Market Size of US Cold Chain Logistics Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 78.45 Billion |
| Market Size (2029) | USD 110.24 Billion |
| CAGR (2024 - 2029) | 5.83 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Cold Chain Logistics Market Analysis
The US Cold Chain Logistics Market size is estimated at USD 78.45 billion in 2024, and is expected to reach USD 110.24 billion by 2029, growing at a CAGR of 5.83% during the forecast period (2024-2029).
- The COVID-19 pandemic significantly boosted the domestic e-retailing sector and the consumption of processed foods and beverages, pushing the demand for refrigerated storage spaces and logistics. The rise of online groceries, with a significant share of orders for perishables and frozen foods, is also supporting the market demand. The market has also benefitted significantly from the stringent government regulation toward the production and supply of temperature-sensitive products.
- However, the labor shortages in the transportation and warehousing sector, high energy requirements, and the negative environmental impact of the cold chain logistics operations are some of the challenges that may limit the market growth. To tackle the challenges regarding the high energy requirements and negative environmental impact, some companies are introducing solutions that increase the energy required to run the cold chain infrastructure.
- Technologies like Artificial Intelligence (AI), Machine Learning, Internet of Things (IoT), Robotics, Ware, and distribution center automation are being incorporated by players to increase the efficiency of their operations, reduce operational costs, and provide better customer experience.
- More outsourcing is occurring throughout the broader industrial logistics market, with third-party logistics (3PL) providers accounting for 34% of total leasing activity in 2022 through May, up from 30% in the same period of 2021. This trend is particularly common in the cold storage industry due to costs and more complex technology systems.
- According to the US Department of Agriculture (USDA), 72% of the refrigerated storage capacity in the US is outsourced to public refrigerated warehouse (PRW) companies, down from 75% five years ago. The remaining 28% includes in-house cold chain operators, up from 25% five years ago.
- The perishables imports, pharmaceutical industry growth, including the biologics sector, increasing consumption of frozen foods, pharmaceutical temperature monitoring regulations, etc., are the demand drivers for the cold chain logistics market in the United States.
