Cold Chain Market Size, Share, Industry, Forecast and outlook (2024-2031)

Cold Chain Market is Segmented By Temperature Control (Conventional Refrigeration, Packaging Material), By Type (Chilled, Frozen), By Technology (Blast Freezing, Vapor Compression, Programmable Logic Controller, Evaporating Cooling, Cryogenic Systems, Others), By Application (Dairy and Frozen Desserts, Fruits and Vegetables, Bakery and Confectionery, Pharmaceuticals, Fish, Meat, Seafood Products, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Cold Chain Market Overview

[180 Pages Report] The Global Cold Chain Market reached at a CAGR of 9.28% during the forecast period 2023-2030. A cold chain involves a temperature-controlled supply chain that includes refrigerated manufacturing, storage, and distribution facilities, as well as equipment that can maintain the requisite low-temperature range at all times.

Cold Chain Market Scope and Summary

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An unbroken cold chain is a continuous set of refrigerated production, storage and distribution activities and supporting equipment and logistics that maintain quality by keeping temperatures within a specified low range.

 A cold chain keeps fresh agricultural produce, seafood, frozen food, photographic film, chemicals, and pharmaceuticals fresh and extends their shelf lives. Cool cargo is a term used to describe transported and temporarily stored things. Unlike other goods or merchandise, cold chain items are perishable and always en route to their end-use or destination, even while temporarily stored in cold warehouses, and are thus usually referred to as "cargo" throughout the logistics cycle.

To avoid quantitative and qualitative food losses, adequate cold storage is critical. Some vaccinations, for example, must be kept at a consistent temperature from the time they are created until they are used. The criteria are so stringent that if the temperature falls outside of this range, even for a short time, the vaccine's effectiveness will be lost and unsafe to use. Cold chains are employed in such case scenarios.

Source: DataM Intelligence Analysis (2023)

Cold Chain Market Dynamics and Trends

The growing consumption of perishable food products could be a significant global cold chain driver market. Nonetheless, growing environmental awareness and extensive greenhouse gas emissions associated with cold chain logistics restrict market growth.

Growing consumption of perishable food

Since consumers are becoming more conscious about their health, well-being, and the impact that food components such as protein have on total physical and mental development, the demand for perishable goods such as dairy products, fruits and vegetables, and high-protein animal-based products has drastically risen. The changing consumption patterns of perishable goods such as meat, eggs, fish, and seafood are a major factor that promotes the market growth of the global cold chain market.

Further, the demand for packaged Perishable food products is skyrocketing in the Asia-Pacific and Latin America's emerging economies, ascribed to the increased urbanization of these countries, changing tastes and preferences, and rising disposable income of consumers. Because of their lower adoption rates, these countries have a large market potential for processed and frozen food goods. As a result, the growing consumption of ready-to-eat foods and perishable goods in emerging economies could offer the respective market a high market opportunity and, therefore, be considered a market driver.

Growing environmental awareness and extensive greenhouse gas emissions associated with cold chain logistics

Because refrigeration is energy-intensive and a producer of greenhouse emissions, cold chain development has a substantial environmental impact. The use of hydrofluorocarbons to keep products cold throughout the transportation phase of the cold chain, such as trucks, ships, and trains, accounts for around 7% of global hydrofluorocarbon consumption (HFCs). Furthermore, diesel-powered transportation refrigeration units use up to 21% more energy than non-refrigerated diesel trucks. As the construction of cold chains becomes increasingly widespread in developing countries, this has substantial consequences for climate change.

Since the extensive greenhouse gas emission from the cold chain could result in a global temperature hike and depletion of the ozone layer, growing environmental awareness could diminish the demand for cold chain logistics. Therefore the respective factor could be considered a major market restraint for the global cold chain market.

 COVID-19 Impact on Cold Chain Market Growth

For every one of us, the pandemic has established a new normal and permanently altered our lives. Some patterns that began as necessities during this time have now become ingrained in our daily lives. People have discovered new ways to reach consumers, making supply chains more nimble and robust. The cold supply chain has benefited from both alternate channel creation and the ever-increasing demands of the Indian client. In the past, the cold chain was considered nice to have, but it is today an essential aspect of every supply chain, whether it's food or pharmaceutical.

For instance, according to recent data, e-commerce has surpassed modern retail in many categories in the FMCG industry, demonstrating an extraordinary surge in its adoption in India. Amazon, for example, has expanded its footprint to more than ten cities, up from four in 2018. Jio has begun offering home delivery through its retail shops, with hopes to expand multi-X within the next 12-18 months. Similarly, Grofers has converted into a quick commerce business using Blinkit and the establishment of dark storefronts to enable 10-minute deliveries in the quick commerce industry. With Swiggy Instamart investing US$700 million in this business area and new entrants like Zepto receiving more funding, investor confidence appears to be increasing. On both the storage and logistical fronts, this expansion will boost cold chain adoption across the retail model in the future.

Cold Chain Market Segment and Shares Analysis

The global cold chain market is classified based on temperature control, type, technology, application, and region.

Diary and frozen desserts dominate the application segment due to the growing demand in the respective market, fueled by extensive manufacturing and exports

Based on end-user, the global cold chain market is segmented into fruits and vegetables, bakery and confectionery, pharmaceuticals, dairy and frozen desserts, fish, meat, seafood products, and others.

The dairy industry is a sector rife with internal schisms and several obstacles. Milk and derivatives have a limited shelf-life, so keeping track of the expiration date is critical; maintaining the correct temperature at all stages of the cold chain is essential for providing any assurance about food safety, and having end-to-end supply chain visibility is essential for avoiding roadblocks and issues. In this market, unique, advanced monitoring technologies are required to keep track of everything that occurs at each level of the supply chain, provide a fresh, safe product and reduce product return rates substantially.

According to the European Parliament and Eurostat, the EU dairy sector is the second-largest agricultural sector in the EU, accounting for more than 12% of overall agricultural output. Growing global demand for dairy products is expected to support world dairy markets and their exports in the coming years, whose sustainability can be achieved through innovation, as a way to reconcile the need for farmers to earn a decent living, consumer demand for affordable and high-quality dairy products and environmental/animal health requirements. As a result, dairy and frozen desserts are expected to dominate the application segment of the global cold chain market.

Source: DataM Intelligence Analysis (2023)

Cold Chain Market Geographical Share

Asia-Pacific dominates the cold chain market

Despite the issues that the cold chain logistics industry faces, there are some bright spots for the industry in 2021. The market for cold chain logistics in the Asia-Pacific, for example, is expected to increase at a compound annual growth rate of more than 11% from 2020 to 2025, as per data published by short daily. Though this does not always imply a full move away from doing business in other places, the Asia-Pacific is the next frontier for the cold chain. The Asia-Pacific encompasses a diverse range of countries, including South Korea, China, India, and Indonesia, which are either developed or on track to grow in the next years despite COVID-19's impact.

Several Asian-Pacific manufacturers are already undergoing several strategies to achieve a competitive edge in the region. For instance, ApacCold (Shenzhen) Global Supply Chain Co., Ltd., Cold Chain Cube (Shanghai) Technology Co., Ltd., and Yunnan Xincongyu Ecological Agriculture Technology Co., Ltd. signed a three-party consortium strategic cooperation agreement on January 7, 2022, in response to relevant policies of the Ministry of Agriculture and Rural Affairs, the Ministry of Transport and the National Development and Reform Commission. The consortium's focus is on implementing modern cold chain logistics facilities and equipment, reducing agricultural product loss in all stages of seeding, harvesting, storage, transportation, and marketing, and establishing a long-term cooperative mechanism.

Source: DataM Intelligence Analysis (2023)

Cold Chain Companies and Competitive Landscape

The global cold chain market is active and dynamic in terms of the number and strength of global and local manufacturers. The market is classed as fragmented due to a large number of competitors. Americold, Preferred Freezer Services, Burris Logistics, Lineage Logistics Holdings, APAC Cold Global Supply Chain CO., Ltd, Swire Cold Storage Ltd, AGRO Merchants Group, Cloverleaf Cold Storage, Kloosterboer and Hanson Logistics are some of the industry's major competitors. Significant market stakeholders employ market tactics like mergers, acquisitions, product launches, contributions, and collaborations to gain competitive advantages and recognition in their respective markets.

For instance, Nanjing Nianyu Frozen Food Co., Ltd., Apac Cold Global, and Jingning Hongliufu Fruit Industry Co., Ltd. inked a strategic collaboration agreement with Guangzhou GeLi Network Technology Co., Ltd. on December 29, 2021.

The two sides decided to work together in the fields of online distribution, promotion, product traceability, agricultural data analysis, application, supervision, and digital construction of production area parks after considering the long-term development strategy of the agricultural industry and the cold chain industry and based on synergy in the development of the agricultural industry and the cold chain industry.

APAC Cold Global Supply Chain CO., Ltd

Overview: APAC Cold Global Supply Chain CO., Ltd is a cross-regional investment, operations, and management firm located in Hong Kong. The firm specializes in cold chain-related enterprises, including asset management, investment consultancy, operations management, strategic mergers and acquisitions, and other services and serves clients throughout Asia-Pacific.

Service Portfolio:

• Strategic M&A: The company focuses on strategic M&A to improve synergies and resource complementary effects within a modest range by optimizing resource allocation and creating value-added purposes for both sides following resource integration by becoming familiar with the cold chain market in the Asia-Pacific area.

Key Development:

• Qinzhou Beibu Bay Port Investment Co., Ltd., as well as Sichuan Port Investment New Channel Logistics Industry Investment Group Co., Ltd. and ApacCold, held a signing ceremony in Qinzhou, Guangxi Province, on December 13, 2021, where they jointly built the Qinzhou port base project of integrated cold chain logistics of the new western land and sea corridor and established the Guangxi Free Trade Zone Chuangui New Channel Development Co., Ltd.

The global cold chain market report would provide approximately 65 tables, 71 figures, and almost 180 pages.