Global food cold chain market is projected to grow at a CAGR of 8.56% during the forecast period (2020 - 2025).
- Cold chain for food is based on refrigeration and freezing technology for the storage, supply, processing, and distribution of food products, in order to ensure food quality, safety, and minimize loss.
- The growing technological advancements in monitoring, tracking, and managing the cold chain by various components, have fueled the cold chain market in the food industry. The technology helps in assisting the supply chain by real-time monitoring, which saves time and provides ease of monitoring with reduced product loss.
- Various factors driving the market are the technology used in food cold chain logistics, expanding organized food retail chain (supermarket/hypermarket), growing international trade, and government support for food supply chain.
Key Market Trends
Increased Global Trade of Perishable Products
Fresh foods like fruits, vegetables, meat, poultry, and dairy, require an uninterrupted cold chain, due to their perishable nature. By providing controlled temperature, humidity, and atmospheric conditions, the cold chain can increase the shelf life of the products. For example, fresh fruits and vegetables are perishable products, whose quality can deteriorate in 2-3 days. If kept in a refrigerated condition, product shelf life can increase by days or even months. Perishable products, such as meat, fish/seafood, fruits, vegetables, and dairy products, are traded in bulk, as compared to processed products. The shelf life of meat/fish is just a few hours. A region like the Middle East, which is majorly dependent on the import of food to meet its consumer’s demands, requires cold chain transport and storage.
Europe Holds the Largest Market Share in the Food Cold Chain Market
European region holds the largest share in the food cold chain market, globally, in terms of value, in 2018. There is a steady increase in demand, particularly for cold chain due to a continuous increase in domestic consumption of high-quality perishable commodities. Furthermore, emerging economies, such as China, India, Brazil, Mexico, South Africa, Argentina, and the Middle Eastern countries, are rapidly growing as a consumer-led economy. These economies are with huge consumer population, warmer climate and so, provide a significant contribution in global food trade. Hence the cold chain development rate is much higher in these economies.
Global food chain companies are significantly contributing to the cold chain development with regional players, for better market penetration and expansion. Major Key Players include Americold Logistics, Lineage Logistics (Preferred Freezer Services), Nichirei Corporation, and VersaCold Logistics Services, among others.
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