The cold chain market was valued at USD 182.57 billion in 2017, and is expected to reach USD 277.69 billion by 2023, recording a CAGR of 7.24%, during the forecast period of 2018-2023. The market has been segmented by type (storage and transportation), application, and region.
The increasing trade of perishable products and rising government support for the development of infrastructure for cold chain facilities are anticipated to drive market’s growth, over the forecast period. The cold chain service providers are also adopting cutting-edge technologies, to cater to the increasing demand for food safety, in processed foods. This is expected to offer ample opportunities, thereby boosting the proliferation of numerous multinational vendors into the market, in order to provide better cold chain solutions.
Stringent food safety regulations, such as the Food Safety Modernization Act, which requires increased attention toward construction of a cold storage warehouse, are further expected to benefit the market. However, issues related to environmental concerns regarding the emission of greenhouse gas are estimated to challenge the growth of the market studied.
Increasing urbanization has led to an increase in the demand for convenient food products. Moreover, the rising inclination of consumers towards ease of use and improved shelf life are leading to the adoption of healthy frozen meals, thus driving the growth of dairy and frozen desserts. According to the US Census Bureau, the value of the United States’ product shipments of frozen specialty foods has increased by 16%, between 2010 and 2016. As food quality is of paramount importance, the dairy and frozen dessert industry is investing heavily in technologies that can support and create product differentiation.
Moreover, the World Trade Organization (WTO) and bilateral free trade agreements, such as European Union Free Trade Agreement (FTA) and the North America Free Trade Agreement (NAFTA), have created opportunities for exporters in the United States and Europe, to increase trade of perishable foods that are free of import duties. This factor is expected to further drive the demand for better cold chain infrastructure facilities for dairy and frozen desserts, to provide ideal transportation and storage conditions.
The established Asia-Pacific electronics industry and adoption of innovative technologies have provided the organizations in the region a competitive edge, in the market. Moreover, the region enjoys the presence of several major cold chain vendors, such as Swire Cold Chain Logistics (Shanghai) Co. Ltd (China) and Orient Overseas (International) Limited (Hong Kong), among others.
The rising trend of purchasing perishable food products online has evolved the need for innovative solutions to provide last-mile delivery, automated warehouses to manage inventories, and advanced temperature monitoring devices to maintain the safety of fresh food products. According to the National Statistics Bureau, in 2015, online purchases accounted for about 10.8% of China's retail sales. In online sales, vegetables and fruits accounted for a share of 55.2%, followed by meat and egg (at 17.4%). This growth has also encouraged around 4,000 companies to build their applications on smartphones, which specialization of fresh food sales, in 2016. Emerging economies (such as China, India, and Thailand) are investing in warehouse automation technologies (i.e., cloud technology, robots, conveyor belts, truck loading automation, etc.,) to maintain the quality of temperature-sensitive products. According to the Global Cold Chain Alliance (GCAA), China has recorded a 41% growth in its refrigerated warehouse capacity, between 2014 and 2016, to reach about 107 million m3.
In addition, the governments across the region are working with industry associations, to introduce a series of policies and standards, to regulate and promote the development of cold chain facilities. In 2016, the Chinese government emphasized the development of cross-region cold chain logistics industry, through pilot projects. Major companies, such as ITC Ltd, are also pursuing long-term strategies, to build cost-effective cold chains that contribute to the reduction of wastage in the food industry, further reinforcing the demand for cold chain facilities, in Asia-Pacific.
Cold Chain Market Major Players: CWT Pte Limited, Americold Logistics LLC, Nichirei Corporation, Lineage Logistics Holdings LLC, Orient Overseas (International) Limited, VersaCold International Corporation, Agro Merchants Group LLC, Burris Logistics Inc., JWD Group Inc., Swire Cold Chain Logistics (Shanghai) Co. Ltd, and XPO Logistics Inc., among others.
Cold Chain Market
Market Size in 2017
USD 182.57 billion
Market Size in 2023
USD 277.69 billion
The Cold Chain Market report offers insights into the latest trends, growth prospects, industry competitiveness, major players, industry value chain analysis, regional market shares, and forecast until 2023.
1.1 Research Methodology
1.2 Definition of the Market
1.3 Scope of Market
2. Market Insights
2.1 Market Overview
2.2 Market Trends
2.3 Porter’s Five Forces Model
2.3.1 Bargaining Power of Suppliers
2.3.2 Bargaining Power of Buyers
2.3.3 Threat of New Entrants
2.3.4 Threat of Substitute Products and Services
2.3.5 Degree of Competition
3. Market Dynamics
3.1.1 Increased Global Trade of Perishable Products
3.1.2 Expanding Organized Food Retail Chain
3.2.1 Technical Backwardness and Weak Infrastructure
3.2.2 Lack of Cold Chain Logistics Management System and Standards
3.3.1 Government Initiative to Reduce Food Wastage
4. Market Segmentation
4.1 By Product Type
4.1.1 Cold Chain Storage
4.1.2 Cold Chain Transport
4.1.3 Monitoring Components
4.2 By Application
4.2.1 Fruit and Vegetable
4.2.2 Meat and Seafood
4.2.3 Dairy and Frozen Dessert
4.2.4 Bakery and Confectionery
4.2.5 Ready-to-eat Meal
5. Regional Segmentation
5.1 North America
5.1.2 United States
5.1.5 Rest of North America
5.2.2 United Kingdom
5.2.7 Rest of Europe
5.3.6 Rest of Asia-Pacific
5.4 South America
5.4.4 Rest of South America
5.5 Middle East & Africa
5.5.2 Saudi Arabia
5.5.3 South Africa
5.5.4 Rest of Middle East & Africa
6. Competitive Landscape
6.1 Most Active Companies
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
7. Company Profiles
7.1 Americold Logistics LLC
7.2 John Swire & Sons (H.K.) Ltd.
7.3 Lineage Logistics Holdings, LLC
7.4 Nichirei Logistics Group Inc.
7.5 Logistica Company.
7.6 AGRO Merchants Group
7.7 Swire Cold Storage
7.8 Gruppo Marconi Logistica
7.9 Henningsen Cold Storage Co.
7.10 Burris Logistics
7.11 Berlinger & Co. AG
7.12 Preferred Freezer Services