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Cold Chain Market to be $381bn by 2025

2017-04-01 Source: coowor.com Collect Reading Volume: 1321
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The global cold chain market is anticipated to reach USD 381.68 billion by 2025, according to a report by Grand View Research. The expansion of trade over the years has arisen the necessity of making improvements in the packaging of crops such as the materials used for packaging play a major role in enhancing the storage life. The development of cold chain is responsible for the reduction of wastage of perishable commodities and is vital for the growth of the food sector. Governments across globe provide key services, such as public infrastructure and legislation. Furthermore, service providers train employees to enhance technical expertise in the operation of specialized facilities.

Emerging countries such as India, Brazil, China, and Mexico are currently undergoing a rapid transition to a consumer-led economy. The retailers in these regions have ample opportunities to expand and grow, owing to the prevailing large number of middle-class income consumers. Advancements in the technology have enabled service providers to penetrate the emerging markets with innovative solutions to help solve issues relating to complex transportation. Investment in warehouse automation has been increasing over the past years to meet the customer requirements. High capital investment, running costs, and scalability of different picking methods are the key factors that restrain the market players to automate the warehouses. Furthermore, the growing application of telematics in logistics and transportation is likely to spur the refrigerated transportation market demand. The retailers and franchise customer have vertical integration with the cold chain service providers to ensure the safety and quality. The lack of cold chain facilities in less-developed economies made retailers to invest heavily in developing own cold chain logistics systems.

Editor: Fifi