US Cold Chain Logistics Market Size Likely to Surpass at a CAGR of 6.23% By 2033

As per the current market research conducted by the CMI Team, the US Cold Chain Logistics Market size is expected to record a CAGR of 6.23% from 2024 to 2033. In 2023, the market size is projected to reach a valuation of USD 76.45 Billion. By 2033, the valuation is anticipated to reach USD 131.70 Billion.

US Cold Chain Logistics Market: Growth Factors and Dynamics

• Economic Growth and Urbanization: The US Cold Chain Logistics Market has been fueled by the growth of mega urbanization and the need for fresh and highly perishable commodities more so in the cities. There is a constant increase in the number of urban areas which need effective temperature-controlled logistics solutions for serving megacities because temperature sensitive goods such as perishable foods and pharmaceuticals must be distributed in proper condition in these large areas.

• Sustainability Initiatives: As the knowledge of environmental responsibility increases and regulation becomes stringent there is a push toward environmentally-friendly cold chain logistics. Today it is possible to see how companies are purchasing energy-efficient refrigeration equipment, using environmentally friendly materials for packaging, and developing better delivery routes with less impact on the environment as regulators and customers require it.

• Rising Demand for Fresh and Frozen Foods: These have fueled the need for efficient cold chain logistics since most consumers, especially in developed countries, shop more fresh and frozen foods. The increasing availability of fresh and frozen food for sale through grocery outlets and online supermarkets is therefore expected to drive market growth due to increasing demand for cold storage and transportation services.
• Healthcare and Pharmaceutical Sector Growth: Growing investment in both healthcare and pharmaceutical industries especially in the distribution of temperature sensitive products such as vaccines, and drugs is driving the demand for cold chain logistics. The constant requirement for the preservation of these essential goods and their transportation especially in the backdrop of the COVID-19 pandemic has led to the development of sophisticated structures in the cold chain.

• E-commerce Expansion: Businesses such as grocery and pharmaceuticals which are going online for orders and delivery services are also going to see a rise in the last mile cold chain logistics requirements. Consumers want fresh and speedy deliveries of perishable goods thus exerting pressure on logistics service providers to strengthen their cold chain to accommodate the increasing market demand for temperature sensitive same day home deliveries.

• Investment in Cold Storage Facilities: The upsurge in investments in cold storage facilities within the United States is boosting the development of the cold chain logistics market. Such investments are made to enhance its existing capacities and incorporate energy-efficient technologies in existing / new facilities and expand its geographical network to address new perishable goods demand.

• Enhanced Data Analytics and AI: Cold chain logistics is already being enhanced by data analytics and AI in planning of operations and the real-time monitoring of temperatures within the supply chain. These technologies enable accurate forecasts on when to conduct maintenance, efficient stock management and superior decision making thereby cutting some costs and attaining higher service delivery.

• Focus on Reducing Food Waste: With increased concern for food wastage, there is more emphasis on the efficiency of refrigeration technology in transporting and storing foods. Better tracking compliance means that food is no longer exposed to a wrong temperature regime because’improved record keeping systems are way assisting the corporations in the elimination of wastage as the food products globally are preserved under the right temperature regimes at every stage of the supply chain.

• Improved Regulatory Compliance: Thus, the US Cold Chain Logistics Market is experiencing increased emphasis on adherence to particular food safety and pharmaceutical regulations. Businesses are investing in smart technologies and using complex procedures to satisfy guidelines from the FDA and similar organizations, to transport perishable goods safely and legally.

• Development of Sustainable Packaging Solutions: It has been seen that there is an emerging need to use packaging elements that are environmentally friendly as well as recyclable in cold chain logistics. Businesses are looking for ways that will enable them to offer the appropriate levels of insulation and protection of perishable goods without adversely affecting the environment, meeting the customers under pressure for environmentally sustainable operations.

US Cold Chain Logistics Market: New Acquisitions and Mergers

• In July 2024, OIA Global broadened its footprint in Europe with the acquisition of Sandford Freight, a major logistics supplier located in Ireland. This acquisition fortifies the service offerings of OIA in APAC, making it more competitive within the $60B annual global logistics and supply chain management industry. It provides a major positive for OIA’s expansion strategy, with an increased operational presence in Ireland to be able to support its customers better.

• In July 2024, Barcoding Inc. and DecisionPoint Systems merged to create a larger, scale-based supply chain, logistics solutions company. This brings together the complementary strengths of both firms, to scale this across a broader range of customers and sectors through added capability; making the combined entity a considerable force in our industry in providing an expanded new groundbreaking service to be offered based on its technology innovation.

• In May 2024, GrubMarket acquired Butter, a provider of AI-powered software that specializes in food supply chain technology through the acquisition by an American business. The acquisition reinforces GrubMarket’s status as a tech market leader, incorporating cutting-edge AI solutions into its food logistics and distribution network across the United States.

Report Scope

US Cold Chain Logistics Market: COVID-19 Analysis

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

• Disruption in International Trade and Businesses: The COVID-19 outbreak has affected international trade and business around the world, therefore severely affecting the US Cold Chain Logistics Market. Checks have also been imposed on the movement of individuals and goods thus interrupting the supply of temperature sensitive products such as food and pharmaceuticals. Such disruptions have led to delays and high consumption of more funds in ensuring that the clientele’s cold chain supply is well maintained, a challenge to logistics service providers.

• Demand Fluctuations: Cold chain logistics was disrupted by the pandemic as industries reliant on this method of transportation namely hospitality, retail and healthcare were affected severely by the pandemic. COVID-19 restrictions such as closures and restrictions on movement and lower consumer spending rate affected the changes in the temperature-sensitive products market demand. Due to the COVID-19 pandemic, most ongoing projects in these sectors faced uncertainty and thus reduced cold chain logistics services’ demand for a while.

• Regulatory Framework and Market Restraints: The safety standards and basic compliance of the cold chain logistics market responded sensitively to the pandemic and potential changes and reforms of safety in compliance altered the market. Some of the shortcomings include economic risks which include situations such as cost challenges, availability of raw materials/ ingredients and skilled personnel due to the unfavourable pandemic situation.

• Operational Challenges: The main challenges that emerged from the application of the health and safety measures in the cold chain especially in cold storage and transport include increased costs and operational challenges. Availability of labor and disruptions in the operations because of employee sickness and containment measures put additional pressure on the production capabilities and effectiveness within the US Cold Chain Logistics Market.

• Adaptive Strategies and Focus on Innovation: Key players in the cold chain logistics business had to implement responsive measures which included working from home, new technologies, and varied sources of supply due to the pandemic’s effect. Most businesses also adopted innovation as one key area adopting everything from IoT-based monitoring systems and live logistics management systems that were AI driven to make the cold chains efficient, reliable and sustainable.

• Automation Push: The pandemic underscored the importance of automation in reducing reliance on human labor in cold chain logistics operations. This trend has driven an increase in demand for automated solutions, such as robotic handling systems and automated storage and retrieval systems (ASRS), to maintain continuous and efficient operations during periods of labor shortage and other disruptions.

• Focus on Sustainability: The US Cold Chain Logistics Market is increasingly focusing on sustainability, with companies adopting eco-friendly practices such as energy-efficient refrigeration, the use of renewable energy sources, and sustainable packaging materials. This trend aligns with growing regulatory and consumer pressure for environmentally responsible logistics practices, contributing to the long-term resilience of the cold chain.

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

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

• Americold Logistics
• Lineage Logistics
• United States Cold Storage
• XPO Logistics
• H. Robinson
• FedEx Cold Chain
• UPS Supply Chain Solutions
• Ryder System Inc.
• Penske Logistics
• Burris Logistics
• DHL Supply Chain
• Performance Team (A Maersk Company)
• KLLM Transport Services
• Cryoport
• AIT Worldwide Logistics
• NFI Industries
• RLS Logistics
• AGRO Merchants Group
• Swire Cold Storage
• VersaCold Logistics Services
• Others

The US Cold Chain Logistics Market is segmented as follows:

By Type

• Refrigerated Storage
• Refrigerated Transport
• Cold Boxes
• Monitoring Equipment

By Application

• Food & Beverages
• Pharmaceuticals
• Chemicals
• Agriculture
• Others

By Temperature Range

• Chilled
• Frozen
• Ambient

By End Use

• Food Service
• Retail
• Medical Facilities
• Industrial
• Agriculture

By Sales Channel

• Direct
• Third-Party Logistics
• Online Platforms