A significant portion of supply chain activities in the food industry relies on the ability to manufacture, store and transport temperature-sensitive food ingredients and products – and it’s rapidly growing.
In fact, according to recent research released by Custom Market Insights, the demand of global cold chain logistics market size and share was valued at over $321 billion in 2023 and is estimated to be over $368 billion in 2024. The market is expected to reach a value of over $1,245 billion by 2033, at a compound annual growth rate (CAGR) of about 14.5% during the forecast period 2024-2033. That’s some tremendous growth, to put it mildly.
This cold chain logistics boom is presenting new opportunities (and requirements) for food shippers to cut costs, reduce waste, and help create a more sustainable future for temperature-sensitive products and materials.
According to this research, factors driving this dramatic growth underscores what many industry observers have been talking about over the last 24 months:
Expanding Global Food Trade. A significant increase in demand for perishable food products, coupled with globalization and shifting consumer preferences, is driving rapid growth of the cold chain logistics market. Expanding international trade involving fresh produce and seafood is necessitating efficient cold chain infrastructure to maintain product integrity and safety during transportation.
E-commerce & Online Grocery Retailing. The rapid explosion of e-commerce platforms and online grocery retailing is driving the demand for cold chain logistics services. More and more, consumers are purchasing fresh and frozen food items online - requiring reliable temperature-sensitive transportation and warehousing solutions to ensure product quality and freshness through delivery.
Advancements in Technology. Innovations such as blockchain-based traceability solutions, temperature monitoring devices enabled by the Internet of Things (IoT), advanced refrigeration systems, and innovative packaging are transforming the cold chain. These emerging technologies enhance transparency, visibility and real-time tracking capabilities—enabling more effective cold chain management and risk of product spoilage or loss.
Emerging Markets & Rapid Urbanization. Urbanization, along with changing dietary preferences in emerging markets, are creating significant opportunities for the cold chain logistics market. Rising disposable incomes, urbanization trends, and an increasing demand for convenience foods are having an impact on this market and the need to efficiently transport perishable goods from production hubs to urban centers.
Tightening Regulatory Requirements. Regulations such as the Food and Drug Administration’s Food Safety Modernization Act (FSMA) in the United States and quality standards imposed by regulatory authorities are changing practices by food shippers and their providers in cold chain logistics.
So buckle up, food shippers, and continue to navigate through this rapid growth. You can do this through close collaboration with your logistics providers, carriers and technology innovators; and exploring emerging trends and new opportunities found in FSA’s communication and educational channels, as well as at the annual Food Shippers Conference. The cold chain logistics boom is happening – and much of it is managed and driven by you.
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