April 24, 2024
Cold Chain Market

The Cold Chain Market Is Driven By Growing Need For Temperature-Sensitive Products

The cold chain market facilitates the transportation and storage of temperature-sensitive products like temperature-sensitive pharmaceutical drugs, frozen food, fresh agricultural produce, chemicals, and photographic films in a temperature-controlled environment. The cold chain helps maintain the quality and extends the shelf life of products from the point of processing to the end user. This market caters to various industries like food, pharmaceuticals, healthcare, chemicals, and others. The requirement for perishable and temperature-sensitive goods is increasing globally due to growing populations and changing lifestyles. People are consuming more packaged and processed food than ever before. In addition, the demand for pharmaceutical drugs and vaccines is rising rapidly, especially across emerging countries.

The global Cold Chain Market is estimated to be valued at US$270.08 Mn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving growth in the cold chain market is the rising demand for frozen and chilled food products. With increasing disposable incomes and busy lifestyles, consumers are increasingly opting for packaged, ready-to-cook or ready-to-eat food items that have a long shelf life. However, these products require proper cold chain infrastructure during transportation and storage to maintain quality and safety. Another major trend is the increasing need for temperature-controlled logistics in the pharmaceutical industry. Strict regulations regarding the storage and distribution of temperature-sensitive drugs and vaccines are contributing to the demand for specialized cold chain solutions. Growing penetration of refrigerated transport vehicles, storage facilities, and temperature monitoring equipment are also fueling the growth of the global cold chain market during the forecast period.

Porter’s Analysis

Threat of new entrants: The cold chain logistics market requires heavy investment in technology and infrastructure. These substantial entry barriers protect existing firms from new competition.

Bargaining power of buyers: Buyers such as pharmaceutical and food processing companies have significant bargaining power due to the large volume of goods requiring cold chain logistics services.

Bargaining power of suppliers: Suppliers of cold chain equipment and refrigerants have some bargaining power given their specialized expertise and equipment.

Threat of new substitutes: There are limited product substitutes for cold chain logistics given the need to closely monitor and control temperatures for various goods.

Competitive rivalry: The cold chain logistics market is competitive with many large global players competing on service quality, technology, and price.

Key Takeaways

The global cold chain market Share is expected to witness high growth over the forecast period driven by increasing demand for temperature-controlled logistics from industries such as pharmaceutical and food processing.

Regional analysis: The Asia Pacific region is projected to grow at the fastest pace during the forecast period, owing to increasing demand from industries such as pharmaceutical, chemicals, and food and beverages in emerging economies of China, Japan, and India. China dominates the Asia Pacific cold chain logistics market, owing to the presence of a large consumer base and rapid growth of end-use industries.

Key players operating in the cold chain market are Novo Nordisk A/S, Pfizer, Inc., Eli Lilly and Company, Changchun GeneScience Pharmaceutical Co., Ltd., Sandoz International GmbH, Ipsen Pharma, LG Chem, Merck KGaA, Genentech, Inc., Ferring B.V., AnkeBio Co., Ltd, Reliance Life Sciences, JCR Pharmaceuticals Co., Ltd, Zhongshan Sinobioway Hygene Biomedicine Co., Ltd and USV Private Limited.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it