Cold Chain Market by Type, Temperature Type (Chilled, Frozen, and Deep-frozen), Application (Food & Beverages, Pharmaceuticals), Technology( Blast Freezing, Vapor Compression,Programmable Logic Controller) and Region - Global Forecast to 2029
[369 Pages Report] The global cold chain market is on a trajectory of significant expansion, with an estimated value projected to reach USD 372.0 billion by 2029 from the 2024 valuation of USD 228.3 billion, displaying a promising Compound Annual Growth Rate (CAGR) of 10.3%. The cold chain refers to a series of temperature-controlled processes, facilities, and logistics used to ensure the integrity and quality of perishable goods throughout their journey from production to consumption. It encompasses refrigeration, freezing, and controlled atmosphere technologies to maintain specific temperature and humidity levels.
The increasing popularity of the "eating-at-home" culture has intensified the need for preserved, fresh, and frozen foods. According to Forbes, eCommerce sales in the US soared to USD 870 billion in 2021, marking a 14.2% increase from the previous year and an impressive 50.5% growth compared to 2019. In China, expenditure on online groceries surged by 30% from 2020 to 2021, reaching a record USD 78 billion in 2022. The digital food industry is expected to represent 34.6% of total sales in 2023, benefiting various sectors including quick-frozen foods, home-packaged meat and seafood, and bakery products. This exemplifies the profound impact of eCommerce growth on consumer behavior and eating at home culture.
With consumers seeking convenience and health-conscious options, there's a growing demand for products that are minimally processed, yet have an extended shelf life. Cold chain infrastructure plays a pivotal role in meeting these demands by preserving the freshness and nutritional value of perishable items, thereby extending their marketability. Additionally, the globalization of food supply chains has made cold chain logistics indispensable in international trade. With a rise in cross-border commerce, maintaining product quality and safety standards becomes paramount. Cold chain ensures that goods such as fruits, vegetables, seafood, and pharmaceuticals remain viable during transit, reducing the risk of spoilage and contamination.
However, the cold chain industry faces challenges, including rising fuel costs. Cold chain operations require energy-intensive refrigeration systems, contributing to significant fuel consumption and operational expenses. To mitigate this, investments in energy-efficient technologies, alternative fuels, and optimization of transportation routes can help reduce costs and environmental impact.
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Market Dynamics
Drivers: Increasing need for temperature control to prevent food loss and potential health hazards
With the global population swelling and urbanization escalating, the demand for perishable goods, including fresh produce, dairy, and pharmaceuticals, has skyrocketed. This surge necessitates meticulous temperature management throughout the supply chain to maintain product quality and safety. The intricacies of the modern supply chain, characterized by extended transportation routes and diverse distribution channels, amplify the importance of temperature control. Fluctuations in temperature during transit or storage can catalyze spoilage, rendering goods unsuitable for consumption and resulting in substantial financial losses for producers, distributors, and retailers alike.
Furthermore, the stakes extend beyond economic ramifications, encompassing public health concerns. Inadequate temperature control can foster the proliferation of harmful pathogens, such as bacteria and fungi, heightening the risk of foodborne illnesses. Consequently, stringent regulatory frameworks, coupled with evolving consumer expectations for quality and safety, underscore the imperative for precise temperature monitoring and management across the cold chain.
Restraints: High energy costs and requirement for significant capital investments
The cold chain market, crucial for preserving perishable goods like food and pharmaceuticals, faces significant hurdles due to high energy costs and the substantial capital investments required. Firstly, maintaining the necessary low temperatures throughout the supply chain demands substantial energy consumption. Cold storage facilities, refrigerated trucks, and temperature-controlled warehouses all contribute to this energy demand. Moreover, the energy-intensive nature of cooling systems, often reliant on conventional refrigerants, exacerbates environmental concerns and regulatory compliance costs.
Additionally, establishing and maintaining a robust cold chain infrastructure demands substantial capital investments. From procuring refrigeration equipment to constructing specialized storage facilities and transportation fleets, the initial financial outlay can be prohibitive for many businesses, particularly small and medium enterprises (SMEs). Additionally, ongoing operational expenses such as energy bills and maintenance further strain financial resources.
Opportunities: Intermodal transport to save fuel costs
Intermodal transport has emerged as a pivotal solution in the cold chain market due to its unparalleled ability to optimize fuel costs. Cold chain logistics demands a delicate balance between temperature control and efficiency. Intermodal transport achieves this balance by seamlessly integrating multiple modes of transportation, such as trucks, trains, and ships, to deliver goods to their destination. By strategically combining different transport modes based on their strengths and cost-effectiveness, companies can minimize fuel consumption. For instance, trains are substantially more fuel-efficient than trucks over long distances, while trucks offer flexibility and accessibility for last-mile delivery. By leveraging these strengths, businesses can significantly reduce their overall fuel expenditure, thereby enhancing cost-effectiveness in the cold chain market.
Moreover, intermodal transport fosters sustainability, a growing concern in modern supply chain management. By optimizing fuel usage, companies not only cut costs but also reduce their carbon footprint. This aligns with increasingly stringent environmental regulations and consumer preferences for eco-friendly practices.
Challenges: Maintaining product integrity during transportation of perishable commodities
Perishable goods such as fresh produce, seafood, and pharmaceuticals are highly sensitive to temperature fluctuations. Even slight deviations from the required temperature range can accelerate spoilage, compromising product quality and safety. Achieving and maintaining the optimal temperature throughout the entire transportation process, from storage facilities to trucks, ships, or planes, requires sophisticated refrigeration systems and meticulous monitoring. Additionally, maintaining the cold chain often involves multiple handovers and modes of transportation, increasing the risk of mishandling or delays. Each transition presents an opportunity for temperature breaches or physical damage, necessitating robust packaging and handling protocols.
Furthermore, logistical challenges such as unpredictable weather conditions, traffic congestion, and customs delays further exacerbate the risk to product integrity. Effective contingency plans and real-time tracking systems are essential to mitigate these risks and ensure timely delivery without compromising quality. Moreover, regulatory compliance adds another layer of complexity. Strict regulations govern the transportation of perishable goods, requiring adherence to specific temperature thresholds, documentation, and sanitation standards. Non-compliance can result in costly fines, product recalls, and damage to brand reputation.
Market Ecosystem
Refrigerated Road Transportation, By Type Accounted For The Highest Market Share Among Refrigerated Transport In 2023.
Refrigerated road transportation dominates the refrigerated transport cold chain market due to its crucial role in maintaining the integrity and freshness of perishable goods during transit. Unlike warehouses, which primarily provide storage, refrigerated transportation ensures continuous temperature control from origin to destination. This is vital for sensitive products like fresh produce, pharmaceuticals, and certain chemicals, where even slight temperature fluctuations can compromise quality and safety.
Refrigerated trucks offer unparalleled flexibility, reaching remote areas inaccessible to warehouses. Their mobility facilitates efficient distribution networks, reducing transit times and minimizing inventory holding costs. Additionally, advancements in refrigeration technology have enabled precise temperature monitoring and remote control, enhancing product traceability and compliance with stringent regulatory standards. Furthermore, refrigerated road transportation optimizes supply chain efficiency by enabling just-in-time delivery, reducing inventory spoilage, and minimizing waste. Its ability to seamlessly integrate with other transportation modes further enhances its market dominance.
Asia Pacific Is The Fastest-Growing As Well As The Dominant Market For Cold Chain Among The Regions.
Asia Pacific region leads the cold chain market. The region's burgeoning population, rapid urbanization, and expanding middle class have fueled a surge in demand for perishable goods, including fresh produce, dairy products, and pharmaceuticals, necessitating robust cold chain infrastructure. Additionally, the huge consumption of bakery and meat sector in the countries such as China further propels the demand for cold chain. According to an April 2022 report from the USDA, China ranks as the second-largest market for baked goods globally, following only the US. USDA forecasts suggest that the market is poised to reach USD 53 billion by 2025, highlighting its significant growth potential. Similarly, based on data from the USDA Economic Research Service, China's reliance on meat imports has risen from 1.0 percent in 2000 to 9.1 percent in 2021. Since 2019, China has held the title of the world's largest meat importer, surpassing the second-largest meat-importing nation by 43 percent in 2022, which is Japan.
Moreover, the proliferation of convenience food stores, supermarkets, and quick-service restaurants (QSRs) across Asia Pacific has intensified the need for robust cold chain solutions to preserve freshness and meet consumer expectations for quality and safety. For instance, a USDA publication from 2022 disclosed that in the period leading up to the COVID-19 pandemic (December 2019 to February 2020), consumers increased their spending at quick-service restaurants by nearly 5%, while their expenditure at full-service restaurants remained relatively unchanged compared to the previous year. The shift in dietary habits towards more processed and frozen foods has further propelled the demand for cold chain logistics. Furthermore, the diverse geographical landscape of the Asia Pacific region, encompassing vast territories with varying climatic conditions, further underscores the importance of a well-developed cold chain network to facilitate seamless distribution of temperature-sensitive goods.
Key Market Players
The key players in this market include Americold Logistics, Inc. (US), Lineage, Inc. (US), NICHIREI CORPORATION (Japan), Burris Logistics (US), A.P. Moller - Maersk (Denmark), Tippmann Group (US), Coldman Logistics Pvt.Ltd. (India), and United States Cold Storage (US).
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- Latest News, Updates & Trend analysis
Report Metric |
Details |
Market size estimation |
2024–2029 |
Base year considered |
2023 |
Forecast period considered |
2024–2029 |
Units considered |
Value (USD), Volume (Ton) |
Segments Covered |
By Type, Temperature Type, Application, Technology (Qualitative) And Region |
Regions covered |
North America, Europe, Asia Pacific, South America, and RoW |
Companies studied |
|
This research report categorizes the cold chain market, based on type, temperature type, application, technology and region.
Target Audience
- Cold Storage Facility Owners/Operators
- Cold Chain Equipment Manufacturers
- Chilled & Frozen Food Manufacturers
- Government Agencies (related to food safety and pharmaceutical regulations such as FDA, EFSA, and FSSAI)
Report Scope:
Cold Chain Market:
By Technology (Qualitative)
- Blast Freezing
- Vapor Compression
- Programmable Logic Controller
- Evaporative Cooling
- Cryogenic Cooling
- Other Technologies
By Type
- Cold Chain Storage And Infrastructure (Rent)
-
Refrigerated Transportation
-
Refrigerated Road Transportation
- Refrigerated LCV (Van)
- Refrigerated Transportation MHCV (Truck)
- Refrigerated HCV (Trailers & Semitrailers)
- Refrigerated Sea Transportation
- Refrigerated Rail Transportation
- Refrigerated Air Transportation
-
Refrigerated Road Transportation
- Others (Inventory Management, Order Fulfillment, Quality Control and Assurance, Value-Added Services, Cross-Docking, Temperature Monitoring and Reporting and Customized Solutions)
By Temperature Type
- Chilled (0°C To 5°C)
- Frozen (-18°C And Below)
- Deep-Frozen (Below -25°C)
By Application
-
Food & Beverages
- Dairy & Frozen Desserts
- Fish, Meat, and Seafood Products
- Fruits & Vegetables
- Bakery and Confectionery Products
- Others
- Pharmaceuticals
- Other Applications (Chemicals, Flowers & Plants, Art, Electronics, and Other Temperature-Sensitive Products)
By Region
- North America
- Europe
- Asia-Pacific
- South America
- Rest of the World (RoW)
Recent Developments
- In June 2023, Lineage, Inc. (US), announced the partial closure of its joint venture agreement with SK Logistics, a cold-storage warehouse operator based in Vietnam. Lineage, Inc. will now own SK Logistics' two cold storage warehouses totaling nearly 400,000 square feet. This joint venture significantly enhances Lineage, Inc.'s capacity in the northern region of Vietnam, and Lineage, Inc. now possesses integrated assets and supply chain solutions in both the northern and southern regions of Vietnam.
- In December 2022, A.P. Moller - Maersk (Denmark), inaugurated its cutting-edge integrated cold chain facility at the Ruakura Superhub, establishing Hamilton as a crucial hub within the Golden Triangle for freight and logistics in New Zealand.
- In June 2022, Americold Logistics, Inc. (US), announced the opening of its newest facility in Dunkirk, New York. The new facility boasts 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 further expand the company’s footprint across the US.
Frequently Asked Questions (FAQ):
What is the current size of the cold chain market?
The cold chain market is estimated at USD 228.3 billion in 2024 and is projected to reach USD 372.0 billion by 2029, at a CAGR of 10.3% from 2024 to 2029.
Which are the key players in the market, and how intense is the competition?
North America boasts the highest market share in the decision intelligence market due to several factors. Its robust economy, technologically advanced infrastructure, and favorable regulatory environment foster innovation and growth in decision intelligence.
Which region is projected to account for the largest share of the cold chain market?
The Asia Pacific market is expected to dominate during the forecast period. With rapid urbanization and rising disposable incomes, there's a heightened demand for perishable goods and temperature-sensitive medications, necessitating robust cold chain infrastructure. Moreover, government initiatives to improve food safety and stringent regulations in pharmaceutical logistics fuel market growth. China and India, as key players, contribute significantly to this expansion.
What kind of information is provided in the company profile section?
The company profiles mentioned above offer valuable information such as a comprehensive business overview, including details on the company's various business segments, financial performance, geographical reach, revenue composition, and the breakdown of their business revenue. Additionally, these profiles offer insights into the company's service offerings, significant milestones, and expert analyst perspectives to further explain the company's potential.
What are the factors driving the cold chain market?
The global cold chain market is primarily driven by increasing demand for perishable goods, including pharmaceuticals, fresh produce, and dairy products, necessitating stringent temperature control throughout the supply chain. Additionally, expanding international trade, coupled with advancements in refrigeration technology and logistics infrastructure, further boosts market growth. The cold chain's ability to maintain optimal temperature conditions extends the shelf life of products, preserving freshness and nutritional value without the need for preservatives. This aspect not only ensures product quality and safety but also enhances consumer trust, thereby fueling continuous demand for cold chain solutions worldwide. .
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The study involved two major segments in estimating the current size of the cold chain market. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both 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.
Secondary Research
This research study involved the extensive use of secondary sources—directories and databases such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the cold chain market.
In the secondary research process, various sources such as annual reports, press releases & investor presentations of companies, white papers, food journals, certified publications, articles from recognized authors, directories, and databases, were referred to identify and collect information.
Secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, and market classification and segmentation as per the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted after obtaining information regarding the cold chain market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, South America, and the Rest of the World. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, research, and development teams, and related key executives from distributors, and key opinion leaders. Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to cold chain type, technology, application, temperature type, offering and region. Stakeholders from the demand side, such as dairy & frozen desserts, meat & seafood, fruits & vegetables, and bakery & confectionery products, pharmaceutical, chemical, art, flower & plants, electronics, and other temperature senisitive products manufacturers who avail the cold chain services were interviewed to understand the buyer’s perspective on the suppliers, services, and their current usage of cold chain and the outlook of their business which will affect the overall market.
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COMPANY NAME |
designation |
Burris Logistics (US) |
Territory Manager |
Seafrigo Group (France) |
Sales Manager |
Coldman Logistics Pvt.Ltd (India) |
General Manager |
NICHIREI CORPORATION (Japan) |
Head of logistics department |
NewCold (Netherlands) |
Marketing Manager |
Americold Logistics, Inc. (US) |
Sales Executive |
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the cold chain market. These approaches were also used extensively to determine the size of 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 the overall markets were identified through extensive secondary research.
- All shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from leaders, such as CEOs, directors, and marketing executives.
Global Cold Chain Market: Bottom-Up Approach.
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Global Cold Chain Market: Top-Down Approach.
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. Data triangulation and market breakdown procedures were employed to estimate the cold chain market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying numerous factors and trends from the demand and supply sides. The market size was also validated using both the top-down and bottom-up approaches.
Market Definition
According to the Central Asia Regional Economic Cooperation (CAREC), “Cold chain refers to the transportation of temperature-sensitive products along a supply chain through thermal and refrigerated packaging methods and the logistical planning to protect the integrity of these shipments.”
It is an unbroken/uninterrupted series of refrigerated or chilled production, storage, and distribution activities, along with associated equipment and logistics, which maintain the desired low-temperature range.
Key Stakeholders
- Cold chain service providers
- Refrigerated transport service providers
- Refrigerated warehouse and transport equipment providers
- Refrigerated transport vehicle manufacturers
- Logistics service providers
-
Associations and government agencies:
- International Refrigerated Transport Association (IRTA)
- Global Food Cold Chain Council (GFCCC)
- Global Cold Chain Alliance
- Refrigerated Foods Association (RFA)
- The Refrigerated Warehouse & Transport Association of Australia Ltd (RWTA)
- Southern African Refrigerated Distribution Association (SARDA)
- 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)
- Cool Chain Association (CCA)
- American Association of Meat Processors (AAMP)
- Frozen Potato Products Institute (FPPI)
- Cold logistics players (shipping lines, transporters, and container companies)
- Supply chain solution providers
- Manufacturers and traders of dairy & frozen desserts, meat & seafood, fruits & vegetables, and bakery & confectionery products
- Manufacturers of agricultural products
- Manufacturers of pharmaceutical products
- Manufacturers of temperature sensitive flowers & plants
- Manufacturers of temperature sensitive chemicals, arts, electronics
Report Objectives
- Determining and projecting the size of the cold chain market based on technology, type, offering, application, temperature type and region over a five-year period ranging from 2024 to 2029.
- 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)
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-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
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the Rest of European market for cold chain into Ireland, Poland, Sweden, Switzerland and other EU & non-EU countries.
- Further breakdown of the Rest of Asia Pacific market for cold chain into South Korea, Indonesia,, the Philippines, and Vietnam.
- Further breakdown of the Rest of South American market for cold chain into Colombia, Peru, Chile, and Venezuela.
- Further breakdown of the Rest of the World into the Middle East (Saudi Arabia, UAE, and the Rest of Middle East) and Africa (South Africa, Nigeria, and the Rest of Africa).
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Cold Chain Market