21 April, 2021
RALEIGH, North Carolina, Apr 21, 2021 - The global cold chain market is expected to witness an unperturbed growth at a CAGR of 7 percent by 2025 and reach $340 billion from $233 billion in 2020, says Beroe Inc.
COVID-19 has had an adverse impact on every industry, and the global cold chain industry did not go unscathed. Trade was restricted, which led to food manufacturers looking for ways to increase their operations and invest in storage to increase the shelflife of the food they manufacture. This will boost the cold chain market.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: https://www.beroeinc.com/beroe-live-ai/
North America is expected to grow at a CAGR of 12 percent during the period, Europe at a CAGR of 6.6 percent, Latin America at a CAGR of 5–6 percent, and the rest of the world at a CAGR of 7–8 percent. APAC is expected to see the highest jump of them all --- at a CAGR of 19 percent.
The demand for fresh online produce is expected to see growth, and this will, in turn, propel the demand for more warehouses and facilities that provide cold storage. The COVID-19 vaccine requires cold storage to be preserved and will be a major industry driver as this will be the primary vertical that will demand cold storage facilities in 2021. Most of the top cold chain logistics companies will be called in to cater to the demand during vaccine distribution.
The APAC cold chain industry will see very healthy growth because of economic advancements in Japan, India, Australia, and China. The Asia-Pacific will see rampant industrialization, and so the investments will be directed here, mostly in India and China. In America, a rise in the demand for cold storage facilities and activities driven by e-commerce will occupy the market share. Most primary markets face supply constraints so the rental amounts will also see a hike in the next year--- between 6 and 8 percent. For other sectors, the demand for cold storage will stay moderate.
In Latin America, cold storage will be in demand. The pharma and hospitality industry will drive the demand and rents will go up by 3–5 percent this year. Shortage of manpower will further spur wages. In the Asia-Pacific, the demand for cold storage catering to pharma and food products has gone up and will increase. So the rent for cold storage facilities will also jump up by 4–5 percent.
North America currently commands the market for healthcare logistics using cold storage --- with 34 percent of demand across the world. The market trends show that vacuum insulated panels are one of the best standards for transporting global cold chain logistics. These are expensive methods but it is still the operation of choice because of the control it allows the players to have. Liquid nitrogen is only used by companies shipping biologics. It is believed to be the lighter solution for products that need between +2 ?C and +8 ?C to be preserved when it comes to evaporative cooling packaging.
It is the pharma industry that will spend $17 billion on cold chain logistics companies by 2020. So they are on the lookout for refrigeration, storage, production and distribution of products. Blockchain and the Industrial Internet of Things will help with the paperwork and identify the temperature excursions.
Buyers today are always looking to put their money into technology that optimizes their cost for cold chain transportation. The single-user business model is best suited for its set of specific operations with more customizable operations to store their pharma products and the raw materials used.
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.
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