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The food and beverage cold chain logistics market is estimated to decline at a CAGR of 10.47% between 2022 and 2027. The size of the market is forecast to increase by USD 85,158.51 million. The growth of the market depends on several factors, including the rising consumption of frozen food, the need to reduce food wastage, and the growth of the organized retail sector in APAC.
This report extensively covers market segmentation by application (meat and seafood, dairy and frozen desserts, fruits vegetables and beverages, and bakery and confectionary), type (warehouse and transportation), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising consumption of frozen food is notably driving the market growth, although factors such as the high cost involved in building and operating cold chains may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Food And Beverage Cold Chain Logistics Market Driver
The rising consumption of frozen food is notably driving market growth. Owing to a rise in refrigerated foods consumption the global food and beverage cold chain logistics market is growing. Sales of frozen foods are growing due to the convenience that they offer to consumers in terms of easy and immediate cooking.
Frozen foods are generally used by consumers as an alternative to fresh and home-cooked food. The convenience that ready-to-eat meals offer to consumers is encouraging the consumption of frozen food, mainly due to factors such as busy lifestyles, among others. In addition, rapid urbanization is also driving the growth of the frozen food market. Hence, the growth of the frozen food industry will drive the global market during the forecast period.
Significant Food And Beverage Cold Chain Logistics Market Trend
The rising popularity of blockchain technology to improve traceability in cold chains is an emerging trend in the market. Blockchain technology is basically a series of information that helps in the recording of events that cannot be altered or tampered with. Multiple users can access or add data to the chain but will not be able to change or delete the information that is already present.
This technology removes the need for a central authority to maintain records that help the supply chain processes become more efficient and cost-effective. Moreover, the use of blockchains in the cold chain logistics market is gaining popularity for refrigerated products. This is because the technology helps manufacturers to track production and delivery. Thus, such factors will propel the growth of the market during the forecast period.
Major Food And Beverage Cold Chain Logistics Market Challenge
The high cost involved in building and operating cold chains is a major challenge impeding the market. The decision to set up a refrigerated warehouse is a strategic decision that must be taken after due consideration of factors such as location, connectivity, and the price of land. This is due to the fact that a cold chain is a critical service that requires the uninterrupted flow of goods in a temperature-controlled environment and setting up cold storage near the production facility is vital.
The primary challenge in building a new refrigerated warehouse is the high cost of infrastructure. In addition to this, the operating cost for refrigerated warehouses is also high. A major operating cost in a refrigerated warehouse is energy cost. On average, a diesel power refrigeration unit consumes about 3.5-4.5 liters of diesel per hour. Furthermore, there is a shortage of reefer containers in the market, which is increasing the freight cost. This rise in reefer container freight rates will increase the cost of refrigerated transportation. Therefore, such factors will hinder the market growth during the forecast period.
Key Food And Beverage Cold Chain Logistics Market Customer Landscape
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 Food and Beverage Cold Chain Logistics Market Customer Landscape
Vendors 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.
Burris Logistics - The company focuses on custom dedicated distribution, freight management, logistic technology, warehouse management, and many more. The key offerings of the company include cold chain logistics for food and beverage.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the meat and seafood segment will be significant during the forecast period. Products such as meat need to be refrigerated or frozen after processing and before shipment to restrict the growth of pathogens and reduce the chances of spoilage. The high water, protein, and fat content in meat make it perishable. Storing meat at low temperatures can prevent spoiling.
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The meat and seafood segment was valued at USD 28,241.00 million in 2017 and continued to grow until 2021. There are three types of meat products. These are fresh meat products, processed meat products, and frozen meat products. Transportation of each of these types of products involves different guidelines. Generally, frozen meat products can be transported all over the world as freezing ensures a longer shelf life as opposed to fresh products. Hence, fresh meat products should not be transported over long distances. Moreover, the consumption of meat is expected to increase globally by 2030, mainly because of the growing awareness of protein intake, which is higher in meat. Similarly, the consumption of seafood is also growing worldwide. Moreover, the production and export of fish from countries such as Chile, Indonesia, and Norway are also growing rapidly. Hence, such factors will boost the growth of the meat and seafood segment during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest region of the global market in 2022 and will continue to be the largest segment during the forecast period. The market in North America is expected to grow due to the rise in the import and export of perishable products and an increase in online grocery sales. Countries such as the US have increased their dependency on imports of fruits and vegetables in the past ten years, especially products such as asparagus and avocados. Furthermore, it is also registering an increase in the consumption of meat as consumers want to add more protein to their diet.
The import of exotic fruits and vegetables, along with the growing consumption of meat and poultry, in the country has led to the expansion of refrigerated warehouses. The growing demand for these warehouses is also encouraging vendors in the market to expand their cold storage capacities in different regions. These factors will lead to an increase in revenue inflow in the cold chain market in North America during the forecast period, which will also help in boosting the growth of the market in the region.
The market in North America witnessed slow growth in 2020 owing to the COVID-19 pandemic. However, large-scale vaccination drives and the lifting of the restrictions helped restore the supply chain and logistic operations in 2021. This, subsequently, led to an increase in the demand for cold chain logistics in the region. Moreover, the rising adoption of digital technologies will further drive the demand for the regional market in focus. Therefore, such factors will boost the growth of the regional market during the forecast period.
Technavio categorizes the global food and beverage cold chain logistics market as a part of the global air freight and logistics market within the global transportation market. The parent global air freight and logistics market cover revenue generated by companies providing air freight transportation; courier; and logistics services, including package and mail delivery and customs agents. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The 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. The market has been segmented by Application (Meat and seafood, Dairy and frozen desserts, Fruits vegetables and beverages, and Bakery and confectionary), Type (Warehouse and Transportation), and Geography (North America, APAC, Europe, South America, and Middle East and Africa).
Food And Beverage Cold Chain Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 10.47% |
Market growth 2023-2027 |
USD 85,158.51 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.9 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Americold Realty Operating Partnership LP, Burris Logistics, Capstone Logistics LLC, Claus Sorensen AS, Coldco Logistics, ColdEX Ltd., Frigoscandia AB, Hanson Logistics Ltd., John Swire and Sons Ltd., Kalypso, Kloosterboer, Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nichirei Corp., Seafrigo Group, Stockhabo, Tippmann Group, TRENTON COLD STORAGE, and VersaCold Logistics Services |
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, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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