The global cold chain packaging market size was valued at USD 22.42 billion in 2021. It is projected to reach USD 55.97 billion by 2030, growing at a CAGR of 10.70% during the forecast period (2022-2030). A "cold chain packing" technique involves the shipping and packaging of goods that must be kept at a particular temperature to function correctly. The expansion of the international trade in perishable goods and the accessibility of food and medical supplies on a global scale depends on cold chain packaging solutions. The objective for developing nations is not to "construct the cold chain" but instead to gradually focus investment in specific cold chain corridors that can capitalize on a country's advantages in food. Recently, Carrier collaborated with small-scale Indian farmers to lead a pilot study to evaluate the effects of cold storage and refrigerated transport on Kinnow, a little citrus fruit rich in micronutrients grown in Punjab, India.
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Growing Demand in Healthcare and Pharmacy Sectors
Cold chain packaging solutions must keep up with demand, given the rising popularity of online purchasing pharmaceutical products. Amazon and other online retailers provide improved customer services to deliver pharmaceuticals and goods right to customers' front doors. Professional cold chain packaging solutions are essential because the correct thermal packing, packaging design, and adherence to industry norms cannot be overlooked. In October 2020, Softbox unveiled Tempcell ECO, its most current creation, in the US. The Tempcell ECO is an award-winning temperature control parcel shipper that uses Softbox's Thermaflute. This plastic-free design insulates and offers thermal efficiencies comparable to conventional expanded polystyrene shippers. It is made of corrugated cardboard and is 100% curbside recyclable.
Government Regulations Relating to the Use of Low-Carbon Materials
The government and other public organizations are paying closer attention to the temperature-controlled supply chain industry because it lowers the environmental impact, cuts the carbon footprint of cold chains, and builds more sustainable networks. There is a growing demand among manufacturers and users of temperature-controlled packaging technologies to lessen the impact of cold chain shipping on the environment. Creating an appropriate packaging system is now more difficult than ever due to the broad implementation of official corporate social responsibility standards supplied by the government, new customer expectations, and stricter laws.
Creating biodegradable or recyclable packaging is only one component of creating a strong green pharmaceutical cold chain. The supply chain still needs to be significantly improved, and temperature-controlled distribution is a very energy-intensive process. Additionally, businesses are incorporating cooling and heat pumps and considering the long-term advantages of alternate fuels and renewable energy technology.
Rising Consumer Demand for Perishable Food
Players are increasingly concentrating on creating thermal box packaging for food and perishables, specifically producing corrugated cardboard as the optimal polystyrene/EPS packaging replacement. For instance, a producer like Chilltainers has begun making insulated packaging using corrugated board, which promotes airflow and a conductive layer of insulation. At the same time, the metalized polyester laminate deflects heat and maintains a colder interior for an extended period. As wool is more permeable than polystyrene and may absorb condensation from the air to keep food cooler for longer, a player also concentrates on creating wool as an insulator.
To solve this problem, TESOL has created cartridge freezers that can freeze cartridges at various temperatures. These cartridges can maintain temperatures for 10 to 12 hours when placed in insulated cartons, guaranteeing home deliveries. In addition, as cities strive to eliminate carbon emissions, alternate last-mile delivery methods are becoming more popular. Some businesses have integrated self-contained refrigeration technology into their insulated containers for innovative and environmentally friendly cold-chain transport solutions.
The global cold chain packaging market is segmented by product and end-user application.
Based on product, the global cold chain packaging market is bifurcated insulated containers, refrigerants, and temperature monitoring.
The insulated containers segment is the highest contributor to the market and is expected to grow at a CAGR of 10.80% during the forecast period. The packing types used to carry temperature-sensitive goods, including meals, medications, biological materials, and chemicals, include insulated containers. Expanded polystyrene foam (EPS, also known as Styrofoam), molded foams consisting of polyurethane and polyethylene, and vacuum insulated panels (VIPs), among other materials, are some of the materials used to make insulated containers. Insulated containers are also essential in the cold packaging industry for keeping shipments fresh and avoiding product spoilage or rotting during lengthy transports due to environmental factors. Additionally, the insulated container features a vacuumed double wall to stop heat and cold from transferring from the inside to the outside.
The refrigerants in cold chain packaging are used inside containers to maintain a consistent internal temperature, protect temperature-sensitive goods like food and pharmaceuticals, and enable end-user industries to effectively cut operational costs without sacrificing product quality. The pharmaceutical business is a large user of refrigerants. Products like vaccines and medications, among others, are packaged using a refrigerant to protect them and retain their quality throughout shipping. Depending on the use, the refrigerant is available in various shapes and sizes, including gel packs, bricks, and wraps.
In order to determine whether goods have been subjected to undesirable circumstances in the cold chain packaging supply chain, temperature monitoring equipment is utilized to track the temperatures of the products during transportation and storage. The majority of temperature monitoring equipment comprises indicators, recorders, and monitoring tools that take into account the handling and shipping phases of the cold chain to promote proper handling and transportation of temperature-sensitive goods by alerting shipping workers visually. Single-use temperature indicators are obvious and simple to read. Coldmark temperature indicators, Warmmark temperature indicators, Warmmark dual indicators, FCP decreasing temperature indicators, and Cold Chain Complete Indicators are some of the temperature indicators provided by vendors in the global cold chain packaging market.
Based on end-user application, the global cold chain packaging market is bifurcated into food, dairy, pharmaceutical, and others.
The food segment owns the highest market share and is expected to grow at a CAGR of 10.50% during the forecast period. Fruits and vegetables are agricultural products that are very nutrient-dense. Additionally, due to their high perishability and ease of rotting, they lose qualitative traits and cause food loss. Over the years, cold chain solutions have been used to lessen fruit and vegetable quality loss from farm to table. The demand for healthful food is rising, and developing middle classes in countries like China and India are driving the globalization of cold chains. Consumers now want more expensive goods, like Alaskan salmon, which must move fast and long distances to maintain quality and freshness. More high-end goods are entering the market, with different demand levels, more sensitivity to temperature, and shorter shelf lives.
Dairy products must be handled carefully throughout the cold chain due to the risk they pose to customers if it is compromised. Listeria in ice cream and salmonella in milk are just two examples of dairy supply chain contamination that has hit the news. Dairy processing or packaging plants must have a food safety plan because it is one of the many food categories covered by the Food Safety Modernization Act. Dairy products can get contaminated with harmful bacteria if not kept at a constant temperature of zero. Supply chain managers must take all necessary precautions to ensure that the cold dairy chain is unbroken.
Pharmaceutical products are increasingly being sent internationally to reach their markets due to increased product specialization and sensitivity. Many pharmaceutical manufacturers have raised standards throughout their supply chains due to the tight restrictions that logistics operations must adhere to in every region. Pharmaceutical companies now deal with more delicate items, like specialized therapies for uncommon diseases, which frequently contain more expensive active components with limited shelf lives and tight temperature requirements. A lot of pharmaceuticals need to be maintained at or below 77 degrees Fahrenheit, and some need to be transferred over a cold chain between 35 and 46 degrees. Although these medications are safe at room temperature, they must be kept while transported in temperature-controlled containers, such as reefers, to prevent temperature increases.
The global cold chain packaging market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Europe Dominates the Global Market
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Europe is the most significant global cold chain packaging market shareholder and is expected to grow at a CAGR of 9.90% during the forecast period. After the pandemic shut down the food service sales channels, leaving their suppliers looking for new clients and a place to store the unsold food, the demand for cold-storage units in the area increased. Additionally, there is a greater need for cold chain packaging solutions in the area due to the rising demand for pre-cooked meals, frozen meat, and other frozen and chilled food and beverages. Pharmaceutical companies have been pressured to create temperature-controlled containers that meet the requirements of deep-frozen vaccine storage because COVID-19 vaccines must be maintained at temperatures as low as -70C. Due to these reasons, the need for cold chain packaging solutions has grown throughout the area.
North America is expected to grow at a CAGR of 9.90%, generating USD 15.23 billion during the forecast period. The demand for cold chain packaging in the region is driven by the rising need for pharmaceutical storage and the region's growing demand for frozen and chilled food and drinks. Cold chain packaging is crucial in managing the supply chain for storing and transporting temperature-sensitive goods. Canada is home to many significant pharmaceutical development firms, including Novartis, Johnson & Johnson, Gilead, Teva, and Apotex. In addition, Pelican BioThermal launched a network station in Toronto in February 2020 to sell its Crdo Cargo and Credo Xtreme shipping containers as part of its Demand Rental program. To diversify its offering of temperature-controlled packaging, the company has bought NanoCool, a manufacturer of such products in Mexico.
Asia-Pacific is expected to grow significantly during the forecast period. Due to the government's reduction of import tariffs on frozen food and the rapid development of food outlets, the demand for frozen food is growing in China. It is anticipated that the tendency to eat at Western restaurants and experiment with Western cuisine will increase demand for frozen meat and other chilled foods and beverages. In order to update the region's cold chain infrastructure by November 2020, the local food and retail businesses backed the Indian government's approval of 27 new projects by the Minister of Food Processing Industries (MOFPI). This is projected to aid in increasing the local agri-food sector's export potential and decreasing food waste, both of which are expected to stimulate demand for cold chain packaging solutions in India's food and beverage industry.
The demand for food, beverages, pharmaceuticals, and food in LAMEA has increased since the epidemic began, necessitating an increase in cold chain packaging. Many businesses in these areas have been concentrating on growing their facilities and investing in more recent inventions and technologies. For instance, Softbox purchased Cold Tech Systems to increase its footprint in Latin America. Cold Tech Equipment was the sole Softbox licensee in Latin America for several years, providing temperature-controlled packaging systems to the region's pharmaceutical cold chain market. With the acquisition, Softbox could serve the region's growing need for local production, inventory, and technical support while directly distributing its temperature-controlled packaging systems to the Latin American market.