Global Cold Chain Market 2017-2021
About Cold Chain
A cold chain is a type of supply chain that involves the storage and transportation of temperature-sensitive goods. Thermal and refrigerated packaging methods help in the transportation and storage of temperature-sensitive goods. Extensive logistics planning ensures the integrity of these goods. The term cold chain refers to the process of transportation and storage of products and commodities at optimal temperatures. It is a temperature-controlled supply chain process used to maintain ideal storage conditions for different products and commodities. It provides temperature-controlled warehouses for surface storage and refrigerated transport vehicles for physical distribution of products at optimal temperatures. It is used widely to store and transport fruits, vegetables, drugs, and medicines without spoilage. Cold storage increases shelf life and maintains product quality. Cold chain service providers also offer various value-added services that improve the efficiency of the supply chain management (SCM) process.
Technavio’s analysts forecast the global cold chain market to grow at a CAGR of 12.41% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global cold chain market for 2017-2021. To calculate the market size, the report presents the vendor landscape and a corresponding detailed profiling of the key market participants across the value chain of global cold chain market.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Cold Chain Market 2017-2021
Technavio recognizes the following companies as the key players in the global cold chain market: AmeriCold Logistics, Lineage Logistics, Preferred Freezer Services, Swift Transportation, and John Swire & Sons.
Other Prominent Vendors in the market are: A.B. Oxford, Nichirei Logistics Group, Kloosterboer, VersaCold Logistics Services, Partner Logistics, Nordic Logistics and Warehousing, Cloverleaf Cold Storage, Conestoga Cold Storage, Congebec, Burris Logistics, Snowman Logistics, Hanson Logistics, Henningsen Cold Storage, Interstate Cold Storage, and Trenton Cold Storage.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is provision for end-to-end integrated services. 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. Disaster recovery services that enable customers to track consignments and help them communicate with the entire supply chain are also offered by vendors. In addition, some vendors provide training sessions for all the personnel involved in the cold chain logistics. Thus, the increase in the provision of end-to-end integrated services by vendors is another trend that is expected to have an impact on the global cold chain market during the forecast period.”
According to the report, one driver in market is rise in trade of frozen food and sea food products. The demand for seafood continues to increase globally, and the significant population growth in China, India, and Brazil constitutes an important demand driver in the frozen fish and seafood industry. Increased demand for seafood has led to a rise in its imports and exports among countries, which require cold storage and transportation. China and Norway were the largest exporters of seafood in 2015. China's exports amounted to $20 billion and Norway exported $10 billion worth of seafood products. While China exported to almost all countries, Norway's exports were mostly to European nations. Fresh salmon constituted most Norway's fish and seafood exports. We estimate that China's exports will grow at a CAGR of 15.68% over the forecast period. The European Union (EU) was the largest importer of seafood, importing worth $26 billion. In seafood imports, the EU was followed by the US and Japan, in which the US imported products worth $19 billion in 2015.
Further, the report states that one challenge in market is high cost of diesel and fuel maintenance. Use of diesel fuel is harmful to the environment as it releases black soot that contaminates the air particles and the surroundings. The cost of diesel fuel is also a major concern for refrigerated truck manufacturers. On an average, diesel power refrigeration unit consumes about 3.5 to 4.5 liters of diesel, per hour, costing approximately $1.00 -$1.50 per liter. An average input of 3,000 hours in a year, the cost of fuel for a conventional refrigeration unit will cost $12,000. The maintenance cost of refrigeration units is also expensive due to the complexity of the unit. On an average, the maintenance cost of refrigerated trucks will be $6,500 in a year. Though many vendors in the market have shifted to alternative and cost-effective methods, such as nitrogen systems, most the vendors are still highly dependent on diesel fuel. Nitrogen systems used by many refrigeration transport units cost upwards of $8,000 per year, and almost 55%-60% of the maintenance costs gets reduced.
AmeriCold Logistics, Lineage Logistics, Preferred Freezer Services, Swift Transportation, John Swire & Sons, A.B. Oxford, Nichirei Logistics Group, Kloosterboer, VersaCold Logistics Services, Partner Logistics, Nordic Logistics and Warehousing, Cloverleaf Cold Storage, Conestoga Cold Storage, Congebec, Burris Logistics, Snowman Logistics, Hanson Logistics, Henningsen Cold Storage, Interstate Cold Storage, and Trenton Cold Storage.