Global Cold Chain Logistics Market Set to Boost Food Sector
The global cold chain logistics market is rapidly expanding due to increasing consumer demand and technological advancements, a new report says.
According to Maximize Market Research, the global, cold chain logistics market is expected to reach US$500bn by 2030, up from US$293bn in 2023
The report says over 70% of this expected growth is due to the increase of e-commerce, growing demand for fresh food and awareness of food safety and improvements in refrigeration technology.
Global drivers of cold chain logistics market expansion
The global cold chain logistics market is segmented by product, application and temperature with applications including dairy, frozen foods, meat, seafood, baked goods, produce and other perishables.
The market is expanding across regions such as Asia-Pacific, North America and Europe.
Asia Pacific
The report shows Asia Pacific dominated the cold chain logistics market in 2023 with over 45% of market share, and that this is expected to reach US$603bn by 2033.
It also showed investment in cold chain infrastructure is rising, driven by demand for processed foods and pharmaceuticals in countries such as China, India and Japan.
North America
North America is holding much of the market share as it benefits from a large consumer base and widespread adoption of connected devices, the report shows, with demand for fresh and frozen foods, coupled with advancements in technology, driving growth.
Europe
Due to Europe’s robust infrastructure, stringent regulatory environment and focus on sustainability, the region is driving innovation in temperature-controlled solutions.
European companies are investing in advanced technologies like IoT and AI to optimise supply chains, enhancing efficiency and reliability in the transportation of perishable goods.
Meanwhile, countries including the US, China, India and Germany are advancing cold chain logistics infrastructure.
For instance, China plans to establish a nationwide cold chain network by 2025, aiming for energy efficiency to meet carbon reduction goals by 2030.
The plan also includes building 100 national cold chain depots in key areas.
Trends expanding the global cold chain logistics market
In terms of advanced technology, Maximize says this is necessary for cold chain logistics, as it involves the transportation and storage of temperature-sensitive products under controlled conditions to maintain their quality and integrity.
Technology
The paper outlines a number of key technologies:
- Refrigerated warehouses and vehicles
- Temperature monitoring and control systems
- IoT sensors for real-time tracking
- Blockchain for enhanced traceability
- AI for route optimisation and demand forecasting
Emerging technologies like IoT and automated systems are improving operational efficiency and reducing waste, it explains.
Meanwhile, automated warehouses, as well as robotic support for handling and packaging, have not only improved efficiency but have also reduced labour costs.
Perishables and pharmaceuticals
The rising demand for perishables and pharmaceuticals is a major driver of growth in temperature-controlled logistics, says Maximise, with demand fuelled by increasing global trade in perishable goods, advancements in refrigeration technology and the expansion of the pharmaceutical sector.
The report concludes that these developments are “reshaping supply chains, enhancing the efficiency and safety of transporting temperature-sensitive products”.
Sustainability
On sustainability, the report reveals how companies in the cold chain logistics market are adopting eco-friendly practices, such as energy-efficient refrigeration and sustainable packaging, to reduce environmental impact. The growing trend of online grocery shopping also increases demand for effective cold chain systems to deliver fresh produce directly to consumers.
It says sustainability efforts are “gaining momentum”, with companies focusing on reducing their carbon footprint.
This, it says, calls for “effective cold chain systems, in order to deliver fresh produce directly to the consumers”.
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