The world’s leading source for international market research reports and market data, Research And Markets has recently published a report titled, “Cold Chain Logistics Market Outlook to 2029.” According to the report, the expansion of e-commerce and global trade further propel this market, necessitating efficient cold chain solutions to ensure product integrity during transportation and storage.
Industry leaders Americold Logistics LLC, Lineage Logistics Holdings, LLC, United Parcel Service (UPS), Deutsche Post DHL Group, and Kuehne + Nagel International AG continue to play pivotal roles in this sector. These companies leverage strategic acquisitions and expansions to address market demands efficiently. In October 2023, Americold Logistics, Inc. acquired Safeway Freezers in Vineland, NJ, for $24.0 Mn, enhancing its storage capacity significantly.
Current Market Analysis
The APAC region leads the cold chain logistics market, fueled by strong economic growth, urbanization, and demand for perishable goods. Investments in infrastructure and the burgeoning e-commerce sector, projected to reach USD 4.20 trillion in 2024, contribute to market expansion. The region benefits from supportive government policies aimed at modernizing logistics.
North America emerges as a key market area, driven by robust infrastructure and advanced technology, meeting the high demand for temperature-sensitive items. Regulatory improvements and significant investments in cold storage and IoT adoption enhance the region’s market positioning. India stands out as a crucial market player with its massive population and urbanization, driving demand for cold chain solutions.
Government initiatives such as the Pradhan Mantri Kisan Sampada Yojana and National Cold Chain Infrastructure Policy bolster the sector’s growth with substantial infrastructure and funding support.
Logistics Market Segmentation
Market segmentation highlights cold storage and transportation services, with cold storage leading due to its essential role in preserving quality. The chillers segment dominates in maintaining crucial temperature ranges for pharmaceuticals and perishables. Third-Party Logistics (3PL) providers lead in managing comprehensive logistics solutions, further cementing their dominance.
Logistics Competitive Landscape
Lineage Logistics Holding has expanded its infrastructure, notably with a next-generation facility in Tauranga, New Zealand. United States Cold Storage’s $48 million investment in Tennessee supports major food manufacturers like Unilever. Nichirei Logistics Group’s mergers in Europe enhance its logistics capabilities.
Logistics Industry Analysis
Growth is driven by the expanding pharmaceutical sector and e-commerce boom, demanding robust cold chain solutions. Stricter regulations and improved quality standards aim to reduce food waste and ensure sustainability.
Future Market Outlook
The market is poised to reach USD 490 Bn by 2029, buoyed by increased demand and technological advancements. Future trends indicate a shift towards sustainable practices and enhanced last-mile delivery solutions, driven by growing e-commerce and consumer expectations for temperature-controlled deliveries.
