New York, United States, Jan. 25, 2024 (GLOBE NEWSWIRE) -- The transformation of the global economy and the significant rise in demand for the goods of temperature-controlled industries, particularly fresh agricultural items, manufactured foods, and medical vaccines, have made the cold chain a crucial component of supply chain solutions. It facilitates the shipping of perishable goods and food items with guaranteed freshness and flavor. The components of cold chain logistics include temperature-controlled facilities for product storage and cold-insulated transport vehicles for product distribution. Cold chain logistics result in a valuable extension of product shelf life, allowing producers to reach international markets and meet the enormous local demand.
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Growth in International Food Trade due to Trade Liberalization Drives the Global Market
Every nation relies, to a greater or lesser extent, on trade to meet its food requirements. Countries rely on imports and exports of food products to ensure a sufficient and diverse food supply; hence, the international food trade is increasing. More access to export markets will be accompanied by increased competition and the need to safeguard the food supply's safety. It is challenging to ensure the safety of the food supply, especially in developing nations where the quality assurance mechanisms in the food control systems and food sector should be reinforced. The need for cold chain logistics is increasing in these nations so that the comparative advantages of each country can be used to create a variety of food items cost-effectively while focusing on better food quality and safety.
Rising Consumer Demand for Perishable Goods Creates Tremendous Opportunities
According to Straits Research, “The global cold chain logistics market size was valued at USD 280.23 billion in 2022. It is estimated to reach USD 1,024.14 billion by 2031, growing at a CAGR of 15.50% during the forecast period (2023–2031).” Market expansion is driven by rising consumer demand for perishable food goods, convenience meals, and increased consumption of out-of-season fruits and vegetables. In addition, the agriculture industry is poised for a significant shift from traditional farming to horticulture, meat and poultry, and dairy products, all of which are perishables. Changing consumption patterns and an increase in the urban population's need for fresh and processed fruits and vegetables fuel the market expansion. As a result of this rise in demand, diversification, and value addition now dominate the agricultural industry. Along with establishing a structured retail food sector and modifying FDI restrictions, these changes are providing new prospects in the domestic food industry and perishables, particularly the cold chain sector.
Regional Analysis
North America cold chain logistics market share is expected to grow at a CAGR of 15.56% over the forecast period. The North American region is expected to develop quickly over the projection period, notably in countries such as Canada and the United States, due to the rising demand for organic food from increasing urbanization and the rising popularity of a healthy diet. Canada has substantial fishing zones in the North American region, which is expected to contribute to expanding the cold chain logistics market throughout the forecast period. In the U.S. market, e-commerce is primarily used for grocery sales, fresh food, and packaged food delivery. This has resulted in increased cold storage and transportation outsourcing to third-party service providers, which is projected to boost e-commerce for perishable consumer packaged goods. Likewise, the presence of large beverage firms in the United States, given their need for cold storage transportation facilities for product delivery, is also projected to be a significant factor driving the demand for cold chain trucks.
Europe is anticipated to grow at a CAGR of 15.11% over the forecast period. A substantial revenue share of the Europe cold chain logistics market is attributable to shifting consumer behavior and the expansion of e-commerce as a result of technical development. The pharmaceutical sector in Europe is one of the largest in the world, which is also driving the growth of the regional market. On the other hand, the Emission Standards and Regulations of the European Commission play a vital role in expanding the Europe cold chain logistics industry. Europe is expected to grow at a significant CAGR due to increased demand for commodities sensitive to temperature and an extension of shelf life, raising the demand for cold storage transport. In addition, the increasing demand for processed and convenience foods has propelled the cold chain sector in the European food industry.
Key Highlights
- Based on product, the global cold chain logistics market is divided into mechanical and cryogenic refrigeration systems, reefers (reefer vans and trucks), cold chain transport monitoring equipment, and packaging materials. The reefers segment is the highest contributor to the market share and is expected to grow at a CAGR of 16.20% over the forecast period.
- Based on application, the global cold chain logistics market is divided into food and beverages, medical goods, temperature-sensitive chemicals, and others. The food and beverages segment owns the highest market share and is estimated to grow at a CAGR of 15.96% over the forecast period.
- North America is the most significant global cold chain logistics market shareholder and is expected to grow at a CAGR of 15.56% over the forecast period.
Competitive Players
The key players in the global cold chain logistics market are Americold Logistic LLC, Lineage Logistics Holding LLC, Burris Logistics, Kloosterboer, The United States Cold Storage, Inc., The Nichirei Corporation, NewCold, Hanson Logistics, Seafrigo Group, and Stockhabo.
Market News
- In February 2023, B.I.G. Logistics L.L.C., a subsidiary of SecurCapital Corp, announced a new collaboration with CargoWise, the leading provider of I.T. solutions for worldwide logistics and supply chain management. This partnership will allow B.I.G. Logistics to expand its international reach considerably and strengthen its capacity to supply global customers.
Global Cold Chain Logistics Market: Segmentation
By Product
- Mechanical and Cryogenic Refrigeration Systems
- Reefers (Reefer Vans and Trucks)
- Cold Chain Transport Monitoring Equipment
- Packaging Materials
By Applications
- Food and Beverages
- Medical Goods
- Temperature-Sensitive Chemicals
- Others
By Regions
- North America
- Europe
- Asia-Pacific
- RoW
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