Logistik

Cold Chain Logistics Market – Global Growth, Share, Trends, Demand and Analysis Report Forecast 2021 to 2025

Effective supply chain management is often the USP of an organisation’s operations, minimizing waste and reducing damage caused to goods. Logistics management is the planning, implementation, and control of goods from the production site to the final consumer. Cold chain logistics has grown by leaps and bounds in export-driven economies such as Japan, Germany, China, and Korea. Cold chain logistics comprises insulated vehicles and temperature controlled warehouses for proper storage and distribution.

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Countries Unveiling Action Plans to Eliminate Wastage and Optimize Cold Chain Logistics

A major challenge causing food security concerns in emerging economies is the lack of cold chain logistics facilities. Cold chains play a critical role in the food & beverage, pharmaceuticals, and chemicals industries as they increase product shelf-life. Temperature control and food hygiene can be easily managed through cold chain logistics. According to Food and Agriculture Organization data, billions of tonnes of food fit for human consumption are wasted annually. This loss can be debilitating to developing economies. For e.g. – in India, almost half the food is wasted because of a lack of cold chain logistics. There is an urgent need to prevent this from snowballing into a larger crisis and countries are swinging into action. In 2019, the India Cooling Action Plan was launched to double farmer income through superior cold chain logistics infrastructure and minimal wastage.

Demand for Vaccines Makes Pharmaceutical Industry Lead Cold Chain Logistics Market

The pharmaceutical sector is anticipated to be the driver of the cold chain logistics market for the forecast period assessed. COVID-19 has given the market a literal shot in the arm as the requirement for vaccines and lifesaving drugs has skyrocketed. Several RNA vaccines such as those by Pfizer-BioNTech and Moderna necessitate ultra-cold chain logistics infrastructure to safely transport. Cold chain logistics companies must ensure that their products reach the countries battling successive waves of this highly infectious disease.

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APAC Consumers Prefer Frozen Food Resulting in Boom in Online Delivery Platforms

The APAC region is widely expected to lead the cold chain logistics market for the foreseeable future. APAC is undergoing an economic transformation with China and India witnessing unprecedented growth in consumer goods and pharmaceuticals respectively. COVID-19 has accelerated the shift towards online food delivery platforms and several supermarket chains have stepped in to cater to the booming demand. Countries in APAC have demonstrated a noted preference for ready-to-eat, frozen foods to keep pace with their on-the-go lifestyles. All this should benefit the APAC cold chain logistics market.

Barriers to Entry Make it Difficult for Smaller Companies in Cold Chain Logistics Market

The cold chain logistics market is intensely capital intensive with significant barriers to entry. Incumbents are investing heavily to keep apace with the demand for cold chain logistics. In 2020, Americold Logistics acquired Nova Cold Logistics to expand into the Canadian market. Other companies actively involved in the cold chain logistics market are United States Cold Storage, Henningsen Cold Storage Co., Trenton Cold Storage, Conestoga Cold Storage, Nichirei Logistics Group Inc., Lineage Logistics Holdings, LLC, and Tippmann Group.

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Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.

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