Food and Beverage Cold Chain Logistics Market size is set to grow by USD 175.26 billion from 2024-2028, Implementation of 3D printing technologies to boost the market growth, Technavio

NEW YORK, July 10, 2024 /PRNewswire/ -- The global food and beverage cold chain logistics market  size is estimated to grow by USD 175.26 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 16.83%  during the forecast period. Technology, particularly advancements like 3D printing, is revolutionizing the food and beverage cold chain logistics market. These innovations facilitate more efficient storage and transportation processes, crucial for maintaining product integrity and extending shelf life. Moreover, emerging technologies are supporting new concepts such as space travel, further expanding the scope of cold chain logistics. Despite high development costs posing challenges, key players like Americold Realty Trust Inc., Capstone Logistics LLC, and others are leveraging technology to drive growth and meet evolving market demands.

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Key Market Trends Fueling Growth

Fuel cell-based forklifts are gaining popularity in the food and beverage cold chain logistics industry due to their ability to function optimally in low temperatures. In contrast to battery-powered forklifts, which can only operate for 7-9 hours when fully charged but significantly less in cold conditions, fuel cell-forklifts can operate efficiently in temperatures as low as minus 30 degrees Celsius. This advantage is crucial for refrigerated warehouses, where maintaining optimal temperatures is essential. Moreover, fuel cell-based infrastructure occupies over 60% less space than conventional fuel-based and battery-powered infrastructure, freeing up valuable warehouse space. The refueling process for fuel cell-based forklifts takes around five minutes, compared to the 10-20 minutes required to change a battery. This translates to significant productivity savings, with over 120 hours saved per forklift in a standard three-shift operation. Leading companies like Walmart and Amazon have already adopted fuel cell-based forklifts in their warehouses due to these advantages. As more companies recognize the benefits of this technology, the global food and beverage cold chain logistics market is expected to grow positively during the forecast period. 

The Food and Beverage Cold Chain Logistics Market is experiencing significant growth due to increasing demand for temperature-controlled solutions for storing and transporting goods like meat, seafood, beverages, frozen foods, and other refrigerated products. Cold storage solutions include temperature-controlled facilities, refrigerated warehousing, and temperature-controlled packaging solutions. Fuel cell-based forklifts and refrigerated trucks, containers, vans, and railcars are essential for efficient transport. Value-added services, food safety, and international trade are key drivers. The frozen food market's growth, driven by rising consumption, fuels the need for advanced cold chain technology. Blockchain technology ensures cold chains traceability, enhancing transparency and accountability in import-export activities. Online retailing's rise also necessitates robust cold chain infrastructure. Food processing and distribution industries benefit from cold chain technology. Temperature-controlled environments maintain the quality and freshness of organic food. Cold chain technology's adoption is crucial for ensuring food safety and meeting consumer expectations. Overall, the market's future looks promising, with continuous innovation in technology and growing demand for temperature-controlled logistics solutions. 

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Market Challenges

• Setting up a cold chain logistics system for food and beverage involves significant costs, primarily due to the construction of temperature-controlled warehouses. The cost of land, a major factor in warehouse setup, varies depending on the location. Strategically locating a refrigerated warehouse near a production facility is crucial for maintaining the uninterrupted flow of goods in a temperature-controlled environment. However, the infrastructure cost of building a refrigerated warehouse is high, with an average cost of USD140 per square foot, nearly double that of a conventional warehouse. Operating costs, particularly energy for refrigeration systems, which account for 50-55% of the total cost, are also substantial. A diesel-powered refrigeration unit consumes around 3.5-4.5 liters of diesel per hour. Additionally, the shortage of reefer containers in the market increases freight costs, further increasing the operational expenses. These high operational costs may negatively impact the growth of the global food and beverage cold chain logistics market during the forecast period.
• The Food and Beverage Cold Chain Logistics Market faces several challenges in areas like food retail and beverage processing, distribution, and retail. Temperature monitoring, tracking and tracing, cold storage management, maintenance and repair are crucial for maintaining freshness and quality. Logistics and warehousing, including controlled environments, require real-time monitoring of temperature, humidity, and location to prevent product spoilage. Supply chain complexities involve warehouses, containers, e-commerce, food delivery, and IoT technology. Perishable items such as fruits, vegetables, dairy products, juices, soft drinks, beer, and vaccines in the beverage industry need temperature-controlled warehousing and logistics solutions. Automation through robotics and material handling solutions, along with warehouse management systems, help reduce waste and ensure quality standards. Transportation modes like airways, roadways, and seaways also play a role, with challenges in handling perishable items and maintaining temperature-controlled environments. E-commerce and food delivery services add pressure to ensure timely and accurate delivery, while ensuring the cold chain remains intact. Overall, the market requires advanced technology solutions, including cloud computing and real-time monitoring, to overcome these challenges and maintain the integrity of perishable goods throughout the supply chain.

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Segment Overview 

This food and beverage cold chain logistics market report extensively covers market segmentation by

1. Application 
• 1.1 Meat and seafood
• 1.2 Dairy and frozen desserts
• 1.3 Fruits vegetables and beverages
• 1.4 Bakery and confectionary
2. Type 
• 2.1 Warehouse
• 2.2 Transportation
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Meat and seafood-  The meat and seafood segment is the largest in the global food and beverage cold chain logistics market, accounting for over 30% of the consumption in 2023. Meat, with its high water, protein, and fat content, is perishable and requires refrigeration or freezing to prevent spoilage and the growth of pathogens. In the US, meat is transported via road, but may also use other modes and be stored at intermediate warehouses. Fresh meat products have a short shelf life and should not be transported long distances, while frozen meat products can be shipped globally. The global meat consumption was over 1.8 million tons in 2022, with APAC being the largest consumer. Consumption is projected to increase by over 20% by 2030 due to growing awareness of protein intake. Seafood consumption is also rising due to increased aquaculture, particularly in China, and rapid production and export from countries like Chile, Indonesia, and Norway. The increasing demand for meat and seafood will drive the need for refrigerated warehouses and transportation facilities, boosting the growth of the meat and seafood segment and the global food and beverage cold chain logistics market.

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Research Analysis

The Food and Beverage Cold Chain Logistics Market refers to the transportation and storage of temperature-sensitive food and beverage products from the point of production to the point of consumption. This market encompasses various aspects, including temperature-controlled storage in warehouses and containers, transport using refrigerated trucks and fuel cell-based forklifts, and the application of cold chain technology to ensure food safety and maintain freshness and quality. International trade and online retailing have significantly increased the demand for efficient cold chain logistics solutions. Controlled environments are crucial for storing goods such as meat, seafood, frozen foods, and beverages, while IoT technology enables real-time monitoring and optimization of temperature conditions. Food delivery services and e-commerce platforms also rely on cold chain logistics to ensure timely and high-quality product delivery.

Market Research Overview

The Food and Beverage Cold Chain Logistics Market encompasses the transportation, storage, and management of temperature-sensitive food and beverage products. This involves the use of temperature-controlled storage facilities, such as refrigerated warehouses, containers, and vans, as well as refrigerated trucks, railcars, and ships for transport. Cold chain technology plays a crucial role, ensuring food safety and maintaining freshness and quality through temperature monitoring, tracking and tracing, and real-time monitoring using IoT and cloud computing. International trade, online retailing, and e-commerce have increased the demand for cold chain logistics solutions. Perishable items like fruits, vegetables, dairy products, juices, soft drinks, beer, meat, seafood, and frozen foods require temperature-controlled environments to prevent product spoilage. The market also caters to industries like food processing, distribution, and retail, as well as beverage processing, distribution, and retail. Logistics and warehousing solutions include intralogistics, material handling solutions, and warehouse management systems. Cold storage management, maintenance and repair, and value-added services are essential for efficient operations. The market also caters to industries beyond food and beverage, such as vaccines and medical supplies, with temperature-controlled facilities and logistics solutions. Automation through robotics and automation systems, fuel cell-based forklifts, and blockchain technology for cold chains traceability are key trends in the market. The market's growth is driven by increasing frozen food consumption and the frozen food market, as well as the import/export activity in the food industry.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Meat And Seafood
• Dairy And Frozen Desserts
• Fruits Vegetables And Beverages
• Bakery And Confectionary
• Type
• Warehouse
• Transportation
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio