Cold Chain Logistics Market
Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)
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Burgeoning FMCG to Demand Superior Cold Chain Logistics for Expanding Business
Supply chain management is an integral part of an organization’s operation, eliminating wastages and reducing the inherent risks to goods. Logistics management, a key element of supply chain, is responsible for detailed planning, accurate implementation, and efficient control over eventual distribution of goods or products from point of production to point of consumption.
In recent years, cold chain logistics has witnessed a remarkable growth rate as export and import of goods ranging from FMCG sector to pharmaceutical have taken a giant leap. Cold chain commits to a temperature-controlled transportation of drugs, agricultural produce, meat products, and chemicals amongst others to ensure quality remains uncompromised.
Cold chain logistics include infrastructure such as temperature-controlled warehouses and insulated vehicles for storage and distribution. Fairfield Market Research predicts that the global cold chain logistics market is likely to witness a steady growth and consistent upgradation as the pandemic pushes storage and distribution boundaries and IoT brings in a range of improved solutions with real-time tracking mechanisms.
Food Security to Present Big Opportunities to Global Cold Chain Logistics Market
Lack of cold chain logistics infrastructure in food transportation has further complicated the food security challenges across the globe. Cold chain plays a big part in the lifecycle of pharmaceuticals, food and chemicals, as it is preserves and guarantees the usability of these till they reach the end consumer. Food hygiene and temperature control are two critical components of ensuring nutritious and safe food reaches the masses. The Food and Agriculture Organization of the United Nations states that about 1.3 billion tonnes of food produced for human consumption is wasted across the world.
A staggering wastage of this value means serious loss to developing countries. For instance, about 30-40% of food produced in India is lost or wasted due to lack of infrastructure to storage and make it available to the masses. In light of this, analysts anticipate that to bridge the gap between loss and exacerbating food security crisis, cold chain logistics market is likely to find excellent growth opportunities. For instance, India Cooling Action Plan, launched in 2019 aims to double farmer income by with better chain infrastructure, reassessed value of produce, and importantly, less wastage.
In the coming years, as global temperatures rise due to climate change, the global cold chain logistics market is likely to witness an urgent demand for solutions to keep food safe until it reaches the end consumers.
Pharmaceutical Sector to Demand Sophisticated Cold Chain Logistics as Healthcare Priorities Changes with COVID-19
Cold chain logistics are used across industries such as fruits and vegetables, pharmaceutical, dairy and frozen foods, and meat, seafood, and fish. Out of these, the pharmaceutical industry is expected to emerge as the key end user of cold chain logistics. Exceptional focus on delivering product in intact condition due to high product sensitivity is expected to fuel the demand for topnotch cold chain logistic solutions.
Mammoth shipments of drugs, medicines, and vaccines is expected to put this segment at the forefront. Temperature-sensitive vaccines and medical devices will demand a quick response from the cold chain logistics industry to meet the vast need. For instance, distribution of COVID-19 vaccine is likely to require a rock-solid cold chain logistics network to ensure it reaches the remotest parts of the world effectively. Cold chain companies will have to refurbish their trucks to ensure ultra-low temperatures and impeccable insulation to cater to the changing parameters of world’s largest vaccination drive to contain the pandemic.
Vaccination Drive across Asia Pacific to Create a Regional Leader
Asia Pacific is expected to lead the cold chain logistics market in the forthcoming years. The region is on the cusp of an economic revolution with countries such as India and China that are redefining success with pharmaceutical and consumer goods industry. Rising online food delivery platforms and an increased number of supermarket chains are fuelling the cold chain demand in the region.
The changing dietary habits across Asian countries, characterized by preference for frozen food is likely to make a positive impact on the regional market. Furthermore, as COVID-19 vaccination drive picks up pace, the cold chain logistics market in Asia Pacific will witness a surge, coaxing players to push boundaries.
Global Cold Chain Logistics Market: Competitive Landscape
Cold chain is capital-intensive, which makes it difficult for new players to enter and sustain. However, to keep pace with growing demand for refrigeration, the industry is witnessing rapid developments. For instance, in January 2020, Americold Logistics signed to acquire Nova Cold Logistics to expand the company’s presence in Canada.
Some of the key stakeholders operating in the cold chain logistics market are, United States Cold Storage, Henningsen Cold Storage Co., Trenton Cold Storage, AmeriCold Logistics, LLC, Conestoga Cold Storage, Nichirei Logistics Group Inc., Lineage Logistics Holdings, LLC, Tippmann Group among others.