Global Cold Chain Logistics Market Definition
The technology that allows temperature-sensitive goods and products to be safely transported along the supply chain is called cold chain logistics. It is entirely up to science to explore and explain the relationship between temperature and perishability. An efficient cold chain from start to finish keeps temperature-sensitive products in the ideal temperature range and in the right conditions. If it is not kept cool, it becomes useless and results in product waste.
The cold chain logistics process doesn't start when the product is loaded onto a plane or truck. It impacts every step of the supply chain, from purchasing to transportation storage and last mile delivery. Temperature-sensitive products must be stored at a specific temperature or temperature range throughout their lifespan. Any step in the supply chain can be affected by increased or decreased temperatures, which can be disastrous for goods. End users may also experience the consequences of temperature chain disruption, especially if edible products are involved. Cold chain logistics maintains the temperature of these products throughout the transportation portion of the cycle. This is accompanied by appropriate packaging transport equipment carefully selected transport routes ideal timing and transparency to ensure the achievement of the entire planned process.
Cold chain logistics should be a key concern for any business selling perishable items if they want to supply quality goods without cutting corners. The benefits of temperature control extend beyond the end user. Companies that work with cold chain logistics companies can save a lot of money. The pharmaceutical healthcare and food industries rely heavily on the cold chain, making cold chain logistics more important than ever. New technologies and transportation procedures are making cold chain logistics faster and more effective.
Global Cold Chain Logistics Market: Key Insights
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base year |
2022 |
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forecast year |
2023-2033 |
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CAGR |
~ 15 % |
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Base year market size (2022) |
~ US$282 billion |
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Forecast Year Market Size (2033) |
~ US$122 billion |
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regional scope |
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Global Cold Chain Logistics Market Size Forecast and Trend Highlights 2023-2033
The global cold chain logistics market is expected to grow at a CAGR of ~15% during the forecast period (i.e. 2023-2033), reaching a revenue of ~$1.22 trillion by the end of 2033. Additionally, the market generated ~USD 282 billion in revenue in 2022. The growth of the market is primarily due to the increasing capacity of refrigerated warehouses and the increasing rate of automation in refrigerated warehouses globally. For example, the total capacity of global refrigerated warehouses in 2020 was approximately 722 million cubic meters, an increase of almost 17% from 2018. Cold chain logistics is a technology and process that recognizes the discreet transportation of heat-sensitive goods and products such as seafood, frozen food, photography, film, chemicals and pharmaceuticals. Therefore, the surging production of seafood and frozen foods across the globe is also expected to drive the growth of the market in the coming years. For example, in 2018, approximately 85% of total fish production was used for direct human use globally. It is also estimated that by 2029, Asia will account for approximately 75% of additional global fish consumption. Additionally, increasing demand for connected devices is another factor estimated to fuel the market growth during the forecast period.
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Apart from this, factors believed to be driving the market growth of cold chain logistics include increasing focus on providing safe and good quality products to consumers. Cold chain distribution is an enhancement of the Good Manufacturing Practices (GMP) that all pharmaceutical and biological products must adhere to and is enforced by various health regulatory agencies. The cold chain is managed by a quality management system. Temperature data loggers and RFID tags help monitor temperature records in truck containers and warehouses. Most pharmaceuticals require specific temperatures to be stored and shipped. As exports of these products increase, there is a need for cold chain infrastructure that can maintain the quality and sensitivity of the products during transportation. Therefore, increasing export ratio of pharmaceuticals is also expected to boost the market growth during the forecast period. For example, India exported $24.62 billion worth of pharmaceuticals during 2021-22. Additionally, increasing implementation of radio frequency identification technology in cold chain is estimated to accelerate the market growth during the forecast period.
Global Cold Chain Logistics Market: Growth Drivers and Challenges
growth engine
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Seafood consumption is increasing worldwide - all commercially obtained freshwater and saltwater fish, mollusks and crustaceans are considered seafood. Consuming seafood has been linked to a variety of health benefits and is a staple in the diets of many people around the world. Many people around the world consume seafood as it is rich in nutrients such as proteins vitamins minerals and anti-inflammatory omega-3 fatty acids that protect against several health problems. Therefore, increasing consumption of seafood is estimated to drive the expansion of the market during the forecast period. For example, global average per capita seafood consumption increased from 20 kg to 24 kg between 2015 and 2019.
- frozen food
Growth of the sector – For example, according to a study, the global frozen food industry was valued at around USD 100 billion in 2020 and is expected to grow to around USD 225 billion by 2025.
- Worldwide
Increasing percentage of sales from organized retail stores - for example, retail stores have generated over $26 trillion in sales globally and are expected to reach over $30 trillion by 2024.
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Rising urbanization rates - More than a third of the projected urban growth between 2020 and 2050 is expected to occur in just three countries: India, China and Nigeria. By 2050, India could add 416 million urban dwellers globally, followed by China with 255 million and Nigeria with 189 million.
- pharmaceutical industry
Rapid growth – for example, in 2021 the global pharmaceutical industry is worth approximately $2 trillion in spending.
challenge
- Concerns about greenhouse gas emissions – The cold chain industry has a serious negative impact on the environment because it uses a lot of energy and emits a lot of greenhouse gases. The surge in demand for refrigerated road transport, such as cold chain logistics, is driving carbon emissions in notable ways. Therefore, this factor is estimated to hinder the growth of the market during the forecast period.
- Lack of infrastructure in emerging countries
- Extreme operating costs of cold chain logistics
Market Segmentation
The global cold chain logistics market segments and analyzes demand and supply by product into refrigerated transportation and refrigerated warehouses. Among these two segments, the refrigerated warehouse segment is expected to generate the highest revenue by the end of 2033. The growth of this segment can be attributed to the growing global demand for packaged groceries and food products along with the surge in demand for frozen foods due to changing lifestyles and changing dietary patterns of people. India's online grocery market grew nearly 80% to $2.66 billion in 2020, according to the U.S. Department of Agriculture. Additionally, the surge in online retail followed by a significant rise in people's purchasing power is another important factor that is estimated to further drive the growth of the market during the forecast period.
The global cold chain logistics market is also segmented and analyzed for supply and demand with application to dairy and frozen desserts meat and seafood products bakery and confectionery fruits and vegetables, etc. Among these segments, the dairy and frozen desserts segment is expected to hold a significant share. The growth of this segment is attributed to the increasing consumption of frozen desserts and dairy products such as milk, cheese, yogurt, etc. According to statistics from the Food and Agriculture Organization of the United States, milk and dairy products are consumed by more than 6 billion people worldwide, most of whom live in developing countries. As a result, this is expected to create numerous opportunities for the growth of this sector in the coming years.
In-depth analysis of the global Cold Chain Logistics market includes the following segments:
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By product |
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By temperature |
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By application |
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Global Cold Chain Logistics Market Regional Overview
Asia Pacific cold chain logistics market is expected to hold the largest market share by the end of 2033 among all other regions' markets. The growth of the market can be mainly attributed to the increased demand and production of meat dairy products and processed foods in several countries such as Japan, China and India, which anticipated the growth of the cold chain logistics market in Asia Pacific. For example, India is one of the largest producers of milk and value-added milk products in the world. In 2021, India produced about 180 million tonnes of milk. Apart from this, ongoing research and development activities and surge in pharmaceutical industry are additional factors that are estimated to accelerate the growth of the market during the forecast period in this region.
Additionally, the North American cold chain logistics market is expected to witness notable market growth by the end of 2033. The growth of the market can be attributed to the rising consumption of frozen and processed food products and surging penetration of the organized retail sector in the region. For example, in 2018, the penetration rate of the organized retail sector in the United States was nearly 87%. Apart from this, the growth of the food and beverage industry is another factor expected to exhibit prominent growth opportunities that can further drive the market growth over the projected period in this region. Additionally , there is a higher need for healthcare supply chain management, which is expected to drive the market growth in this region .
Key Companies Dominating the Global Cold Chain Logistics Market
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U.S. Cold Storage Inc.
- Company Overview
- business strategy
- Featured product offerings
- financial performance
- Key Performance Indicators (KPI)
- risk analysis
- recent developments
- Location by region
- SWOT analysis
- Americold Real Estate Trust Co., Ltd.
- Lineage Logistics Holdings LLC
- VersaCold Logistics Services
- Nichirei Corp.
- Cold Chain Technologies LLC
- Burris Logistics
- Conestoga Cold Storage
- Clusterbore
- Cold Box Express Inc.