The global cold chain market is on track to reach $426.2 billion in revenue by 2022 due to rising demand for frozen food, growth in the pharmaceutical industry, and higher investments in temperature-control infrastructure and technologies, a report released Friday says.
Revenues of that size would mark a compound annual growth rate (CAGR) of 13.9 percent from the sector's revenues of $110.20 billion in 2014, according to the Beijing-based market research firm QY Research Groups.
Refrigerated distribution and storage activities are typically used for handling products such as frozen food, chemicals, seafood, fresh agriculture products like fruits and vegetables, photographic films, pharmaceutical drugs, and other perishable items.
The highest revenue gain in that group for 2015 was in the frozen meat and seafood sector, which now represents abound 35 percent of the total cold chain logistics market, according to the report, "Global Cold Chain Monitoring Sales Market Report 2017." But growth in several other sectors is also helping to drive further expansion, such as increasing awareness about healthy nutrition that is boosting demand for dairy products. Other sectors forecast to show strong growth include bakery products and the pharmaceuticals and drugs sector, the report found.
Despite that rising demand, growth of the cold chain industry could be restricted by precise requirements for low variance in desired temperature ranges and by the high cost of cold chain system equipment installation, QY Research found. Shippers demand precise environmental parameters in cold chain logistics because variations in humidity, oxygen, or carbon dioxide can quickly harm fresh and perishable products, the report said. For example, different products require their own target temperatures to ensure their quality throughout the transport chain, such as bananas (55 degrees Fahrenheit), pharmaceuticals (35 to 46 degrees), chilled items (35 degrees), frozen products (-0.5 degrees), and deep frozen items (-20 degrees).
According to the report, major players in the global cold chain logistics market include: Crystal Logistic Cool Chain Ltd., SSI Schaefer Systems International, Inc., DHL International GmbH, Lineage Logistics Holdings LLC, Americold Logistics, Kloosterboer, AIT Worldwide Logistics Inc., Partner Logistics, X2 Group, Preferred Freezer Services, Nichirei Logistics Group Inc., Burris Logistics, BioStorage Technologies Inc., Best Cold Chain Co. Ltd., Agro Merchants Group LLC, CWT Ltd., Gruppo Marconi Logistica Integrata, JWD Group, NewColdCooperatief U.A., and OOCL Logistics.
Gartner, Inc.