The global cold chain packaging market size is anticipated to reach USD 63.1 billion by 2027, expanding at a CAGR of 19.4% from 2020 to 2027, according to a new report by Grand View Research, Inc. The key drivers attributing to the market expansion include a significant boost in demand for cold chain packaging solutions from the pharmaceutical industry. Amidst the coronavirus pandemic, the trade and transit of temperature-sensitive drugs, medicines, and test samples are drastically increasing. Along with the pharmaceuticals market, the packaging market is anticipated to witness significant growth. The overall market growth is profoundly influenced by the high demand for perishable goods worldwide and the availability of fresh food and frozen food supplies.
The growing popularity of e-commerce as a channel for purchasing fresh goods drives the market growth. The increasing usage of e-commerce websites and mobile apps has enabled customers to order preserved food, fresh vegetables, dairy products, and daily meals. Digital retailing has given enabled consumers to purchase products from anywhere they want. The rising trend of online purchases for perishable products has led to new opportunities and challenges. These include the need for innovative solutions to provide the critical service of last-mile delivery, automated warehouse facilities to manage inventories and to reduce per-item costs, and advanced cold chain packaging solutions that would maintain the safety of fresh food products.
North America dominated the market for cold chain packaging in 2019 and is estimated to continue leading over the forecast period leveraging the high consumption rate of meat, processed food, and dairy products. Additionally, the regional market is highly fragmented with numerous market players, which has increased the regional market share. However, the current economic and political scenario has impacted industry growth. The trade conflict between the U.S. and China is expected to negatively impact the growth of the cold chain market in the U.S. In early 2018, China announced a 15% to 25% tariff on products imported from the U.S., including pork, fruits, wine, nuts, and vegetables. This high tariff imposed on food and agriculture products is expected to hinder the regional market growth.
The Middle East and Africa market for cold chain packaging is anticipated to register the highest CAGR over the forecast period on account of significant improvements in material handling, warehousing, intralogistics, and supply chain solutions. The Asia Pacific regional market is estimated to witness a significant CAGR of more than 21% from 2020 to 2027. The growth is attributed to the ever-increasing population, rapid industrialization, continued rollout of transportation and warehousing networks, and the rise in demand for processed and canned food items.
Click the link below:
Further key findings from the study suggest:
- Amid the COVID-19 pandemic, governments across the globe are emphasizing on providing ample medicinal supply to the healthcare facilities. With the increasing tests per day, the transit of blood samples is also increasing, thereby increasing the need for reliable temperature-controlled packaging solutions in the pharmaceutical and healthcare industry.
- The evolution of the smart technologies, such as smart boxes or smart temperature-controlled packaging solutions that provide real-time data on variations in temperature, humidity, and air pressure, is expected to drive the future growth of the market.
- The increasing emphasis on low ozone depletion potential (ODP) and low global warming potential (GWP) gases is expected to boost demand for natural and inorganic refrigerants such as ammonia and carbon dioxide.
- The fruits & vegetable segment is expected to grow at a significant compound annual growth rate (CAGR) of more than 20% from 2020 to 2027 owing to the increasing demand for fresh vegetables and fruits from end consumers across the globe.
- Market players are expanding their regional presence through mergers, acquisitions, and partnerships by establishing a network of distributors located in different regions. For instance, Pelican Products, Inc. has a network of dealers located in South America (NatBio), Asia Pacific (Giddi Pharma, Pharmaserv Express, and others), and Europe (DS Smith).
- Some of the key industry participants are Cold Chain Technologies, Cryopak A TCP Company, Pelican Products, Inc., Sofrigam, and Sonoco ThermoSafe.