Introduction
Competitive Players
- AmeriCold Logistics LLC
- VersaCold Logistics Services
- Lineage Logistics Holding LLC
- Nichirei Corporation
- AGRO Merchants Group
- DSV
- Kloosterboer Group BV
- Gruppo Marconi Logistica
- Henningsen Cold Storage Co
Recent Developments
Segmentation
- By Type
- Cold Chain Storage
- Cold Chain Transport
- Monitoring Component
- By Applications
- Fruits and Vegetables
- Meat and Sea Food
- Dairy and Frozen Desserts
- Bakery and Confectionery
- Ready-to-eat Meals
- Other Applications
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Market Dynamics
The cold chain efficiently safeguards temperature-sensitive goods during transportation by using thermal and refrigerated packaging. Cold chain technologies have allowed temperature-sensitive products to be integrated into and processed by supply chain management. Increased perishable goods commerce is anticipated to fuel demand for these solutions throughout the projected period. Cold chain industries are gradually implementing renewable energy options like wind and solar to reduce operational costs. The international food and beverage industry uses the cold chain to shield goods from thermal deterioration.
Heightening Concerns Related to Food Wastage Drives the Global Market
Food waste is a growing issue on a global scale. As reported by the FAO, nearly a third of the world's annual human food production is lost due to spoilage or theft. The environment is suffering from the effects of food production, the loss of biodiversity, and the depletion of land and water resources. Companies are feeling the heat to find ways to mitigate the consequences of climate change on the food supply chain. The rising demand for food and the higher expectations customers have for the quality of commodities are further driving forces behind the increased use of refrigerated rooms and transportation techniques throughout the food supply chain.
According to the Global Food Security Program, developed countries like North America and Europe produce 95 to 115 kg of food waste per person per year. In low-income nations, particularly in Sub-Saharan Africa and South/Southeast Asia, the quantity of consumer food waste produced annually ranges from 6 to 11 kg per person, or one-tenth of this level. Inadequate storage facilities are a significant cause of post-harvest losses, and frequent rodent, pest, and disease infestations also significantly increase this wastage. As a result, limited market access reduces potential, but on the other side, these easily fixable issues typically give the cold chain market a foundation to expand on. These challenges include the requirement for a continuous cold chain, distribution, packaging, and transportation networks.
Rising Demand for Convenient and Frozen Bakery Options Creates Tremendous Opportunities
Greater urbanization in the region, especially in Europe and North America, has created excellent prospects for foreign enterprises to operate there and increased demand for frozen bakery goods. Due to the government's strict food regulations that reduce processed food consumption, businesses have been obliged to pick frozen bakery products because they have a longer shelf life, maintain quality, and are typically less expensive than fresh bakery produce. On the other hand, customer demand for baked goods that are additive-free, non-GMO, clean-label, and health-promoting needs sophisticated preservation methods; as a result, increasing the cold chain environment is driving the market expansion.
Additionally, frozen baked goods are widely acknowledged to provide high-quality, safe, and nutrient-dense foods at an affordable price. The study's market has been driven mainly by consumers' increasing knowledge of the benefits of frozen baked goods. Growing health concern among the developing middle class has considerably impacted the appeal of frozen baked products. As discretionary spending increases, consumers can buy more expensive frozen bread products with higher nutritional profiles and longer shelf lives. On the whole, convenience and on-the-go snacking have been the key market drivers for frozen bakery products, keeping up with the growth trajectory for cold chain storage.
Regional Analysis
North America is the most significant revenue contributor and is expected to grow at a CAGR of 8.19% during the forecast period. Due to increased consumer demand and adoption of cold chain items in retail stores, as well as improved storage and transportation from farms to stores and from stores to customers, the cold supply chain sector will be able to grow during the projection period. Companies focus on technological advancements like blockchain for traceability and real-time data trackers. Software firms like Sensitech have developed a new supply chain sensor platform called SensiWatch, which may provide updates every five minutes on the temperature, light, humidity, and location of fresh food. However, the demand for fresh organic food items, including dairy, fruits, vegetables, meat, and other perishable goods, is driving up the demand for a cold food chain in the US market. Seasonality, time-temperature variation, and year-round road accessibility drive the demand for cold food chains in Canada. As customers shift from highly processed, unhealthy foods with a long shelf life to temperature-sensitive, perishable food items, a cold supply chain with improved technologies is also gaining ground.
Europe is expected to grow at a CAGR of 8.03% during the forecast period. Most food consumed in the United Kingdom is imported, and the market's cold chain heavily relies on EU countries like Spain and Italy for ambient goods like tinned tomatoes, pasta, vegetables, and salads. The market's players have also reached their limit due to the need for more frozen or chilled pork, poultry, and other goods. Therefore, the major firms worldwide utilize this opportunity to increase their market share. Spain is one of the top exporters of fresh produce worldwide, mainly to Europe, and it is expanding into more distant consumer markets. Due to this, the cold food chain industry is expected to grow within the forecasted time frame. Businesses are branching into new regions to accommodate the rising demand for frozen food and fresh produce. For instance, Fruveco announced the opening a cold storage facility in Alabama with a capacity of 200,000 pallets. The player exclusively sends onion rings to McDonald's, Burger King, and Foster's Hollywood, all of which are international fast-food franchises.
Key Highlights
The global food cold chain market was valued at USD 317.50 billion in 2022. It is projected to reach USD 677.70 billion by 2031, growing at a CAGR of 8.79% during the forecast period (2023-2031).
Based on type, the global food cold chain market is bifurcated into cold chain storage, cold chain transport, and monitoring component. The cold chain storage segment is the highest contributor to the market and is estimated to grow at a CAGR of 8.57% during the forecast period.
Based on application, the global food cold chain market is bifurcated into fruits and vegetables, meat and seafood, dairy and frozen desserts, bakery and confectionery, ready-to-eat meals, and other applications. The meat and seafood segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.96% during the forecast period.
North America is the most significant revenue contributor and is expected to grow at a CAGR of 8.19% during the forecast period.
Competitive Players
The global food cold chain market’s major key players are AmeriCold Logistics LLC, VersaCold Logistics Services, Lineage Logistics Holding LLC, Nichirei Corporation, AGRO Merchants Group, DSV, Kloosterboer Group BV, Gruppo Marconi Logistica, and Henningsen Cold Storage Co.
Market News
In April 2022, Lineage Logistics announced the next-generation automated cold storage facility to provide a global food chain hub for JBS USA.
In August 2022, Niagro Nichirei do Brasil Agricola Ltd introduced a new “Acerola Powder” production line —providing markets with fully traceable raw materials.
Global Food Cold Chain Market: Segmentation
By Type
Cold Chain Storage
Cold Chain Transport
Monitoring Component
By Applications
Fruits and Vegetables
Meat and Sea Food
Dairy and Frozen Desserts
Bakery and Confectionery
Ready-to-eat Meals
Other Applications
By Regions
North America
Europe
Asia-Pacific
LAMEA