A Forward analysis of Cold Chain Market.

A Forward analysis of Cold Chain Market.

A cold chain is also known as the cool chain can be defined as a supply chain controlled by temperature. It refers to maintaining the temperature of perishable products so as to ensure the existing quality standards of the product till it reaches to the final consumer.

The cold chain network protects the products from getting decomposed and ensures that they are safe and maintain high quality standards at the point of consumption. Most of the food is perishable, so unless they are not maintained at correct temperatures these products are prone to textural degradation, discoloring, and microbial growth. Moreover, the customer satisfaction and protection of public health are the mandatory elements towards the growth of the global cold chain market.

The market usually works in a chain based mechanism. Each sector that is involved in this chain, from the point where the product is harvested or manufactured and to the point at which it is sold, has equal responsibility in maintaining the quality of the food products. Cold chain technology involves proper planning of temperature of sensitive products through refrigerated and thermal packaging methods.

The primary benefit of the cold chain is that it increases the shelf life as well as in maintaining the good quality of the concerned products. The sectors that are part of the cold chain market are raw material suppliers, secondary sources, food safety agencies, and end application users such as livestock producers and the intermediary providers in the form of logistic service providers and warehousing agents.

Study of Cold Chain Market – Crisp Insights

The global cold chain market was valued at US$187.8 billion during 2016. The increasing demand for the frozen and chilled products has boosted the global cold chain market. Especially, the increase of investments in frozen food industry is leading towards the growth of the cold chain market. Market research analysts are predicting that the global cold chain market will grow at a CAGR of 7.5% that is expected to value worth US$ 269.91 billion by 2021.

The seafood sector is estimated to grow steadily within this cold chain market segment in the upcoming years. In addition to the food industry, other sectors being served by global cold chain market are agriculture, chemical industries, drugs and pharmaceutical industry.

Europe holds the largest share of the global cold chain market. The growth in the demand for frozen foods across European nations is one of the factors for the growth in this region. The governments in Asia-Pacific Regions especially in India had allowed 100% FDI in cold chain industry thereby boosting the growth in this region.

The economies of the emerging nations of the Asia-Pacific region are expected to rise further in the coming decades especially in countries such as India, Brazil, China, and Mexico due to heavy expenditure being made towards the development of cold chain infrastructure in the from cold storages, logistics and for the development of transport facilities.

Significant investments are being made on the warehouse automation and security installations by logistic firms thereby contributing towards the growth in global cold chain market. As the safety of the products during the transportation is an important aspect, the retailers from the developing economies are investing heavily for enhancing their logistic systems.

The increase of technology in the form of RFID, barcode scanners and other gadgets is anticipated to drive the monitoring compounds segment. Major players that are leading the cold chain global market include Dev Bhumi Cold Chain Limited, Conestoga Cold Storage, Cloverleaf Cold storage, Continental Air Cargo, World Courier, Nagel International AG, etc.

Advantages of Cold Chain Market – Protection for Perishable Products

The major advantages or benefits of the cold supply chain are:

Valuable extension to the shelf life of products
Growth in the access of overseas market
It prevents the products from decaying
Ability to meet huge local demand
High-quality products contributes to the customer satisfaction

Cold Chain market as a network of facilities and the distribution options performs the necessary functions of the standard supply chain cycle with temperature and humidity control. Witnessing the rapid increase of demand, the food industry and the medications segments are expected to contribute more to the global cold chain market in the coming decades.

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