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The cold chain market size is forecast to increase by USD 441.18 billion at a CAGR of 18.04% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. One major trend is the increasing use of Radio Frequency Identification (RFID) technology in cold chain logistics to enhance supply chain visibility and efficiency. Another trend is the growing number of mergers and acquisitions (M&A) activities, as companies look to expand their reach and capabilities in the market. However, the lack of proper logistics and transportation infrastructure, particularly in developing countries, poses a significant challenge to market growth. Despite these challenges, the market is expected to continue its expansion, driven by the rising demand for temperature-sensitive goods and the increasing focus on ensuring food safety and quality.
The market is witnessing significant growth due to the increasing demand for convenience food and ready-to-eat food products with longer shelf life. Retail chains are prioritizing the supply of perishable items such as protein-rich foods, bakery products, and quick-frozen foods, which necessitates the development of advanced cold chain infrastructure. Trade liberalization and cross-border commerce are also driving the growth of the market, leading to an increase in the demand for refrigerated transportation and cold storage logistics. The rising concern for food wastage and spoilage due to inefficient warehouse management and refrigerated storage has led to the adoption of energy-efficient technologies and IoT in the cold chain industry.
Furthermore, the digital food industry, including online groceries, is also contributing to the growth of the market. However, the increasing fuel costs are posing a challenge to the market, leading to the adoption of advanced technologies such as cloud computing and IoT for optimizing inventory management and reducing energy consumption. In conclusion, the market is expected to continue its growth trajectory due to the increasing demand for perishable items, the adoption of advanced technologies, and the growing trend towards convenience food and carbohydrate-rich diets.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The refrigerated warehouse segment is estimated to witness significant growth during the forecast period. The market encompasses the economic ramifications of storing, transporting, and managing temperature-sensitive perishable commodities such as fresh produce, dairy products, and pharmaceuticals. With the rise of intermodal transport and increasing fuel costs, sustainability is a growing concern in cold storage logistics. Advanced technologies like refrigerated transportation, real-time monitoring, and IoT are being employed to maintain product integrity and ensure food safety and quality compliance. Refrigerated warehouses, including blast chillers and freezers, play a crucial role in the market. These facilities offer value-added services such as product consolidation and repack operations, catering to the needs of convenience food stores, supermarkets, quick-service restaurants (QSRs), and various industries with strict regulations.
Moreover, blast chillers and freezers are essential for enterprises that require rapid cooling of perishable food products before distribution. Warehouse management, inventory management, and advanced IT systems, such as cloud computing, RFID, and real-time tracking, are integral to maintaining optimal temperature, humidity levels, and location tracking. The cold storage market faces challenges like food waste, product recalls, and stringent regulations. Advanced technologies and IT systems enable cold storage operators to monitor temperature and humidity levels in real-time, reducing food waste and ensuring product quality and compliance. In summary, the market is a critical component of the global food supply chain, ensuring the integrity and safety of temperature-sensitive perishable commodities through advanced technologies, sustainable practices, and efficient logistics solutions.
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The refrigerated warehouse segment accounted for USD 100.99 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The global market is experiencing significant growth, particularly in North America, where economic ramifications from the rise in perishable product imports and exports, as well as the increasing trend of online grocery sales, are driving market expansion. The US, in particular, has seen an increase in the importation of fruits and vegetables, such as asparagus and avocados, due to changing dietary habits and consumer preferences for fresh produce, dairy products, and pharmaceuticals. The increasing consumption of protein-rich foods, including meat, has also contributed to the market's growth. The market encompasses refrigerated storage and transportation, warehouse management, and cold storage logistics.
Furthermore, advanced technologies, such as cloud computing, IoT, RFID, and real-time monitoring systems, are being employed to ensure product integrity, strict regulations, and food safety. Cold storage operators utilize these technologies for real-time temperature and humidity level monitoring, location tracking, and inventory management. Fuel costs and sustainability are key concerns for cold chain operators, leading to the adoption of advanced technologies to optimize transportation and reduce food waste. Strict regulations regarding temperature-sensitive products, such as pharmaceuticals and perishable food products, necessitate the use of advanced IT systems for compliance and quality control. The market's growth is expected to continue, with the integration of intermodal transport and the implementation of advanced technologies shaping the industry's future.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Use of RFID in cold chain logistics is the key driver of the market. The market encompasses the transport and logistics of perishable foods, pharmaceuticals, and other temperature-sensitive products, including fruits, vegetables, fish, flowers, meat, dairy, and vaccines. These items require specialized services due to their sensitivity to temperature changes, which impact their quality and integrity. The food sector, particularly packaged foods, is witnessing changing dietary patterns and lifestyles, leading to increased demand for cold chain solutions. The transportation segment includes various storage solutions, such as crates, ice packs, and refrigerated trucks, while packaging products like insulated containers and temperature-controlled pallets ensure cost-efficiency and maintain the desired temperature during transit. Advanced technologies like data analytics, IoT sensors, blockchain, and online grocery shopping are revolutionizing the market, enabling real-time temperature monitoring, tracking, and shipment integrity.
Moreover, cold chain solutions cater to various industries, including chilled, frozen, and deep-frozen food and beverages, poultry, cakes & bread, meat, seafood products, and agricultural produce. By utilizing advanced technologies and logistics services, the market ensures the timely and efficient delivery of these temperature-sensitive products, reducing wastage and maintaining their quality.
Growing number of M and A activities is the upcoming trend in the market. The market is witnessing intense competition among companies due to the increasing demand for cold chain solutions in various sectors, particularly in perishable foods, vaccines, and specialized services. This market caters to the needs of the food sector, including packaged foods, changing dietary patterns, and lifestyles, as well as the healthcare industry for storing temperature-sensitive pharmaceuticals. The transportation segment is a significant contributor to the market's growth, with the increasing use of advanced packaging products such as crates, ice packs, and temperature-controlled containers. companies are focusing on cost-efficiency, temperature monitoring, tracking, and shipment integrity through frontend devices, IoT sensors, and blockchain technology.
Furthermore, the market for chilled, frozen, and deep-frozen storage solutions is expanding, with applications in poultry, cakes & bread, meat, food & beverages, seafood products, and agricultural produce. The logistics services segment is also experiencing growth due to the increasing trend of online grocery shopping. Despite these opportunities, the market's competitiveness necessitates strategic alliances and mergers and acquisitions to enhance market reach and customer base.
Lack of proper logistics and transportation infrastructure in developing countries is a key challenge affecting the market growth. The market encompasses the storage and transportation of perishable foods, vaccines, and other temperature-sensitive products. In the food sector, cold chains are essential for maintaining the quality and freshness of packaged foods, especially in light of changing dietary patterns and lifestyles. Specialized services, such as temperature monitoring, tracking, and shipment integrity, are crucial for the successful implementation of cold chains. The transportation segment relies on advanced packaging products, including crates, ice packs, and refrigerated trucks, for cost-efficiency and temperature control. In the developing world, the adoption of cold chains is limited due to high fixed costs. For farmers, the implementation of cold storage solutions increases operational expenses, leading to higher product prices.
Furthermore, this can negatively impact their profitability, particularly for perishable items like fruits and vegetables. Additionally, the lack of technical expertise and insufficient transportation infrastructure hinder the adoption of cold chains in these regions. To address these challenges, advancements in technology, such as IoT sensors, blockchain, and online grocery shopping, offer potential solutions. These innovations can improve temperature control, reduce wastage, and streamline logistics services for various sectors, including chilled, frozen, and deep-frozen food products, poultry, cakes & bread, meat, seafood, and agricultural produce.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Americold Realty Trust Inc. - The company provides cold chain solutions such as Cold Storage Warehouses for storing perishable goods, maintaining quality, and ensuring safe distribution.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for convenience food and longer shelf life of perishable items. Organized retail stores and retail chains are major consumers of cold chain infrastructure for storing and transporting perishable goods such as fruits, vegetables, dairy products, protein-rich foods, and frozen meals. The market is also driven by the growing trend of e-commerce in the food industry, particularly in online groceries and the digital food industry. Trade liberalization and cross-border commerce are further expanding the market's reach. Temperature management is crucial in the cold chain to prevent spoilage and contamination, and the use of refrigerated vehicles, cold storage systems, deep freezers, refrigerators, insulated containers, and backend IT infrastructure is essential for effective temperature management.
Furthermore, the market is also witnessing the adoption of advanced technologies such as RFID technology, refrigerated packaging, and off-grid storage systems to improve temperature control and reduce fuel costs. The rising demand for vaccines and pharmaceuticals is driving the market for vaccine carriers. The increasing concern for public health and the need to prevent the growth of harmful pathogens is also fueling the market's growth. Crop productivity and the foodservice sector are also significant contributors to the market. The market is facing challenges due to rising fuel costs and the need for alternative fuels. The market's future growth is expected to be driven by the increasing demand for quick-frozen foods, bakery products, and perishable items in the food industry.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.04% |
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Market growth 2024-2028 |
USD 441.18 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
17.7 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, China, India, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Americold Realty Trust Inc., AP Moller Maersk AS, Burris Logistics Co., Cold Chain Technologies, Congebec Logistics Inc., Deutsche Post AG, FedEx Corp., Frialsa Frigorificos SA de CV, ColdEX Ltd., John Swire and Sons Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nichirei Corp., Orient Overseas Container Line Ltd., Snowman Logistics Ltd., Tippmann Group, United Parcel Service Inc., VersaCold Logistics Services, and WH Group Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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