Cold Chain Market Will Ensure Food Safety And Quality In Distribution

 The global cold chain market size was valued at USD 270.98 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 18.9% from 2024 to 2030. Changes in consumer preferences and growing e-commerce sales are expected to drive the growth of the market. An increasing number of organized retail stores in developing economies are leading to the growing demand for cold chain solutions. Rising investment in cold chains and government initiatives to minimize food waste are expected to boost market growth. The growing adoption of technologies such as RFID and automation in cold chain applications provides significant growth opportunities for the market.

Gather more insights about the market drivers, restrains and growth of the Cold Chain Market

The World Trade Organization (WTO) and bilateral free trade agreements, such as the European Union Free Trade Agreement (FTA) and the North America Free Trade Agreement (NAFTA), have created opportunities for exporters in the U.S. and Europe to increase trade for perishable foods in a duty-free manner.

The refrigerated storage market in developing economies is driven by a shift from carbohydrate-rich diets to protein-rich foods, owing to rising consumer awareness. Countries such as China are expected to portray a significant growth rate over the coming years due to a consumer-led economic transition. With growing technological advancements in warehouse management and refrigerated transportation, the market will likely expand in developing economies.

Increasing IT spending in cold storage logistics drives the growth of the cold chain market by facilitating better inventory management and improving the overall efficiency of cold chain supply systems. By investing in advanced technologies such as cloud computing, IoT, and RFID, cold storage operators can track and monitor their inventory in real-time, reducing the risk of food waste, spoilage, and product recalls. The rising demand for temperature-sensitive products has emphasized the need for real-time cold chain monitoring.

Furthermore, several countries have strict regulations governing the transportation and storage of perishable food products to ensure food safety and quality. Compliance with these regulations often requires a robust cold chain system, which can be achieved with the help of IT systems. IT systems are critical in complying with these regulations as they provide real-time monitoring of temperature and humidity levels, location tracking, and data analytics.

Recent Developments

• In June 2023, Intelsius announced the addition of the ORCA Pallet to its ORCA temperature-controlled packaging range. It has been described as a multi-use and high-performance temperature-controlled pallet shipper designed for large-volume pharmaceutical payloads in the cold chain. It comes in 3 sizes and 3 temperature ranges and has a collapsible design to combat budget and storage constraints.

• In June 2023, Canadian Pacific Kansas City (CPKC) and Americold announced a strategic partnership for the co-location of Americold’s warehouse facilities on the CPKC network. The main objective of the partnership is the optimization of temperature-controlled logistics across North America by building a facility in Kansas City, Missouri, bringing together cold storage and value-added-services and connecting major markets in the U.S. Midwest and Mexico.

• In May 2023, Sonoco ThermoSafe announced a global partnership lease agreement with Cargolux, a Luxembourg-based cargo-only global airline. As per the agreement, Sonoco ThermoSafe will provide its Pegasus ULD passive temperature-controlled air freight shipping container via Cargolux’s selection of air freight pharma shipping services and solutions. The Pegasus is globally the first such container that is FAA and EASA-approved for pharmaceutical use.

• In March 2023, Americold inaugurated its facility expansion in Santa Perpetua Barcelona, Spain. It involves the addition of 11 loading bays and 12,000 pallet positions, thus offering a much higher capacity in temperature-controlled products and services to regional customers. The expansion means that the facility now has more than 20,000 pallet positions providing storage for chilled, frozen, and ambient produce.

• In March 2023, Lineage Logistics announced the official opening of its expanded cold storage facility at Port of Aarhus, Denmark, with the expansion adding 18,000 pallet spaces at the site for overall 27,500 pallet spaces. The increased capacity is expected to offer streamlined storage options for shellfish and fish producers, among other customers, which will play a major role in driving trade activities between Greenland, Denmark, and the global market.

• In January 2023, Cold Chain Technologies introduced the ‘CCT TheraShield’ portfolio of customized services and products to cater to the gene and cell therapy industry. It has been made available in different sizes and temperature profiles and is linked directly to the ‘CCT Smart Solutions’ portal, which helps customers in planning, creating, tracking, and optimizing their shipments In January 2023, Lineage Logistics announced a partnership with the supply chain insurer Parsyl for offering highly competitive cargo insurance solutions to customers of Lineage in the food and beverage sector. Parsyl leverages data from various sources to develop a tailored coverage on the basis of risk profile of individual customers, thus enabling better coverage, more competitive pricing, and more efficient claims service.

• In September 2022, Cold Chain Technologies announced the expansion of its ‘TRUEtemp Naturals’ portfolio by launching seasonal solutions. The portfolio makes use of proprietary design & manufacturing technologies for providing pharmaceutical-grade, time-temperature performance in an eco-friendly, recyclable, and repulpable solution. The environment-friendly designs are expected to aid CCT in increasing their commitment of avoiding 50 million pounds of landfill waste by 2025 to 60 million pounds.

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• The global chartered air transport market size was valued at USD 38.41 billion in 2023 and is expected to grow at a CAGR of 7.1% from 2024 to 2030. The demand for chartered air transport, both for passengers and cargo, is experiencing a significant increase globally.

• The global warehouse simulation market was valued at USD 552.4 million in 2023 and is projected to grow at a CAGR of 14.6% from 2024 to 2030. Warehouse simulation refers to the use of computer models to replicate and analyze the operations within a warehouse environment.

Cold Chain Market Segmentation

Grand View Research has segmented the global cold chain market based on type, temperature range, application, and region:

Cold Chain Type Outlook (Revenue, USD Billion; 2017 - 2030)
• Storage
o Facilities/Services
o Refrigerated Warehouse
o Private & Semi-Private
o Public
o Cold Room
o Equipment
o Blast freezer
o Walk-in Cooler and Freezer
o Deep Freezer
o Others
• Transportation
o By Mode
o Road
o Sea
o Rail
o Air
o By Offering
o Refrigerated vehicles
o Refrigerated containers
• Packaging
o Crates
o Insulated Containers & Boxes
o Large (32 to 66 liters)
o Medium (21 to 29 liters)
o Small (10 to 17 liters)
o X-small (3 to 8 liters)
o Petite (0.9 to 2.7 liters)
o Cold chain bags/Vaccine bags
o Ice packs
o Others
• Monitoring Components
o Hardware
o Sensors
o RFID Devices
o Telematics
o Networking Devices
o Others
o Software
o On-premise
o Cloud-based

Cold Chain Temperature Range Outlook (Revenue, USD Billion; 2017 - 2030)
• Chilled (0°C to 15°C)
• Frozen (-18°C to -25°C)
• Deep-frozen (Below -25°C)

Cold Chain Application Outlook (Revenue, USD Billion; 2017 - 2030)
• Food & Beverages
o Fruits & Vegetables
o Fruit Pulp & Concentrates
o Dairy Products
o Milk
o Butter
o Cheese
o Ice cream
o Others
o Fish, Meat, and Seafood
o Processed Food
o Bakery & Confectionary
o Others
• Pharmaceuticals
o Vaccines
o Blood Banking
o Others
• Others

Cold Chain Regional Outlook (Revenue, USD Billion; 2017 - 2030)
• North America
o U.S.
o Canada
• Europe
o Germany
o U.K.
o France
o Spain
o Italy
o Norway
o Netherlands
o Switzerland
o Russia
• Asia Pacific
o China
o Japan
o India
o Singapore
o South Korea
o Australia
• Latin America
o Brazil
o Mexico
• Middle East & Africa
o Kingdom of Saudi Arabia (KSA)
o UAE
o South Africa

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Key Companies profiled:
• Americold Logistics, Inc.
• LINEAGE LOGISTICS HOLDING, LLC
• United States Cold Storage
• Burris Logistics
• Wabash National Corporation
• NewCold
• Sonoco ThermoSafe (Sonoco Products Company)
• United Parcel Service of America, Inc.
• A.P. Moller - Maersk
• NICHIREI CORPORATION
• Tippmann Group

Key Cold Chain Company Insights

• LINEAGE LOGISTICS HOLDING, LLC is a U.S.-based firm that provides warehousing and logistics solutions to users operating in various industries. The company’s solutions consist of temperature-controlled public warehousing facilities for storing various types of food, including pork, beef, poultry, bakery products, fruits & vegetables, seafood, ice creams, and vegetables. The company also provides port-centric cold chain facilities on the East and West Coasts of the country to serve containerized markets and break bulk for its customers. The third-party facility management services comprise customized operating solutions for Fortune 500 companies in various consumer and food segments.

• In April 2023, LINEAGE LOGISTICS HOLDING, LLC announced the opening of a new facility in Port Wentworth, Georgia. The facility is 220,000 square feet in size and offers cross-docking services. With this expansion, the company aimed to meet the needs of port-centric warehousing.

• Americold Logistics, Inc., based in the U.S., provides temperature-controlled warehousing and transportation for the food industry. The services provided under producer solution include dedicated facilities, public refrigerated warehouses, port facilities, automation, and integrated consolidation programs. The services provided under the retailer solutions include integrated consolidation programs, i-3PL supply chain, system integration, port facilities, automation, and network optimization study. It has marked its presence across regions such as Asia Pacific and the Americas.

• In June 2023, Canadian Pacific Kansas City (CPKC) and Americold announced a strategic partnership for the co-location of Americold’s warehouse facilities on the CPKC network. The main objective of the partnership is the optimization of temperature-controlled logistics across North America by building a facility in Kansas City, Missouri, bringing together cold storage and value-added-services and connecting major markets in the U.S. Midwest and Mexico.

• Burris Logistics is a logistics and supply chain management service company. The company provides temperature-controlled warehousing and transportation services. The company’s solution offerings include custom retail distribution, refrigerated warehousing, freight management, and redistribution of food service. Additionally, the company offers information technology services for custom applications and system integration. The company offers solutions for poultry, meat, frozen food, and dairy products. In June 2023, Honor Foods, a Burris Logistics subsidiary, announced the acquisition of Sunny Morning, a U.S.-based food service redistributor. With this acquisition, the company aimed to strengthen its position as a food service redistributor.

• Tippmann Group is a cold storage construction and warehousing solution provider for the food industry. According to the Global Cold Chain Alliance (GCCA), Interstate Warehousing, a business of Tippmann Group, ranked fourth in terms of temperature-controlled space operated in North America in May 2023. It has a presence across various U.S. states, including Illinois, Colorado, Arizona, and Virginia. In June 2021, Tippmann Group introduced the Pallet Fit door, an addition to its blast-freezing solution QFR Zone. The Pallet Fit door provides more flexibility for freezing palletized products quickly. With this upgrade, the company aimed to make the blast-freezing solution more efficient.