Market Trends of Food Grade Tank Trucking Industry
Global Cow Milk Consumption and Production Propel Food Grade Tank Trucking Demand
As per the USDA Foreign Agricultural Service, in 2023, India consumed the most cow milk globally, with over 87 million metric tons, followed by the European Union at 23.7 million metric tons. Cow milk production has increased over the past five years, averaging around 549 million metric tons annually. The European Union led in cow milk production in 2023, with the United States in second place at just under 105 million metric tons. California and Wisconsin have the highest numbers of milk cows in the United States.
Major milk exporters in 2023 included Argentina (11.7 million tons), Australia (8.5 million tons), the European Union (145.2 million tons), New Zealand (21.2 million tons), and the United States (102.7 million tons).
The significant global consumption and production of cow milk, especially in regions like India and the European Union, drive the food grade tank trucking market. India's consumption of over 87 million metric tons and the EU's 23.7 million metric tons create a strong demand for efficient and hygienic transportation solutions to distribute these large quantities of milk. This demand necessitates specialized food-grade tank trucks to ensure safe and effective milk transport, supporting the market's growth.
Brazil's Agricultural Exports Fuel Expansion of Food-grade Tank Trucking Market
As of March 2024, Brazil became the global leader in exporting at least seven food commodities, including soybeans (56% of global exports), orange juice (76%), corn (31%), coffee (27%), sugar (44%), beef (24%), and chicken meat (33%), as per industry data.
With a population of over 200 million, Brazil produces enough food to meet the needs of approximately 900 million people, accounting for 11% of the global population. This immense production capacity creates a substantial demand for logistics services, including food-grade tank trucking, to ensure these goods' safe and efficient transportation. The growth of the food-grade tank trucking market is supported by the need for reliable transportation solutions to handle Brazil's vast agricultural exports.
Government initiatives to support the agricultural sector, such as investments in infrastructure and regulatory frameworks for food safety, further bolster this market. Compliance with stringent food safety regulations drives the demand for specialized and well-maintained tank trucks.
Additionally, the Sectoral Plan for Mitigation and Adaptation to Climate Change for the Consolidation of a Low-Carbon Economy in Agriculture (the ABC Plan) aims to enhance farmers' production capacity and income by increasing the efficiency of sustainable systems. This initiative promotes practices that require efficient and safe transportation solutions to maintain the quality and integrity of agricultural products from farm to market, further driving the demand for food-grade tank trucking services.
