by The global cold chain market is estimated to be valued at US$ 270.8 million in 2023 and is expected to exhibit a CAGR of 15.3% over the forecast period 2022-2030, according to Coherent Market Insights.
Market Overview: The cold chain market refers to a system of transporting and storing products at a controlled temperature to maintain their quality and freshness. This market offers various advantages, such as preserving the nutritional value of perishable goods, reducing food waste, and ensuring safe transportation of pharmaceuticals and vaccines. The need for temperature-controlled logistics has become crucial due to the increasing demand for perishable foods and the growth of the pharmaceutical industry.
Market Key Trends:
One key trend driving the cold chain market is the increasing demand for fresh and frozen food products. With the growing population and changing consumer preferences towards healthy and convenient food options, the demand for perishable goods, such as fruits, vegetables, meat, and seafood, is on the rise. To meet this demand, manufacturers and retailers are investing in cold chain infrastructure and transportation services to maintain the quality and safety of these products. Furthermore, stringent regulations regarding food safety and quality standards are also driving the adoption of cold chain solutions in the food industry.
Overall, the cold chain market is witnessing significant growth due to the increasing need for temperature-controlled logistics in various industries. The demand for perishable goods and the need to ensure their safety and quality throughout the supply chain are the key drivers of this market.
Porter’s Analysis
Threat of New Entrants: The cold chain market is characterized by high entry barriers due to the high capital investment required for establishing temperature-controlled storage facilities and transportation systems. Moreover, the market is already dominated by a few major players who possess extensive operational networks and customer relationships, making it difficult for new entrants to compete effectively.
Bargaining Power of Buyers: Buyers in the cold chain market, such as food manufacturers and pharmaceutical companies, have a moderate bargaining power. While they can exert some influence on pricing and service quality, their options are limited due to the specialized nature of cold chain logistics. Additionally, the high switching costs associated with changing cold chain service providers further reduces their bargaining power.
Bargaining Power of Suppliers: Suppliers in the cold chain market, such as refrigeration equipment manufacturers and transportation service providers, have a moderate to high bargaining power. They can dictate the prices and terms of their products and services due to the specialized nature of cold chain logistics. However, the market is highly competitive, and buyers have the option to switch suppliers if they find better deals elsewhere, thereby decreasing suppliers’ bargaining power.
Threat of New Substitutes: The threat of substitutes in the cold chain market is relatively low. The specialized nature of temperature-controlled storage and transportation services makes it difficult for alternative solutions to replicate the level of reliability and efficiency provided by cold chain logistics. Moreover, stringent regulatory requirements in industries such as food and pharmaceuticals further limit the possibility of substitutes.
Competitive Rivalry: The cold chain market is highly competitive, with several key players vying for market share. The major players in the market, such as Americold Logistics, Lineage Logistics, and Nichirei Corporation, have established extensive operational networks and strong customer relationships. This intensifies the competitive rivalry within the market as companies strive to differentiate themselves through service quality, technological advancements, and geographic reach.
Key Takeaways
The global Cold Chain Market Share is expected to witness high growth, exhibiting a CAGR of 15.3% over the forecast period of 2022-2030. This growth can be attributed to increasing demand for temperature-controlled storage and transportation services in various industries, including food and beverages, pharmaceuticals, and chemicals. The growing need to reduce spoilage, maintain product integrity, and comply with stringent regulations is driving the adoption of cold chain logistics.
In terms of regional analysis, Asia Pacific is projected to be the fastest-growing and dominating region in the cold chain market. This can be attributed to the rapid economic growth, expanding retail sector, and increasing consumer demand for perishable products in countries such as China and India. The region is witnessing significant investments in cold chain infrastructure development, technological advancements, and government initiatives to improve food safety and quality.
Key players operating in the cold chain market include Americold Logistics, Lineage Logistics, AGRO Merchants Group, Nichirei Corporation, Preferred Freezer Services, Swire Cold Storage, Kloosterboer, DHL Global Forwarding, UPS Cold Chain Solutions, FedEx Custom Critical, Burris Logistics, and Maersk Line. These companies are actively involved in strategies such as mergers and acquisitions, collaborations, and capacity expansions to enhance their market presence and gain a competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
