Cold chain packaging global market is expected to grow from $21.73 billion in 2021 to $24.54 billion in 2022 at a compound annual growth rate (CAGR) of 12.94%. The market for global packaging cold chain market is expected to reach $39.89 billion in 2026 at a CAGR of 12.92%.
Rapid urbanization is expected to propel the growth of the packaging for cold chain market during the forecast period. Urbanization over the past years has led to urban development as cities and other urban areas require a new and much greater amount of resources to keep up with the increasing population and their demands. While the rising population is triggering demand for food products, changing lifestyles are prompting consumers to opt for processed and easy-to-eat food items.
Processed food items such as frozen fruits and vegetables, dairy products, seafood, and meat have high demand across the world. Such food items require efficient packaging in transit and storage which is done with the help of cold chain packing. For instance, as of 2021, nearly 4.46 billion people live in urban areas globally. This urban population is expected to grow to 6.68 billion by 2050. Thus, rapid growth in urbanization will drive the market growth.
The increasing focus on sustainable packaging is a key trend gaining popularity in the packaging market with specialization in aforementioned segment. Companies have invested in CO2-efficient transport methods but are losing about 20% because of inefficient cooling methods that are not fully sustainable. Major packaging companies operating in cold chain are investing in reusable, multi-use, materials-based temperature-controlled packaging solutions.
Sustainable packaging products are cheap in the long term because they can be reused and offer environment-friendly options with fewer CO2 emissions, which is beneficial with governments setting regulations to reduce carbon emissions. For instance, in January 2022, Packaging Technology Group (PTG), a provider of thermal packaging solutions and services for the biopharmaceutical and life sciences sector announced the industry’s first extended-duration, a curbside recyclable thermal shipper that maintains 2-8C for 72 hours.
In March 2022, Cold Chain Technologies LLC, a US-based packaging company acquired Packaging Technology Group, LLC for an undisclosed amount for environmentally sustainable packaging including cold chain packaging. The acquisition is expected to strengthen Cold Chain Technologies’ portfolio and deliver a broader suite of innovative solutions to customers around the globe. Packaging Technology Group LLC is a US-based company founded in 2005 that designs and manufactures sustainable packaging for the biopharmaceutical and life sciences industry.