Europe - Cold Chain Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Europe Cold Chain Market Forecast 2023-2027

The Europe Cold Chain Market size is estimated to increase by USD 57.56 billion at a CAGR of 10.67% between 2022 and 2027. The market growth and trends depends on several factors such as the use of RFID in cold logistics, the increasing number of trade corridors and the increase in pharmaceutical supply through e-commerce.

What will be the Size of the European Cold Chain Market During the Forecast Period?

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Cold Chain Market Dynamic

This comprehensive market report delves into segmentation by type, encompassing refrigerated warehouse and refrigerated transportation, as well as application areas such as meat, fish, and seafood, fruits, vegetables, and beverages, dairy and frozen desserts, bakery and confectionery, and healthcare. Geographically, it spans regions including the U.K., Germany, France, and the Rest of Europe. The report not only provides historic market data from 2017 to 2021 but also offers in-depth analysis of drivers, trends, and challenges, providing a holistic view of the cold chain market landscape in Europe.

Market Driver

The use of RFID is notably driving the market growth. Globally,it transfer millions of tons of perishable, temperature-sensitive products that are produced, stored and transported. Such products can be vegetables, fruits, fish, flowers, meat, dairy products, and medical products such as blood, drugs, organs, vaccines, plasma, and tissues. These products are highly sensitive to changes in temperature, which affects their quality. Without opening the package, RFID devices are capable of providing more accurate readings than current temperature monitoring systems. Such RFID devices are placed in cold storage transport vehicles, which allows enterprises to monitor the environment temperature on the go, based on which the temperature inside the vehicle can be controlled and managed efficiently.

In addition, RFID tags gather a broad range of information, including moisture, light, radiation, shock/vibration, and gas concentrations. Enterprises can scrutinise this data to take crucial steps regarding quality control and efficient distribution of products. Therefore, the use of RFID tracing will help enterprises enhance logistics operations and keep track of the products which may have a positive impact on the market. Such factors are anticipated to fuel the growth of the market in Europe during the forecast period.

Market Trends

The use of IoT with cold chains is an emerging trend shaping the market growth. The Internet of Things is an innovative aspect that combines physical objects that can be accessed through the Internet. As it can help businesses enhance product performance through IoT security and IoT analytics to provide more satisfactory results. IoT is incorporated to transform the effectiveness and efficiency of supply chains of products such as fruits, meat, and medicines. Enterprises can connect flawlessly at every step of their logistics process by integrating IoT solutions in the cold chain, thus enabling a costs effective benefit.

Moreover, such technology can help enterprises such as restaurant owners and other food businesses monitor the temperature of food storage facilities accurately. This, in turn, can support them in providing proper food safety procedures. Some enterprises are offering IoT solutions that can be embedded to the growing benefits of IoT with the cold chain. Such factors are anticipated to fuel the growth of the market in Europe during the forecast period.

Market Challenge 

Fluctuating fuel prices is a significant challenge hindering market growth. For cold storage logistics transportation,  providers use fuels such as petrol and diesel. Such fuels are used for propelling the transportation vehicle, as well as for powering the refrigeration equipment in most vehicles. This fuel is operated by the main traction engine, which, in turn, generates power to run an electric motor in the refrigeration unit. Especially, medium to large vehicles use self-contained refrigeration units, which consist of a self-contained diesel engine. Such engines are generally used to transport refrigeration equipment in vehicles.

However, due to the imbalance in its demand and supply, there has been significant fluctuation in the prices of Brent crude oil, from which petrol and diesel are extracted. 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 vendors and have an adverse impact on the market. Thus, the volatility in crude oil prices influences petrol and diesel prices, which will remain a major threat to the market during the forecast period.

Market Customer Landscape

The market growth and forecasting 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 forecasting strategies.

 Market Customer Landscape

Key Players in Industry

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.

Baltic Logistic Solutions - The company offers services such as Cargo transportation, including cargo transportation in the baltic states, partial loads, small cargo transportation, cargo transportation of refrigerators, and international shipments.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Abu Dhabi Ports PJSC
• AP Moller Maersk AS
• Arbon Equipment Corp.
• Beno-Trans GmbH
• Blue Water Shipping AS
• Deutsche Post AG
• DSV AS
• FRIGO Coldstore Logistics GmbH and Co. KG
• Gartner
• Kraftverkehr Nagel SE and Co. KG
• Kuehne Nagel Management AG
• Lineage Logistics Holdings LLC
• MSC Mediterranean Shipping Co. SA
• NewCold Cooperatief UA
• NORDFROST GmbH and Co. KG.
• Pacific Logistics Group.
• Pfenning Logistics
• SNCF Group
• WILMS Transport GmbH

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.

Market Segmentation

By Type Insights

The refrigerated warehouse segment is estimated to witness significant growth during the forecast period. A refrigerated warehouse refers to a cold storage facility where temperature-controlled products, such as meat, dairy products, and pharmaceutical products are stored to prevent them from decaying. There is a growing demand for refrigerated warehouses and transportation facilities as the import and export of temperature-sensitive products are increasing. 

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The refrigerated warehouse segment was the largest segment and was valued at  USD 40.13 billion in 2017. The refrigerated warehouse comprises temperature-adjustable rooms, which support managing the temperature according to the type of product being stored. For instance, enterprises use these warehouses as a drying room for food preservation applications to control the moisture content in food products. Numerous food producers are opting for cold storage services with the rising need to preserve food products and lower food wastage. As a result, there is an increased demand for refrigerated warehouses. Consequently, it is promoting companies to develop their storage facilities by venturing into M&A activities with regional cold storage service providers. These factors are expected to boost the growth of the refrigerated warehouse segment in the market in Europe during the forecast period.

By Application Insights

Based on application, the market has been segmented into meat fish and seafood, fruits vegetables and beverages, dairy and frozen desserts, bakery and confectionery, and healthcare. The meat fish and seafood will account for the largest share of this segment.?The meat, fish, and seafood segment is the largest in the market and is expected to remain so during the forecast period. Different types of products such as fresh meat, processed meat, and frozen meat, require different transportation guidelines. Processed meat products can be either fresh or frozen depending on the type of meat marketed by the company. Consumption of seafood is increasing due to the rise in aquaculture, and Europe is the largest importer of seafood. Countries like the UK, Germany, France, Italy, and the Netherlands are the largest consumers of canned fish. Therefore, the growing demand for meat and seafood will increase the need for refrigerated warehouses and transportation facilities, which is expected to drive the segment in the market growth during the forecast period.

Research Analyst Overview

The market refers to the transportation and storage of temperature-sensitive products such as food, pharmaceuticals, and chemicals in a controlled environment. Major players in the market include logistics companies, refrigeration equipment manufacturers, and cold storage facility capacity providers. The market is experiencing rapid growth, driven by the expansion of organized retail stores and increasing demand in developing economies. As consumer preferences shift towards fresher products, the need for efficient cold chain solutions becomes paramount. Consequently, there's a notable rise in investment in cold chains, particularly in sectors prone to food waste, such as perishable food products. The refrigerated storage market is witnessing significant development, alongside advancements in warehouse management and refrigerated transportation. Furthermore, IT spending is focusing on technologies like cloud computing, IoT, and RFID for real-time cold chain monitoring, ensuring compliance with stringent regulations and maintaining optimal temperature control for various products including poultry, cakes & bread, meat, vegetables, fruits, and dairy products throughout the storage, transportation, and packaging processes. Specialized services cater to the unique needs of different industries, while end-user concentration drives innovation in monitoring components tailored to specific temperature ranges, from chilled to deep-frozen.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook (USD Billion, 2017 - 2027)
  • Refrigerated warehouse
  • Refrigerated transportation

• Application Outlook (USD Billion, 2017 - 2027)
  • Meat fish and seafood
  • Fruits vegetables and beverages
  • Dairy and frozen desserts
  • Bakery and confectionery
  • Healthcare

Europe Cold Chain Industry Scope
Report Coverage	Details
Page number	140
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.67%
Market growth 2023-2027	USD 57.56 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	10.24
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Abu Dhabi Ports PJSC, AP Moller Maersk AS, Arbon Equipment Corp., Baltic Logistic Solutions, Beno-Trans GmbH, Blue Water Shipping AS, Deutsche Post AG, DSV AS, FRIGO Coldstore Logistics GmbH and Co. KG, Gartner, Kraftverkehr Nagel SE and Co. KG, Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, MSC Mediterranean Shipping Co. SA, NewCold Cooperatief UA, NORDFROST GmbH and Co. KG., Pacific Logistics Group., Pfenning Logistics, SNCF Group, and WILMS Transport GmbH
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 market trends and analysis 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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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across Europe
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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