According to the research done by The Brainy Insights, Global cold chain logistics market reached about USD 321.78 billion, and seems to reach USD 842.91 billion by 2028, at a CAGR of 22.18% from 2021 to 2028. Global Cold Chain Logistics market is witnessing a considerable growth owing to the surge in consumer demand for perishable foods and surge in the number of refrigerated warehouses.
Cold chain market overview and market dynamic analysis
Market Overview: the main elements of the cold chain are ①Cooling system, this is used to keep the products in appropriate temperature for storage, processing and transportation. ② Cold Storage, this provides the facilities for the storage of goods, which are in the process of shipment, to be shipped to a distant place. ③ Cold Transport, The goods are transported keeping the stable temperature and humidity conditions of the conveyances and not damaging the product. ④Cold Processing and distribution, these are the facilities for transformation, like consolidating and deconsolidation of goods, and processing of goods.
Two major factors of the main driving forces of the market
① A Surge in Consumer Demand for Perishable Foods
The consumer expectation has increased. They want the shipment as soon as possible. The advent of the internet and the increase in disposable income of the people have led to the growth of e-commerce industries. The customers are ordering different products, including perishable foods using an e-commerce site. This is driving the cold chain logistics market. Also, the surge in demand for processed food also requires cold chain logistics. The increasing demand for online sites for medicines is also boosting the cold chain logistics market.
② The surge in the number of refrigerated warehouses
There is an increase in the number of refrigerated warehouses, which are used for storing temperature-sensitive products. Many export industries are very much dependent on the refrigerated warehouses in the complete cold chain process, as there are many perishable products and medicines the export industry exports to distant places, where there is a requirement. Many organization spends millions of capitals for the cold chain operations for an efficient and reliable process as the end to end cold chain security is the weak link and single break down in the logistics chain can lead to damaging and loss of products, which could cost in millions. The online grocers are also dependent on the refrigerated warehouses as there is an increase in the sales of online grocers. These factors are driving the cold chain logistics market.
Restrictive factors of industry development: The Operational cost is high
The high operational cost is acting as a main restraint for the cold chain market. There is a huge electricity consumption for everyday operations in the cold chain logistics industry. The cold chain service providers are unable to reduce operational cost due to an increase in the cost of electricity consumed by the cold chain industries. The consumption of energy and real estate cost is the biggest challenge for the cold chain logistics service providers. The refrigerators are responsible for consuming around 53% of the total power consumed in daily operation; similar is the cases with heating, lighting, cooling etc. All these factors lead to high operational cost, which is acting as a major restraint for the market.
Opportunities: The advancement in technologies
The advancement in technologies in the cold chain logistics is providing a great opportunity for the market in the forecasting period. The new technologies like cloud-based platform, big data, transport management system and the use of RFID to track the shipment is fuelling the market and will drive the market in the forecasting period. The big data enhances the supply chain process; the transportation management services helps in finding the shortest path. The RFID used to give more transparency in the process to both the customer and the logistics company by proper tracking of the vehicle and the shipment. All these factors are helping the logistics company in delivering the product at the right time to the right customer and with the right condition of the perishable product.
Segmentation Analysis: The global cold chain logistics market has been segmented based on service, temperature, application and regions.
① The service segment is divided into storage, transportation and value-added services. The storage segment is accounted for the highest market share of 45.23% in 2020. This is due to the growing need for reducing the wastage of perishable products like foods. The surge in the sales of online grocers is also a factor contributing to the highest market share of the storage segment.
② The temperature segment includes chilled and frozen. The chilled segment accounts for 56.2% of the market share in 2020. This is because there is a great requirement of chilling the food product these days for the preservation of food and to extend their shelf life by weeks. The surge in demand for online grocery market is also contributing to having the highest market share of the chilled segment.
③ The application segment consists of dairy & frozen desserts, ‘fish, meat, and seafood products’, fruits & vegetables, bakery & confectionery products and others. The dairy and frozen desserts segment accounts for 34.89% of market share in 2020. The rapid urbanization and surge in the disposable income of the people have led to change in the lifestyle of the people, they are much more inclined to frozen desserts and dairy products.
Global market share: Europe the, Asia Pacific second
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. Europe is accounting for the highest marketing share in 2020.
Europe region is having the highest market share of 38.64% in 2020. Also, this region consists of a key cold chain service provider companies. The surge in demand for consumption of perishable food in the region is also driving the cold chain market in the region.
The Asia Pacific had the second-largest market share of 23.91 % in 2020. This is due to the increase in demand for perishable food, the expansion of the retail sector in the region and stop wasting food before consumption. These factors are driving the cold chain logistics in the region.
Competition analysis: a diversified pattern of competing for excellence has formed
The big players are now focused in the implementation of strategies like joint venture, product innovations, merger and acquisition and partnerships etc. to gain the market share and to strengthen its position in the global Cold Chain Logistics industry. Major players of the global cold chain have entered the market one after another and occupied major market shares. The market competition is diversified.
AmeriCold Logistics LLC：The largest cold chain enterprise in the world, with nearly 22% of the global cold chain logistics market share. Americold is the world's leading temperature controlled warehouse and logistics, with the most advanced refrigeration system.
Thermo King：After 76 years of innovation and development, Thermo King, the leader of global transportation temperature control solutions, has 7 world-class factories, 3 cutting-edge R & D centers and more than 865 agents around the world. Thermo King Cold Chain Logistics: the warehouse facilities of Swire refrigeration adopt the most advanced operation management, warehouse design and refrigeration engineering technology in the industry of Swire refrigeration in the United States and Australia. Domestic Thermo King Cold Chain Logistics was acquired by Vanke.
Carrier：It is the largest supply chain company in Canada, focusing on the treatment of temperature sensitive products, also a global leader in providing energy management and sustainable building services.
Versacold: Started in 1946, it is the largest supply chain company in Canada, focusing on the treatment of temperature sensitive products. Versacold owns and operates 10 refrigerated warehouse facilities and approves the export of meat and meat products to China.
C.R.England：It is the largest temperature controlled truck transportation company in the United States, established in 1920. Provide international logistics services and 5 driving training schools.
USCS: Founded in 1920 by John Swire & Sons Inc. in 1982 Acquisition USCS, it provides regional and national distribution services to 13 states. USCS has become the fourth largest cold storage in the world.
Able Freight：Founded in 1992, it is one of the most active freight forwarders in the United States. It exports 60000 tons of goods by air every year and provides import and export services to more than 100 countries. Provide temperature control to transport fresh food and medicine. The US government is also a customer of Able Freight.
Sino Trans PFS: Established in 1989, it is one of the largest public cold chain storage service providers in the United States and even the world, and the fourth largest cold storage operator in the world. The first two warehouses in Shanghai, with a cost of 500 million yuan, are by far the most advanced third-party cold storage in China.
Enterprises in China's cold chain market are also competing for the best in the world. CIMC, including Rokin Logistic. Co., Ltd., SF Express Co., Ltd., Henan Xianyi Supply Chain Co., Ltd., Shanghai ZM Logistics Co., Ltd., Shanghai Lingxian Logistics Co., Ltd., Luohe Shuanghui Logistics Investment Co., Ltd., Shanghai ExFresh Co., Ltd., Havi Logistics Co., Ltd., HNA Cold Chain Holding Co., Ltd., Jiangsu utp Supply Chain Management Co., Ltd., etc.