The global Cold Chain Market is estimated to be valued at US$ 270.8 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The global cold chain market involves storing temperature-sensitive products at regulated or specified temperatures during storage and transportation. This includes chilled or frozen storage and transportation which helps in maintaining freshness and safety of temperature sensitive products such as food, pharmaceuticals, chemicals and more. Cold chain extends the shelf life of various perishable goods while also minimizing product damage and spoilage. Rising health consciousness and changing dietary preferences among consumers is driving demand for fresh produce, frozen foods, dairy and other cold chain dependent products globally.
Market key trends:
One of the key trends in the cold chain market is the growing demand for frozen foods. Changing lifestyles and hectic schedules are prompting consumers to opt for convenient ready-to-eat frozen foods. The frozen foods market is experiencing strong growth owing to increasing demand for frozen meat, seafood, snacks, bakery products and more. Another significant trend is the growing cold chain infrastructure in emerging economies like India, China and other Asian countries. Governments in these regions are investing heavily in developing modern cold storages, refrigerated transportation facilities to support agricultural and food sectors. This will boost availability and access to perishables across different regions.
Porter's Analysis
Threat of new entrants: The cold chain market requires high initial investments in infrastructure such as cold storage warehouses, refrigerated transport vehicles etc. This creates significant entry barriers for new players.
Bargaining power of buyers: Buyers in the cold chain market include food producers, retailers and other end-users. Their bargaining power is moderate as there are several established players providing cold chain services.
Bargaining power of suppliers: Major suppliers to the cold chain market are manufacturers of refrigeration equipment, containers, and packaging materials. Their bargaining power is moderate given the fragmented nature of suppliers.
Threat of new substitutes: There exists no cost-effective substitute for cold chain yet. Temperature-controlled packaging is a potential substitute but cannot replace the entire cold chain.
Competitive rivalry: The global cold chain market is highly competitive with the presence of several international as well as regional players. Market leaders strive to enhance their service quality and expand their global footprint to gain market share.
Key Takeaways
Global Cold Chain Market Demand is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for temp-controlled logistics from the food industry.
Regional analysis
North America dominates the global cold chain market currently, owing to stringent food safety regulations and rising demand for perishables in the region. Asia Pacific is expected to witness the fastest growth during the forecast period supported by expanding middle-class population, growing focus on food safety from governments of developing countries and rapid urbanization.
Key players
Key players operating in the cold chain market are Americold Logistics, Lineage Logistics, AGRO Merchants Group, Nichirei Corporation, Preferred Freezer Services, Swire Cold Storage, Kloosterboer, DHL Global Forwarding, UPS Cold Chain Solutions, FedEx Custom Critical, Burris Logistics, and Maersk Line. Americold Logistics and Lineage Logistics are the market leaders in third-party cold storage. Nichirei Corporation and AGRO Merchants Group specialize in cold transportation.
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Food waste is caused majorly due to sparse transportation networks, lack of preservation techniques, inadequate temperature and humidity conditions, and delay in transit.
This increased amount of food wastage has pushed the economies to invest in developing better cold chain infrastructure facilities.
Therefore, the demand for cold chain solutions is expanding rapidly.
However, the cold chain industry is yet to grow in the majority of developing countries fully.Read Report Summary: https://bisresearch.com/industry-report/food-cold-chain-market.htmlThe cold chain is gaining importance for reducing food loss and waste and has also been promoted by an industry-focused organization such as the International Institute of Refrigeration, the World Food Logistics Organization, and the Global Cold Chain Alliance.
The market for refrigerated storage capacity has witnessed strong growth with a shift from food products just being stored in warehouses to providing additional services to the customers.
Growth in the refrigerated transport segment is due to the lower number of tariffs applicable, increasing the trade of perishable commodities across the globe.
