The cold chain market was valued at USD 182.57 billion in 2017, and is expected to reach USD 277.69 billion by 2023, recording a CAGR of 7.24%, during the forecast period of 2018-2023. The market has been segmented by type (storage and transportation), application, and region.
The increasing trade of perishable products and rising government support for the development of infrastructure for cold chain facilities are anticipated to drive marketÕs growth, over the forecast period. The cold chain service providers are also adopting cutting-edge technologies, to cater to the increasing demand for food safety, in processed foods. This is expected to offer ample opportunities, thereby boosting the proliferation of numerous multinational vendors into the market, in order to provide better cold chain solutions.
Stringent food safety regulations, such as the Food Safety Modernization Act, which requires increased attention toward construction of a cold storage warehouse, are further expected to benefit the market. However, issues related to environmental concerns regarding the emission of greenhouse gas are estimated to challenge the growth of the market studied.
Dairy and Frozen Dessert Expected to Fuel the Growth
Increasing urbanization has led to an increase in the demand for convenient food products. Moreover, the rising inclination of consumers towards ease of use and improved shelf life are leading to the adoption of healthy frozen meals, thus driving the growth of dairy and frozen desserts. According to the US Census Bureau, the value of the United StatesÕ product shipments of frozen specialty foods has increased by 16%, between 2010 and 2016. 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.
Moreover, the World Trade Organization (WTO) and bilateral free trade agreements, such as European Union Free Trade Agreement (FTA) and the North America Free Trade Agreement (NAFTA), have created opportunities for exporters in the United States and Europe, to increase trade of perishable foods that are free of import duties. This factor is expected to further drive the demand for better cold chain infrastructure facilities for dairy and frozen desserts, to provide ideal transportation and storage conditions.
Asia-Pacific Expected to Account for a Substantial Market Share
The established Asia-Pacific electronics industry and adoption of innovative technologies have provided the organizations in the region a competitive edge, in the market. Moreover, the region enjoys the presence of several major cold chain vendors, such as Swire Cold Chain Logistics (Shanghai) Co. Ltd (China) and Orient Overseas (International) Limited (Hong Kong), among others.
The rising trend of purchasing perishable food products online has evolved the need for innovative solutions to provide last-mile delivery, automated warehouses to manage inventories, and advanced temperature monitoring devices to maintain the safety of fresh food products. According to the National Statistics Bureau, in 2015, online purchases accounted for about 10.8% of China's retail sales. In online sales, vegetables and fruits accounted for a share of 55.2%, followed by meat and egg (at 17.4%). This growth has also encouraged around 4,000 companies to build their applications on smartphones, which specialization of fresh food sales, in 2016. Emerging economies (such as China, India, and Thailand) are investing in warehouse automation technologies (i.e., cloud technology, robots, conveyor belts, truck loading automation, etc.,) to maintain the quality of temperature-sensitive products. According to the Global Cold Chain Alliance (GCAA), China has recorded a 41% growth in its refrigerated warehouse capacity, between 2014 and 2016, to reach about 107 million m3.
In addition, the governments across the region are working with industry associations, to introduce a series of policies and standards, to regulate and promote the development of cold chain facilities. In 2016, the Chinese government emphasized the development of cross-region cold chain logistics industry, through pilot projects. Major companies, such as ITC Ltd, are also pursuing long-term strategies, to build cost-effective cold chains that contribute to the reduction of wastage in the food industry, further reinforcing the demand for cold chain facilities, in Asia-Pacific.
Key Developments in the Market
¥ Jun 2018: Lineage Logistics acquired Service Cold Storage (SCS), a Wisconsin-based cold storage provider. SCS holds a portfolio of four leased cold storage warehouses in strategic markets, across the Southeast. The acquisition of SCS establishes a flagship operation in Wisconsin for lineage and adds to the organizationÕs robust facility network in the Midwest.
¥ Dec 2017: Americold inaugurated the new addition of its Clearfield plant, by adding more than 9.5 million ft3 of temperature-controlled warehouse space, thus bringing the total capacity of the campus to nearly 21 million ft3. The Clearfield campus is AmericoldÕs gateway for distribution to the US West Coast, providing an advantage to national and multinational food and beverage industries and startups.
Major Players: CWT PTE LIMITED, AMERICOLD LOGISTICS LLC, NICHIREI CORPORATION, LINEAGE LOGISTICS HOLDINGS LLC, ORIENT OVERSEAS (INTERNATIONAL) LIMITED, VERSACOLD INTERNATIONAL CORPORATION, AGRO MERCHANTS GROUP LLC, BURRIS LOGISTICS INC., JWD GROUP INC., SWIRE COLD CHAIN LOGISTICS (SHANGHAI) CO. LTD, and XPO LOGISTICS INC., among others.
Reasons to Purchase this Report
¥ Understanding the impact of increasing demand for cold chain storage, on the market studied
¥ An analysis of various perspectives of the market studied, with the help of PorterÕs five forces analysis
¥ The segments that are expected to dominate the market studied
¥ Regional analysis of the market studied, during the forecast period
¥ The latest developments, market shares, and strategies employed by the major market players and key innovators
¥ 3 months analyst support along with the Market Estimate sheet (in Excel)
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1.1 Key Deliverables of the Cold Chain Market Study
1.2 Cold Chain Market Study Assumptions
1.3 Cold Chain Market Definition
1.4 Key Findings of the Cold Chain Market Study
2. Research Approach and Methodology
3. Executive Summary
4. Cold Chain Market Dynamics
4.1 Cold Chain Market Overview
4.2 Industry Value Chain
4.3 Factors Driving the Cold Chain Market
4.3.1 Technological Advancements in Cold Storage Facilities
4.3.2 Increasing Consumer Demand for Perishable Food
4.3.3 Rising Government Support for Infrastructural Development of the Cold Chain Industry
4.4 Factors Restraining the Cold Chain Market
4.4.1 Environmental Concerns Regarding Emission of Greenhouse Gases
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products and Services
4.5.5 Competitive Rivalry among Existing Players
5. Global Cold Chain Market Segmentation
5.1 By Type
5.2 By Technology
5.2.1 Blast Freezing
5.2.2 Vapor Compression
5.2.3 Programmable Logic Controller (PLC)
5.2.4 Evaporating Cooling
5.2.5 Cryogenic System
5.2.6 Other Technologies
5.3 By Application
5.3.1 Fruit and Vegetable
5.3.2 Dairy and Frozen Dessert
5.3.3 Fish, Meat, and Seafood
5.3.5 Biological Sample and Diagnostic Tool
5.3.6 Other Applications
5.4 By Geography
5.4.1 North America Cold Chain Market Report (2018-2023)
5.4.2 Europe Cold Chain Market Report (2018-2023)
5.4.3 Asia-Pacific Cold Chain Market Report (2018-2023)
5.4.4 Latin America Cold Chain Market Report (2018-2023)
5.4.5 Middle East & Africa Cold Chain Market Report (2018-2023)
6. Competitive Intelligence - Company Profiles of the Cold Chain Market
6.1 CWT Pte Limited
6.2 Americold Logistics LLC
6.3 Nichirei Corporation
6.4 Lineage Logistics Holdings LLC
6.5 Orient Overseas (International) Limited
6.6 VersaCold International Corporation
6.7 AGRO Merchants Group LLC
6.8 Burris Logistics Inc.
6.9 JWD Group Inc.
6.10 Swire Cold Chain Logistics (Shanghai) Co. Ltd
6.11 XPO Logistics Inc.
6.12 Swift Corporation Company
6.13 DHL International GmbH
*List Not Exhaustive
7. Investment Analysis of the Cold Chain Market
8. Opportunities in the Global Cold Chain Market
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.