Product Code: 66949
The cold chain packaging market was valued at USD 132.6 billion in 2019 and is expected to reach USD 346.3 billion by 2025, at a CAGR of 17.35% over the forecast period 2020 - 2025. Minimizing wastage of food and food produces in the logistics has been a challenge for the end-users and has been a factor that has driven the market. For instance, according to a report by YesBank, in 2018, India witnesses nearly 4.6-15.9% wastage in fruits and vegetables annually, due to lack of modern harvesting technologies and cold chain infrastructure.
- The rise in consumer demand for perishable food items, growth of international trade due to trade liberalization, and expansion of the organized food retail industry are some of the factors driving the growth of the market.
- Moreover, Online grocery shopping is gaining popularity in line with increasing penetration of the Internet and the subsequent rise in the number of tech-savvy consumers. For instance, sales of packaged food products are contributing significantly toward Amazon.com, Inc.'s online grocery sales in the United States.
- In another way, Current economic and political scenario has also played a crucial role in market growth. For instance, the trade conflict between the United States and China is expected to negatively impact the growth of the cold chain market in the United States. In March 2018, the United States imposed a 25% tariff on steel and 10% on aluminum imported from China. China, in turn, announced a 15-25% tariff on products imported from the United States, including fruits, wine, nuts, and vegetables. These high tariffs imposed on food and agriculture produce is expected to negatively affect market growth.
- Growing stringent regulations such as the effective implementation of the Food Safety Modernization Act towards the requirement of a cold storage warehouse to preserve food is one of the major market drivers. In addition, the rising demand from various industrial applications such as medical devices, pharmaceuticals industries are the major contributors to the global cold chain packaging market. For instance, according to ProMexico, the total production value of the global medical device industry was increased by almost 14% from 2015 to 2017 and by 2019 it is almost 1.3 times of 2015 production value.
- However, one key challenge in the cold chain packaging market is the rising cost of raw material. Polystyrene is the primary raw material used in built-up of cold chain packaging solutions. In recent times, instability in prices of polystyrene, owing to the increased gap between demands and supply, has surged the price and is likely to continue during the forecast period. Moreover, escalated raw materials cost further leads to raising the overall cost of the final product.
Scope of the Report
A cold chain product is defined as any temperature-sensitive product, such as frozen foods, research samples, or pharmaceuticals. Cold chain packaging, is vital for maintaining the thermal integrity of temperature-sensitive products during transport. Cold chain packaging can use active or passive packaging methods. Active packaging configurations are usually leased containers that employ a power source, batteries or electricity, and a thermostat to control heating or cooling within the shipping container. Passive packaging configurations are manufactured containers that utilize insulated packaging such as polystyrene, polyurethane, or vacuum insulated panels and phase change materials (PCM) to maintain a desired temperature inside the shipping container.
Key Market Trends
Growth in the Pharmaceutical Sector to Augment the Cold Chain Packaging Market
- Pharmaceutical manufacturers are mainly focusing on quality and product sensitivity. Increase in development of more complex biological-based medicines, shipments of hormone treatments, vaccines, and complex proteins that require cold chain refinements need to transport in a controlled temperature which can be achieved by cold chain packaging. Packaging of temperature-controlled pharmaceutical products and medical devices is witnessing considerable growth in the overall healthcare industry.
- From the year 2011 to 2017, the number of heat-sensitive healthcare products has increased by 45%, one in two healthcare products is shipped via cold chain solutions. There has been an increase in biopharmaceutical products at a remarkably faster rate than small molecule drugs (known as chemical drugs) and the growth in vaccines is the reason behind the total sales volume of temperature-controlled pharmaceutical products is increasing double the rate that of the pharmaceutical industry as a whole.
- In the year 2018, global sales of biotechnology medicines and biological products were estimated at more than 300 billion dollars. These high-value pharmaceutical products are mostly shipped via the cold chain across the entire distribution network worldwide. Thus, growth in pharmaceuticals is anticipated to propel the cold chain packaging market.
- Moreover, the cold chain packaging market is directly influenced by the continuous growth in demand for cold storage medicinal products used in the healthcare industry. Regionally, the cold chain packaging market is dominated by Europe and North America region. This is due to the high number of biopharmaceuticals imports & exports in the countries in Europe and North America. These regions are also the innovators for the improvement in shipping and warehousing of pharmaceutical products.
North America to Hold the Largest Market Share
- North America occupies the major share in the cold chain packaging market and is expected to grow significantly in the forecast period owing to continuous growth in demand for cold storage medicinal products used in the healthcare industry.
- Also, the improvement in the shipping and warehousing of pharmaceutical products is driving the market further. For instance, according to pharmaceutical commerce study, the expenditure on cold chain logistics, transportation, and packaging in this region reached to USD 3.7 billion in 2018.
- Moreover, processed food items such as frozen vegetables and fruits, dairy products, seafood, and meat are in demand throughout the United States. For instance, the annual red meat demand in the United States is more than 7 billion pounds. Such trends are particularly evident in states like California, Washington, and Florida, and this is driving demand for effective and efficient refrigeration solutions.
The cold chain packaging market is consolidated due to a few players are having a large share in the market. Some of the major players are Cold chain Technologies, Sonoco Thermosafe, Sofrigram, Softbox Systems, Cryopak, Sealed Air Corporation, DGP Intelsius LLC., Amcor Plc, among others.
- April 2019 - Softbox, a provider of temperature control packaging for the life science and logistics industries, introduced a new concept to bring IoT and connected digital transformation to the pharmaceutical and clinical trial cold chain distribution. Softbox is leveraging emerging technologies and incorporating them into its temperature control packaging systems for day-to-day cold chain distribution. These technologies can help make better and quicker decisions, reduce waste in the supply chain and ultimately provide pharmaceutical companies and patients with medications on time, and in the best condition possible.
- February 2019 - Cryopak unveiled its new data logger with wireless capabilities: the CTL (Contactless Temperature Logger). The new addition to the company's cold chain portfolio provides an efficient and advanced method in obtaining and syncing data with today's mobile devices and computers.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Growth in Pharmaceutical and Healthcare Sector to Boost the Market.
- 4.3.2 Increasing Consumer Demand for Perishable Food
- 4.4 Market Restraints
- 4.4.1 Rising Cost of Raw Material
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Bargaining Power of Buyers/Consumers
- 4.6.2 Bargaining Power of Suppliers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Product
- 5.1.1 Refrigerants
- 5.1.2 Insulated Containers
- 5.1.3 Temperature Monitoring
- 5.2 By Application
- 5.2.1 Food Packaging
- 5.2.2 Healthcare Packaging
- 5.2.3 Pharmaceutical packaging
- 5.2.4 Industrial Applications
- 5.2.5 Other Applications
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Cold chain Technologies
- 6.1.2 Sonoco Thermosafe
- 6.1.3 Sofrigram
- 6.1.4 Softbox Systems Inc.
- 6.1.5 Cryopak
- 6.1.6 Sealed Air Corporation
- 6.1.7 DGP Intelsius LLC.
- 6.1.8 Amcor Plc
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS