Global Cold Chain Market to Expand as E-Commerce Food Channels Gain Popularity

The demand within the global cold chain market is treading along an ascending graph in recent times. The relevance of cold chains in the food and beverages industry cannot be undermined. The sheer size of this industry has helped vendors operating in the cold chain market to capitalise on existing growth opportunities. Furthermore, the development of cold chains has helped in reducing warehousing losses, enabling food manufacturers to create room for new investments. Development of cold chains has been earmarked as a critical success factor for several industries, especially the ones related to storage of food products.

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In light of the trends stated above, it is safe to prognosticate that the global cold chain market would grow at a sound pace in the years to come. This blog by TMR Research is a sound description of the leading trends that have shaped the growth of the global cold chain market.

Cold-storage Trucks

The growth of the e-commerce industry has opened new avenues for revenue inflow into the global cold chain market. Several e-commerce channels are now equipped with cold chains in the form of cold-storage trucks and trolleys. When food products are transported over long distances, it is absolutely essential to maintain cold chains through the way. The development of cold chain vehicles is an important dynamic of growth across the global cold chain market.

Popularity of Preservative-blended Food Products

Over the course of the next decade, the total volume of sales within the cold chain and cold storage sectors shall increase. Growing popularity of food products that are blended with preservatives has created increased demand for cold chains. Besides, development of new and advanced departmental stores across cosmopolitan cities has also driven demand within this market.

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Some of the notable vendors in the global cold chain market are Lineage Logistics Holdings, Burris Logistics, Nichirei Corporation, and Agro Merchants Group.

Cold Chain Market Prospering as Demand for Frozen Food Escalates in APAC

For the food and beverage industry, supply chain is of great essence and invariably, that chain has to be a cold one in order to preserve the products before they reach their destined consumers. With increased disposable income, urban populations are now experiencing a lifestyle that involves usage of frozen and chilled food and beverages, and that has prompted the usage of modern equipment and warehouse that provide adequate environment for it – cold chain as it is called. According to a recent business intelligence report by Transparency Market Research (TMR), the global cold chain market is poised for a prosperous future with the demand projected to expand at a formidable CAGR during the forecast period of 2016 to 2024.

This report, titled “Cold Chain Market for Food Industry – Global Industry Analysis, Size, Share, Growth, Trend and Forecast 2016 – 2024,” is a result of rigorous research by the analyst using industry standard methodologies, which included primary and secondary assessments, compilation of data from reliable sources, and interviews with industry experts. The report has been developed to aid as a business tool for a pool of clientele including warehouse owners, cold chain equipment manufacturers, refrigerated storage owners, food processing businesses, livestock producers, government agencies, and seafood companies.

The report includes chapters that segments the market for cold chain into smaller aspects and throws light on the magnitude of demand that can be expected out of different regions and countries. Figurative data for each of the segments and regions has been provided in terms of US dollar million. The report also analyzes different factors such as drivers, restraints, and challenges that will determine the future of the cold chain market as well as identifies some of the trends that are emerging.

Based on type, the cold chain market can be segmented into refrigerated transport and refrigerated storage. On the basis of temperature maintained, the market can be bifurcated into frozen and chilled. Application-wise, different types of food industry players who use cold chain are fish, meat, and seafood product producers, dairy and frozen desserts manufacturers, bakery and confectionery products, and fruits and vegetables. Currently, dairy and frozen food manufacturers are cultivating the most prominent chunk of demand, as these products are highly vulnerable to room temperatures, sunlight, and dust.

Geographically, vastly populated Asia Pacific continues to be the region with maximum demand potential. Urbanization is radically expanding in countries such as China and India and these masses are generating strong demand for food that require a cold chain to sustain against spoiling.

Growth in international trading owing to trade liberalization, growing consumer preference for perishable foods, increase in demand for convenience food, and strengthening supply chain are some of the key factors augmenting the demand for cold chain within the food industry. On the other hand, high requirement of energy, need for proper infrastructure, environmental concerns pertaining to greenhouse gas emissions, and lack of skilled labor are some of the restraints curtailing the market’s progress.

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Burris Logistics, Americold Logistics, Preferred Freezer, Nichirei Logistics, and Lineage Logistics are some of the notable players in this market.