The global cold chain logistics market seems to reach USD 842.91 billion by 2028, at a CAGR of 22.18% from 2021 to 2028. The increasing demand for temperature-controlled products and the growing awareness regarding food safety are the key factors driving market growth, according to the latest report by Reports and Data.
The cold chain logistics market is segmented into refrigerated storage and transport. The transport segment is anticipated to grow at a faster rate as compared to the storage segment due to increasing demand for frozen food and other temperature-sensitive products. In terms of the end-user industry, the food and beverage segment held the largest market share in 2021. The segment is expected to witness significant growth over the forecast period owing to the increasing demand for convenience food and rising health consciousness among consumers.
The Asia Pacific region is expected to witness the highest growth rate over the forecast period. The growth can be attributed to the increasing demand for convenience food due to the changing lifestyle of the people in the region. Furthermore, the growing health consciousness among consumers is expected to drive the demand for temperature-controlled food, thus fueling the growth of the market.
The market is highly competitive and the major players are focusing on product innovation and advanced technology to gain a competitive advantage. For instance, in 2019, Americold Logistics LLC acquired VersaCold Logistics Services, a leading provider of temperature-controlled logistics solutions in Canada. This acquisition will help Americold expand its operations in the North American market.
The report covers a comprehensive analysis of the key market players and their strategies to gain a competitive edge. The key players profiled in the report include Americold Logistics LLC, Lineage Logistics LLC, Henningsen Cold Storage Co., Nichirei Logistics Group Inc., Swire Cold Storage, Burris Logistics, Cloverleaf Cold Storage, Preferred Freezer Services LLC, Kloosterboer Group B.V., and VersaCold Logistics Services.
The report provides an in-depth analysis of the market trends, drivers, and strategies to help the stakeholders capitalize on the prevailing opportunities in the market.
Restraints of Cold Chain Logistics Market
- Temperature Control: Temperature control is one of the biggest restraints of the cold chain logistics market. Temperature control is critical to maintain the quality of the products and to ensure that they are safe for consumption. Cold chain logistics providers must have the ability to maintain a certain temperature range for a long period. This is often difficult to achieve and can be costly.
- Cost: Cold chain logistics is a costly process due to the need for specialized trucks, storage units, and other equipment. In addition, due to the need for temperature control, there is an additional cost associated with energy consumption.
- Regulatory Environment: The regulatory environment surrounding cold chain logistics is complex and ever-changing. Regulatory agencies can impose various requirements that must be met to operate a successful cold chain logistics business.
- Lack of Infrastructure: Cold chain logistics require specialized infrastructure that is often not available in many areas. This can make it difficult to establish a cold chain logistics business in certain areas.