Today, the Indian cold chain market is estimated to be USD 11.64 billion, growing at a CAGR of 9.72%, and is expected to reach USD 18.19 billion by 2029. Although the country is one of the world’s largest producers of milk and the second-largest producer of fruits and vegetables, 1.3 billion tons of food is wasted annually, resulting in estimated losses of USD 8-15 billion annually, according to the Food and Agriculture Organization. With the pandemic propelling the demand for e-commerce and quick commerce of perishable foods and life-saving drugs, materials, and vaccines, a robust and well-managed cold chain network is imperative.
Challenges Plaguing the Cold Chain Logistics Market in India
Managing the cold chain in today’s quick commerce environment is like a complicated game, with each move impacting the goal of bringing consumers safe, high-quality, perishable food. However, this growing sector presents unique challenges that require tailored cold chain solutions to cater to the diverse climate conditions, infrastructure limitations, and logistical complexities.
- Infrastructure Development: Investment in cold storage infrastructure is crucial to support the growing demand. The Government of India has also recognised this need as part of its “Integrated Cold Chain and Value Addition Infrastructure” scheme, which includes the development of temperature-controlled warehouses, distribution centers, and transportation facilities.
- Optimization with Technology: Efficient logistics and transportation are key to maintaining the cold chain. Adoption of new-age solutions that advance routing and scheduling systems, combined with real-time tracking, is becoming necessary to help optimise delivery times and reduce transit times.
- Training and Education: One of the critical challenges plaguing the sector’s growth is awareness and skilling. Building a skilled workforce will be essential for successfully implementing new-age cold chain solutions and maintaining the integrity of perishable goods.
Innovative Technological Solutions Enabling Cold Chain Logistics
Today, an unbroken chain in food retail and delivery is imperative for any food company and retailer to successfully achieve a sustainable ‘farm gate to customer’ goal. Innovations with climate technology at the core are emerging to improve the visibility and traceability of perishable items, help stakeholders communicate, and ensure adherence to best practices and regulatory requirements for food safety.
Some of the Latest Tech Tools
Real-time Monitoring with IoT Technology: Real-time monitoring and tracking are proving to be a game changer for the producers of perishable food items and goods, ensuring the freshest product for consumers. Internet of Things (IoT) sensors and devices can continuously monitor temperature, humidity, and other critical parameters, ensuring that products remain within the required conditions throughout their journey. For instance, IoT-enabled devices can send real-time alerts if there are any deviations from the optimal temperature range, allowing for immediate corrective actions. This aids in upholding product quality and effectively addressing food waste, aligning with many companies’ sustainability commitments.
Blockchain for Traceability: Blockchain technology is being increasingly used to enhance traceability within the cold chain. By providing a secure and immutable record of each transaction and movement, blockchain ensures transparency and accountability for food products at every supply chain step. Moreover, with growing food safety concerns and compliances, adopting an effective traceability technology is crucial in building consumer confidence.
Advanced Refrigeration Systems: Modern refrigeration systems are designed to provide excellent performance and energy efficiency. They are equipped with advanced controls and automation features to optimize temperature regulation and reduce energy consumption. For example, Copeland’s climate-friendly refrigeration system and solution solutions include state-of-the-art compressors and control systems that provide precise temperature management, protecting valuable products from spoilage while significantly reducing energy costs.
Strengthening the ‘End-to-End’: In the new era of food safety, technology and solutions that provide seamless monitoring and traceability from harvest to delivery are becoming more critical than ever. However, supporting these oversight technologies is insufficient and needs to sync with climate imperative.
For example, to solve the expansion plans of a global e-commerce player, Copeland’s integrated and sustainability-focused approach successfully helped one of the largest and most expansive shopping platforms in the world sustainably strengthen its foothold in the rapidly growing Indian e-commerce market with energy-efficient solutions. The success of such deployments is gaining traction with an increasing shift towards adopting sustainable practices. These efforts reduce environmental impact and enhance operational efficiency and cost-effectiveness, supplementing the industry’s commitment to sustainable growth and foremost ensure safety of food and pharma products.
Sandeep Gupta is the Vice President and Managing Director of Copeland India
