New Delhi, Nov. 19, 2024 (GLOBE NEWSWIRE) -- The India cold chain logistics market is projected to hit the market valuation of US$ 52.96 billion by 2032 from US$ 14.49 billion in 2023 at a CAGR of 15.56% during the forecast period 2024–2032.
India's cold chain logistics infrastructure exhibits significant regional disparities, with the total cold storage capacity surpassing 39.37 million metric tons in 2023. Northern India, particularly Uttar Pradesh and West Bengal, dominates this landscape, collectively housing over 25 million metric tons of capacity due to their substantial production of perishable commodities like potatoes. In contrast, regions like the Northeast hold less than 2 million metric tons of cold storage, despite being rich in horticultural produce. This uneven distribution highlights the need for infrastructural development across all regions to mitigate post-harvest losses, which exceed 15 million metric tons annually nationwide. The imbalance affects the efficiency of supply chains and the shelf life of perishable goods, emphasizing the critical role of cold chain logistics in India's economy.
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The agricultural and food processing industry in India cold chain logistics market is a cornerstone of the economy, contributing upwards of $400 billion annually. India stands as the world's largest milk producer, yielding over 200 million metric tons each year, and is the second-largest producer of fruits and vegetables with an annual output exceeding 300 million metric tons. These sectors, alongside fisheries and pharmaceuticals, are heavily reliant on robust cold chain logistics to maintain product integrity from farm to consumer. Recognizing this, the Indian government has implemented supportive policies such as the Pradhan Mantri Kisan Sampada Yojana, allocating more than $1 billion to enhance cold chain infrastructure, including the development of mega food parks and integrated cold storage facilities. Additionally, the National Centre for Cold-chain Development continues to spearhead initiatives for capacity building and technological advancements in the sector.
Key players in India's cold chain logistics market have been instrumental in recent developments and investments. Snowman Logistics, for instance, operates over 100,000 pallet positions of temperature-controlled warehousing nationwide and expanded its fleet with 300 new refrigerated trucks in 2023. DHL Supply Chain India has invested $500 million to bolster its cold chain capabilities, focusing on pharmaceuticals and perishables. Maersk introduced end-to-end cold chain solutions tailored for the Indian subcontinent, enhancing connectivity between production areas and global markets. The sector has also seen a surge in startup activity, with tech-driven companies attracting investments exceeding $600 million in the past year.
Key Findings in India Cold Chain Logistics Market
| Market Forecast (2032) | US$ 52.96 Billion |
| CAGR | 15.56% |
| By Technology | Vapor Compression (35.42%) |
| By Temperature Technology | Frozen (63.44%) |
| By Solutions | Cold Chain Warehouse/storage (43.89%) |
| By Industry | Food and Beverage (48.08%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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India's Expanding Cold Storage Demand is the Backbone of Cold Chain Logistics Market Dominance
India's cold chain logistics market is witnessing significant growth, with cold chain warehouse and storage solutions at the forefront. The country boasts a cold storage capacity of approximately 39.37 million metric tons, catering to the vast demand for temperature-controlled warehousing. Major states leading in cold storage capacity include Uttar Pradesh and West Bengal.
The dominance of cold chain warehouse/storage solutions in cold chain logistics market stems from India's agricultural landscape and the need to reduce post-harvest losses, which are estimated at over 15 million metric tons annually. The government has recognized this challenge, allocating substantial funds for cold chain development under programs like the Pradhan Mantri Kisan SAMPADA Yojana, which has an outlay of INR 6,000 crore. Additionally, the Ministry of Food Processing Industries has approved over 250 cold chain projects to enhance infrastructure. The entry of private players has also spurred growth; for instance, Snowman Logistics has increased its storage capacity to over 100,000 pallets across the country.
Food and Beverage Industry is The Heartbeat of India's Cold Chain Demand
The food and beverage industry stands as the cornerstone of India's cold chain logistics market, accounting for nearly half of its requirements. India's food market is one of the largest globally with the food processing sector contributing more than 49% revenue to the national output. The country's status as the world's largest producer of milk and spices, and the second-largest producer of fruits, vegetables, and rice, underscores the immense volume of perishable commodities requiring efficient cold chain systems.
The perishable nature of food products necessitates robust cold chain logistics to maintain quality and edibility from farm to table. India's annual post-harvest losses of fruits and vegetables are estimated at over INR 13,000 crore due to inadequate cold storage facilities. The dairy sector, producing over 190 million tons of milk annually, relies heavily on cold chain logistics to prevent spoilage and extend shelf life. The seafood industry, with exports worth over INR 45,000 crore, depends on efficient refrigerated transportation to meet international standards and demand. Moreover, the rapid growth of organized retail and e-commerce platforms like Swiggy and Zomato, which process millions of food orders daily, has intensified the need for temperature-controlled logistics. The beverage industry, with India's soft drink market valued at over INR 70,000 crore, requires consistent cold storage solutions to preserve product integrity. Government initiatives like the Mega Food Park Scheme aim to create modern infrastructure, including cold chains, to facilitate the growth of the food processing sector.
Public-Private Partnerships: Transforming India's Cold Chain Logistics Market for Enhanced Efficiency and Growth
Public-Private Partnerships (PPPs) are revolutionizing India's cold chain logistics sector by addressing infrastructure gaps and boosting operational efficiency. These collaborations harness the strengths of both public oversight and private sector innovation. By reducing post-harvest losses by up to 30%, PPPs are vital for a country where nearly 40% of produce is wasted due to inadequate storage and transport facilities. These partnerships attract significant investments, allowing the development of modern cold storage and efficient transport networks, underscoring their role in expanding India's cold chain capacity.
The synergy between public initiatives and private expertise fosters an environment ripe for innovation and risk management. This approach in cold chain logistics market not only mitigates operational risks but also encourages technological integration, such as IoT and blockchain, to enhance transparency and efficiency. The government’s emphasis on PPPs through initiatives like the National Centre for Cold-chain Development and Mega Food Parks Scheme has paved the way for seamless operations and infrastructure development. These projects, coupled with the establishment of Special Economic Zones (SEZs) and dedicated logistics corridors, are pivotal in streamlining supply chains and reducing wastage throughout the cold chain network.
Despite challenges in the cold chain logistics market like regulatory hurdles and financial constraints, PPPs offer a promising framework for sustainable growth in India's cold chain logistics. By investing in skill development and renewable energy solutions, PPPs not only enhance operational capabilities but also ensure the sector’s long-term viability. As India's economy continues to grow, these partnerships will be crucial in transforming cold chain logistics into a more efficient and reliable backbone for the food and beverage industry.
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Top 5 Players Control Over 40% Revenue Share of India Cold Chain Logistics Market
As of 2023, Gati Kausar India Pvt Ltd, Snowman Logistics Pvt Ltd, DHL, TCIEXPRESS LIMITED, Maersk are top 5 players in the market. Wherein, Gati Kausar India Pvt Ltd stands out in the Indian market with over 11.38% market share, recognized for its expansive temperature-controlled services despite strategic shifts. Historically, it has been a major player alongside companies like Snowman Logistics and DHL. However, in 2021, Gati Ltd, the parent company, decided to exit the cold chain solutions sector, transferring significant equity in Gati Kausar to Mandala Capital AG Ltd. This has potentially reshaped its strategic focus and market presence.
Gati Kausar’s logistics capabilities in India’s cold chain logistics market have traditionally included a substantial fleet of about 220 refrigerated vehicles, serving sectors such as healthcare and dairy with pan-India coverage. The company has facilitated both primary and secondary distribution, ensuring just-in-time delivery for fresh and perishable goods. Technological integration has been a cornerstone of its operations, with the use of IoT for real-time temperature monitoring, GPS and wireless systems for location and condition tracking, and an advanced transport management system for route optimization. These innovations ensure precise maintenance of temperature-sensitive goods and enhance operational efficiency.
While Gati Kausar's foundational strengths in cold chain logistics market are clear, the strategic exit of Gati Ltd from this sector raises questions about its current role and future trajectory. The Indian cold chain market is experiencing robust growth due to rising demand for perishables and pharmaceuticals, yet Gati Kausar’s adaptation to this dynamic landscape post-2021 remains uncertain. The ownership change and strategic realignment suggest a potential shift in focus, requiring updated insights directly from the company or recent industry reports to fully understand its 2023 capabilities and positioning.
Top Players in India Cold Chain Logistics Market
- A.P. Møller – Mærsk
- CEVA Logistics
- Cold Care Group B.V.
- Coldman Logistics Pvt. Ltd.
- Coldrush Logistics Pvt. Ltd.
- ColdStar Logistics Pvt. Ltd.
- Crystal Group
- DHL Group
- Gubba Cold Storage Pvt. Ltd.
- Kool-Ex Cold Chain Limited
- Snowman Logistics Limited
- TCIEXPRESS LIMITED
- Other Prominent Players
Key Segmentation:
By Technology
- Vapor Compression
- Blast Freezing
- Evaporative Cooling
- Programmable Logic Controller
- Cryogenic Systems
- Other Technologies
By Temperature Technology
- Chilled
- Frozen
By Solution
- Cold Chain Warehouse/storage
- Cold Chain Transport
- Automated Temperature Type Handling
By Industry
- Food and Beverages
- Fruit and Vegetable
- Meat and Seafood
- Dairy and Frozen Dessert
- Bakery and Confectionery
- Ready-to-eat Meal
- Chemical
- Pharmaceuticals
- Medical
- Others
By State
- North India
- Uttar Pradesh
- Delhi
- Haryana
- Punjab
- Rajasthan
- Himachal Pradesh
- Uttarakhand
- J&K
- South India
- Tamil Nadu
- Karnataka
- Kerala
- Andhra Pradesh
- Telangana
- West India
- Gujarat
- Goa
- Madhya Pradesh
- Maharashtra
- Chhattisgarh
- East India
- West Bengal
- Bihar
- Assam
- Jharkhand
- Odisha
- Rest of East India
To read the full report, please visit: https://www.astuteanalytica.com/industry-report/india-cold-chain-logistics-market
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