Global Cold Chain Market Size & Growth Trends Analysis Report

A cold chain is a system that keeps things cold from when they are made until they are used. It uses refrigeration at every step, like manufacturing, storing, and moving products, to keep them fresh. This system is crucial for things like fresh food, medicines, and other items that need to stay cold to stay good. These items are called cool cargo while they're being moved around. Unlike regular goods, they can spoil quickly, so they need to stay cold all the time, even when they're stored temporarily.

Furthermore, cold chain solutions are becoming increasingly popular as a means of ensuring compliance with government rules imposing more stringent standards for pharmaceutical storage and food safety. Since it takes a strong cold chain infrastructure to move perishable commodities across great distances, the growing trend of international trade also helps to expand markets. Last but not least, growing consumer consciousness of food safety and quality drives up demand for goods shipped via cold chains, solidifying the market's place in international supply networks.

Another notable factor driving the global cold chain industry is the increasing emphasis on environmental responsibility and sustainability. With growing concerns about climate change and carbon emissions, reducing food waste and energy consumption in the supply chain is key to sustainability. Cold chain solutions that reduce energy consumption and carbon footprint—such as eco-friendly refrigerators and energy-efficient transportation options—are becoming increasingly popular. Companies are looking for them as well, providing cold chains using sustainable methods, and encouraging more companies to invest in environmental -friendly solutions. This move towards sustainability enables savings and market-leading differentiation.

The worldwide cold chain market's growth is also constrained by a few factors. The substantial upfront costs associated with setting up and maintaining cold chain infrastructure, such as refrigerated cars, warehouses, and monitoring systems, are one major barrier. This might be an obstacle to entrance for startups or businesses operating in underdeveloped areas. The financial load is further increased by operational costs, which can be high and include maintenance and energy expenditures. In addition, transportation-related barriers, including the lack of reliable transportation systems, especially in rural or underdeveloped areas, can make it more difficult to efficiently transport perishables in the cold chain. The trade expansion in cold chain industries may prevent unfavorable barriers and regulatory hurdles in some countries.

Despite the difficulties brought up by large upfront costs, intricate logistics, and regulatory restrictions, the cold chain sector is nevertheless full of opportunities for businesses that can get over these obstacles. Through the implementation of sustainable practices, strategic alliances, and investments in cutting-edge technologies, companies can surmount obstacles and fully realize the potential of the cold chain sector.

Impact of COVID-19

The COVID-19 pandemic had a significant impact on the global cold chain market, affecting demand dynamics, supply chain operations, regulatory compliance, and technological innovations. Changes in lockouts and consumer behavior have led to changes in demand for perishable goods, and supply disruptions have led to delays and challenges in consumption. Governments have implemented regulatory changes to ensure that cold working is safe, and requires stakeholders to invest in compliance strategies. However, the pandemic also accelerated the rapid adoption of technology in the cold chain, with innovations aimed at increasing transparency and efficiency. Despite these challenges, the cold chain market will grow in the post-pandemic era. By acknowledging, cold participants can navigate the trending landscape and exit production though.

Online sales in the U.S. hit USD 870 Billion in 2021, up 14.2% from the year before and a staggering 50.5% from 2019. Online grocery purchases in China increased by 30% between 2020 and 2021, reaching a record USD 78 Billion in 2022. By 2023, the digital food business is predicted to account for 34.6% of overall sales, which would help several industries, including packaged meat and seafood, frozen foods, and bakery goods. This demonstrates how the rise of internet purchasing is altering consumer eating habits and having an effect on the food sector. Each of these aspects plays a critical role in the overall cold chain logistics industry, ensuring efficient and effective transportation and storage of thermal infrastructure across regions.

Segmentation

The global cold chain market has been segmented into several categories to better understand its product range and meet the needs of various industries. The market report for the cold chain market has been segmented into temperature type and application. The temperature type segment can be further segmented into frozen, deep-frozen, and chilled. It is anticipated that chilled products, which are maintained at temperatures just above freezing, would have the most growth the most quickly. Food spoilage is slowed down by this preservation technique, extending the shelf life of the goods. With about a third of the global market share, the Asia Pacific region leads the chilled product industry. This demonstrates the high demand for the significance of chilled cold chain logistics for preserving food quality and safety in this area. By application, the market is further segmented into food & beverage, pharmaceutical, and others.

Regional Analysis

In 2023, North America accounted for the greatest revenue share, with over 35%. The region has significant growth opportunities in the market especially due to the growing number of quick-service restaurants coupled with the long-term investments by the companies in the region.

With a CAGR of 21.7%, Asia Pacific is expected to grow at the fastest rate among the regional markets over the projected period. This can be attributed to rising government investments in the construction of logistics infrastructure and the widespread usage of warehouse management systems (WMS). China plays a dominant role in the Asia-Pacific market owing to its advances in seafood packaging, processing, and storage. Growing demand and improvement in cold chain infrastructure have made it a top market for cold chain. China is moving from a manufacturing economy to a consumer-driven economy, driving innovation in industries such as pharmaceuticals, which in turn will drive the need for solutions in the production chain. Moreover, the rapid growth of biopharma in the region is another major factor driving the market expansion. India has also prioritized cold chain development for agricultural commodities to minimize post-harvest losses. Both government efforts and private investment aim to increase the storage and transportation of perishables from farms to markets. The government is taking measures to streamline cold chains, especially in rural areas. Additionally, regulations on the storage and transportation of flammable materials are being tightened to ensure the safety and quality of the products.

Europe has also witnessed a surge in online grocery shopping and e-commerce which in turn drives the cold chain market in the region. The increased adoption of IoT devices and sensors has enhanced the tracking and management of perishable goods throughout the supply chain. Latin America also aims to strengthen the overall logistics and supply chain capabilities in the region. Similarly, The Middle East and Africa region is driven by factors such as the rising importance of maintaining the quality and safety of perishable goods. The Saudi Arabian government for example has been actively investing in the development and strengthening of cold chain infrastructure in the region.

Competitive Analysis

The major players in the cold chain market are Americold Logistics Inc., Lineage Logistics Holding, Family Genealogy Conveyancing, United States Cold Storage, Burris Consignment, Wabash State Company, The Navshit, Sonoco ThermoSafe, United Parcel Service America Inc., A.P. Moller - Moller, Nichirei Company, and The Tippmann Group.

The dominant players in the cold chain market are key influencers, conjointly ruling the business and setting trends. They scrutinize their economic science, strategies, and processes to hear between the supply chains. Americold opened their new factory in Santa Perpetua Barcelona, Spain, in March 2023. It entails adding 11 loading bays and 12,000 pallet places, giving local clients access to a significantly larger capacity of temperature-controlled goods and services. As a result of the extension, the facility can now store chilled, frozen, and ambient produce in more than 20,000 pallet places. Later in June 2023, Americold Logistics and Canadian Pacific Kansas City (CPKC) came into a strategic partnership for the co-location of Americold’s warehouse facilities CPKC network. This partnership's main goal is to improve temperature-controlled logistics across North America by connecting significant markets in the Midwest of the U.S. and Mexico, creating a facility in Kansas City, Missouri, and combining cold storage with value-added services.

Similarly, In April 2023, there was an announcement by Lineage Logistics Holding about opening a new facility in Port Wentworth, Georgia. The 220,000 sq. ft. facility provides cross-docking services in order to meet the need of port-centric warehousing.

Sonoco ThermoSafe and Cargolux, a Luxembourg-based cargo-only airline, announced a global collaboration lease agreement in May 2023. As per the agreement, Cargolux will provide a range of pharmaceutical shipping services and solutions, and Sonoco ThermoSafe will offer their Pegasus ULD passive temperature-controlled air freight shipping container.

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The global cold chain market is segmented as follows:

By Temperature Type (Revenue: USD Billion, 2019 – 2031)
●    Frozen
●    Deep-Frozen
●    Chilled

By Application (Revenue: USD Billion, 2019 – 2031)
●    Food & Beverage
●    Pharmaceuticals
●    Others

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe
 
● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America
o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa