Global Cold Chain Logistics Market Size Likely to Surpass at a CAGR of 14.5% By 2033

As per the current market research conducted by the CMI Team, the global Cold Chain Logistics Market size is expected to record a CAGR of 14.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 368.1 Billion. By 2033, the valuation is anticipated to reach USD 1,245.2 Billion.

Cold Chain Logistics Market: Growth Factors and Dynamics

• Expanding Global Food Trade: The increasing demand for perishable food products, coupled with globalization and changing consumer preferences, is driving the growth of the cold chain logistics market. Growing international trade in fresh produce and seafood necessitates efficient cold chain infrastructure to maintain product quality and safety during transportation.

• Rising Demand for Pharmaceuticals: The pharmaceutical industry’s growing emphasis on temperature-sensitive products, such as vaccines, biologics, and specialty drugs, is fueling the demand for cold chain logistics services. Strict regulatory requirements and the need to maintain product efficacy and safety during storage and distribution are driving pharmaceutical companies to invest in robust cold chain infrastructure.

• E-commerce and Online Grocery Retailing: The proliferation of e-commerce platforms and online grocery retailing is driving the demand for cold chain logistics services. Consumers increasingly prefer to purchase fresh and frozen food items online, requiring reliable temperature-controlled transportation and storage solutions to ensure product quality and freshness upon delivery.

• Technological Advancements: Technological innovations, such as IoT-enabled temperature monitoring devices, blockchain-based traceability solutions, and advanced refrigeration systems, are transforming the cold chain logistics industry. These technologies enhance visibility, transparency, and real-time tracking capabilities, enabling more efficient cold chain management and reducing the risk of product spoilage or loss.

• Stringent Regulatory Requirements: Stringent regulations and quality standards imposed by regulatory authorities, particularly in the food and pharmaceutical sectors, are driving the adoption of cold chain logistics services. Compliance with regulations such as the Food Safety Modernization Act (FSMA) in the United States and Good Distribution Practice (GDP) guidelines in the pharmaceutical industry is essential for market participants to ensure product integrity and regulatory compliance.

• Emerging Markets and Urbanization: Rapid urbanization and changing dietary preferences in emerging markets are creating significant opportunities for the cold chain logistics market. Rising disposable incomes, urbanization trends, and an increasing preference for convenience foods drive the demand for cold chain services to transport perishable goods from production hubs to urban centers efficiently.

Cold Chain Logistics Market: Partnership and Acquisitions

• In 2023, Americold Logistics, the largest publicly traded REIT specializing in temperature-controlled warehouses, made a strategic investment of $3.9 million for a 49% stake in RSA Cold Chain in Dubai. This investment strengthens Americold’s presence and capabilities in the Middle East cold chain market.

• In 2022, UPS acquired a majority stake in Inovatec, a cold chain logistics company, expanding its reach with access to Inovatec’s network of refrigerated warehouses across Europe and Asia. This strategic move strengthens UPS’s capabilities in providing specialized cold chain solutions globally.

Report Scope

Cold Chain Logistics Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Cold Chain Logistics Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disruption in Supply Chains: The COVID-19 pandemic led to disruptions in global supply chains, affecting the transportation and distribution of temperature-sensitive goods. Lockdown measures, border restrictions, and workforce shortages hindered the movement of essential products, including food, pharmaceuticals, and medical supplies, through cold chain logistics networks.

• Shift in Consumer Behavior: The pandemic-induced lockdowns and social distancing measures prompted a shift in consumer behavior towards online shopping and home delivery of groceries and pharmaceuticals. This surge in e-commerce demand for perishable goods necessitated adjustments in cold chain logistics operations to meet the increased volume and ensure product safety and quality during transportation and last-mile delivery.

• Resilience Planning and Redundancy: Cold chain logistics providers are investing in resilience planning and redundancy measures to mitigate future disruptions. This includes diversifying supply chains, securing multiple transportation routes, and maintaining strategic stockpiles of critical supplies to ensure continuity of operations during emergencies.

• Adoption of Digital Technologies: The accelerated adoption of digital technologies, such as IoT-enabled temperature monitoring devices, blockchain-based traceability solutions, and data analytics platforms, enhances visibility, transparency, and efficiency in cold chain logistics operations. By leveraging real-time data and analytics, companies can optimize routes, minimize wastage, and improve decision-making processes.

• Strengthening Cold Chain Infrastructure: Investments in upgrading and expanding cold chain infrastructure, including refrigerated storage facilities, temperature-controlled vehicles, and cold chain packaging solutions, are essential for meeting the growing demand for cold chain logistics services. Enhanced infrastructure ensures the integrity and safety of temperature-sensitive products throughout the supply chain.

• Collaboration and Partnerships: Collaboration among stakeholders in the cold chain logistics ecosystem, including logistics providers, food producers, pharmaceutical companies, and regulatory agencies, is crucial for building resilient and agile supply chains. Strategic partnerships enable knowledge sharing, resource pooling, and collective efforts to address common challenges and enhance industry standards.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Cold Chain Logistics Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Cold Chain Logistics Market:

• Americold Logistics LLC
• Lineage Logistics Holdings LLC
• Swire Cold Storage Ltd.
• Nichirei Corporation
• Preferred Freezer Services LLC
• Burris Logistics
• AGRO Merchants Group
• Kloosterboer Group B.V.
• VersaCold Logistics Services
• Interstate Cold Storage Inc.
• Cloverleaf Cold Storage Co.
• Henningsen Cold Storage Co.
• United States Cold Storage Inc.
• NewCold Advanced Cold Logistics
• Trenton Cold Storage Inc.
• Others

The Cold Chain Logistics Market is segmented as follows:

By Temperature Type

• Chilled
  • Fruits & Vegetables
  • Dairy Products
  • Bakery & Confectionery
  • Processed Foods
• Frozen
  • Seafood
  • Meat & Poultry
  • Ice Cream & Frozen Desserts
  • Pharmaceuticals

By Technology

• Refrigerated Storage
• Refrigerated Transport

By Application

• Food & Beverages
• Pharmaceuticals & Healthcare
• Chemicals & Materials
• Others

By Service

• Storage
• Transportation
• Value-Added Services
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America