Study: Cold chain logistics market to reach $426.3M by 2022
The meat, fish and seafood segment generated the highest revenue, accounting for around 35% of the cold chain logistics market revenue in 2015.
The global cold chain logistics market is expected to garner $426,275 million by 2022, growing at a CAGR of 16% (2016-2022), according to a report published by Allied Market Research, Portland, Ore.
The study, "Cold Chain Logistics Market by Application Type (Fruits & Vegetables, Bakery & Confectionary, Dairy & Frozen Dessert, Meat, Fish & Sea Food, Drugs & Pharmaceuticals, and Other Industries): Global Opportunity Analysis and Industry Forecasts, 2014-2022," projects that Asia-Pacific is expected to grow at the fastest pace during the forecast period, and account for around 42% of the overall cold chain logistics market share by 2022. The growth would be supplemented by the upsurge in organized retail in the developing economies.
Growth of international trade for perishable processed food, changing consumption pattern for perishable food and government support toward infrastructure development for the cold chain sector are some of the factors expected to drive the cold chain logistics market in coming years. Cold chain logistics market in the developing economies is still evolving; market is not well organized and is operating under capacity.
Based on application type the, cold chain logistics market is segmented into fruits and vegetables, bakery and confectionary, dairy and frozen desserts, meat, fish and seafood, drugs and pharmaceuticals and more. Among all applications types, the meat, fish and seafood segment generated the highest revenue, accounting for around 35% of the cold chain logistics market revenue in 2015. However, the drugs and pharmaceuticals segment is expected to witness fastest growth during the forecast period.
Around 59% of the companies analyzed during research adopted mergers and acquisition as their strategies to gain competitive advantage. In an effort to gain expertise in the field of cold chain logistics, companies are enhancing their market reach.
High penetration of cold chain logistics in the U.S. market is attributed to the high consumption of frozen food (ready meals, frozen bakery and more) and increase in government regulations to maintain food quality standards. China holds the maximum percentage of the cold chain logistics market share in the Asia-Pacific region followed by India, Japan, South Korea and Australia. However, rural and suburban areas of developing markets such as India and China still have underdeveloped cold chain infrastructure.