Cold Chain Logistics Market Trends

Growth Drivers

• Rising Consumption of Seafood Across the Globe - Seafood protects against several health issues, since it is high in nutrients such as protein vitamins, minerals, and anti-inflammatory omega-3 fatty acids, therefore, a huge ratio of people around the world consumes seafood. For instance, the average seafood consumption per person worldwide climbed from 20 kilos to 24 kilograms between 2015 and 2019. Cold chain logistics slows the down growth of bacteria and microorganisms in seafood to prevent spoilage.
• Growing Frozen Industry– For instance, according to research, the value of the global frozen food industry amounted to around USD 100 billion in 2020, and by 2025, it is projected to grow to around USD 225 billion. Frozen food needs a suitable temperature to hold its quality and texture which increases the requirement of cold chain logistics.
• Escalating Ratio of Urbanization–Urbanization has increased the demand for ready-to-eat meals, pre-cut fruits, and other convenience products that often increase the need for cold chain logistics. It's expected that over a third of the projected urban growth between 2020 to 2050 will occur in just three countries: India, China, and Nigeria. By 2050, India could add 416 million urban dwellers, China 255 million, and Nigeria 189 million worldwide.

Challenges

• Concerns Regarding Greenhouse Gas Emissions - The cold chain industry has a significant negative impact on the environment since it uses a lot of energy and is a significant emitter of greenhouse gases. The surging demand for refrigerated road transportation as cold chain logistics is fueling carbon emissions in a noteworthy way. Hence, this factor is estimated to hinder the growth of the market over the projected time frame.
• Insufficiency of Infrastructure in Emerging Countries
• Extreme Operational Charge of Cold Chain Logistics