July 15, 2024
Cold Chain Market

Cold Chain Market Is Estimated To Witness High Growth Owing To Rising Demand for Temperature-Sensitive Pharmaceuticals

The Cold Chain market is estimated to be valued at US$ 270.8 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The Cold Chain market involves the transportation and storage of temperature-sensitive products along a supply chain. It covers various goods that requires temperature-controlled environmental conditions from production to the point of use. This includes pharmaceuticals, chemicals, confectionery, dairy products, fresh fruits & vegetables, frozen food, and more. Cold chain infrastructure plays a vital role in ensuring the safety, shelf-life and quality of perishable items by maintaining the recommended temperature range from production to final consumption.

Market Dynamics:

One of the key drivers for the growth of Cold Chain market includes the rising demand for temperature-sensitive pharmaceuticals across the globe. According to estimates, the global pharmaceutical cold chain logistics market is expected to cross US$ 19.7 billion by 2027, exhibiting a CAGR of over 7.5% during 2020-2027. This growth can be attributed to the increasing vaccination programs, rising chronic diseases prevalence requiring cold storage of drugs as well as biologics and biosimilars.

Another driver includes rapid growth in the frozen food sector. The global frozen food market reached a value of US$ 300 billion in 2020 and is projected to register a CAGR of 5% during 2021-2026. Rising demand for conveniencefrozen and ready-to-eat food products due to busy lifestyles has been driving the market growth. Cold chain plays a vital role in maintaining the quality and shelf life of frozen food items during storage and transportation. Growing frozen food trade collaboratively fuels the Cold Chain market growth.

SWOT Analysis

Strength: The cold chain market has strong growth prospects owing to increasing global demand for temperature-controlled logistics. Investments in advanced technologies and solutions have enhanced monitoring and tracking capabilities. Strategic collaborations between logistics firms and transportation providers ensure seamless movement of perishables across borders.

Weakness: High initial investment requirements for infrastructure development pose challenges for new entrants. Lack of proper storage facilities and inconsistent power supply in developing nations impact the cold chain.

Opportunity: Rapid growth of e-commerce and organized retail sectors in emerging economies boosts demand. Adoption of sustainable energy sources can reduce dependency on fuels and utility costs. Integrating IoT and blockchain can optimize operations and enhance visibility.

Threats: Fluctuations in fuel prices increase operational expenses. Strict regulations regarding food safety and quality compliance add to operational challenges. Shortage of trained workforce impacts quality of service.

Key Takeaways

Global Cold Chain Market Demand is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for temperature-controlled logistics from the food and pharmaceutical industries. North America currently dominates over 35% of the market share due to stringent norms and developed infrastructure. The Asia Pacific region is expected to grow at the fastest pace on account of rising consumerism, increasing middle-class population and developing economies.

Regional analysis- The Asia Pacific region is growing fastest in the cold chain market owing to rapid industrialization, rising affluence, and increasing consumption of perishables in populous nations like India and China. Countries make significant investments to augment cold storage infrastructure and modernize supply chains to handle greater logistics volumes.

Key players- Key players operating in the cold chain market are Americold Logistics, Lineage Logistics, AGRO Merchants Group, Nichirei Corporation, Preferred Freezer Services, Swire Cold Storage, Kloosterboer, DHL Global Forwarding, UPS Cold Chain Solutions, FedEx Custom Critical, Burris Logistics, and Maersk Line. They focus on expanding network coverage, digitalization, and integrated service offerings to strengthen market position.

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