US Cold Chain Logistics Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Cold Chain Logistics Market 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.

“Warehouse & Storage Employees” is the general upward trend of warehousing & storage employees from January 2019 to January 2022. This surge supports the increased need for warehousing services, and especially for the U. S. Cold Chain Logistics Market. Growing demand for cold storage and effective storage and distribution of perishable products including food, pharmaceuticals and chemicals facilitates the need for a competent workforce for the facilities.

This also indicates increased hiring throughout this period, which is in line with the general growth of the logistics business due to features such as an increase in online purchases and the scale and sophistication of the networks. Employment in cold chain logistics has been on the rise, implying that the sector is healthy and growing, thus a noble undertaking in supporting cold chain logistics across the country.

US Cold Chain Logistics Market: Significant Growth Factors

The US Cold Chain Logistics Market presents significant growth opportunities due to several factors:

• Urbanization and economic growth: The demand for fresh and highly perishable commodities, particularly in cities, has fueled the US Cold Chain Logistics Market. 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.

• Technological Advancements: The latest innovations in cold chain technology include the Internet of Things for monitoring, sophisticated refrigeration units and even, the blockchain for traceability. These technologies enable firms to retain the quality of perishable products throughout the supply chain possess little or no spoilage and are safe to consume.

• 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: Data analytics and AI are already enhancing cold chain logistics in the 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 organisations, 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’ pressure for environmentally sustainable operations.

US Cold Chain Logistics Market – New Acquisitions and Mergers

The US Cold Chain Logistics Market has seen several New Acquisitions and Mergers in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of product launches in the US Cold Chain Logistics Market include:

• 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.

• In January 2024, in a few million-dollar deal UAE-based Elite Logistics procured LogX adding to its logistics muscle and reach. The purchase solidifies the firm’s stronghold in the logistics space, while also allowing it to cater to a wider clientele more efficiently across industry verticals.

These new acquisitions and mergers helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the US Cold Chain Logistics Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Cold Chain Logistics Market – Significant Threats

The US Cold Chain Logistics Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Economic Downturns: Economic recessions or downturns can be a major force impacting the US Cold Chain Logistics Market, as reduced consumer spending and less demand for non-essential goods may lead to a reduction in the volume of temperature-sensitive products being moved. Market growth is heavily tied to economic stability, which can cause organizations to tighten the budget, reduce investment, or even postpone the building or improvement of any cold chain logistics infrastructure or services.

• Intense Competition: The US Cold Chain Logistics Market is experiencing highly competitive, innovative industry growth. Large market players and new entrants are constantly striving to outperform one another, creating pricing pressures, reduced profit margins, and constant innovation to maintain some level of competitiveness. Market organizations are consistently driven to improve their service offerings, incorporate advanced technologies, and differentiate to maintain or grow market share.

• Technological Obsolescence: Rapid technological advancements in cold chain technologies, such as refrigeration systems or monitoring tools can make existing technologies and or solutions obsolete. Organizations must work with technologies of moderately disadvantageous because of the pace at which it evolves or shifts its direction toward new technologies. As a result of the progressive production of consumer goods, organizations must continue investing in research and development to advance their technology, irrespective of level and stay current with market demands.

• Supply Chain Disruptions: Global supply chain interruptions and delays to the pain as a first trigger to punctuate the company’s ability to provide services and or products. Age and experience level within the leadership of an organizational practice range depending on southwestern like the boat process. Experience and absence of commonality of thought to limit interruption potential at your compliance obligations whole, and investments nature requiring supply are commonplace. Supply chain disruptions can original shipment centre key component suppliers for repeatable savings merge on requests, shipments on inlays simply.

• Regulatory Forces: Adoption of regulatory forces about kitchen foods, US center for disease control pharmaceuticals, and legislative initiatives in our environmental impact may hold obligations for organizations to make compliant or validate existing processes. Increased rules or obligations can deter the current delivery of what the company states is compliant. Organizations may have to reduce the risk of unwanted exposures and damages until they can show statistically that they have successfully complied with the rules or have the right to do so.

Category-Wise Insights:

By Type

• Refrigerated Storage: This segment comprises cold storage, which are specially designed storage warehouses to cater specific temperature requirements of perishable goods. It covers a wide spectrum of products ranging from fresh fruits & vegetables, and dairy products to pharmaceuticals that need to be stored in a specified temperature range for an extended period and it should be safe and fresh until it is distributed in the market. The increasing demand for fresh, organic food and the robust development of the pharmaceutical industry have increased the need for more advanced and energy-efficient refrigerated storage.

• Refrigerated Transport: Refrigerated vehicles, which come with in-built refrigeration systems, including refrigerated trucks, trailers & containers and specialized railcars used for the transportation of temperature sensitive goods. Maintaining the needed temperature throughout a shipment process to prevent spoilage or degradation of products is essential. It is expected that this segment will gain traction over the forecast period owing to the rise in international trade of fresh and frozen food and the increasing need for safe and reliable transportation systems for pharmaceuticals and vaccines.

• Cold Boxes: Cold boxes are insulated boxes which are used for temporary storage or transportation of temperature-sensitive goods, usually over the last mile. Sensitive sectors include healthcare and food logistics where the cold chain is required to be maintained till the delivery point. Cold boxes have seen an increase in adoption owing to their flexible nature, ease of transportation and high efficiency in preserving product integrity for last mile deliveries.

• Monitoring Equipment: This category refers to devices and networks that are used in monitoring and tracking the temperature and humidity levels of goods throughout the cold chain. Sophisticated monitoring equipment, many times interweaved with IoT and cloud-centric systems, gives live data as well as warnings/alarms so that products are maintained within what is safe concerning temperature. To this end, the use of such equipment is more and more essential for adhering to regulatory requirements and for the preservation of quality and safety of perishable goods.

By Application

• Food and Beverages: The need to maintain the freshness and safety of goods like fruits, vegetables, dairy, meat, and seafood is what drives the largest segment of the cold chain logistics industry. As consumers continue to seek more fresh, less processed foods, the requirement for dependable cold chain options increases. This section also accommodates the delivery of frozen and prepackaged food which must be kept at a continual temperature to ensure freshness.

• Pharmaceuticals: Cold Chain Logistics is very important to the pharmaceutical industry because it ensures the safe storage and transportation of temperature sensitive drugs, vaccines, and biologics. With the constant growth and development of pharmaceuticals, especially in the fields of biologics and personalized medicine, the need for temperature-controlled logistics is on the rise. This part is also regulatory driven in that it requires very close temperature controls and records down the supply chain.

• Chemicals: Some chemicals must be stored and transported at specific temperatures to ensure their stability and effectiveness. The cold chain logistics sector is a vital one in certain industries (pharmaceuticals, agriculture, manufacturing) where temperature sensitive chemicals are used. The requirements for safe and legal shipping of hazardous or sensitive materials govern this portion.

• Agriculture: The agricultural sector deals with storing and shipping fruits, vegetables, flowers, and other perishables from the farms to the markets. Cold chain logistics is the key to reducing post-harvest losses, increasing the shelf life of products, and allowing fresh produce to enter the consumer’s hands in the best possible condition. With many consumers wanting fresh foods and products that are locally grown, the agricultural need for efficient cold chain solutions is expanding.

• Others: That would also branch into more specialized uses of cold chain logistics, such as cosmetics, specialty food items, and some industrial products. Many of these products must be kept at certain temperatures to ensure their quality and usability so the cold chain plays a critical role in the supply chain.

By Temperature Range

• Chilled: Chilled logistics” is the storage and transportation of goods that need to be refrigerated, between 0 and 5 degrees celsius. This temperature is used for things such as fresh produce, dairy and some pharmaceuticals that must be refrigerated but not frozen. The cold chain is growing due to the increasing consumer demand for fresh produce and cold drinks, which requires a dependable cold chain.

• Frozen: The frozen bracket includes products that must be stored below freezing, usually below -18°C, examples of this are frozen foods, ice cream, and some pharmaceuticals. These temperatures must be sustained to ensure the quality and safety of the product as it is stored and shipped. The frozen category especially is significant, especially in today’s food industry where everything is moving towards frozen food because of its convenience and extended shelf life.

• Ambient: Ambient temperature logistics are keeping the product at room temperature, within a range of 15°C-25°C. This is a climate controlled range used for products that are temperature sensitive but do not necessarily require refrigeration or freezing, i. e. some pharmaceuticals, cosmetics, specialty foods, etc. The ambient section is a key one because many goods are degradable if not kept under constant conditions.

By End Use

• Food Service: Cold chain logistics are the life line of the food service industry which includes restaurants, catering and food delivery services. Perishable ingredients and ready-to-eat meals must be kept and transported at safe temperatures to uphold food safety and quality. The food service segment is growing as consumer demand for fresh and prepared meals increases, particularly with the rise of online food delivery platforms.

• Retail: This category consists of supermarkets, grocery stores, and convenience stores that utilize cold chain logistics to ensure that their perishable products remain fresh and safe for the consumer. More and more retailers are putting money into sophisticated cold chain systems to cut down on food spoilage, to increase the shelf life, and to satisfy the consumer’s demand for fresh high-quality products. This also includes the new emerging online grocery shopping in the retail sector that needs dependable last-mile cold chain logistics.

• Medical Facilities: Hospitals, clinics, and pharmacies rely on cold chain logistics for the storage and transportation of temperature-sensitive medical supplies, including vaccines, blood products, and biologics. The integrity of these products must be maintained to ensure patient safety and regulatory compliance. The medical facilities segment is growing due to the growth of the healthcare industry itself and the need for temperature-controlled transportation for pharmaceuticals and other medical products.

• Industrial: The industrial sector involves the storing and shipping of temperature-sensitive chemicals and materials used in the processes of manufacturing. This material which is often a key component in high value goods must be kept at a certain temperature for safety and quality reasons, therefore cold chain logistics is very important. This part focuses on safe logistics solutions that are efficient and cater to the particular needs of industrial applications.

• Agriculture: Cold chain logistics plays a vital role in the agricultural industry with the storage and transportation of fresh produce and flowers and other perishable commodities. Cold chain logistics is the process of keeping perishable goods at their optimum temperatures from the farm (or factory) to the market in order to reduce spoilage, extend shelf life, and allow the products to reach consumers in the best possible condition. The agriculture sector is becoming more and more prevalent due to the demand for fresh food, and food that is locally produced.

By Sales Channel

• Direct: In here, all the cold chain logistics are done in house, storage, transportation, etc. By having this control over the logistics process, the company has much greater visibility into the quality and safety of its products. However, only the large producers and distributors who can afford to maintain their cold chain systems use the direct channel.

• Third-Party Logistics (3PL): A lot of companies “subcontract” out their cold chain logistics to other companies that specialize in temperature-controlled warehousing and transportation. So then the companies can do what they do best and leave the intricate details of the cold chain to the 3PLs. The 3PL (Third Party Logistics) lane is expanding because companies are finding out that they can save money, and make their operations better by outsourcing their logistics.

• Online Platforms: More and more electronic commerce and internet platforms are popping up in the cold chain logistics market place, so that companies can have hundreds of logistics services right at their fingertips on the world wide web. They are bazaars where shippers and cold chain providers come together, booking and tracking are very easy, and the prices are good. The online platforms sector is one of the fastest growing segments, as a result of the rapid expansion of online retail and the increasing need for flexible, on-demand logistics.

Report Scope

Competitive Landscape: US Cold Chain Logistics Market

The US Cold Chain Logistics Market is highly competitive, with a large number of logistics providers and service operators operating in the US. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as technological innovation, mergers and acquisitions, and strategic partnerships.

New entrants in the US Cold Chain Logistics Market often focus on innovation and development to establish themselves and compete effectively. These newcomers typically emphasize advanced technology integration and service diversification, such as introducing IoT-enabled monitoring systems, energy-efficient refrigeration solutions, and flexible, modular storage options. Many also explore sustainable practices, such as adopting eco-friendly refrigerants and optimizing logistics routes to reduce carbon emissions, appealing to environmentally conscious businesses and consumers.

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