Global cold chain market to reach $340.3 Bn by 2025

The global cold chain market is estimated to be valued at USD 233.8 billion in 2020 and projected to reach USD 340.3 billion by 2025, recording a CAGR of 7.8%, in terms of value, reports MarketsandMarkets.

The rise in consumer awareness to mitigate food wastage and the increasing consumer demand for convenience food & beverages with increased shelf-life has been boosting the cold chain market, globally. Governments of numerous countries have been bolstering the infrastructure investment of the cold chain, which has been augmenting the cold chain market growth.

Significant growth for bakery & confectionery application segment
Based on the application, the cold chain market is dominated by dairy & frozen desserts. However, according to MarketsandMarkets report, the bakery & confectionery segment is among the fastest-growing segment during the forecast period. Temperature monitoring is a key aspect of quality control and food safety for various bakery and confectionery products. Refrigerated warehousing is used for bakery & confectionery products, which include bread, cakes & pastries, pizza crusts, waffles, biscuits, cookies, pastry shells, bagels, pretzels, and donuts.

The increasing demand for convenience foods has led to a growing demand for frozen bakery & confectionery products. The temperature range of frozen bakery & confectionery products plays an important role in maintaining product quality. Asia Pacific and North America are the two regions expected to drive the market for bakery & confectionery products.

Frozen temperature type segment to account for major share
By temperature type, the cold chain market is dominated by the frozen segment, MarketsandMarkets report said. The products that move through the cold chain are either chilled or frozen. Chilling involves reducing the temperature to below ambient temperatures but above (–) 1-degree C. Chilled products include fresh meat & poultry, dairy products, and fruits & vegetables.

Frozen products include ice cream and meat & seafood. A typical temperature range for frozen food products is (–) 18-degree to (–) 25-degree C. With the development of technology, there are wide options available such as chillers, blast freezers, individual quick freezing (IQF), and freeze dryers to maintain cold conditions and better food handling, processing, storage, and transportation.

Asia Pacific region is the largest in cold chain market
The growth of the cold chain market is attributed to the rise in international trade of perishable products. Several countries are becoming the key importers and exporters of perishable food products. In emerging economies, such as China and India, governments are also extending support for infrastructure development in the cold chain industry. For instance, in 2010, the Chinese National Development and Reform Commission (NDRC) prepared a development plan for cold chain logistics for agricultural products. It identifies key projects and will provide lucrative growth opportunities for manufacturers in the cold chain market.

According to the MarketsandMarkets report, the major challenge faced by the Asia Pacific region is the lack of an integrated supply chain from farm to fork. Governments in the region have been initiating the required steps to improve the cold chain industry. They have imposed favorable regulations and offering subsidies. For instance, the Indian government has introduced various schemes to support the cold chain industry. The Ministry of Food has been aiding the development of cold chain infrastructure. This is being done under the scheme for cold chain, value addition, and preservation infrastructure. The governments in various Asian countries have also been bolstering the cold chain regulatory bodies for strategic collaboration with major food & beverage manufacturers and retail chains to fuel the market for cold chain.