Global cold chain equipment market set for rapid growth
The global cold chain market is primarily driven by an increased need to reduce food waste across the globe and the rapid growth of the frozen foods segment.
Global demand for the cold chain equipment market was valued at $67 billion in 2014 and is expected to reach $ 118 billion in 2020 and grow at a CAGR of 9.8% between 2015 and 2020, according to a report published by Zion Market Research, Sarasota, Fla.
The report, “Cold Chain Equipment (Storage and Transport) Market for Meat, Fish & Seafood, Dairy & Frozen Desserts, Vegetables & Fruits, Bakery & Confectionary and Others End-Uses: Global Industry Perspective, Comprehensive Analysis and Forecast, 2014 – 2020,” unveils that the cold chain is an unbroken supply chain that exclusively serves storage and distribution facilities with a temperature-controlled range to extend and ensure the shelf life of products. In cold chain process, the cold chain equipment is a vital entity of the supply chain.
The global cold chain market is primarily driven by an increased need to reduce food waste across the globe and the rapid growth of the frozen foods segment. However, high installation costs coupled with stringent government policies and regulation are expected to hinder the growth of cold chain equipment market. Nonetheless, increased demand of food in emerging countries is likely to open new avenues for cold chain equipment market in the near future.
The storage equipment segment dominated the cold chain equipment market in 2014, which accounted for more than 50% share of the global market. Storage equipment is expected to continue this trend during the coming years due to growing need to fulfill the increasing demand for food coupled with strong demand of frozen foods across the globe.
Based on end-uses segment, the global cold chain equipment market was dominated by meat, fish and seafood segment, accounting for over 35% share of the entire revenue generated in 2014. Furthermore, it is also expected to remain prolong segment owing to robust demand for meat, fish and seafood on global basis. Moreover, dairy and frozen desserts are another important outlet expected to witness significant growth in the near future.
Asia Pacific is expected to be one of the fastest growing regional markets for cold chain equipment market within the forecast period, according to the report. This market growth is expected to be driven by the increase in the deployment of cold chain management in India and China. Thus, the increased demand for cold chain logistics in emerging economies is one of the major trends expected to contribute to the growth of the global cold chain market during the years to come.