Canada Cold Chain Logistics Market Size
| Study Period: | 2019 - 2028 |
| CAGR: | > 3.5 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canada Cold Chain Logistics Market Analysis
The Cold Chain Logistics market in Canada is expected to grow at a CAGR of more than 3.5% during the forecast period. Cross‐border supply chains are critical to the Canadian food sector, with significant volumes of food and agricultural products moving across the Canadian–U.S. border daily. The United States accounts for over 50% of the value of all Canadian agriculture and agri‐food exports and around 60% of the value of Canadian food imports. The United States is a net importer of Canadian beef and cattle, Canada relies heavily on seasonal imports of fresh produce from the United States and Mexico. Cold chain logistics were important for a majority of the imports and exports as the products were perishable goods. During the COVID19 pandemic, it was important to maintain a relatively safe and reliable cross-border agri-food exchange. The agriculture and food sector is an important component of the Canadian economy.
A significant global advantage for Canada lies in its numerous water ports. Ocean ports on the Pacific and Atlantic coasts open the Asian and European markets, respectively. In addition, the St. Lawrence Seaway provides expanded port service to several Canadian and U.S. locations in the Great Lakes. The Great Lakes offer outstanding intermodal logistics services to the central provinces of Canada and to the United States. Canada has distinct logistical capabilities that can be leveraged. For importing and exporting, Canada is a leader in port availability, infrastructure, and accessibility. Location, natural assets, and logistics support have created an environment to provide product distribution to global locations.
Canada is a major exporter of fresh, chilled, and frozen meat, especially bovine products, and pork, as well as seafood products. Canada imports most of its fruits and vegetables because local production is relatively limited given the country’s cold climate. The state (chilled or frozen) of imports and exports is specific to the food product. Most bovine products and salmon products that are imported and exported are fresh or chilled, while most pork imports, crab exports and lobster exports are frozen.
Canada Cold Chain Logistics Industry Segmentation
The technology and mechanism that allows for the secure delivery of temperature-sensitive goods and items along the supply chain are known as cold chain logistics. Any product that is perishable or is branded as such would almost certainly need cold chain management. Foods including meat and fish, produce, medical supplies, and pharmaceuticals could all fall under this category. The Canadian Cold Chain Logistics Market is segmented by Service (Storage, Transportation, and Value-added Services), by Temperature Type (Chilled and Frozen), and by End User (Horticulture, Dairy Products, Meats, Fish, Poultry, Processed Food Products, Pharma, Life Sciences, and Chemicals, and Other Applications). A comprehensive background analysis of the Canadian Cold Chain Logistics Market covering the current market trends, restraints, technological updates, and detailed information on various segments and competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.
| By Service | |
| Storage | |
| Transportation | |
| Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.) |
| By Temperature | |
| Chilled | |
| Frozen |
| By End User | |
| Horticulture (Fresh Fruits & Vegetables) | |
| Dairy Products (Milk, Ice-cream, Butter, etc.) | |
| Meats, Fish, Poultry | |
| Processed Food Products | |
| Pharma, Life Sciences, and Chemicals | |
| Other End Users |
Canada Cold Chain Logistics Market Trends
This section covers the major market trends shaping the Canada Cold Chain Logistics Market according to our research experts:
Cold Chain Logistics is Dominated by Frozen or Chilled Meat:
The meat industry in Canada is comprised of production and processing, packing, preservation, and marketing of meat such as beef and veal, lamb and mutton, pork, chicken, goat, rabbit, horse, and wild game such as venison and bison. In 2020, the GDP for the meat product manufacturing sector stood at around 4.59 billion Canadian dollars. The red meat industry had annual shipments worth USD 22.3 billion in 2019. The red meat industry had annual shipments were worth USD 21.1 billion in 2018. According to Agriculture and Agri-Food Canada data, in 2017 beef and veal exports from Canada increased by 5.7% compared to 2016 and reached over USD 2.4 billion. Exports to the United States increased by 3.9% in 2017 in comparison to 2016.
During the fourth quarter of 2020, there were disruptions to the food supply chain because of temporary closures and production slowdowns at slaughter and meat processing facilities resulting from COVID-19, which affected the stocks of frozen and chilled meats. Stocks of frozen and chilled meats in cold storage totaled 116,627 tonnes as of January 1, 2021, down 9.6% from January 1, 2020. Temporary closures of beef processing facilities because of COVID-19 outbreaks in the fourth quarter resulted in fewer cattle slaughtered. Nevertheless, stocks of frozen beef were up by 11.2% in 2020 compared with 2019. Quebec held almost half of the stocks of frozen pork (49.4%), while Alberta held over one-third of the stocks of frozen beef (38.4%).
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Growth of E-commerce and Increasing Consumer Choices
In 2020, new measures aimed at slowing the spread of COVID-19 significantly affected how consumers made retail purchases. With businesses closing and changing their in-store operations, and consumers having to physically distance themselves, the option to purchase online became an important alternative to walking into a Canadian retail store. In 2020 e-commerce sales more than doubled—with a 110.8% increase compared with 2019. Retail e-commerce sales have risen steadily, with the proportion of online sales rising from 2.4% in 2016 to 4.0% in 2019. One consequence of the rapid transition to higher levels of e-commerce sales was Walmart Canada’s July announcement of a 5 percent “e-commerce development fee” for products sold on its online platform as well as a 1.25 percent “infrastructure development fee” on all goods it purchases to offset the costs of new distribution centers needed to support higher e-commerce sales volumes.
The pandemic has driven consumers to shop for their food online, and triggered unprecedented growth in virtual grocery stores and unique direct-to-consumer strategies – from boxed meals like Hello Fresh and Pepsi’s bundled pantry and snack shops, to home delivered groceries and artisanal foods. As per industry sources, there is a surge in direct field-to-consumer online sales of boxed meats and produce, with some farms reporting up to 400 percent increases in sales.
Canada Cold Chain Logistics Industry Overview
The cold chain logistics market landscape of Canada is fragmented in nature with a mix of global and local players. Most of the imports and exports products need to be monitored in refrigerated transports. Companies are growing their market presence by developing new methods to manage cold chain logistics, owing to technology development. Some of the strong players of the country are Americold Logistics, Versacold Logistics, Congebec, and Conestoga amongst others. Canada is uniquely positioned to take advantage of emerging trade opportunities from developed economies and to serve as a gateway to North America. The cold chain logistics network in the country is well-developed, with a wide range of services, industries rely on transportation and logistics network to deliver rapid, integrated, and secure solutions to leverage their global supply chains. The market started reviving from pandemic by growing positively post pandemic.
Canada Cold Chain Logistics Market Leaders
GCCA
Cargill Limited
McCain Foods Limited
VersaCold International Corporation
Clearwater Seafoods Incorporated
*Disclaimer: Major Players sorted in no particular order
Canada Cold Chain Logistics Market News
The growth of the Canadian fruit industry has a positive inclination every year. Canada imported USD 6.37 billion of fresh fruit in 2019, up 2.7% from the previous year. Canada’s leading source country for fruit imports continues to be the United States, accounting for 40.3% of import value, followed by Mexico with 16.7%, Chile with 5.6%, and Guatemala with 4.6%.
Canadian Government invested USD 150 million to help companies advance through the early stages of research and development for the COVID-19 vaccine. Through the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), six vaccine candidates and seven therapeutic candidates have already received advisory support and more than USD 37 million in funding. The remaining USD 113 million is available to help the most promising of these candidates advance to the next phase of clinical development. To store and transport vaccine doses pharmaceutical companies require a refrigerated transport system, by this, directly impacts positively for the growth of cold chain logistics.
Canada Cold Chain Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Technological Trends and Automation
4.4 Government Regulations and Initiatives
4.5 Industry Value Chain/Supply Chain Analysis
4.6 Spotlight on Ambient/Temperature-controlled Storage
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.8 Impact of Emission Standards and Regulations on Cold Chain Industry
4.9 Impact of Covid-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Storage
5.1.2 Transportation
5.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
5.2 By Temperature
5.2.1 Chilled
5.2.2 Frozen
5.3 By End User
5.3.1 Horticulture (Fresh Fruits & Vegetables)
5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
5.3.3 Meats, Fish, Poultry
5.3.4 Processed Food Products
5.3.5 Pharma, Life Sciences, and Chemicals
5.3.6 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Americold Logistics
6.2.2 VersaCold Logistics Services
6.2.3 Lineage Logistics Ltd
6.2.4 Congebec Logistics, Inc.
6.2.5 Conestoga Cold Storage
6.2.6 Confederation Freezers
6.2.7 Trenton Cold Storage, Inc.
6.2.8 Landtran Logistics Inc.
6.2.9 MTE Logistix
6.2.10 Groupe Robert*
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport and Storage Sector to economy)
8.2 Insights on Capital Flows (investments in Transport and Storage Sector)
8.3 E-commerce and Consumer Spending-related Statistics
8.4 External Trade Statistics - Export and Import
Canada Cold Chain Logistics Market Research FAQs
What is the study period of this market?
The CANADA COLD CHAIN LOGISTICS MARKET is studied from 2019 - 2028.
What is the growth rate of CANADA COLD CHAIN LOGISTICS MARKET?
The CANADA COLD CHAIN LOGISTICS MARKET is growing at a CAGR of >3.5% over the next 5 years.
Who are the key players in CANADA COLD CHAIN LOGISTICS MARKET?
GCCA , Cargill Limited, McCain Foods Limited, VersaCold International Corporation, Clearwater Seafoods Incorporated are the major companies operating in CANADA COLD CHAIN LOGISTICS MARKET.
CANADA COLD CHAIN LOGISTICS Industry Report
Statistics for the 2023 CANADA COLD CHAIN LOGISTICS MARKET market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. CANADA COLD CHAIN LOGISTICS MARKET analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
