY

We began by looking through multiple research reports on the United States logistics market; however, most we came across only provided overviews of the market and did not provide any data specific to the beverage market. Industry portals we searched did not contain market size estimates either. While the required statistic is not publicly available, we were able to use other data points to triangulate the market size of the US beverage logistics industry.

CALCULATIONS

Industry Gross Margins

The gross margin of the alcoholic beverages' industry is 46.60%.
The gross margin of the non-alcoholic beverage industry is 56.31%.

Industry Revenue & COGS

The US non-alcoholic drinks market revenue is $342,857 million
Therefore, the COGS of the US non-alcoholic drinks market is $149,794 million ($342,857 million * (100%-56.31%))
The US alcoholic drinks market revenue is $259,148 million
Therefore, the COGS of the US alcoholic drinks market is $138,385 million ($259,148 million * (100%-46.60%))
Therefore, the COGS of the US beverage market is $288,179 million ($149,794 million+$138,385 million).

Freight Costs

Freight costs in the food & beverage industry typically account for 5% of the cost of good sold.
Therefore, the freight cost/ logistics cost of the beverage industry in the United States is 14,409 million (5%*$288,179 million)
Part
02
of two
Part
02

Market Size - Restaurants Logistics/Delivery Market

According to the International Foodservice Distributors Association (IFDA), the market size for the United States restaurants' logistics/delivery industry in 2018 was $241.1 billion.

US Restaurants' Logistics / Delivery Market Size

  • In 2018, the United States restaurants' logistics/delivery (distribution) industry market size was $241.1 billion. Full-service restaurants contributed $92.4 billion while limited-service restaurants contributed $148.7 billion.
  • The United States restaurants' logistics/delivery (distribution) industry contributes 0.25% ($51 billion) to the total US economy (GDP).
  • The market size of the United States transportation and logistics industry was $1.6 trillion in 2018.
  • The United States restaurants' delivery market size was $43 billion in 2017 and is projected to hit $76 billion by 2022 at a CAGR of 12%.
  • Delivery services market share in the US restaurant industry is predicted to increased from seven percent (7%) in 2017 to twelve percent (12%) by 2022.
  • 30% of the US restaurant industry sales growth from 2017 to 2022 is predicted to come from logistics/delivery services.
  • According to Laura Chadwick, National Restaurant Association director of membership engagement, technology and data security, delivery services accounts for 3% of the restaurant businesses in the United States.
  • The restaurants' logistics/delivery market in the United States mainly generates its revenue from commission paid by restaurants.
  • Delivery services' commission range from $10 to $30.
  • Adoption of logistics/delivery services increased the revenue of 60% of the restaurants in the United States.
  • The restaurant delivery market grew by 20% in the last five years.
  • Delivery services take between 20% to 40% of each restaurant transaction.
  • The market size for the US restaurant industry was $863 billion in 2019, 3.6% increased from 2018.
  • The market size for the restaurant-to-consumer delivery segment is currently estimated to be $14.28 billion and is predicted to reach $16.88 billion by 2024 at a CAGR of 4.3%.
Sources
Sources

From Part 02
Quotes
  • "Delivery also could solve slumping same-store sales many restaurant chains have been facing. While delivery only makes up about 3% of the restaurant business, it’s growing, Laura Chadwick, National Restaurant Association director of membership engagement, technology and data security, told Restaurant Dive."
  • "Third-party delivery fees are another concern. Chadwick said she anticipates more restaurants will develop their own delivery programs to avoid paying a delivery partner, such as Uber Eats, 30% per order. Other brands reportedly charge 12% to 24% per order, according to Food & Wine."
Quotes
  • "The main source of their revenue is generated from commission paid by restaurants ranging from 10%-20% on the total order processed. For example: Restaurants partnering with Seamless can choose from four commission levels (12.5%, 15%, 17.5%, and 20%)."
  • "The higher the commission the higher the restaurants will appear in the customers’ search engine. On the other hand UberEats and Amazon are said to be charging restaurants a 30% and 27.5% commission. DoorDash usually charges 10% commission. Zomato charges 7% – 8.5% of commissions to its partners. "
Quotes
  • "$863 billion: Restaurant industry's projected sales in 2019."
Quotes
  • "U.S. restaurant industry sales will reach a record high of $863 billion this year, up 3.6% over last year, according to a report released today by the National Restaurant Association."
Quotes
  • "Revenue in the Restaurant-to-Consumer Delivery segment amounts to US$14,280m in 2020."
  • "Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 4.3%, resulting in a market volume of US$16,876m by 2024."
  • "User penetration is 21.9% in 2020 and is expected to hit 24.2% by 2024."
  • "The average revenue per user (ARPU) currently amounts to US$196.80."
Quotes
  • "He expects delivery will account for 30 percent of the industry sales growth through 2022. He expects delivery growth to widely outpace overall restaurant industry growth. "
  • "Delivery is expected to rise from $43 billion today to $76 billion in 2022, a 12 percent compound annual growth rate. "
  • "That’s compared to expected industry growth of 3.5 percent compound annual growth rate. "
  • "When you look at digital penetration, delivery is now 8 percent of the restaurant sales. We think it’s going to go to 12 percent in 2022"
Quotes
  • "Restaurant meal delivery will grow from $43 billion in 2017 to $76 billion in the next four years, according to the firm's estimates. Cowen attributes much of that growth to an increase in online orders, which it says will account for three-quarters of delivery orders by 2022."
Quotes
  • "A Cowen and Company study predicts that restaurant meal delivery will grow from $43 billion in 2017 to $76 billion in the next four years. That’s 176% growth by 2022."
Quotes
  • "IFDA is the premier trade organization representing the foodservice distribution industry. With an annual sales volume of $280 billion, this industry ensures a safe and efficient supply chain of food and products for more than one million restaurants and foodservice outlets in the U.S. every day. "
  • "Multiply restaurant sales by sector by cost of food and beverage sales to reach total sales of $280 billion for the foodservice distribution industry"