According to MarketsandMarkets™, the “Cold Chain Market by Application (Fruits & Vegetables, Dairy & Frozen Desserts, Fish, Meat & Seafood, Bakery & Confectionery), Temperature Type (Frozen, Chilled), Type (Refrigerated Transport, Refrigerated Warehousing), Region – Global Forecast to 2025″, published by MarketsandMarkets™, the Cold Chain Market size is estimated to be valued at USD 233.8 billion in 2020 and projected to reach USD 340.3 billion by 2025, recording a CAGR of 7.8%, in terms of value. The rise in consumer awareness to mitigate food wastage and the increasing consumer demand for convenience food & beverages with increased shelf-life has been boosting the cold chain market, globally. Governments of numerous countries have been bolstering the infrastructure investment of the cold chain, which has been augmenting the cold chain market growth.
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The bakery & confectionery application segment is projected to witness significant growth during the forecast period.
Based on the application, the cold chain market is dominated by dairy & frozen desserts. However, the bakery & confectionery segment is among the fastest-growing segment during the forecast period. Temperature monitoring is a key aspect of quality control and food safety for various bakery and confectionery products. Refrigerated warehousing is used for bakery & confectionery products, which include bread, cakes & pastries, pizza crusts, waffles, biscuits, cookies, pastry shells, bagels, pretzels, and donuts.
The increasing demand for convenience foods has led to a growing demand for frozen bakery & confectionery products. The temperature range of frozen bakery & confectionery products plays an important role in maintaining product quality. Asia Pacific and North America are the two regions expected to drive the market for bakery & confectionery products.
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117 – Tables
40 – Figures
185 – Pages
Driver: Rising Consumer Demand for Perishable Goods
Consumers are now more aware of health and wellness, as well as the effect that food nutrients, especially protein, have on overall physical and mental growth and development. This has resulted in a change in the consumption pattern of perishable foods, such as dairy products, fruits and vegetables, and high-protein animal-based products (such as meat, eggs, and fish and seafood).
Emerging economies in the Asia Pacific and Latin America are witnessing a high demand for perishable food products. This can be attributed to the rapid urbanization, changing tastes and preferences, and the rising disposable income of consumers in these countries. The market potential for processed and frozen food products is also high in these countries due to their lower adoption rates. The consumption of ready-to-eat meals, such as frozen pizzas, desserts, and snacks, is rising steadily in these countries.
Restraint: Environmental constraints regarding greenhouse gas emissions
Cold chain development places a significant burden on the environment since refrigeration is energy-intensive and is a source of greenhouse gases. Keeping products cold throughout the transportation phase of the cold chain (such as trucks, ships, and trains) accounts for around 7% of the global consumption of hydrofluorocarbons (HFCs). Also, diesel-powered transportation refrigeration units consume up to 21% more power than non-refrigerated diesel-powered trucks. This has significant implications on climate change, as the development of cold chains becomes more ubiquitous in developing countries.
Opportunity: Growth in the Organized Retail Sector
The development of retail channels and chains in the form of supermarkets, hypermarkets, and convenience stores is a major factor driving the growth of the cold chain market. Also, retail chains have developed to an extent where some of the producers have their own in-house refrigerated warehousing facilities. Large food retail chains such as Walmart, Tesco, Spar, and 7-Eleven are expanding their outlets in developed countries such as the UK, Germany, and the US, and in emerging markets such as China, Brazil, and Argentina. For instance, Walmart is the largest American multinational retail corporation with over 11,000 stores across 27 countries. It has a large fleet for the transportation of perishable goods and an effective distribution network. It also hires 3PL refrigerated warehousing service providers to efficiently transport perishable foods to its retail outlets. The emergence of such large retailers and their expanding operations in international trade are creating growth opportunities for the refrigerated warehousing and refrigerated transportation market. The figure below figure represents the high penetration of retail food sales in the high potential GCC market. Although the organized retail market is currently fragmented in this region, significant investment and entry of global retail chains in these countries are expected to boost market consolidation and simultaneously the retail sales penetration for food products.
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The Asia Pacific region is the largest in the cold chain market during the forecast period.
The growth of the cold chain market is attributed to the rise in international trade of perishable products. Several countries are becoming the key importers and exporters of perishable food products. In emerging economies, such as China and India, governments are also extending support for infrastructure development in the cold chain industry. For instance, in 2010, the Chinese National Development and Reform Commission (NDRC) prepared a development plan for Cold Chain Logistics for Agricultural Products. It identifies key projects and will provide lucrative growth opportunities for manufacturers in the cold chain market.
The major challenge faced by the Asia Pacific region is the lack of an integrated supply chain from farm to fork. Governments in the region have been initiating the required steps to improve the cold chain industry. They have imposed favorable regulations and offering subsidies. For instance, the Indian government has introduced various schemes to support the cold chain industry. The Ministry of Food has been aiding the development of cold chain infrastructure. This is being done under the scheme for Cold Chain, Value Addition, and Preservation Infrastructure. The governments in various Asian countries have also been bolstering the cold chain regulatory bodies for strategic collaboration with major food & beverage manufacturers and retail chains to fuel the market for cold chain.
This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Americold Logistics (US), Lineage Logistics Holdings (US), Nichirei Corporation (Japan), Burris Logistics (US), Agro Merchants Group (US), Kloosterboer (Netherlands), United States Cold Storage (US), Tippmann Group (US), VersaCold Logistics Services (Canada), Henningsen Cold Storage Co. (US), Coldman (India), Congebec Inc. (Canada), Conestoga Cold Storage (Canada), NewCold (Netherlands), Hanson Logistics (US), Confederation Freezers (Canada), Seafrigo (France), Trenton Cold Storage (Canada), Merchants Terminal Corporation (US), and Stockhabo (Belgium).