The global refrigerated warehousing market is expected to record a CAGR of more than 14% until 2020, according to the latest research report released by Technavio, Elmhurst, Ill.
This report, titled “Global Refrigerated Warehousing Market 2016-2020,” provides an in-depth analysis of the market in terms of revenue and emerging trends.
“Several cold chain service providers have recently started to offer end-to-end integrated services to end-users in the global refrigerated warehousing market. They are providing cold chain management services to customers and participating in their decision-making processes. Many service providers offer end-to-end cold chain management services like inventory management, order scheduling, order forecasting, warehousing and delivery management,” says Jhansi Mary, one of Technavio’s lead industry analysts for warehousing and storage.
Some of the other driving forces behind the growth of the global refrigerated warehousing market are as follows:
- Rise in trade of frozen food and seafood products.
- Need to reduce food wastage.
- Growth of organized retail sector.
Rise in trade of frozen food and seafood products
The demand for seafood continues to increase globally, and the significant population growth in China, India and Brazil is an important demand driver in the frozen fish and seafood industry. Increased demand for seafood has led to a rise in imports and exports within countries that require cold storage and transportation.
China and Norway were the largest exporters of seafood in 2015, with $20 billion and $10 billion of exported seafood products, respectively. While China exported to almost all countries, Norway's exports were mostly to European nations. Fresh salmon constituted the majority of Norway's fish and seafood exports. The report estimates that China's exports will grow at a CAGR of 15.68% over the forecast period. The European Union was the largest importer of seafood, worth $26 billion. The United States and Japan followed, with seafood imports by the United States amounting to $19 billion in 2015.
Need to reduce food wastage
According to United Nations Environment Program (UNEP) and World Resources Institute (WRI), Washington, D.C., about one-third of the food produced every year is wasted. Fruits and vegetables wasted about 25% at the production level. In addition, perishable food products are often exposed to fluctuating temperatures during transit and handling, which adds to the wastage.
The global population is expected to increase at a rapid pace in the future, which should increase the demand for food products. Based on statistics, in 2015, the number of people suffering from malnutrition or starvation was about 956 million worldwide. Therefore, because of the increase in the global population and the food wastage, the need for effective cold chains is expected to increase substantially in the future. As a result, the increased need to reduce the food wastage is one of the key drivers contributing to the growth of the market.
Growth of organized retail sector
Organized retail refers to modern retailing wherein a licensed retailer sells several goods belonging to different categories. It is the modern form of retail or chain stores that are owned or franchised by a central store or entity. The stores are organized and use better store systems technology, including better refrigeration, than traditional/unorganized retail stores, and provide consumers with convenience and foods that are safe to consume. Organized retail formats include supermarkets, hypermarkets, forecourt retailers, discounters and convenience stores.
Nowadays, an increasing number of consumers are purchasing grocery items, including frozen and chilled food, from organized retail stores. Asia-Pacific is also experiencing a steady increase in the number of modern retail stores. With the growth of the organized retail sector and the increased consumer demand for frozen and chilled food, demand for cold chains has increased and is expected to increase further during the forecast period.