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The cold chain market size is estimated to grow at a CAGR of 17.43% between 2022 and 2027 and the size of the market is forecast to increase by USD 358.49 billion. The growth of the market depends on several factors, such as the use of RFID in cold chain logistics, the increasing number of trade corridors, and the increase in pharmaceutical supply through e-commerce.
This cold chain market report extensively covers market segmentation by application (meat fish and seafood, fruits vegetables and beverages, dairy and frozen desserts, bakery and confectionery, and healthcare), type (refrigerated warehouse and refrigerated 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 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 Cold Chain Market Customer Landscape
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.
The use of RFID in cold chain logistics is the key factor driving the global cold chain market growth. Cold chain logistics transport millions of tons of perishable and temperature-sensitive products that are manufactured, stored, transported, or distributed around the world. These products include vegetables, fruits, fish, flowers, meat, and dairy products as well as medical products such as blood, medicines, organs, vaccines, plasma, and tissues. All of these products are temperature sensitive, which affects their quality. Supply chain management for such products, therefore, requires rapid decision-making and planning while these products are transported within hours of production. Planning and quick decision-making can be aided by using standard RFID tracking and tracing. A cold chain radio frequency identification (RFID) system includes tags, sensors, and readers that communicate with each other via radio transmission. RFID tags can also be used to store a limited number of temperature readings when equipped with sensors and battery power. Additionally, adding sensors to labels can track products throughout the supply chain and alert companies when products are not stored at the proper temperature.
RFID devices can provide more accurate readings than current temperature monitoring systems without opening the package. These devices are placed in refrigerated transportation vehicles to help businesses monitor the ambient temperature on the road, based on which they can efficiently control and manage the temperature inside the vehicle. This helps maintain the quality of the products in their vehicle. Additionally, RFID tags collect a variety of information such as humidity, light, radiation, shock/vibration, and gas concentration. Businesses can analyze this data and take the necessary steps to control quality and distribute their products efficiently. Therefore, using RFID for tracking and tracing in cold chain logistics is anticipated to drive the growth of the cold chain market during the forecast period.
The growing number of M&A activities will fuel the global cold chain market growth. The competition in a fragmented cold chain market and rapidly evolving technologies pose significant threats to vendors operating in the market. In recent years, intense competition has led to an increase in the number of strategic alliances and M&A activities. In the face of increasing demand for the cold chain from various end-users, suppliers are opting for M&A activities and strategic alliances to improve their market reach and customer base. Furthermore, intense competition in the market is expected to force incumbents to increase their market presence through these activities. Vendors in the global cold chain market are investing heavily in joint ventures and acquisitions to gain a significant share of the cold chain market and expand their presence in new regions.
The market has seen a significant increase in the number of strategic alliances and partnerships with competitors operating in different geographies and companies providing cold chains. This helps vendors improve operations and expand their geographic footprint. Such factors are anticipated to drive the growth of the cold chain market during the forecast period.
Lack of infrastructure in developing countries can impede the growth of the market. Due to the fixed costs of establishing and maintaining a cold chain, cold chain penetration is low in developing countries such as India. Customers, especially farmers, do not opt ??for refrigeration in these countries due to increased operating costs and higher prices for products such as fruits and vegetables. For example, when a farmer uses the cold chain to improve supply chain management, the price of the product can increase and affect profitability. In addition, the lack of technical knowledge and inadequate transportation options are bottlenecks in implementing cold chains for customers in these regions. Farmers lack the technical knowledge to implement a cold chain and are unable to store and keep their produce fresh. These factors make it difficult for customers to access cold chain facilities and increase food waste.
Most of the food produced in India is exported. However, due to the country's lack of proper cold chain infrastructure, the country wastes two-fifths of its food every year due to inadequate transportation and storage facilities. This will continue to be a major challenge for the cold chain market during the forecast period.
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.
Americold Realty Trust Inc.: The company offers cold chain supply and storage solutions for seafood and groceries. It also offers temperature-controlled warehouse storage and other warehouse services.
Burris Logistics Co.: The company offers custom dedicated distribution, logistics, technology, freight management, and warehouse management solutions. It also offers temperature-controlled storage and dry ice storage facilities.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The meat fish and seafood segment will contribute a major share of the market, due to its larger demand across the world. The meat fish and seafood segment was valued at USD 50.77 billion in 2017 and continued to grow until 2021. Meat and seafood are the largest segment of the global cold chain and are expected to remain the largest segment throughout the forecast period. Products such as meat should be refrigerated or frozen after processing and before shipment to limit the growth of pathogens and reduce the risk of spoilage. Meat contains about 50%-75% moisture, about 18% protein, and about 5%-35% fat. The high water, protein, and fat content in meat makes it perishable. Storing meat at low temperatures will prevent it from spoiling. Maintaining the correct refrigeration temperature throughout transportation from point of production to point of consumption is a challenge for cold chain providers.
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Processed meat products can be either fresh or frozen, depending on the type of meat the company sells. Seafood consumption is increasing due to the increase in aquaculture. China is one of the world's largest aquaculture countries. In addition, fish production and exports from countries such as Chile, Indonesia, and Norway are increasing rapidly. Therefore, increasing consumption of meat and seafood will increase the demand for refrigeration and transportation facilities, which is likely to drive the growth of the cold chain market during the forecast period.
Cold storage is a refrigerated facility used to protect temperature-controlled products such as meat, dairy, and pharmaceuticals from spoilage. As the import and export of temperature-sensitive products increase, the demand for refrigeration and transportation facilities will increase. As the demand for refrigerated transportation increases, so does the demand for value-added services such as product consolidation and repackaging operations in warehouses. Refrigerated warehouses consist of temperature-controlled spaces that help control the temperature according to the type of products stored. For example, companies use these warehouses as drying rooms for food storage applications to control the moisture level of food. These warehouses are usually sealed to protect the products from outside weather and temperature changes. With the growing need to preserve food and reduce food waste, many food manufacturers are turning to refrigeration services. This leads to increased demand for cold storage in countries such as the US and Germany. Such factors are anticipated to drive the growth of the cold chain market during the forecast period.
North America is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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North America is the largest region of the global cold chain market. The North American cold chain market is expected to grow due to increased imports and exports of fresh produce and increased online grocery sales. Countries such as the US have become increasingly dependent on imported fruits and vegetables, especially asparagus and avocados, over the past decade. Meat consumption is also increasing in the US as consumers seek to add more protein to their diets. Imports of exotic fruits and vegetables, as well as increased consumption of meat and poultry in the country, have led to an expansion of cold stores near and at ports, as well as at border crossings and major trade gates. These factors will lead to increased revenue for the North American cold chain market during the forecast period and will also help boost the growth of the cold chain market in the region.
The cold chain market experienced a slowdown in growth in 2020 due to the outbreak of the COVID-19 pandemic. The outbreak temporarily halted the operation of the cold chain market globally. However, after vaccination campaigns against COVID-19 in 2021, governments lifted COVID-19-related restrictions, helping restore supply chains and logistics operations. As a result, the demand for cold chain services increased. Moreover, the increasing adoption of digital technologies such as Radio Frequency Identification (RFID) and the Internet of Things (IoT) will continue to increase the demand. Growth in food and beverage transportation due to the booming e-commerce industry will also boost demand for cold chain services.
The cold chain market 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.
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Cold Chain Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.43% |
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Market growth 2023-2027 |
USD 358.49 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
16.72 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 32% |
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Key countries |
US, China, India, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Americold Realty Trust Inc., Burris Logistics Co., Cold Chain Technologies, Commercial Cold Storage Group Ltd., Congebec Logistics Inc., Crystal Logistic Cool Chain Ltd., Deutsche Post AG, FedEx Corp., John Swire and Sons Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nichirei Corp., Snowman Logistics Ltd., Tippmann Group, United Parcel Service Inc., VersaCold Logistics Services, Wabash Valley Cold Storage, WH Group Ltd., and Frialsa Frigorificos SA de CV |
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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 |
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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. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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