Cold Chain Logistics Market Size, Share & Industry Analysis, By Type (Refrigerated Warehouses, Refrigerated Transportation), By Application (Fruits & Vegetables, Fish, Meat, and Seafood, Dairy & Frozen Desserts, Bakery & confectionery, Processed Food, Pharmaceuticals, Others) and Regional Forecasts, 2024-2032

The global cold chain logistics market was valued at USD 293.58 billion in 2023 & market is projected to grow from USD 324.85 billion in 2024 to USD 862.33 billion by 2032, exhibiting a CAGR of 13% during the forecast period.

The cold chain logistics market encompasses the transportation and storage of temperature-sensitive products, including perishable food items, pharmaceuticals, and chemicals, under controlled conditions to maintain their integrity and quality. With increasing globalization and demand for fresh and frozen products worldwide, the cold chain logistics industry is experiencing significant growth. Factors, such as advancements in refrigeration technology, stringent regulatory requirements, and the expansion of the pharmaceutical and healthcare sectors are driving market expansion. Additionally, the rise of e-commerce and online grocery delivery services is further fueling demand for efficient cold chain logistics solutions. Overall, the market is characterized by innovation, stringent quality standards, and a focus on ensuring product safety and integrity throughout the supply chain.

The COVID-19 pandemic had a profound impact on the cold chain logistics market. With the global distribution of vaccines and pharmaceuticals, the demand for temperature-controlled storage and transportation surged. Additionally, disruptions in supply chains and logistics networks posed challenges, highlighting the importance of robust cold chain infrastructure. The pandemic accelerated digitalization and adoption of innovative technologies in cold chain logistics to ensure the safe and efficient distribution of temperature-sensitive goods amidst unprecedented challenges.

Cold Chain Logistics Market Trends

Increasing Consumer Demand for Perishable Goods Drive Growth of Cold Chain Logistics Market

The increasing trend of buying perishable goods through the online platform has led to new opportunities and challenges. These include the requirement for automated warehouses to manage inventories, and innovative solutions to offer last-mile delivery. That also creates demand for advanced temperature monitoring devices to maintain quality and prolong the shelf life of perishable food products. Consumers are nowadays more conscious about wellness and health, and the effect that food nutrients, particularly protein, have on overall mental and physical development. This has caused a change in the consumption pattern of perishable goods, such as fruits and vegetables, dairy products, meat, eggs, fish, and seafood.

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Cold Chain Logistics Market Growth Factors

Increasing Demand for Temperature-Sensitive Pharmaceuticals and Biologics to Propel Market Growth

With the COVID-19 pandemic highlighting the critical importance of maintaining the integrity and efficacy of vaccines and other medical products, the need for robust cold-chain logistics solutions has become more pronounced than ever. According to data from the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA), global pharmaceutical sales are projected to reach USD 1.5 trillion by 2024, with a significant portion of these sales comprising temperature-sensitive products. The development and distribution of vaccines and biologics, including mRNA vaccines and gene therapies, require stringent temperature control throughout the supply chain to ensure their effectiveness and safety.

As governments around the world continue to roll out vaccination campaigns and invest in healthcare infrastructure, the demand for cold chain logistics services is expected to grow exponentially. The pharmaceutical industry is witnessing a shift toward personalized medicine and biological therapies, which often have strict temperature requirements for storage and transportation. Biologics, such as monoclonal antibodies, cell therapies, and gene therapies, are increasingly being used to treat various diseases, driving the demand for specialized cold-chain logistics solutions.

Regulatory authorities, including the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), have implemented stringent guidelines for the handling and distribution of temperature-sensitive pharmaceuticals. Compliance with these regulations necessitates investments in state-of-the-art cold chain infrastructure and temperature-monitoring technologies.

Additionally, the rise of e-commerce and direct-to-consumer healthcare services is contributing to the growth of the cold chain logistics market. With the increasing popularity of online pharmacies and doorstep delivery of prescription medications, there is a growing need for reliable cold-chain logistics solutions to ensure the safe and timely delivery of temperature-sensitive medical products to consumers. As the pharmaceutical industry continues to innovate and develop new therapies, the need for advanced cold chain logistics solutions will remain a critical factor driving market expansion. 

RESTRAINING FACTORS

Environmental Concerns Regarding Greenhouse Gas Emissions Restrain Market Growth

Cold chain industry development places a substantial burden on the environment since refrigeration is a source of greenhouse gases and is energy-intensive. The snowballing number of refrigerated road transportation is extremely gaining massive demand across the world. Keeping products cold to prolong shelf life and maintain the quality of the products throughout the transportation phase of the cold chain (like trains, ships, and trucks) is important. Refrigerated transportation accounts for about 7% of total world hydrofluorocarbons (HFCs) consumption.

Likewise, diesel-powered reefer trucks, trailers, and containers consume around 21% more power than non-refrigerated diesel-powered trucks. This has noteworthy implications on climate change, as the development of cold chain infrastructure becomes almost ubiquitous in developing nations. Therefore, environmental concerns regarding greenhouse gas emissions are anticipated to hinder the cold chain logistics market growth.

Cold Chain Logistics Market Segmentation Analysis

By Type Analysis

Refrigerated Warehouse Held Largest Share of Market due to Increased Demand for Automated Warehouses to Manage Inventories

Based on type, the market is segmented into refrigerated warehouses and refrigerated transportation. The refrigerated warehouse segment holds the major share in the market and is expected to retain its dominance in the coming years due to the growing preference for packaged food products across the world. Changing the dietary patterns and lifestyles of consumers is propelling the demand for frozen food products. This is anticipated to boost the demand for refrigerated warehouses.

Furthermore, the refrigerated transportation segment is projected to grow at the fastest CAGR over the forecast period due to the increasing use of safe refrigerated transportation of temperature-sensitive goods and products. Transportation modes used are refrigerated cargo, refrigerated railcars, refrigerated trucks, and air cargo.

By Application Analysis

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Growth of Pharmaceuticals Segment Due to its Importance in Maintaining Efficacy and Safety of Pharmaceuticals

Based on the application, this market is segmented into fruits & vegetables, fish, meat, and seafood, dairy & frozen desserts, bakery & confectionery, processed food, pharmaceuticals, and others. The dairy & frozen desserts segment accounts for the major market share and is also projected to dominate the market over the forecast period. This is attributable to the increasing demand for animal protein products such as cheese, milk, and meat.

A cold chain is used for transporting frozen bakery products like bread and cakes, and frozen meat like fish, poultry, beef, seafood, and pork. Changing dietary habits of consumers and growing levels of disposable income are boosting the product demand from the bakery and confectionary segments.

REGIONAL INSIGHTS

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Based on geography, this market is segmented into Europe, Asia Pacific, North America, and the Rest of the World. The North American region dominated the market in 2023. Growing penetration of connected devices and a large consumer base are anticipated to drive market growth from 2021 to 2028.

On the other hand, Asia Pacific is estimated to be the fastest-growing regional market from 2024 to 2032. This is due to increasing government investments in cold chain logistics infrastructure development. Countries such as South Korea, China, Japan, and India have a strong demand for meat, dairy, and processed food products, which in turn is anticipated to drive the market for the cold chain in the region. Moreover, factors like increased foreign direct investments in the healthcare sector and the promotion of pharmaceutical industries are boosting the market growth of the pharmaceutical sector in the Asia Pacific region.

• For instance, in July 2023, A.P. Moller–Maersk, the global integrated logistics company, opened the doors to its third Warehousing & Distribution (W&D) facility in Dubai, UAE, which is also its first Cold Store in the country spread over 13,000 sq. m at Dubai Industrial City. It is strategically located for connectivity to Jebel Ali Port, Al Maktoum International Airport, direct road access across the UAE, and an Etihad Rail freight terminal.

In addition, developing economies in the rest of the world are witnessing an increased demand for perishable food items. This is due to the rising disposable income of consumers, changing tastes and preferences, and rapid urbanization in these regions. The market potential for frozen and processed food items is also high in these regions, owing to their lower adoption rates. The consumption of ready-to-cook products, like snacks, frozen desserts, and pizzas, is growing steadily in these regions.

List of Key Companies in Cold Chain Logistics Market

Key Market Players Are Constantly Upgrading Their Technologies to Stay Ahead of Competition

This market is highly competitive and fragmented, with key players such as the U.S. Cold Storage, AmeriCold Logistics LLC, LINEAGE LOGISTICS HOLDING, LLC, VersaCold Logistics Services, and NICHIREI LOGISTICS GROUP INC. (NICHIREI CORPORATION). These players are increasing their multi-compartment reefer vehicle fleets to offer added services to their end-users. Moreover, key companies are upgrading their technologies to ensure safety, integrity, and efficiency.

LIST OF KEY COMPANIES PROFILED:

• U.S. Cold Storage (New Jersey, U.S.)


• AmeriCold Logistics LLC (Georgia, U.S.)


• LINEAGE LOGISTICS HOLDING, LLC (Michigan, U.S.)


• VersaCold Logistics Services (Ontario, Canada)


• NICHIREI LOGISTICS GROUP INC. (NICHIREI CORPORATION) (Tokyo, Japan)


• CONGEBEC LOGISTICS INC. (Quebec, Canada)


• Burris Logistics (Delaware, U.S.)


• CONESTOGA COLD STORAGE (Ontario, Canada)


• Kloosterboer (Netherlands)


• COLD BOX EXPRESS, INC. (Alabama, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Snowman Logistics expanded its operations at a newly leased multi-temperature-controlled warehouse in Guwahati, Assam. The total capacity of the warehouse is 5,152 pallets, and this facility features eight chambers and four loading bays that are equipped with the latest infrastructure. It is specifically designed to accommodate products from ambient temperatures to minus 25 degrees Celsius. The warehouse will primarily focus on providing storage, handling, and transportation services for ice cream, poultry, ready-to-eat food, dairy products, confectionery, bakery products, seafood, fruits, and vegetables.


• January 2024: GreenDome Holdings, through its subsidiary Elite Co., a prominent logistics investment vehicle owned by regional industry leaders, acquired LogX, the UAE's leading temperature-controlled logistics company. This multi-million dollar deal marks another significant milestone for GDH as it strengthens its position in the market and expands its service offerings.


• December 2023: AVG Logistics acquired over 50 cold chain vehicles to strengthen fleet operations, taking the company's total cold chain fleet strength to 275. This enhanced AVG's ability to service. Recently, a long-term contract was signed with India's largest MNC FMCG Company, both on the dry and frozen goods side.


• October 2023: Mitsui & Co., Ltd. signed an agreement to invest in PT. Pangan Lestari is one of the leading food distribution and cold-chain logistics companies in Indonesia. This contribution enhanced the quality of PL's business by leveraging its knowledge and expertise in food distribution and cold-chain logistics.


• May 2023: TAHUHU launched the first automated and smart cold chain logistics service in Hong Kong. The solution includes a seamless temperature-control loading dock, “muti-level no-man zone,” and top-of-the-line automation equipment, such as "goods-to-person" systems and “automated vertical cargo lift. The facility's ability to optimize storage space and increase productivity while maintaining the highest quality standards is a testament to its commitment to excellence. With its advanced automation and innovative systems, TAHUHU set a new standard for cold chain logistics in Hong Kong.

REPORT COVERAGE

The global cold chain logistics market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market’s growth over recent years.

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