The global cold chain market is anticipated to reach $381.68 billion by 2025, according to a new report by Grand View Research, Inc. The expansion of trade over the years has arisen the necessity of making improvements in the packaging of crops, as the materials used for packaging play a major role in enhancing the storage life.
The following are excerpts from the report, which looked at the cold chain market from 2014 through 2025:
The development of cold chain is largely responsible for the reducing the waster of perishable commodities and is vital for the growth of the food sector. Governments across the globe provide key services, such as public infrastructure and legislation, which help in facilitating the refrigerated storage development. Furthermore, service providers train employees to enhance technical expertise in the operation and maintenance of specialized facilities.
Emerging countries such as India, Brazil, China and Mexico currently are undergoing a rapid transition to a consumer-led economy. The retailers in these regions have ample opportunities to expand and grow, owing to the prevailing large number of middle-class income consumers. Advancements in the technology have enabled service providers to penetrate the emerging markets with innovative solutions to help solve issues relating to complex transportation.
Investment in warehouse automation has been increasing over the past years to meet the customer requirements. High capital investment, running costs and scalability of different picking methods are the key factors that restrain the market players to automate the warehouses. Furthermore, the growing application of telematics in logistics and transportation is likely to spur the refrigerated transportation market demand.
The retailers and franchise customer have vertical integration with the cold chain service providers to ensure the safety and quality of the product. The lack of cold chain facilities in less-developed economies made retailers to invest heavily in developing own cold chain logistics systems.
The increasing penetration of connected devices and growing usage of RFID, barcode scanners in the refrigerated warehouse is anticipated to drive the monitoring components segment demand over the projected period. The service providers are focusing on adopting new technologies such as cloud technology to enhance the overall logistics performance.
Further key findings from the report suggest:
The storage type segment dominates the market in terms of revenue.
The containerization of perishable products is expected to increase the demand for refrigerated containers over the forecast period.
The rapid detection methods, such as nucleic acid-based, immunological-based and biosensor-based foodborne detection methods, are gaining traction in the market.
The processed food application is expected to register a high CAGR of 12.1 percent over the projected period.
The Asia Pacific region is expected to portray a high growth rate over the forecast period.
The rising popularity of quick-service restaurants, technological advancements in food packaging, and modern retail trade are driving the processed food application.
The key market players include Lineage Logistics (U.S.), Nordic Logistics (U.S.), Swire Group (UK ) and Wabash National Corporation (U.S.).
Read the full report here.