Cold Chain Logistics Market

Market Overview:

The global cold chain logistics market size reached US$ 258.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 774.2 Billion by 2032, exhibiting a growth rate (CAGR) of 12.96% during 2024-2032. The rising demand for processed foods, beverages, and medicines, increasing penetration of modern technologies and connected devices, augmenting demand for last-mile delivery, and growing exports and imports of temperature-sensitive products are some of the major factors propelling the cold chain logistics market.

Cold chain logistics facilitates the safe transportation of temperature-sensitive products, including fresh agricultural goods, seafood, frozen foods, fruits, vegetables, dairy items, photographic films, chemicals, and pharmaceutical drugs, along the supply chain. This process impacts each stage of the supply chain, ranging from purchase and transportation to storage and last-mile delivery of goods. It involves using various transportation modes for product supply, such as refrigerated trucks, air cargo, refrigerated railcars, and refrigerated cargo. It also encompasses the utilization of temperature-controlled warehouses for storage and cold-insulated transport vehicles for product distribution. In addition, cold chain logistics play a crucial role in maintaining product quality and freshness, extending marketing, avoiding over-capacity, and minimizing transport bottlenecks during peak periods. It also aids in reducing the wastage of perishable products and commodities, thereby improving profitability.

Since cold chain logistics assist in delivering perishable items safely to customers while retaining product quality, freshness, and integrity, it has gained immense traction in transporting foods, beverages, and medicines. As a result, the rapid expansion in the food processing and pharmaceutical industries represents the main factor stimulating the growth of the cold chain logistics market during the forecast period. In addition, a surge in organized retail stores, especially in emerging economies, has strengthened the need for cold chain logistics. Besides this, the increasing adoption of refrigerated warehouses to provide proper storage and transportation conditions for temperature-sensitive products is augmenting the market growth. Furthermore, the growing popularity of online groceries, the rising penetration of connected devices, and escalating need for innovative solutions to facilitate last-mile delivery are other factors fueling the expansion of the market worldwide.

Cold Chain Logistics Market Trends/Drivers

Rise in Technological Advancements 

The inflating demand for efficient solutions for the transportation of high-value pharmaceutical products across the entire distribution network is offering a profitable growth opportunity for the cold chain logistics market. A rise in the development of complex biological-based medicines and shipments of hormone treatments, vaccines, and complex proteins that require cold chain refinements has generated the need for temperature-controlled transportation and warehousing to preserve product quality and sensitivity. Also, an increase in the number of logistics companies and airlines offering specialized pharma transportation services is catalyzing the growth of the cold chain logistics market.

Rapid Growth in the Pharmaceutical Industry

The inflating demand for efficient solutions for the transportation of high-value pharmaceutical products across the entire distribution network is offering a profitable growth opportunity for the cold chain logistics market. A rise in the development of complex biological-based medicines and shipments of hormone treatments, vaccines, and complex proteins that require cold chain refinements has generated the need for temperature-controlled transportation and warehousing to preserve product quality and sensitivity. Also, an increase in the number of logistics companies and airlines offering specialized pharma transportation services is catalyzing the growth of the cold chain logistics market.

Increase in Cold Storage Spaces and Refrigerated Warehouses

Advanced heavy-duty refrigeration systems are widely employed for modern warehouse management to maintain ideal temperature conditions during the transportation and storage of goods. Businesses are now investing heavily in improving their cold chain operations to establish effective, efficient, and reliable processes for storing temperature-sensitive products, thereby eliminating weak links in the system. As a result, a significant increase in cold storage spaces and refrigerated warehouses is contributing to the expansion of the cold chain logistics market. Moreover, the elevating sales of processed foods and perishable items, such as dairy products, fruits, vegetables, and flowers, is driving the demand for adequate cold chain logistics infrastructure to prevent the spoilage and waste of goods.

Cold Chain Logistics Industry Segmentation

IMARC Group provides an analysis of the key trends in each segment of the global cold chain logistics market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type and application.

Breakup by Type:

• Refrigerated Warehouses
• Refrigerated Transportation
  • Railways
  • Airways
  • Roadways
  • Waterways
     

Refrigerated Warehouses are dominating the cold chain logistics

The report has provided a detailed breakup and analysis of the cold chain logistics market based on the type. This includes refrigerated warehouses and refrigerated transportation (railways, airways, roadways, and waterways). According to the report, refrigerated warehouses represented the largest segment.

Refrigerated warehouses are cold storage facilities comprising temperature-controlled spaces used to protect numerous products, including meat, dairy, and pharmaceutical drugs, from spoilage. A rise in the import and export of temperature-sensitive goods and the fluctuating demand for such perishable items have strengthened the demand for refrigerated warehouses to preserve product quality and minimize wastage. In addition, the surging need for efficient and safe distribution of temperature-sensitive products is positively influencing the growth of this segment.

Furthermore, a subsequent increase in the need for temperature-controlled transportation facilities to move perishable products safely is supporting the expansion of the refrigerated transportation segment. Also, a rise in the demand for high-cube refrigerated trailers, connected refrigerated trucks, insulated containers, and vehicles enabling cross-product transportation is expected to propel the growth of this segment.

Breakup by Application:

• Fruits and Vegetables
• Bakery and Confectionary
• Dairy and Frozen Desserts
• Meat, Fish, and Sea Food
• Drugs and Pharmaceuticals
• Others
   

Dairy and Frozen Desserts hold a larger share in cold chain logistics

A detailed breakup and analysis of the cold chain logistics market based on the application has also been provided in the report. This includes fruits and vegetables, bakery and confectionary, dairy and frozen desserts, meat, fish, and sea food, drugs and pharmaceuticals, and others. According to the report, dairy and frozen desserts accounted for the largest market share.

Dairy and frozen desserts are widely preferred by consumers owing to their prolonged shelf life, ease of preparation, and enhanced convenience. Also, these products usually contain high amounts of essential nutrients and possess a rich taste and texture. Furthermore, with the growing health and fitness consciousness, individuals are increasingly incorporating dairy items into their daily diets to boost their nutrient intake. This, coupled with the rising consumer preferences for packaged food items and the need for strict temperature control during the storage and transportation of dairy and frozen desserts, is creating a favorable outlook for this segment.

The escalating demand for fresh fruits and vegetables is favoring the adoption of cold chain logistics to maintain product quality and freshness during transportation and storage. Besides this, the fruits and vegetables segment is anticipated to witness growth during the forecast period on account of the shifting consumer inclination toward organic and fresh produce, along with the elevating need to reduce food wastage.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest cold chain logistics market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represented the largest region.

North America held the biggest share of the market since the region offers immense growth opportunities for companies looking to invest for the long haul. The presence of a well-established cold chain logistics infrastructure is also stimulating market growth. Another contributing aspect is the rise in imports and exports of fresh produce and escalating online grocery sales. Moreover, countries such as the United States have become highly dependent on imported fruits and vegetables, especially asparagus and avocados, over the years. An increase in the consumption of meat and poultry products is contributing to the expansion of cold storage facilities in the region, thereby accelerating the market growth during the forecast period.

Asia Pacific is also projected to expand further in this domain at the fastest CAGR during the forecast period. Owing to the emerging e-commerce industry in the region, heavy investments toward the development of cold chain infrastructure, and supportive government initiatives, the Asia Pacific region is expected to witness substantial growth.

Competitive Landscape

The global cold chain logistics market is experiencing continuous growth due to ongoing technological advancements and improvements in cold chain infrastructure worldwide. The market is witnessing a steady rise in research-related initiatives and investments by key players resulting in improved technology, a better supply chain, and new product and service launches. The leading vendors are focusing on strategic alliances, partnerships, and geographical expansion to strengthen their market position. We expect the market to witness new entrants, consolidation of portfolios, and increased collaborations and mergers and acquisitions (M&As), to drive healthy competition within the domain.

The report has provided a comprehensive analysis of the competitive landscape in the global cold chain logistics market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Americold Realty Trust Inc.
• Burris Logistics Co.
• Cold Box Express Inc.
• Conestoga Cold Storage
• Congebec Inc.
• Lineage Logistics Holdings LLC (Bay Grove Capital Group LLC)
• Nichirei Logistics Group Inc. (Nichirei Corporation)
• Snowman Logistics Ltd.
• Tippmann Group
• United States Cold Storage Inc. (John Swire & Sons Ltd.)
• VersaCold Logistics Services

Recent Developments:

• In June 2022, Americold Realty Trust Inc. announced the opening of its new facility in Dunkirk, New York, expanding the company’s footprint across the United States. This facility has around 181,000 square feet of cold storage and operational space and 25,000 pallet positions to support cold storage needs in the western New York region.
• In September 2022, Lineage Logistics Holdings LLC acquired Grupo Fuentes, a Spanish transport and cold-store operator. This acquisition in Spain will reinforce the company’s footprint in Europe’s leading markets for fresh produce, strengthening Lineage’s footprint for cold storage distribution across Europe.
• In April 2019, Burris Logistics Co. announced the acquisition of Trinity Logistics, a 3PL (third-party logistics) company specializing in freight arrangement and supply chain solutions. This merger will benefit both organizations in terms of scale and efficiency, allowing them to strengthen their services and deliver innovative, technology-driven, end-to-end supply chain solutions.

Cold Chain Logistics Market Report Scope:

Key Questions Answered in This Report:

• How has the global cold chain logistics market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global cold chain logistics market?
• What is the impact of each driver, restraint, and opportunity on the global cold chain logistics market?
• What are the key regional markets?
• Which countries represent the most attractive cold chain logistics market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the cold chain logistics market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the cold chain logistics market?
• What is the competitive structure of the global cold chain logistics market?
• Who are the key players/companies in the global cold chain logistics market?

Key Benefits for Stakeholders

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the cold chain logistics market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global cold chain logistics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cold chain logistics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.