Cold Chain Market by Type (Refrigerated Warehouse and Transportation), Temperature Type (Chilled and Frozen), Application ( Dairy & Frozen Desserts, Fish, Meat & Seafood, Fruits & Vegetables, Bakery & Confectionery ) and Region - Global Forecast to 2028
The global cold chain market size is expected to increase at a 9.0% CAGR, reaching $278.2 billion in 2023 and $428.4 billion by 2028.
This growth is primarily driven by the increasing demand for temperature-controlled storage and transportation across various industries, including food, pharmaceuticals, and chemicals.The globalization of trade has led to an increase in the transportation of goods across borders. This has driven the need for cold chain logistics to ensure that temperature-sensitive products are maintained at the required temperature during transportation and storage, irrespective of the distance and time taken. The pandemic has further highlighted the importance of the cold chain market, particularly in the distribution of vaccines and other medical supplies. As a result, the market is expected to continue to grow in the coming years, with significant investments in technology and infrastructure to improve cold chain logistics and ensure the safe and efficient distribution of temperature-sensitive products.
The cold chain market is also benefiting from advancements in technology, such as the Internet of Things (IoT), which allows for real-time monitoring of temperature and humidity levels during transportation and storage. This technology helps to ensure the safety and quality of products, reducing the risk of spoilage and waste.
To know about the assumptions considered for the study, Request for Free Sample Report
Cold Chain Market Dynamics
Driver: Increasing need for temperature control to prevent food loss and potential health hazards
Food security, food safety, economic and environmental sustainability, and minimal food waste are major focus areas in the food industry. Food loss and waste are caused due to various reasons. For instance, perishable products are often exposed to fluctuating temperatures during transit and handling, which results in food spoilage and wastage. To overcome this, the demand for refrigerated storage and transportation services has increased across the globe. According to UNEP 2021, an estimated 17% of total food produced for human consumption is wasted, costing the world economy USD 936 billion each year. Food loss is caused by the absence of cold chains during food processing, packaging, distribution, and consumption. According to the International Institute of Refrigeration 2021, a lack of proper refrigeration directly led in a loss of 526 million tons of food production, or 12% of total global production.
This is enough to feed an estimated 1 billion people in a world where 811 million people are hungry and 3 billion cannot afford a nutritious diet. According to the Food and Agriculture Organization (FAO) 2021, India is one of the world’s largest food producers and has a lot of food produced in the country to meet its food requirements, but because of the fragmented and unorganized supply chain, storage, and logistics, gives an inadequate food distribution system. Each year, over USD 14 billion in crops are wasted owing to inefficient cold chain and disorganized logistics. According to a 2021 study on All India Cold Chain Infrastructure Capacity (Assessment of Status & Gap) conducted by NABARD Consultancy Services Pvt. Ltd. (NABCONS) for the National Centre for Cold Chain Development (NCCD) under the Department of Agriculture, Cooperation, and Farmers Welfare in the Ministry of Agriculture & Farmers Welfare, the country’s requirement for cold storage is 35 million MT, while the capacity for such storage is around 32 million MT. According to Colliers’ newest report, opportunities in Indian cold chain assets, India’s cold storage capacity is expected to reach 40.7 million metric tons by 2023, up 8.2% from 2020.
According to the International Institute of Refrigeration 2020, food loss is especially prevalent in developing countries. While poor countries have over 80% of the world’s harvested cropland, they only refrigerate about 20% of the perishable food they produce (compared to 60% in developed countries). In India, post-harvest losses for some crops exceed 40%, and only about 4% of the country’s food moves through the cold chain, compared to 70% in the UK. Farmers suffer significant financial losses as a result of post-harvest losses. According to the Cool Coalition UNEP 2022 report, farmers in India lose roughly USD 12,520 million per year due to inadequate storage facilities and a lack of energy infrastructure. This is concerning because about 82% of farmers in the country are small and marginal, with less than two hectares of land. Currently, between 25% and 35% of grown food is wasted due to a lack of proper refrigeration and other supply chain bottlenecks, and only 6% of food produced in India moves through the cold chain. According to the National Centre for Cold Chain Development (NCCD), an autonomous organization established by the Indian government to establish cold chains for perishable agriculture and horticulture produce, the country had a shortfall of 12.6 million tons of cold storage capacity at the start of 2020.
The Government of India’s Ministry of Agriculture & Farmers Welfare issued a statement in September 2020 regarding the country’s cold storage capacity and infrastructure. According to the press release, the country has 8,186 cold storages with a capacity of 374.25 lakh MT for preserving perishable horticulture produce such as fruits & vegetables. Private players own the great majority of these cold storage facilities. To meet future needs, the government implemented schemes such as MIDH (Mission for Integrated Development of Horticulture) and PMKSY (Pradhan Mantri Kisan SAMPADA Yojana), which provide financial assistance for the establishment of cold storages across the country, bridging the gap between available resources and required cold storage capacity.
Apart from food wastage, food manufacturers and cold chain service providers need to comply with international standards and specific requirements for keeping potentially hazardous food at specified temperatures. Potentially hazardous food products might contain harmful bacteria and are capable of supporting the growth of these bacteria or the formation of toxins to levels (if not stored at the required temperatures) that are unsafe for consumption. As a result, cold chain services play an integral role in ensuring food safety and minimizing food loss and potential health hazards.
Restraint: Environmental concerns regarding greenhouse gas emissions
Cold chain development places a significant burden on the environment since refrigeration is energy-intensive and has greenhouse gas emissions. The food cold chain has environmental and global climate change implications. According to the International Institute of Refrigeration 2021, overall, the food cold chain accounts for approximately 4% of total world greenhouse gas emissions, including emissions from cold chain technology as well as food loss and waste due to a lack of refrigeration.
Food cold chain equipment emits emissions from both indirect and direct sources. The electricity used to power refrigeration equipment, as well as the fuel used to power-refrigerated vehicles and generators, cause indirect emissions. The leakage of refrigerant gases into the atmosphere causes direct emissions. Mechanical refrigeration equipment uses electricity to operate. According to the Environmental Investigation Agency (EIA) 2021, refrigeration in supermarkets accounts for up to 4% of the total electricity use in developed countries. Producing this electricity emits CO2-equivalent emissions and contributes to global warming, particularly if it is generated using carbon-intensive fossil fuels. Emissions are also produced by fossil fuel (mostly diesel) generators that are commonly employed for off-grid applications. During transportation, both vehicle engines and transport refrigeration units contribute to fuel consumption emissions.
Meanwhile, the leakage of many common refrigerant gases into the environment directly contributes to global warming. This happens throughout the operation and servicing of cooling equipment, as well as after disposal at the end of its life. As some refrigerants used today have a large global warming potential and are hundreds to thousands of times more potent than CO2, refrigerant leakage has a considerable impact on total refrigeration emissions. According to the UNEP Ozone Secretariat 2021, in all, approximately 80% of greenhouse gas emissions from refrigeration, air-conditioning, and heat pump systems are linked with indirect emissions from energy use, whereas 20% are associated with direct emissions from refrigerant use.
Some refrigerant leakage causes ozone depletion in addition to contributing to global warming. Ozone-depleting compounds such as chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) were generally phased out globally under the 1987 Montreal Protocol. Meanwhile, hydrofluorocarbons (HFCs), which were created as HCFC substitutes, have no ozone-depleting potential, although some HFCs have extremely high GWPs. According to UNEP 2022, today’s cooling market relies on around 16 pure HFCs and 30 mixes with GWPs ranging from less than 100 to close to 15,000. The R-404A, a common blend14 used in medium- and low-temperature refrigeration applications, particularly in the food retail and transportation industries, has a high GWP of 3,920. According to the North American Sustainable Refrigeration Council 2021, because of the rising global demand for cooling and refrigeration in the residential, commercial, industrial, and transportation sectors, HFCs are among the fastest-growing sources of greenhouse gas emissions. Cooling and refrigeration account for approximately 35% of overall HFC consumption in the cooling sector.
According to the International Institute of Refrigeration 2021, 261 million tons of CO2-equivalent emissions were emitted by food cold chain equipment. When this is combined with the emissions from food loss and waste due to a lack of refrigeration (an estimated 1,004 million tons of CO2-equivalent), the total greenhouse gas emissions associated with the global food cold chain are an estimated 1,265 million tons of CO2-equivalent, or about 4% of total global greenhouse gas emissions.
Emissions from food cold chain equipment are expected to climb significantly in the coming decades as additional cold chain capacity comes online in emerging countries, particularly if this infrastructure is delivered in traditional patterns. In India, for example, food cold chain emissions are expected to double by 2027 if no measures are implemented, according to UNEP 2021. Continued growth of cold chains using conventional fossil fuel-based technology can result in much increased cooling emissions, detracting the benefits gained by reducing food loss emissions.
Opportunity: Government support for cold chain infrastructure development
Governments in many nations are taking steps to reduce food and agricultural waste by developing food waste regulations and promoting food-related sectors such as the cold chain industry. In many countries, however, there is still a gap between food production and cold storage capacity. For example, India is the world's largest producer of milk and the second-largest producer of fruits and vegetables. But still, a lack of reliable, integrated cold chain facilities leads in significant food waste across the country.
The schemes for the preservation and growth of the cold chain Industry have been given below:
The Indian government has now allowed 100% FDI in the cold chain sector to witness the much-needed boom of this business on a global scale and to enable the construction of cold chain infrastructure completely and without hindrances. Under the current FDI policy, a minimum investment of USD 100 is required, with at least 50% of that investment in back-end infrastructure. Furthermore, according to the Department of Industrial Policy and Promotion, the exact figure for FDI in only cold chain is still unavailable. However, given that overall FDI in food processing industries, including the cold chain industry, was USD 904.7 million in 2019-20, a similar deduction can be made. According to the Minister of State for Food Processing Industries, food processing industries (FPI) got USD 393.4 million in FDI during 2020-21, compared to USD 904.7 million the previous year.
FDI in the FPI industry reached USD 628.24 million in 2018-19. Since 2016-17, the ministry has been implementing the Central Industry Umbrella Scheme - Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) - for general growth and development of the food processing sector, including agro product processing, and therefore enhancing farmer income. PMKSY’s component schemes are as follows: Mega Food Park, Integrated Cold Chain and Value Addition Infrastructure, Food Processing & Preservation Capacity Creation/Expansion, and Infrastructure for Agro-Processing Clusters. Under these schemes, the ministry primarily provides credit-linked financial assistance (capital subsidy) to entrepreneurs in the form of grants-in-aid for the establishment of food processing/preservation industries. So far, the Ministry has approved 41 mega food parks, 353 cold chain projects, 63 agro processing clusters, 292 food processing units, 63 backward and forward linkages projects, and 6 operation green projects across the country.
MoFPI’s Scheme of Cold Chain
Financial help in the form of grant-in-aid is provided to industry participants under this scheme. The assistance is provided up to INR 10 crore for each project involving technical civil works and all eligible plant and machinery, subject to the following conditions:
- The grant-in-aid for storage infrastructure, which comprises the pack house and pre-cooling units, ripening chambers, and transport infrastructure, will be 35% for General Areas and 50% for Northeastern States, Himalayan States, Integrated Tribal Development Project (ITDP) Areas, and islands. This must be included in the entire cost of the plant and machinery, as well as all technical civil work.
- In the event of any value addition and processing for such infrastructure, including frozen storage and deep freezers associated with such projects and integral to the processing, the grant-in-aid shall be provided at a rate of 50% for all General Areas and 75% for Northeast States, Himalayan States, ITDP Areas, and islands.
- If irrigation facilities are required, the grant-in-aid will be 50% for general areas and 75% for Northeast States, Himalayan States, ITDP Areas, and islands.
Challenge: Maintaining product integrity during transportation of perishable commodities
Constant temperature monitoring while storage and transportation is essential for preventing product degradation and spoilage. This ensures that products that appear to be safe are actually safe. Cold-chain companies use IoT temperature sensors to keep an eye on the temperature when loading and transporting products.
The following are the best practices for maintaining a cold chain from beginning to end:
- Checking the packing during arrival, transportation, and delivery.
- Proper pre-cool inventory.
- Maintain cold storage temperature.
- Ship the products at the appropriate temperature (Maintain the temperature at the time of loading).
- Monitor the temperature during transport.
- Ensure that the goods are kept at the optimal temperature by the recipients.
To ensure that the food is kept in the best possible condition and of high quality, supply chain companies must stay alert and resolve any issues as quickly as feasible. Cold chain logistics links manufacturing facilities to the market. The success of cold chain transportation is determined by how well it serves as a channel from the origin to the destination for products that are sensitive to air compression, temperature, microbial load, etc. with full integrity.
During transport, a malfunction (or an involuntary interruption of power) of the refrigeration equipment can, in a couple of hours, compromise the cold chain depending on the ambient temperature. Since refrigeration equipment is designed to maintain a set temperature level, a load that has not previously been cooled may put undue stress on the device, causing the temperature to fall below the specified range. Due to wear and tear or defective equipment, the reefer may offer an inadequate cold storage environment, such as poor air circulation and defective insulation at seals (such as doors).
Drivers may also willingly turn off the refrigeration unit to conserve fuel, leave doors open for too long during deliveries, or be forced to do so by local legislation to cut idling time. A cold chain can be compromised in a variety of ways during the loading, unloading, or storing of a product. For example, a product could be left on the loading dock for an extended amount of time, or the refrigeration unit could be switched off during transshipment. Some warehouses may have poor temperature maintenance and control, while others may lack temperature storage facilities, resulting in all freight being stored at the same temperature. A consignment may also be stored at the wrong temperature due to a clerical error. As a result, the challenge remains the conditions in which products are exposed to intermittent and temporary lapses in the integrity of the cold chain, because these breaches in integrity are more difficult to identify. This reduces the product’s shelf life, if not spoilage and loss of market value.
The LCV, by vehicle type dominated the cold chain market and is projected to have the fastest market growth during the forecast period.
LCVs are commonly used in the cold chain logistics industry for the transportation of temperature-sensitive products. The demand for LCVs for cold chain logistics is driven by various factors, such as the size and weight of the cargo, the distance to be covered, and the type of product being transported. Overall, LCVs are an important component of the cold chain market, particularly in the last-mile delivery of temperature-sensitive products. As the demand for fresh and frozen food items, pharmaceuticals, and other temperature-sensitive products continues to grow, the demand for LCVs equipped with refrigeration units is likely to increase as well.
The frozen segment by temperature type is estimated to account for the largest market share in the global Cold chain market.
The food industry is a major driver of the frozen segment in the cold chain market. The demand for frozen foods is increasing due to their longer shelf life, convenience, and ease of preparation. Frozen foods are also less prone to spoilage during transportation and storage, which makes them ideal for long-distance transportation. The growing demand for frozen products and the need for strict temperature control during transportation and storage are driving the frozen segment of the cold chain market. With the increasing demand for frozen food, pharmaceuticals, and other products, the demand for cold chain logistics services for the frozen segment is expected to continue to grow in the coming years.
The fruits and vegetables by application is projected to attain the fastest market growth in Cold chain market over the forecast period.
With the growing demand for fresh fruits and vegetables, the need for cold chain logistics has increased to maintain the quality and freshness of these products during transportation and storage. Cold chain logistics plays a crucial role in maintaining the nutritional value and taste of fresh produce, thereby meeting the rising demand for high-quality fresh produce. Overall, the growing demand for fresh produce, globalization of trade, reduction of food waste, and demand for organic produce are driving the fruits and vegetables segment of the cold chain market.
Asia Pacific is projected to account for the largest share in the Cold chain market during the forecast period.
To know about the assumptions considered for the study, download the pdf brochure
The e-commerce industry is growing rapidly in the Asia Pacific region, which is driving the demand for cold chain logistics for the last-mile delivery of temperature-sensitive products, such as fresh food, pharmaceuticals, and other products. Governments in the Asia Pacific region are investing in the development of cold chain infrastructure to support the growth of the food and pharmaceutical industries. For instance, the Indian government has launched the Pradhan Mantri Kisan Sampada Yojana to create modern infrastructure for the food processing industry, which includes cold chain logistics. The growing demand for food products, increasing urbanization, rising e-commerce industry, government initiatives, and focus on sustainability are driving the growth of the cold chain market in the Asia Pacific region.
Key Market Players in Cold Chain Market
The key players in this market include Americold Logistics (US), Lineage Logistics Holdings, LLC. (US), Nichirei Corporation (Japan), Burris Logistics (US), A.P. Moller Maersk (Denmark), United States Cold Storage (US), Tippmann Group (US), VersaCold Logistics Services (Canada), Coldman (India), Congebec Inc. (Canada), Conestoga Cold Storage (Canada), NewCold (Netherlands), Confederation Freezers (Canada), Seafrigo (France), and Trenton Cold Storage (Canada). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Market valuation in 2023 |
USD 278.2 billion |
|
Revenue prediction in 2028 |
USD 428.4 billion |
|
Progress rate |
CAGR of 9.0% |
|
Report Coverage & Deliverables |
Revenue forecast, company ranking, driving factors, Competitive benchmarking, and analysis |
|
Segments covered |
Application, Region, Temperature Type |
|
Regional Insight |
Europe, North America, South America, Asia Pacific |
|
Leading organizations outlined |
The key players in this include Americold Logistics (US), Lineage Logistics Holdings, LLC. (US), Nichirei Corporation (Japan), Burris Logistics (US), A.P. Moller Maersk (Denmark), United States Cold Storage (US), Tippmann Group (US), VersaCold Logistics Services (Canada), Coldman (India), Congebec Inc. (Canada), Conestoga Cold Storage (Canada), NewCold (Netherlands), Confederation Freezers (Canada), Seafrigo (France), and Trenton Cold Storage (Canada). |
|
Report Highlights |
|
Cold Chain Market Report Segmentation
This research report categorizes the cold chain market based on type, temperature type, application, and region.
|
Aspect |
Details |
|
By Temperature Type |
|
|
By Type |
|
|
By Application |
|
|
By Region |
|
Cold Chain Market Recent Developments
- In September 2022, Lineage Logistics acquired Spanish transport and cold-store operator, Grupo Fuentes. This expansion in Spain will reinforce Lineage’s footprint in Europe’s main markets for fresh produce. This acquisition will strengthen Lineage’s footprint for cold storage distribution across Europe.
- In June 2022, Americold Logistics announced the opening of its newest facility in Dunkirk, NY. This facility has over 181,000 square feet of cold storage & operational space, and 25,000 pallet positions, to support cold storage needs in the western New York region. This new facility will expand the company’s footprint across the US.
- In December 2022, A.P. Moller Maersk announced on opening of a new facility in Norway. This new facility is specifically designed to accommodate the needs of the vast Norwegian seafood industry. The new facility will serve as a seamless supply chain link for customers when transporting frozen and refrigerated products.
- In June 2021, Frigologix, a cold storage provider, was acquired by Stockhabo. As a result, three new sites joined the Stockhabo network: Lommel (Belgium), Herk-de-Stad (Belgium), and Val-de-Meuse (France). Frigologix is a strong player in the market of controlled temperature storage. For the expansion of its network in Belgium, this acquisition takes the first for the company. Stockhabo’s total capacity now rises to 235,000 pallet positions and potential increase in the revenue flow.
Frequently Asked Questions (FAQ):
How big is the cold chain market?
The global cold chain market is expected to grow rapidly in the next years, with a CAGR of 9.0% estimated from 2023 to 2028, culminating in a market worth USD 428.4 billion in 2028.
What are the key challenges faced by the cold chain industry?
Maintaining product integrity during the transportation of perishable commodities:
Constant temperature control is important to maintain the quality of food products, especially in extreme weather conditions. There is plenty of opportunity for error, which can increase the chances of contamination due to inadequate temperature management.
Rising fuel costs and high capital investment requirement
The rise in fuel costs is one of the major concerns for providers of refrigerated transport in developed countries. Service providers have tight operating margins; therefore, even a slight increase in oil prices can significantly impact the distribution of perishable commodities.
What is the impact of e-commerce on the cold chain and frozen food market?
E-commerce has a significant impact on the cold chain and frozen food market that includes:
- Shorter delivery time
- Need for specialized packaging
- Increased competition
- Greater transparency and traceability
What are the latest technological advancements in cold chain management?
Advanced analytics and data aggregation technologies
Businesses are adopting analytics-driven capabilities; advanced analytics and data aggregation technologies would further enhance business operations and logistics to improve the speed of product entry in cold chain logistics and increase the cost efficiency of cold chain operations. Access to real-time data would help companies track and monitor products in a cold chain, and data will remain a fundamental component of logistics operations in cold chains. Companies could start using geography-specific data to anticipate the demand for certain products in a region, which would drive the profitability of the cold chain industry. Some of advanced technology associated with cold chain includes:
- IoT
- Radio Frequency Identification
- Telematics
- Artificial Intelligence and Machine Learning
How does government regulation affect the cold chain industry?
- The US government has introduced various rules and regulations to improve the functioning of the cold chain industry.
- In Canada, the government has also taken various steps to ensure food safety and reduce food spoilage and food loss. Canadian legislation affecting the cold chain includes the Canadian Food Inspection Agency Act, Food and Drugs Act, Meat Inspection Act, Canada Agricultural Products Act, and the Fish Inspection Act and their respective regulations.
- The European Union introduced the General Food Law in 2002, defining general food principles and procedures. The European Food Safety Authority was established. To reduce the carbon footprint on the environment, the European Commission drafted a significant roadmap for cold chain emissions and regulations.
- The Chinese government has taken numerous steps to regulate and support the development of the cold chain market. In conjunction with industrial associations, the government has introduced a series of standards and policies.
- The Government of India has developed several schemes to encourage cold storage and warehousing in India through various tax exemptions and subsidies. Government institutions such as the National Horticulture Board (NHB), National Horticulture Mission (NHM), Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Food Processing Industry (MoFPI), Mission for Integrated Development of Horticulture (MIDH), and Department of Agriculture and Cooperation currently operate in the cold storage sector.
What is the role of logistics companies in the cold chain and frozen food market?
Americold Logistics (US), Lineage Logistics Holdings, LLC (US), Nichirei Corporation (Japan), Burris Logistics (US), and A.P. Moller Maersk (Denmark) are among the key players in the global cold chain market. To strengthen their market position in the global market, they are now focusing on strategies such as expanding and strengthening their warehouse network, expansions, and customer services. The food industry is the major factor for the cold chain market growth. Cold chain services of refrigerated storage and transportation help in the smooth flow of food products through the supply chain. The other factor that clients expect is real-time temperature monitoring & controlling systems, which allow customers to monitor the temperature of the food product that’s been stored.
How can companies ensure food safety and quality in the cold chain process?
Americold Logistics (US), Lineage Logistics Holdings, LLC (US), Nichirei Corporation (Japan), Burris Logistics (US), and A.P. Moller Maersk (Denmark) are among the key players in the global cold chain market. To strengthen their market position in the global market, they are now focusing on strategies such as expanding and strengthening their warehouse network, expansions, and customer services. The food industry is the major factor for the cold chain market growth. Cold chain services of refrigerated storage and transportation help in the smooth flow of food products through the supply chain. The other factor that clients expect is real-time temperature monitoring & controlling systems, which allow customers to monitor the temperature of the food product that’s been stored.
What are the future growth prospects for the global cold chain market?
Food loss, a major problem globally, occurs primarily because food perishes before being brought into consumption. This is because access to the market is beyond the normal lifespan of several food items. According to the FAO 2021, around one-third of the food produced—around 1.8 billion tonnes—is wasted globally every year. Hence, cold handling and storage systems are widely used in many countries to prevent the loss of perishable food. In the last 20 years, the cold chain market has evolved significantly. Earlier, a cold chain was used to store and extend the shelf-life of certain agricultural commodities, such as potatoes and fruits, for commercial purposes. However, the demand for cold chain systems has increased with the growing trade of perishable foods, such as meat, fish & seafood, dairy & frozen desserts, and fruits & vegetables.
How does the cold chain industry vary across different regions of the world?
North America:
The cold chain market in North America is exhibiting strong growth. A key factor driving the demand for cold chain services in North America has been a change in the eating habits of consumers. In addition, consumers in this region face problems of increased obesity levels and the prevalence of lifestyle diseases. The intake of proteins, vitamins, minerals, and good fats has increased. This has encouraged the demand for food products such as meat, fruits & vegetables, and dairy products. These products are temperature-sensitive and perishable and require refrigerated storage and refrigerated transportation services.
Europe:
The European cold chain market is one of the largest and is expected to grow steadily during the forecast period. In recent years, temperature-controlled road transport in the cold chain industry has gained importance in Europe. The demand for refrigerated transportation services is rising due to increasing domestic consumption through online channels and a preference for higher-quality standards for perishable goods.
Asia Pacific:
The Asia Pacific market is estimated to be the fastest growing during the forecast period. Countries such as India, Japan, and China do not have access to these cold chain requirements. In these countries, governments support the development of the cold chain market. They have laid out various schemes that indicate significant growth potential for the cold chain industry in the region. Furthermore, rising consumer demand for perishable food, as well as several government initiatives in the food industry, are propelling the market growth.
Rest of the World (ROW):
The Rest of the World (RoW) includes South America, the Middle East, and Africa. Although the market for cold chain in this region accounts for a lower share, it has significant growth potential and opportunities due to strategic developments and investments in recent years. Thus, RoW is projected to be the fastest-growing market during the forecast period, following the Asia Pacific region. The rapid development of infrastructure, an increase in government support, and a rise in investments are the key factors that are projected to drive the growth of the cold chain market here.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major steps in estimating the size of the cold chain market. Exhaustive secondary research was done to collect information on the market, as well as the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Cold Chain Market Secondary Research
In the secondary research process, various sources, such as the Refrigerated Foods Association (RFA), The Refrigerated Warehouse & Transport Association of Australia Ltd (RWTA), the Southern African Refrigerated Distribution Association (SARDA), the International Association for Cold Storage Construction (IACSC), International Association of Refrigerated Warehouses (IARW), World Food Logistics Organization (WFLO), European Cold Storage and Logistics Association (ECSLA), and Cool Chain Association (CCA) were referred to, to identify and collect information for this study. The secondary sources included annual reports, press releases and investor presentations of companies, white papers, certified publications, articles by recognized authors, associations, regulatory bodies, trade directories, and paid databases.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, market classification & segmentation according to industry trends to the bottom-most level, and geographical markets. It was also used to obtain information on the key developments from a market-oriented perspective.
Cold Chain Market Primary Research
The market comprises several stakeholders in the supply chain; these include suppliers, manufacturers, and end-use product manufacturers. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, executives, vice presidents, and CEOs of the food processing industry and the retail sector. The primary sources from the supply side include research institutions involved in R&D, key opinion leaders, and manufacturers of cold chain systems.
To know about the assumptions considered for the study, download the pdf brochure
Cold Chain Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the cold chain market. These approaches have also been used extensively to determine the size of the various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and market have been identified through extensive secondary research.
- The cold chain value chain and market size in terms of value and volume have been determined through primary and secondary research.
- All shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All macro-economic and micro-economic factors affecting the growth of the cold chain market were considered while estimating the market size.
- All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Global Cold Chain Market Size: Top-Down Approach
To know about the assumptions considered for the study, Request for Free Sample Report
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. To estimate the overall cold chain market and arrive at the exact statistics for all segments and subsegments, the data triangulation and market breakdown procedures were employed. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Report Objectives
Cold Chain Market Intelligence
- Determining and projecting the size of the cold chain market based on technology, type, application, temperature type, means of temperature control and region over a five-year period ranging from 2023 to 2028.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across the key regions
- Analyzing the demand-side factors based on the following:
- Impact of macro- and micro-economic factors on the market
- Shifts in demand patterns across different subsegments and regions
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
Competitive Intelligence
- Identifying and profiling the key players in the cold chain market
- Providing a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key regions
- Analyzing the value chain and regulatory frameworks across regions and their impact on prominent market players
- Providing insights into the key investments in product innovations and technology in the cold chain market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the company’s specific scientific needs.
The following customization options are available for the report:
Service Analysis:
- Service Matrix, which gives a detailed comparison of the service portfolio of each company
Geographic Analysis
- Further breakdown of the Rest of European market for cold chain into Poland and Ukraine.
- Further breakdown of the Rest of Asia Pacific market for cold chain into India, Vietnam, Malaysia, Indonesia, and Thailand.
- Further breakdown of the Rest of South American market for cold chain into Colombia, Paraguay, Uruguay, and Chile.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Cold Chain Market