Cold Chain Market is Projected to Grow at a CAGR of 7.6% From 2018, to Reach a Value Of USD 293 Billion By 2023

(I-BusinessNews.Com, November 08, 2019 ) The Cold Chain Market is estimated to account for a value of USD 203 billion in 2018 and is projected to grow at a CAGR of 7.6% from 2018, to reach a value of USD 293 billion by 2023, as per a report by MarketsandMarkets.

Why increasing FDI in emerging markets present an opportunity?

The cold chain market in emerging economies is growing faster than the global market. In the Asia Pacific, China and India are projected to be the fastest-growing emerging markets, propelled by the need to reduce food losses at each stage of the chain (from harvest to the retail market). Due to the lack of access to adequate refrigeration systems and refrigerated transport, a huge quantity of perishable food is wasted even as demand for chilled and frozen foods is increasing, and they are becoming popular among the younger generation in emerging economies.

Rapid urbanization, greater spending power, and a higher number of dual income households have spurred demand for chilled and frozen foods. Along with the emergence of an organized retail food sector, changes in foreign direct investment (FDI) laws are creating opportunities in the domestic food industry, including the cold chain sector. New legislations in retail that give foreign investors and multinational retail chains access to these markets also fuel growth. These retail chains have organized distribution channels in these markets, which lead to opportunities for setting up cold chains. For instance, the Indian government is supporting the cold chain sector through both monetary and budgetary measures. A large portion of the capital goods required for setting up these facilities can be produced in India, which is expected to support further improvement programs. Hence, international organizations that want to set up assembling units in India can take advantage of shorter lead-time, and reduced cargo and assembling costs.

Request for Customization:

The refrigerated storage segment is projected to be the fastest-growing segment in the global market during the forecast period.

The cold chain market has been segmented, by type, into refrigerated storage and refrigerated transport. Refrigerated storage capacities are growing in Asia Pacific countries due to the increased need to reduce wastage of perishable foods. In the last few years, the market for refrigerated storage has drastically grown, with a shift from food products stored in cold storage warehouses to the provision of value-added services to customers.

By temperature type, the frozen segment is projected to dominate the market during the forecast period.

A cold chain for chilled and frozen foods provides uninterrupted handling of the products within a low-temperature environment during each stage of the value chain—including harvest, collection, packing, processing, storage, transport, and marketing—until it reaches the final consumer. By temperature type, the frozen segment is estimated to have a comparatively larger market share in 2018. The chilled segment is expected to grow due to a large-scale chilling of food products for their preservation and to extend their shelf lives from few days to few weeks.

Why lack of infrastructural support in emerging markets remain a challenge?

The cold chain industry is fragmented in emerging markets such as India, China, and in Latin American countries. Cold chain service providers do not have the technology required to build high-quality cold chain infrastructure. They are unable to cover the entire value chain, from procurement in rural areas, through to transportation in reefer trucks, and delivery at retail centers in urban areas. For instance, fruits & vegetables are often left near the fields until a truckload is accumulated. Pre-cooling facilities are not available, sanitation is poor, or there is overloading of refrigerated storages and transport. The cold chain systems in these markets are not compatible for use for multiple perishable commodities.

Speak to Analyst:

Key Market Players

The leading players that dominated the cold chain market include Americold Logistics (US), Preferred Freezer Services (US), Burris Logistics (US), Lineage Logistics (US), and Nichirei Logistics (Japan).

The key players have been exploring the market in new regions by adopting mergers & acquisitions, expansions, investments, new service launches, agreements, collaborations, and joint ventures as their preferred strategies. These players have been exploring new geographies through expansions and acquisitions across the globe to avail a competitive advantage through combined synergies.

About MarketsandMarkets™

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.

Mr. Shelly Singh

Source: EmailWire.Com