July 12, 2024
Cold Chain Market

Cold Chain Market is Estimated To Witness High Growth Owing To Rising Demand from Pharmaceutical Industry

The Cold Chain Market is estimated to be valued at US$ 270.8 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The cold chain market consists of transportation, storage and distribution services where temperature control is used to extend and to ensure the shelf life and quality of goods are maintained or preserved through a targeted temperature range. Cold chain logistics is used to transport and store temperature sensitive products such as pharmaceutical, vegetables, fruits, frozen food and others. The need for cold chain arises in order to prevent spoilage and maintain the quality of goods during transportation and warehousing.

Market key trends:
One of the key trends positively impacting the growth of the cold chain market is the rising demand for temperature-sensitive pharmaceutical products. Cold chain logistics plays a vital role in transportation and storage of temperature sensitive drugs and vaccines globally. Failure to maintain proper temperature control during transportation and storage can compromise the potency and safety of pharmaceutical products. With increasing demand for vaccines and biopharmaceuticals globally, the demand for specialized cold chain logistics to transport them safely is also increasing significantly. This is expected to drive the growth of the cold chain market over the forecast period.

Porter’s Analysis
Threat of new entrants: The cold chain market requires heavy capital investments in infrastructure and fleet management. This acts as a barrier for new players to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power in the cold chain market as they have a choice of suppliers to choose from.
Bargaining power of suppliers: Suppliers have low bargaining power due to the availability of various raw materials.
Threat of new substitutes: There are no cost-effective substitutes available in the market currently.
Competitive rivalry: High level of rivalry as players compete on service offerings and competitive pricing.

SWOT Analysis
Strength: Strong cold chain infrastructure and technological capabilities to maintain temperature-sensitive products. Wide service coverage across regions.
Weakness: High operational costs associated with maintaining infrastructure and fleets. Dependency on fuel prices increases operation costs.
Opportunity: Increasing demand for perishable goods like fruits, vegetables, seafood and dairy products is an opportunity. Rising demand from pharmaceutical industries for temperature-controlled logistics.
Threats: Stringent regulations regarding food safety and traceability increases compliance costs. Dependency on weather conditions is a threat.

Key Takeaways
Global Cold Chain Market Demand is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing consumption of perishable foods such as fruits, vegetables, seafood, dairy products and meat. Regionally, Asia Pacific dominates the cold chain market and is expected to grow the fastest due to growing urbanization and rising middle-class population in China and India.

Key players operating in the cold chain market are Americold Logistics, Lineage Logistics, AGRO Merchants Group, Nichirei Corporation, Preferred Freezer Services, Swire Cold Storage, Kloosterboer, DHL Global Forwarding, UPS Cold Chain Solutions, FedEx Custom Critical, Burris Logistics, and Maersk Line. Lineage Logistics is one of the largest cold storage providers globally with over 2 billion cubic feet of warehouse space. Americold Logistics operates over 230 cold storage facilities across four continents.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it