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The Cold Chain Market size is forecast to increase by USD 441.18 billion, at a CAGR of 18.04% between 2023 and 2028. Several factors play a crucial role in the market's growth, 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. Strategic partnerships and compliance with regulations further contribute to market expansion.
Additionally, the market is also influenced by the demand for perishable food products, processed food, food & beverage products, and packaging products. The market analysis and report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market plays a critical role in temperature-sensitive logistics, storage, and transportation, particularly for industries such as pharmaceuticals, food, and healthcare. Effective refrigeration ensures the integrity of perishable products and sustainable and recyclable options, including vaccines and pharmaceuticals, throughout their journey. Supply and demand dynamics drive the need for robust monitoring equipment and packaging solutions to maintain quality and safety standards. Stringent regulations govern the handling of frozen and chilled goods, deep-frozen necessitating precise control measures at every stage of distribution. As the market continues to evolve, advancements in cold chain technologies and practices enhance efficiency and reliability, ensuring the safe and efficient delivery of temperature-sensitive materials products to consumers worldwide. Our researchers analyzed the data with 2023 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 increasing number of trade corridors, along with the integration of transport networks between different geographical regions, is a key driver of market growth. These corridors, which often feature integrated infrastructure like railroads and highways, connect cities or countries and stimulate economic development. They yield significant economic benefits, including job creation, poverty reduction, and enhanced economic resilience.
Additionally, various countries and regions are investing in trade corridors, exemplified by initiatives like China's Belt and Road Initiative (BRI). This initiative, resembling the ancient Silk Road, establishes land-sea trade corridors facilitating the transportation of commodities and goods between China and Europe. These developments are expected to fuel market growth in the forecast period.
Furthermore, the market growth is propelled by the demand for various products, cold chain systems, components, devices, foods, RFID technology, efficient storage systems, and pharmaceutical transportation solutions. Moreover, the utilization of liquid nitrogen and cryogenic storage solutions enhances the efficiency and effectiveness of cold chain logistics, further contributing to market expansion.
The growing number of M&A activities is the primary trend shaping market growth. The competition in a fragmented 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.
Additionally, aligned with market trends and analysis, market players are investing heavily in joint ventures and acquisitions to gain a significant share of the market and expand their presence in new regions. Furthermore, 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 companies to improve operations and expand their geographic footprint. Thus, such factors are anticipated to drive market growth during the forecast period.
Fluctuating fuel prices is a challenge that affects market growth. Fuels such as petrol and diesel are used by cold-chain logistics providers for transportation. These fuels are used to operate vehicles, as well as for powering the refrigeration equipment installed in most vehicles used in cold chain logistics. The fuel is used by the main traction engine, which, in turn, generates power to run an electric motor in the refrigeration unit. Mostly, medium to large vehicles use self-contained refrigeration units, which consist of a self-contained diesel engine. These engines are typically used to transport refrigeration equipment in vehicles.
However, there has been significant volatility in the prices of crude oil, from which petrol and diesel are produced, due to the imbalance in demand and supply chains. Consequently, the fluctuating prices of Brent crude oil will lead to fluctuation in the prices of petrol and diesel, which will impact the profitability of market players. The fluctuation in global crude oil prices adversely impacts the prices of petrol and diesel, which may impede market growth during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The refrigerated warehouse segment is estimated to witness significant growth during the forecast period. A refrigerated warehouse is a cold storage facility where temperature control products, such as meat, dairy products and pharmaceutical products, are stored to prevent them from decaying. As the import and export of temperature-sensitive products are increasing, there is a growing demand for refrigerated warehouses and transportation facilities. As the demand for refrigerated transportation increases, the demand for value-added services such as product consolidation in the warehouse and repack operations will also increase.
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The Refrigerated storage segment was the largest segment and was valued at USD 100.99 billion in 2018. Further, with the increasing need to preserve food products and reduce food wastage, numerous food producers are opting for cold storage services. This is leading to increased demand for refrigerated warehouses in countries such as the US and Germany. Hence, it is encouraging global players to expand their storage facilities by venturing into M&A activities with regional cold storage service providers. Thus, such factors are expected to drive the growth of the refrigerated warehouse segment of the market during the forecast period.
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APAC is estimated to contribute 33% 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. Another region offering significant growth opportunities to companies is North America. The North American 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 market during the forecast period.
Market Analyst Overview
The market encompasses various aspects crucial for the preservation and transportation of temperature-sensitive products. Market concentration, characterized by the dominance of key players, influences industry dynamics significantly. The market's characteristics include the availability of substitutes and the concentration of end-users, shaping market behavior. Temperature ranges, including chilled, frozen, and deep-frozen, dictate storage requirements, driving technological developments in refrigeration and packaging materials. Efficacy and safety considerations extend to pharmaceuticals, while Goods Distribution Practices (GDP) ensure compliance, particularly in regions like the European Union (EU).
The market is propelled by evolving consumer preferences and the surge in e-commerce sales, along with the expansion of organized retail stores. Investment in cold chains are bolstered by government initiatives to combat food waste and comply. Exporters, particularly from developing economies, prioritize refrigerated storage solutions to meet the demand for carbohydrate-rich diets and protein-rich foods. Advancements in IT spending facilitate efficient cold storage logistics, inventory management, and data analytics through technologies like cloud computing, IoT, and warehouse management systems.
Investments in cold chains facilitate the storage and distribution of perishable goods, vaccines, and healthcare products, alongside perishable foods and beverage items. Sustainable shipping products, incorporating hardware components like data loggers and RFID devices, ensure temperature monitoring throughout the supply chain market. Industry players offer hybrid solutions, novel temperature data loggers, and cold chain packaging solutions to meet stakeholder needs. Technological advancements, such as the Internet of Things (IoT) and artificial intelligence (AI), enable real-time temperature monitoring devices and enhance efficiency. Sustainable and recyclable packaging and temperature monitoring options address environmental concerns, reducing the carbon footprint associated with cold chain logistics. Notable industry participants include temperpack, serving diverse sectors like fresh agricultural products, flowers, frozen foods, photographic films, biologics, and COVID-19 vaccines, as well as facilitating the transportation of human organs for clinical trials and therapeutic modalities.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Cold Chain Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.04% |
Market Growth 2024-2028 |
USD 441.18 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.7 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Americold Realty Trust Inc., AP Moller Maersk AS, Burris Logistics Co., Cold Chain Technologies, Congebec Logistics Inc., Deutsche Post AG, FedEx Corp., Frialsa Frigorificos SA de CV, ColdEX Ltd., John Swire and Sons Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nichirei Corp., Orient Overseas Container Line Ltd., Snowman Logistics Ltd., Tippmann Group, United Parcel Service Inc., VersaCold Logistics Services, and WH Group 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, 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. |
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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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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