Cold Chain Market: Current Analysis and Forecast (2021-2027)

Cold Chain is a mixture of temperature-controlled surface transport and supply chain. It relates to the freezing solutions which help to maintain the quality and shelf life of products, for example, seafood, agricultural produce, frozen food, chemicals, photographic film, and pharmaceutical drugs. Nowadays, Cold chains are necessary for extending the period of marketing, decreasing transport bottlenecks during peak periods, and preventing overcapacity. The process comprises the exploitation of temperature-monitored warehouses for the storage and cold insulated transport vehicles for the distribution of products. Cold chain logistics solutions are extensively employed for the transportation and storage of vegetables, fruits, beef, meat, drugs, and medicines. In addition, various transportation modes such as refrigerated railcars, refrigerated trucks, air cargo, refrigerated cargo are also used.

The demand for Cold Chain is increasing on account of the rising penetration of connected devices and automation of refrigerated warehouses all over the world. The rising number of retail stores in developing economies is leading to high demand for cold chain solutions. In addition, trade liberalization, government efforts for the reduction of food wastage, and growth of retail chains by multinational companies are anticipated to improve industry growth over the projected period. The World Trade Organization (WTO) and bilateral free trade agreements, for example, European Union Free Trade Agreement (FTA) and the North America Free Trade Agreement (NAFTA), have created opportunities for exporters in the Europe and U.S. to upsurge trade of perishable foods in a way that is free of import duties. In developing countries, the consumers shift from carbohydrate-rich diets to protein-rich foods, which is driving the growth of the refrigerated storage market. Countries, for example, China, are projected to represent a significant growth rate in the forthcoming years owing to a consumer-led transition in the economy. In addition, the rising technological advancements in warehouse management and refrigerated transportation is burgeoning the market growth in developing countries. Moreover, the rising demand for consumable products and fast delivery requirements linked with the e-commerce-based food and beverages delivery market has produced a significant boost in cold chain operations. However, some of the restraints in the market are Environmental constraints regarding greenhouse gas emissions and high operational costs.

Based on Application, the market is fragmented into Fruits & Vegetables, Dairy & Frozen Desserts, Fish, Meat & Seafood, and Bakery & Confectionery. The Dairy & Frozen Desserts segment dominated the market in 2020 and is expected to grow at lucrative during the forecasted period. The dairy & frozen dessert segment represents the largest part of the cold chain market. Dairy products such as Milk have been related to foodborne illnesses for centuries. According to the Centers for Disease Control and Prevention, 48 million people get sick, 128,000 get hospitalized and 3,000 people die from food-borne illness each year in the United States. Dairy Products are one of the most regulated foods. Cold chain logistics are important for the maintenance of the dairy products' quality. The cold chain makes certain that low temperature is preserved, as required by dairy products, throughout the supply chain. Dairy-based desserts and ice cream are the most common frozen dairy products eaten in the frozen state. These frozen products need temperature below -20C to -23C (-4F to -9.4F). Though, different frozen food products have different temperature requirements.

Based on Temperature Type, the market is bifurcated into Frozen and Chilled. The Frozen segment dominated the market in 2020 and is expected to grow at lucrative during the forecasted period. The freezing of food the preservation of the storage life of food products by making them more inert. In addition, the freezing process slows down the biological and chemical reactions that encourage food spoilage and limit the shelf-life. Frozen products have a standard temperature range between 18C and -25C. Freezing preserves the texture, taste, and nutritional value of the food products. Though, it also depends upon the type of food materials, the use of pre-treatments, the choice of freezer & frozen storage options, and the usage of appropriate packaging

Based on Type, the market is bifurcated into Refrigerated Transport and Refrigerated Warehousing. The Refrigerated Warehousing segment holds the largest share in 2020 and is expected to register the highest CAGR in the upcoming period owing to rising preference for packaged foods all over the world. The Shifting of dietary patterns and lifestyles of consumers is further driving the demand for frozen foods which in turn boosts the demand for warehousing. According to the GCCA, the total capacity of refrigerated warehouses all over the world was 616 million cubic meters in 2018, 2.67% greater than the capacity reported in 2016.

For a better understanding of the market adoption of Cold Chain, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific will dominate the Cold Chain market on account of the rising economic developments of countries such as China, India, Japan, and Australia. The shift of industrialization and investments in the Asia Pacific has grown substantially over the past decade, especially in China and India, contributing to rapid economic growth. Moreover, the high demand for dairy and meat products in the Asia Pacific region is leading to the high demand for the preservation of quality and nutritive elements in the products, which drives the market for cold chains in the region. Some of the major players operating in the market include Americold Logistics, Lineage Logistics Holdings, Nichirei Corporation, Burris Logistics, Agro Merchants Group, Kloosterboer, United States Cold Storage, Tippmann Group, VersaCold Logistics Services, and Henningsen Cold Storage Co. Several M&As along with partnerships have been undertaken by these players to boost their presence in different regions.