Cold Chain Market
The cold chain industry is among the rapidly growing industries on account of the demand from several regions of the world. In 2017, the global cold chain market was worth around USD 188.42 billion. The cold chain is a type of supply chain industry. The cold chain is temperature controlled storage activity which involves a series of processes such as raw material storage, production, storage of finished products, and distribution of final product along with equipment and logistics. It includes allied equipment and logistics to maintain cold storage temperature to preserve the products quality and shelf life. The products such as food, pharmaceutical, seafood, photographic films require cold chain storage. The cold chain vehicle is called a cold cargo. The cold cargo is used for transporting products which are perishable or product those who are highly sterile like pharmaceutical chemicals, drugs, etc.
In addition, Good Cold Chain Management Practices (GCCMP) has set a standard for Standard Cold Chain Products (2°C to 8°C) to include the storage and transport of Ambient/Controlled Room Temperature (CRT) products. The rising demand for fresh products and increased shelf life of products are expected to be major drivers for the cold chain market. Government is taking initiatives to develop cold chain industry. Additionally, investment of major players in the cold chain industry and growing import and export activity are the factors expected to fuel the growth of cold chain market during the forecast period.
Moreover, international trade of perishable products, rising population, and urbanization, and increased demand for the processed food and fresh food are responsible for the growth of cold chain market in the food industry.
The cold chain market can be segmented in terms of type, temperature, and application. Type segment is expected to witness significant gains over the next six years owing to the rising demand for the chilled and frozen products among the population. Temperature type segment is expected to witness significant growth within the forecast period owing to high demand for pharmaceutical products and frozen food.
In terms of application, the global cold chain market is categorized by their sales channel namely; dairy & frozen desserts; pharmaceuticals, fruits & vegetables, meat, seafood, and bakery & confectionery. The pharmaceutical segment accounted for a relatively high share among other types of application in 2017. Logistics companies have introduced numerous devices and tracking systems to improve the security of the drugs supplies during the cold storage transportation.
North America is expected to witness lucrative growth over the forecast period as a result of increasing demand for frozen food. North America held the largest market share in 2017. In addition, increasing demand for daily food such as vegetables, meat, and seafood from western countries is fueling the growth of the cold chain market.
Europe was the second largest region for cold chain market in 2017. Due to the increasing consumption of processed & frozen food the cold chain market will grow during the forecast period.
Asia Pacific region is expected to grow due to different government initiatives such as capital investment subsidiary of RIDF, public entrepreneur guarantee scheme, etc. The government has developed projects such as mega Food Park, National horticulture board, National Horti & FPI mission for infrastructure development schemes, which requires climate regulatory warehouse and is anticipated to grow further during the forecast period, thus cold chain business is significantly growing in the Asia Pacific market.
The key players in the cold chain market are AGRO Merchants, Lineage Logistics, Preferred Freezer, Burris Logistics and Nichirei Logistics, Americold Logistics, Kloosterboer, Interstate Warehousing, VersaCold Logistics, and Swire Cold Storage.