India Cold Chain Logistics Market Outlook to 2030

India Cold Chain Logistics Market Overview

• The India cold chain logistics market is valued at USD 14.49 billion, driven by the growing demand for temperature-controlled logistics in industries like food & beverages, pharmaceuticals, and chemicals. The increasing consumption of perishable goods, coupled with government support for agricultural exports, is further boosting the market. The infrastructure expansion for cold storage facilities and refrigerated transport systems has significantly propelled market growth. This includes the deployment of advanced technologies such as IoT for real-time monitoring and automation in cold storage facilities.
• In India, the dominant regions for cold chain logistics include Maharashtra, Gujarat, and Uttar Pradesh. These states are home to major agricultural and industrial centers, contributing to the demand for cold storage and transport solutions. Maharashtra, with its significant production of fruits and vegetables, plays a crucial role in cold chain logistics. Gujarat's strong industrial base and port connectivity support the movement of temperature-sensitive goods. Additionally, Uttar Pradeshs vast agricultural output drives the need for cold chain infrastructure to ensure the efficient transportation of perishables.
• The Indian government has introduced various schemes to support the development of cold chain infrastructure. The Pradhan Mantri Kisan SAMPADA Yojana provides subsidies for the establishment of cold storage units and refrigerated transport systems. Over 6,000 crore in grants and subsidies have been disbursed under this scheme, targeting the reduction of food wastage and improving rural infrastructure for cold chains. These incentives encourage private sector participation and help scale cold chain operations across the country.

India Cold Chain Logistics Market Segmentation

• By Service Type: India's cold chain logistics market is segmented by service type into cold storage and cold transportation. Cold storage services dominate the market due to the increasing need for safe and prolonged storage of perishable food products, including dairy, meat, and fruits. Cold storage facilities are critical in maintaining product quality and safety, especially in the food & beverage industry. Cold transportation, on the other hand, is vital for the seamless movement of these products across supply chains. However, due to the scattered nature of Indias agricultural production, cold storage facilities remain the most in-demand service segment.
• By End-Use Industry: The cold chain logistics market is also segmented by end-use industries, which include food & beverages, pharmaceuticals, and chemicals. The food & beverage industry holds a dominant share due to the high volume of temperature-sensitive goods like fruits, vegetables, and dairy products requiring cold storage and transportation. The rising demand for processed and packaged food, driven by the growing urban population, has bolstered the demand for cold chain logistics in this sector. Pharmaceuticals follow closely, with the distribution of vaccines and temperature-sensitive medicines requiring strict cold chain adherence.

India Cold Chain Logistics Market Competitive Landscape

The India cold chain logistics market is dominated by both domestic and international players that have a strong foothold in the sector due to their infrastructure, service quality, and network reach. Companies like Snowman Logistics and Gati Kausar have a significant market presence, leveraging their nationwide network of cold storage facilities and refrigerated transport fleets. The landscape is further shaped by international companies like DHL and Blue Dart, which have expanded their cold chain offerings in India to meet the growing demand in pharmaceuticals and food industries.

India Cold Chain Logistics Industry Analysis

Growth Drivers

• Rising Demand in Food & Beverage: The demand for cold chain logistics in Indias food and beverage sector is rising, driven by growing consumption of perishable foods. India is currently the second-largest producer of fruits and vegetables, contributing over 297 million metric tons annually, requiring efficient cold storage. Additionally, organized retail is expanding, with India's retail market estimated to reach USD 1.75 trillion by 2025, necessitating robust cold chain systems. The Pradhan Mantri Kisan SAMPADA Yojana has allocated 6,000 crore for agri-infrastructure, including cold chains to reduce post-harvest losses. Source:
• Growth in Pharmaceutical Sector: The pharmaceutical sectors need for temperature-controlled logistics is growing rapidly due to the demand for temperature-sensitive drugs and vaccines. India produces over 60% of the worlds vaccines, with nearly 3 billion doses of COVID-19 vaccines distributed, emphasizing the need for efficient cold chain logistics. The Indian government has also invested heavily in healthcare infrastructure under schemes like the National Health Mission, allocating 37,800 crore to ensure the integrity of pharmaceutical cold chains in 2022-2025.
• Government Initiatives: The Indian government has prioritized cold chain infrastructure development under the Pradhan Mantri Kisan SAMPADA Yojana, granting subsidies for cold storage units. The scheme has created over 290 cold chain projects, reducing post-harvest losses in agriculture. Furthermore, the government announced 2,000 crore in subsidies for the cold storage industry, incentivizing private sector involvement and further enhancing Indias cold chain capabilities. These initiatives are expected to expand cold chain facilities across rural and urban regions. Source: Ministry of Food Processing Industries.

Market Challenges

• High Energy Costs: Maintaining refrigeration in cold chain logistics is energy-intensive, with electricity costs constituting up to 30% of operational expenses. Indias electricity consumption for cold chain logistics is estimated at 90 billion kWh annually, according to the Ministry of Power. Rising fuel pricespetrol averaging 103 per liter in 2023further strain costs, particularly for refrigerated transport. This high energy demand makes cold chain logistics expensive, posing a significant challenge to market growth.
• Lack of Integrated Networks: Indias cold chain logistics infrastructure suffers from fragmented and inconsistent networks, especially in rural regions. With only 10,000 refrigerated trucks currently operational, rural-urban connectivity remains underdeveloped, limiting efficient distribution. Rural areas, where a large portion of Indias perishable goods are produced, are connected by inadequate infrastructure, increasing spoilage. The lack of seamless cold chain links hinders the industrys ability to scale and meet growing demand.

India Cold Chain Logistics Market Future Outlook

Over the next five years, the India cold chain logistics market is expected to experience substantial growth driven by increasing demand for perishable food products, expansion in the pharmaceutical industry, and continued government investment in cold chain infrastructure. As consumer preferences shift towards processed and packaged foods, and with the rising focus on healthcare logistics for vaccines and temperature-sensitive medicines, the market's growth potential is strong. Technological innovations like blockchain, IoT, and automation are also set to play a crucial role in the future evolution of the cold chain logistics sector.

Market Opportunities

• Expansion in Tier 2 and Tier 3 Cities: Tier 2 and Tier 3 cities are emerging as unexplored demand centers for cold chain logistics. These cities, with populations between 1 and 3 million, are experiencing rapid growth in retail hubs, driving demand for cold storage and transport. In 2024, the government launched initiatives to develop cold storage facilities in smaller cities with subsidies totaling 2,500 crore. This expansion is supported by growing disposable incomes and increased organized retail penetration in these regions.
• Technological Advancements: Technological innovations such as the Internet of Things (IoT) and automated warehouses are revolutionizing cold chain logistics. IoT-enabled sensors for temperature monitoring and real-time tracking have improved efficiency and reduced spoilage, particularly for pharmaceuticals and perishable foods. Automated warehouses, such as those developed in the National Capital Region (NCR), are reducing manual labor costs and improving operational efficiency. These advancements have gained traction due to investments exceeding 5,000 crore in cold chain technologies.