As per the report published by Kings Research, the global Cold Chain Market was valued at USD 276.32 billion in 2023. The market is projected to reach USD 1,083.94 billion by 2031, growing at a CAGR of 18.82% from 2024 to 2031.
The increasing purchasing capacities of consumers globally have emerged as a key factor propelling the growth of the cold chain market. Rapid urbanization, coupled with rising disposable incomes in developing economies, has further led to a notable expansion of the consumer base for perishable goods such as fresh produce, dairy products, and seafood. As households in emerging markets experience improvements in living standards and purchasing power, there is a notable shift toward higher consumption of protein-rich foods, fruits, and vegetables. This increased demand for food products necessitates the development of robust cold chain infrastructure to ensure adequate storage, transportation, and distribution capabilities.
Moreover, the rise of e-commerce platforms and online grocery delivery services has augmented the demand for cold chain solutions, particularly in densely populated urban areas where convenience and accessibility are paramount. The expanding presence of organized retail outlets in emerging markets is driving the increased need for cold chain solutions. This surge in demand is further propelled by rising investments in cold chain infrastructure and governmental efforts aimed at reducing food wastage, all of which are anticipated to fuel market expansion. Furthermore, stringent regulations and traceability requirements imposed by regulatory bodies are reinforcing the importance of temperature control and monitoring throughout the cold chain.
Key Insights
- Based on type, the storage segment held the largest market share of 48.05% in 2023
- Based on temperature, the frozen (-18 to -25 deg. cel.) segment generated the highest revenue of USD 167.97 billion in 2023
- Based on application, the food & beverages segment is anticipated to account for market share of 68.12% by 2031
- On the basis of region, Asia-Pacific is estimated to garner revenue of USD 302.31 billion by 2031
Nichirei Logistics Group Unveils Merger of Entities to Strengthen Position in Food Logistics Leadership
January 2024: Nichirei Logistics Group announced the merger between Thermotraffic Holland B.V. and Eurofrigo B.V from the Netherlands, alongside Norish Ltd. and Kevin Hancock Ltd. from the United Kingdom. This merger marks the establishment of a comprehensive end-to-end logistics service provider catering to the food industry in Europe.
Expanding Role of Pharmaceuticals to Aid Cold Chain Market Growth
The growing significance of pharmaceuticals in the cold chain market is driven by the rise of biologics and biopharmaceuticals, which require stringent temperature control throughout the supply chain. These complex medications are highly sensitive to temperature variations and necessitate specialized cold chain solutions to maintain their efficacy and safety. As pharmaceutical companies prioritize the development and production of biologics, investments in temperature-controlled storage, transportation, and monitoring technologies become imperative to ensure compliance with regulatory standards and maintain product integrity.
Moreover, increasing demand for vaccines and other temperature-sensitive medicines is driving the need for rapid and efficient cold chain logistics. Timely delivery is essential to ensure that vaccines and medicines reach healthcare facilities and patients without compromising their potency. Cold chain infrastructure equipped with real-time monitoring and tracking capabilities enables swift and reliable transportation of temperature-sensitive pharmaceuticals, thereby reducing the risk of product degradation and ensuring timely access to essential healthcare interventions.
Expansion into Emerging Markets to Offer Lucrative Opportunities for Key Market Players
Expanding into emerging markets presents a significant opportunity for the growth of the cold chain market, particularly in regions such as the Middle East & Africa and Southeast Asia, where growing economies and increasing demand for perishable goods are providing a conducive environment for development. These regions offer untapped potential for cold chain infrastructure expansion, driven by rising urbanization, changing consumer preferences, and evolving retail landscapes. The growth of these regions is further propelled by increasing tourism activities, especially in Middle East and Southeast Asian countries.
Rising Focus on Green Cold Chain Solutions to Foster Cold Chain Market Growth
Investing in green cold chain solutions represents a promising opportunity for market progress. Developing and implementing environmentally friendly refrigeration technologies addresses sustainability concerns and aligns with growing consumer demand for eco-conscious practices for the key players. By adopting green cold chain solutions, stakeholders are reducing their carbon footprint, minimizing environmental impact, and enhancing brand reputation while meeting the evolving needs of the market for sustainable logistics solutions. These opportunities are driving growth and fostering economic development and environmental stewardship on a global scale, which is foreseen to bolster product adoption.
Asia-Pacific to Experience Robust Growth at CAGR of 22.11% over 2024-2031
Based on region, the global cold chain market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
Asia-Pacific is anticipated to witness the highest growth over the forecast period fueled by rapid urbanization in the region, coupled with the rising purchasing power of consumers. This is driving the demand for improved access to fresh produce and processed foods among urban populations. This increasing demand is propelling the need for enhanced cold chain infrastructure to ensure the quality and safety of perishable goods throughout the supply chain.
Additionally, the expanding pharmaceutical industry in countries such as China and India is fueling market growth, as robust cold chain solutions are essential for preserving the efficacy of temperature-sensitive medications. Moreover, government investments in infrastructure development and modernization of cold chain facilities play a pivotal role in driving regional market expansion.
Prominent Companies Forge Agreements to Enhance Industry Presence
The global cold chain market is fragmented with key players such as Americold Logistics, Inc., Lineage, Inc., VersaCold Logistics Services, United Parcel Service of America, Inc., Cold Creek Solutions LP, A.P. Moller – Maersk, Emergent Cold LatAm Management LLC, DHL International GmbH, CEVA Logistics, NICHIREI CORPORATION, and others. Companies are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.