Market Size of Central And Eastern Europe Cold Chain Logistics Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR (2024 - 2029) | > 5.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Central and Eastern Europe Cold Chain Logistics Market Analysis
The Central And Eastern Europe Cold Chain Logistics Market is expected to register a CAGR of greater than 5% during the forecast period.
The central and Eastern Europe cold chain logistics market is estimated to register a CAGR greater than 5% during the forecast period (2022-2027).
Initially, when lockdown measures driven by the COVID-19 pandemic started in March 2020, consumers began panic buying and stockpiling items, with a focus on shelf-stable products. This reduced reefer trucking demands in the EU during Q1 and Q2 2020. The tourist accommodation industry in the EU also saw a sharp decline due to travel restrictions in March and April 2020, which also impacted the expected seasonal demand for reefer goods. However, the situation eased and demand picked up slowly over the next few weeks due to increased sales of alcohol and other beverages.
Labor shortages, increasing energy costs, market consolidation, and a reconfiguration in global food supply chains are some of the challenges in the European cold chain warehousing sector. Labor and energy are the two dominant cost components at European facilities. In 2020, labor accounted for 44% of total costs, with energy accounting for 15%. Covid-19 has pushed food companies to rethink their supply chain designs. The war in Ukraine and subsequent sanctions have accelerated this process.
Because the reconfigured supply chains will change where materials and products are stored, the cold storage sector is directly impacted. Many food companies have opted for just-in-case because the sector has seen a rise in occupancy rates - up to 90%.
Monitoring, storage, and transportation are important factors in the cold chain to avoid degradation in the quality of shipments. Cold chain logistics are anticipated to witness significant growth over the years, owing to the rise in the need for cold chain logistics in the pharmaceutical industry. At present, Germany dominates the market. The Europe cold chain logistics market is driven by growing penetration of e-commerce in the industry, changing lifestyles, increasing tech-driven logistics services, rising number of the refrigerated warehouse, and the growing pharmaceutical sector.