Cold Chain Packaging Market - Forecast (2024-2030)

The cold chain packaging market size is forecast to reach USD 37.51 billion by 2030, after growing at a CAGR of 9.78% during 2024-2030. The expansion is ascribed to the worldwide food processing industry's growing demand for packaging solutions. The main forces behind increasing demand are population growth, changing lifestyles, and the quickening pace of urbanization in developing nations like China, India, and Mexico. While the growing population is driving up demand for food goods, people are increasingly choosing processed and convenient food options due to changing lifestyles. Worldwide, there is a significant demand for processed foods such as frozen fruits and vegetables, dairy products, fish, and meat. Such foods need to be packaged effectively for storage and transportation. Consumer behavior is changing in the retail industry of industrialized nations like the U.S. as it continues to migrate from traditional retail stores to internet retailers. With more people using the Internet and more tech-savvy shoppers as a result, online grocery shopping is becoming more and more popular. For instance, a sizable portion of Amazon's online grocery sales come from the selling of packaged food items.

The report “Cold Chain Packaging Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the cold chain packaging market.

By Product: Crates, Insulated Containers & Boxes, Cold Packs, Labels, Temperature Controlled Pallet Shippers

By Application: Fruits & Vegetables, Fruit & Pulp Concentrates, Dairy Products, Fish, Meat & Seafood, Processed Food, Pharmaceuticals, Bakery & Confectionaries 

By Material: Expanded Polystyrene (EPS), Vacuum Insulated Panel (VIP) Solutions, Polyurethane (PUR) 

By Geography:  North America, Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa

• The growing trend of online food purchases has fuelled demand for cold chain packaging. The rapid growth of online shopping due to the spread of a consumption culture that values immediacy and convenience, and the development of the Internet, mobile technology, and delivery enhancement have driven the global cold chain packaging market for the last five years.

• Among the newly emerging cold chain processes, packaging at the end-user contact point is facing the fastest change, and "sustainable packaging materials" are drawing attention. Sustainable packaging and containers that can be recycled and reduce the usage of plastics are expanding not only to processed foods but also to fresh foods logistics.

• US is the dominant Country in the cold chain packaging market. In the US, busy life is continuously expanding due to the high standard of living, consumers' hectic schedules, high disposable money, and rising demand for packaged foods, which has led to a growth in the need for cold chain packaging.

Crates dominated the cold chain packaging market in 2023. This is due to its old and traditional applications and because of its multi-use, reuse potential. Crates can be utilized in a cold chain in one of two ways: an active cooling system or a passive cooling system. As part of a cold chain, crates are used to store or transport products that are sensitive to temperature, such as chilled or frozen meals, pharmaceuticals, or medicines. When crates are used in a cold chain, they can be used in two methods an active or passive cooling system. The crates division is more separated into purposes like horticulture, pharmaceutical, fisheries, and dairy, while freshly harvested produce and Field-warm vegetables are stacked up for interim storage. Interim storage may serve several purposes, depending on the type of product where the temperature is dropped by a few degrees before processing, helping to diminish and ultimately remove the product's heat. Insulated fish crates are often driving the increasing market. Most of the fish crates are made from EPS which is strong, waterproof and has good thermal insulating qualities.

Fruits & Vegetables dominated the cold chain packaging market in 2023. Consumer demand for non-seasonal fruits and vegetables is rising necessitating the long-term packaging and storage of seasonal goods, where cold chain packaging is a crucial component. According to research, there is a general trend toward increasing fruit and vegetable consumption as one's educational level rises. Fruit consumption definitively has health-promoting properties and there is increased consumer awareness of health issues. Tropical and subtropical fruits are believed to be rich sources of diverse nutritional and health components. Consequently, a growing number of consumers who are concerned about their health are driving up the demand for nutritious food. 

Rising international demand for high-quality fruits and vegetables would boost the position of organized exporters. Meanwhile, the most effective material for keeping fruits and vegetables is believed to be EPS packaging. When ventilation is a key consideration for fruits and vegetables, perforated or open crates are frequently employed in rural settings. The best options for storage and shipping are plastic pallets, crates, and containers. Fruits and vegetables are high-rotation goods that are part of the supply chain for fresh foods. This indicates that the storage time for these logistical solutions is incredibly brief. The plastic crates, pallets, and containers swiftly depreciate due to this differential feature, allowing the various users to produce extremely effective logistics costs.

Polyurethane (PUR) accounts for the largest share of the cold chain packaging market in 2023. PUR has the largest market share due to its best-suited applications such as larger payloads and extended domestic shipping windows.  Polyurethane insulation not only strengthens the container carrying the cargo but also extends the life of the product by allowing longer travel times from production to pharmacy. The insulation's light weight allows for fuel savings as well. PUR is widely used in cold storage and food processing building applications. Fresh vegetables, fruit, butter, milk, and various types of meats can be stored in large refrigerated warehouses or cold stores before being distributed to shops or restaurants. While the disadvantage of this material is that its production is a permanent chemical reaction that cannot be broken down for recycling like EPS.

Asia-Pacific cold chain packaging market dominated the geography segment in 2023. The Asia-Pacific area is experiencing a boom in cold chain logistics. The area represents a sizable consumer base and accounts for about 60% of the world's population. Demand for premium goods is rising, which is being fueled by rising disposable incomes and a change in food habits. Due to the majority of Asia Pacific nations' tropical and subtropical climates, the cold chain, or low-temperature storage and transit infrastructure, is essential. Due to the rising demand for perishable goods, there is an even greater need for the cold chain. China, Japan, and India’s cold chain logistics sectors have quickly expanded in size in recent years. Construction of major cold chain logistics hubs on a national scale as well as cold chain facilities at points of origin and sale has been progressively encouraged, and the quality of cold chain equipment has greatly increased. 

Southeast Asia is seeing a sharp increase in the market for frozen and chilled goods. Pharmaceutical products often have a high value-added and short shelf life as compared to other products in the cold chain industry. The Asia Pacific region anticipates considerable demand for cold storage industrial properties over the short to medium term due to a strong predicted increase in pharmaceutical sales and wider usage of temperature-controlled medicines that require complex supply chains.

Due to rapid urbanization and the improvement of consumer quality of life, increasing consumer demand for fresh foods has been a factor in the growth of the global cold chain packaging market over the past five years. In addition, the growing trend of online food purchases has fueled demand for cold chain packaging. The rapid growth of online shopping due to the spread of a consumption culture that values immediacy and convenience, and the development of the Internet, mobile technology, and delivery enhancement have driven the global cold chain packaging market for the last five years. 

With the development of the COVID-19 vaccine in 2020, the system of cold chain drug transportation packaging has further upgraded the growth of the market. After the COVID-19 outbreak, the importance of the cold chain system of COVID vaccines was highlighted, and it became a factor in developing the cold chain packaging market. In the case of Pfizer's COVID-19 vaccine, it must not only be stored in an ultra-low freezer at -80°C to -60°C, but also transportation to the inoculation site must be delivered in a specially designed container by recharging it with dry ice every five days otherwise they can lose their potency and effectiveness. To ensure the integrity and safety of items that are sensitive to temperature, the role of the cold supply chain grew more crucial at this time. Trade restrictions hurt the market's growth by reducing consumer demand for perishable food items and specialty industrial materials. Many businesses are expanding their infrastructures for cold chain packaging. The need for better cold chain packaging solutions has increased as a result of COVID-19.

Challenges – Cold Chain Packaging Market

Cold chain packaging has a limitation in that it is difficult to apply in large quantities due to high production costs. It requires a considerable amount of money because it has to have packaging technology suitable for each item's characteristics. The manufacturers in this industry have tried to develop low-cost, compostable, or recyclable insulation that can be manufactured according to validation standards and compete with EPS but it is hard to compete with the cost and performance of packaging materials.

The lack of infrastructure in cold chain packaging has been a big barrier. The infrastructure for recycling cold chain packaging materials has to be supported to boost market growth. Therefore, In the cold chain packaging market, human infrastructure with expertise, physical infrastructure (packaging and storing), and management infrastructure (standard, guidelines, certification, etc.) should be properly combined and supplemented.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the cold chain packaging market. In 2023, the cold chain packaging market share has been consolidated by the major players accounting for 79.23% of the share. Major players in the cold chain packaging market are Cold Chain Technologies, Cryopak Industries Inc, Sofigram Company, CCL Industries, Sealed Air Corporation, and others.

In March 2022, Cold Chain Technologies, headquartered in Massachusetts, acquired Packaging Technology Group. Packaging Technology Group (PTG) creates sustainable, thermal shipping and packaging services for the biopharmaceutical and life sciences industries. CCT's commitment to environmentally friendly and sustainable packaging solutions is strengthened by the acquisition of PTG.

In May 2021, CCL industries acquired Lux Global Label Asia Pte. Ltd., a privately held company with headquarters in Singapore to expand its business there. In the ASEAN region, LUX creates attractive labels for consumers worldwide.

In January 2022, Cryopak Industries has expanded its portfolio of sustainable solutions with the introduction of CryoEco - The Paper Refrigeration Solution. CryoEco is a recyclable thermal insulation solution used to ship perishable goods.