Why is a robust cold chain crucial for growth in the canned and frozen food sector?

Developing a seamless cold supply chain is crucial to support the growth of the frozen and canned food sector due to the numerous challenges in handling and processing these foods, particularly during storage and transportation.

Frozen food is gaining prominence in international trade, with the urban population increasingly preferring easy-to-prepare foods. From fruits and vegetables, dairy products, bakery (such as bread, jams, and frozen pizza crusts etc.), meat and seafood, confectionaries, frozen desserts and exotic imports to ready-to-cook snack items like French fries, the frozen food sector is expanding to include a variety of foods that are catering to restaurants, cloud kitchens and retail segments.

Due to the rapid changes in modern urban lifestyles, especially after Covid, it is not surprising that the global frozen food market is predicted to grow to USD 385.04 billion by 2028 at a CAGR of 5.98 percent from 2021 to 2028, according to IMARC Group. The frozen food market in India is expected to reach INR 353.3 billion by 2028, with a growth rate (CAGR) of 16 percent from 2023-2028. The Indian ice cream market, valued at USD 3.01 billion in 2022, is expected to grow at a CAGR of 15 percent between 2023 and 2028, reaching a value of approximately USD 6.96 billion by 2028.

However, there continue to be many challenges regarding adequate handling and processing of frozen and canned foods, especially during storage and transportation, making it vital that a robust, tech-enabled and seamless cold supply chain is developed to support the growth of the sector, as mentioned above. Some of these challenges plaguing the sector are as follows:

Maintaining different temperatures for different products: Consistently storing frozen foods at optimal temperatures is quite challenging. Even if storage facilities adhere to the requisite temperatures, inefficient handling during transportation can cause damage to the product. Inefficient career vehicles, unskilled staff and delivery agents, and conventional storage equipment like ice boxes and dry ice instead of well-equipped reefer vehicles can all cause compromises in temperature levels making food unfit for consumption.

Food safety concerns: Inefficient storage or transport conditions pose a threat of damage and risk of cross-contamination and bacterial growth. Especially during summer, there are higher chances of smaller temperature fluctuations causing massive contamination, given the humidity and severity of the natural environment. Even slight exposure to the same can often render the entire batch harmful, leading to bigger losses and healthcare risks.

Maintaining a constant temperature for the sustainability of frozen foods is a major concern. However, most challenges faced by the frozen food sector can be solved with a robust cold chain infrastructure.

Herein below is how a cold chain infrastructure can drive the growth of the frozen food sector.

Efficient and consistent storage environment
Leveraging tech-enabled solutions linked with AI and ML, it is possible to create and monitor temperature-controlled storage environments for various frozen food products, including vegetables, fruits, ice materials. Technologies like IoT help maintain the ideal temperature and humidity, enabling businesses to maintain the chain’s integrity and identify potential weaknesses. Cold storage facilities with remote monitoring systems can communicate logs and events to companies. IoT provides live data about product temperature and location, facilitating better analysis and decision-making.

Reduced losses due to wastage
Businesses often face huge losses due to spoilage. Fluctuations in temperature can render the product unfit for consumption. Consistently maintaining temperatures during storage and transportation is vital to reduce damage and, thus, wastage of Frozen foods. Technologies like automation enhance productivity, picking accuracy, and faster fulfilment. These also contribute to food security by preventing unnecessary food wastage and losses.

Effective distribution
Efficient distribution is an inseparable part of the cold supply chain infrastructure, and effective and tech-enabled reefer vehicles go a long way in facilitating the smooth transportation and distribution of frozen foods. Specialized distribution centres dedicated to supporting the effective storage of frozen foods play a critical role in effective distribution, especially for products being shipped internationally. With dedicated micro-warehouses and a robust fleet of reefer vehicles with live tracking and tracing, allowing end-to-end visibility helps businesses verify if the products are being transported at the right temperatures and making it to the destination on time, without damage to the products.

Enhanced food quality and customer satisfaction
In line with the above, a robust and efficient cold supply chain can do wonders in preserving the freshness and quality of frozen foods, including desserts. Maintaining temperature integrity helps extend the shelf life. This, in turn, helps create a better customer experience and delight, a good brand reputation, increased regulatory compliance, and fewer disputes and liabilities.

Cold storage and transportation infrastructure is the backbone of the frozen food sector. It guarantees improved product safety, quality, and integrity. Cold chain infrastructure ensures access to new markets and increased opportunities for imports and exports for frozen food businesses. With the cold chain infrastructure continuously evolving and innovations enabling frozen food businesses to cater to consumer demands more efficiently, the industry will reach new heights in the future.