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The China Cold Chain Market size forecast to increase by USD 76.48 billion at a CAGR of 19.1% between 2022 and 2027.
The growth of the market depends on several factors, including increased demand for frozen and perishable food in China, rising initiatives to promote cold chains in China, and an increasing number of trade corridors. Its also plays a crucial role in shaping market dynamics, particularly in the temperature-controlled logistics sector. With the rising demand for pharmaceuticals, food, and healthcare products, there is a pressing need for robust storage, transportation, and refrigeration solutions. As demand for these items escalates, the supply chain must adapt to ensure timely and efficient delivery, underscoring the importance of logistics and supply chain management in meeting user expectations.
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This market report extensively covers market segmentation by type (refrigerated warehouse and refrigerated transportation), application (meat, fish, and seafood sector, dairy and frozen desserts sector, fruits and vegetables sector, healthcare sector, and bakery and confectionery sector), and product type (chilled and frozen).
The refrigerated warehouse segment will contribute a major share of the market. Refrigerated warehouses are used primarily for the storage of perishable products that need to be kept at the right temperature, like food products and medicines. The refrigerated warehouse segment showed a gradual increase in market share with USD 16.81 billion in 2017 and continued to grow by 2021. The operation of warehouses or storage facilities that require refrigeration consumes a lot of energy. To reduce energy consumption, market players are also investing in energy-efficient technologies. This is positively impacting the market segment growth.
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The cold chain market has begun to experience rapid growth as a result of ongoing investments made in R&D and transportation infrastructure by governments and logistics companies. Consumption of frozen and processed seafood is also continuously expanding due to advancements in processing, distribution, and cold chain systems, the growing popularity of high-end supermarkets, and customer desire for a more diverse and healthy diet that includes seafood. Hence, these factors will lead to an increase in the revenue generated from the refrigerated warehouse segment in the cold chain market in China during the forecast period.
Based on application, the meat, fish, and seafood sector segment holds the largest market share. The demand for cold chains will increase in China as a result of the country's rising frozen meat, fish, and seafood consumption. Moreover, a cold chain is required to avoid pathogenic microorganisms and spoilage in frozen meat, which, in turn, helps in reducing health risks. Hence, the growth in the demand for frozen food products is expected to increase the adoption of cold chains in China during the forecast period.
Based on product type, the chilled segment holds the largest market share. Chilled foods are kept at a temperature above their freezing point, usually between 0 and 4 degrees Celsius. A wide variety of new products, including complete meals, prepared and delicatessen salads, and dairy desserts, have replaced traditional chilled items like fresh meat and fish and dairy products in recent years, significantly expanding this commodities category.
For the production of safe chilled meals, since chilling is not a bactericidal technique, suitable microbiological quality raw materials and hygienic handling are essential. Even when injured, mesophiles that can withstand the cold can remain in their food for extended periods of time, recover, and even continue to grow if the environment warms up later. Therefore, cooling will lessen the chance of mesophilic diseases while not ensuring their complete eradication. Hence, as chilling is important to the modern food industry, the chilled segment will rapidly grow during the forecast period.
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The growth of the temperature-controlled logistics market share is prominently propelled by the burgeoning number of trade corridors. Trade corridors denote extensive transport networks established between regions to bolster economic progress, often linking cities or nations through integrated infrastructures like highways and railroads. These corridors play a vital role in enhancing countries' development, yielding substantial economic advantages including job generation, poverty reduction, and economic resilience.
China's substantial investments in these corridors, such as the Silk Road connecting the Mediterranean to China via Persia, India, and Arabia, are aimed at facilitating goods movement. As these trade corridors expand, the demand for refrigerated transport will surge, further driving the cold chain market's growth. This expansion will cater to the increasing demand for temperature-controlled transportation and storage, especially crucial for perishable goods like pharmaceuticals, vaccines, and food items, ensuring quality control and safety while meeting stringent regulations.
A notable trend in the market is the escalating demand for comprehensive integrated logistics services. In this regional arena, numerous competitors are vying for position. The market's lucrativeness has lured various entrants, including food retailers and fleet suppliers; however, the capital-intensive nature of the market makes it accessible only to financially robust entities.
Fueled by the heightened need for outsourced cold chain services across industries like pharmaceuticals, service providers are now offering all-encompassing integrated solutions. These cover aspects from inventory management, order planning, and forecasting to warehousing and delivery oversight. Some providers extend their assistance to shipment tracking, supply chain communication, and disaster recovery services. Furthermore, educational seminars for cold chain logistics practitioners are also offered by certain Companies s. These factors are poised to drive the growth of the China cold chain market in the projected period.
The market growth is hindered by the limited integration of new technology. The warehousing sector faces growth challenges due to inadequate advanced equipment, impacted by high capital costs. While technologies like RFID and automation boost logistics efficiency, their adoption is hindered by expense. Consequently, smaller businesses and local players continue using traditional methods, limiting supply chain value for customers. This constraint is expected to impede the China cold chain market's growth in the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies s are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arcticold Food Ltd. - The company offers controlled warehousing and logistics services. The key offerings of the company include cold chain solutions for meat storage.
Global Cold Chain Alliance - The company offers third-party and temperature-controlled supply chain services. The key offerings of the company include cold chain solutions for the food industry.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market Companies s, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies Companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies s are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cold Chain Market In China Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.1% |
Market growth 2023-2027 |
USD 76.48 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.86 |
Competitive landscape |
Leading Companies s, Market Positioning of Companies s, Competitive Strategies, and Industry Risks |
Key companies profiled |
Americold Realty Trust Inc., AP Moller Maersk AS, Arcticold Food Ltd., Beijing Shounong Food Group Co. Ltd., BSI Group, CJ Logistics Corp., Deutsche Post AG, FedEx Corp., Global Cold Chain Alliance, JD.COM, Jin Jiang International Holdings Co. Ltd., John Swire and Sons Ltd., Kerry Logistics Network Ltd., Kuehne Nagel Management AG, Nichirei Corp., S.F. Holding Co. Ltd., Shandong Gaishi International Logistics Group, Shanghai Speed International Logistics Co. Ltd., Shanghai Tengyi Boshi International Freight Forwarding Co. Ltd., and Sinotrans Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
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