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Sep 27, 2019 9:00 AM ET

Cold Chain Market 2019-2025, accelerating at a High CAGR of nearly 15.11% during the forecast | OGAnalysis

iCrowd Newswire - Sep 27, 2019

Cold Chain Market growth rate through 2025

Cold Chain Market growth is an emerging market with strong compound annual growth rate of 15.11% between 2019 and 2025. Rise in consumer demand for perishable food items, global trade liberalization, and expansion of the organized food retail industry are identified as factors positively impacting the market growth.

In addition, increased need to reduce food wastage and growing penetration of connected devices and automation of refrigerated warehouses across the globe is boosting the market growth.

Food cold chain market growth is also driven by growing demand for perishable food logistics with the task of cold transport and storage approaches during food shipping.

Further, the rising awareness has stimulated demand for fresh foods not just by consumers but across food transportation and storage industry and grocery stores which shapes the market opportunities in the long term.

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However, cold chain vendors mandated to comply with stringent environment regulations and greenhouse gas emission causes market hindrance. Lack of efficient logistic support and high energy consumption by cold storage facilities remain negative factors impacting growth.

Strong demand for storage solution drives the cold chain market growth

Increasing preference for packaged food across the globe, changing dietary patterns and lifestyles of consumers largely drives cold chain storage market segment. In addition, rising trend of purchasing perishable food products online has evolved the need for innovative solutions storage to provide last-mile delivery, automated warehouses to manage inventories, and advanced temperature-controlled facilities including refrigerated trucks, trailers, containers, and others.

The chilled and frozen food consumers with increased emphasis on cold chain logistics and management add value to the cold chain market value.

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Offering of end-to-end integrated service solutions is among the major market trend

End-users in the cold chain market are not only offering end-to-end integrated services for cold chain management to customers but are even participating in decision-making processes.

Apart from wide range of chain management solutions including inventory management, key vendors are offering disaster recovery services that enable customers to track consignments and communicate with the entire supply chain.

In addition, vendors provide training sessions for all the personnel involved in the cold chain logistics.

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Large consumption of dairy and frozen food drives the market growth

The rising inclination of consumers towards ease of use and improved shelf life are leading to the adoption of frozen meals such as dairy and frozen desserts. As food quality is of paramount importance, the dairy and frozen dessert industry is investing heavily in technologies that can support and create product differentiation.

Further, the increase in the launch of many varieties of bakery products with good packaging and single serving capabilities is also contributing to cold chain market growth. In addition, consumption of frozen fruits & vegetables available in easy-to-open re-sealable packaging which allows longer storage and portion control without wastage drives the market.

Emergence of organized retail store marks positive market growth across regions

Growth of organized retail sector and the increasing demand for frozen and chilled foods showcases positive impact on the cold chain market across Americas and Europe.

North America holds the highest market share over the forecast period and offers growth opportunities for the companies planning to invest for long haul across cold chain market. In addition, increasing penetration of connected devices and a large consumer base are expected to further fuel the regional demand.

Further, the cold chain market across Asia Pacific is set to growth over the estimated period driven by increasing number of consumers purchasing groceries including frozen and chilled foods.

Emerging markets such as India and China are witnessing a steady increase in the number of various organized retail formats include supermarkets, hypermarkets, food court retailers, and convenience stores.

Key players are focusing on innovation and value addition across the cold chain market

Cold chain service providers are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety.

Some of the key market participants areAmericold Logistics, Preferred Freezer Services, Burris Logistics, Lineage Logistics, NichireiLogistics, Orient Overseas (International) Limited, VersaCold International Corporation, AgroMerchants Group LLC, Swire Cold Chain Logistics

Major players are innovating cold facility network by pipelining acquisition and launching distribution centres. For example in June 2018, Lineage Logistics, LLC acquired Wisconsin-based cold storage provider, Service Cold Storage, and Yearsley Group Limited as well as a portfolio of four leased cold storage warehouses in strategic markets.

Further, in 2018, opening of new distribution center by VersaCold and inauguration of new addition to its clearfield plant by Americold are providing advantage to national and multinational food and beverage industries and startups.

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Email: [email protected]

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