Global cold chain market is valued at USD 253.06 billion in 2021, and the market size is projected to reach USD 436.52 billion by 2028, at a CAGR of 8.10%. The cold chain industry is growing rapidly, thanks in part to the increasing demand for medical supplies and food products that are safe and dependable.
Every year, over $750 billion are lost due to improper food safety handling procedures, poor cold chain logistics, lack of proper facilities, and insufficient training for those personnel working in the cold chain. In addition, global pharma sales of over $260 billion is highly dependent on cold chain. On any given day, over 92 billion pound of perishable food is refrigerated across North America cold chain market.
Poor Management of Cold Chain Warehouses Costs India $ 14 billion Every Year
There are a number of benefits that can be gained from using robots in cold chain warehouses. For example, they can help to reduce waste and overstock, while also improving accuracy and consistency across the supply chain. In addition, they can help to improve safety standards by helping to prevent accidents and injuries. As per recent study done by SkyQuest Technology Consulting, crops worth more than $14 billion are lost due to poor cold chain supply management in India alone. This represents the reality of India cold chain market. More than 15% population in India face hunger every day because of poor cold chain management and logistics. Currently, the country can produce more than required food but unorganized logistics, traffic delay, poor cold chain warehouse management are leading to loss of more than 35% of the total agricultural produce. The 35% agricultural waste is enough to feed countries like the UK, Germany, France, and Italy for one year.
This problem stems from the shortage of cold storage facilities in the country. Although there are a lot of them, they are concentrated in few states and therefore inaccessible to the nation. According to Emerson, less than 10% of Indian cold storage is in Tamil Nadu and during certain periods, even this number can drop as low as 2%. A recent government edict has revealed that there is a 90% deficit in cold storage facilities in India. This lack of facilities and overuse by potatoes are compounded by the inappropriate allocation of existing capacity. There is only 0.0239% of cold storage allotted to Tamil Nadu, a state that exports $600 million worth of fresh fruit per year.
As the cold chain industry continues to undergo modernization, robots are likely to play an increasingly important role. They offer significant benefits for companies operating in this sector, and are likely to become even more popular in the future.
Covid Impact Encouraged Suppliers in Cold Chain Market to Evaluate their Strategies
Following the COVID-19 pandemic and the subsequent downfall of many overseas suppliers, supply chain leaders are conducting a shift in their production and distribution. Some companies expand or relocate abroad, while others are bringing their operations domestically. The primary goal of these shifts is to regain control over the entire supply chain by reducing risk factors that are outside of their control. However, these shifts are not perfect, as reshoring does not offer supply chain resilience or agility without broader organizational transformation.
Over the past two years, cold chain market operators have made themselves experts in dealing with enormous challenges. They have found new routes to deal with barriers, cooperated with others more, shifted customer needs and goals, and are long-term resilient and improve the market revenue.
Growing Focus on Modernization of Cold Chain Warehouses
The cold chain is one of the most important aspects of the food and medicine supply chain. It’s responsible for keeping food safe and fresh while it travels from the farm to grocery store to end user. A lack of modernization in the cold chain can lead to contaminated food and a loss of revenue for businesses. In 2016, there was a 16% increase in the number of food recalls due to issues with the cold chain. This is primarily due to problems with refrigerated trucks and railcars. The following year, there was a 26% increase in the number of recalls due to problems with the cold chain. If these issues are addressed with modern solution market size can increase by a great extent.
According to industry analysts, the cold chain is becoming increasingly complex and requires more attention from businesses. This is especially true for companies that produce perishable goods. To stay ahead of the curve, many are investing in modernization projects such as automated data management systems and RFID tracking. By doing so, they can ensure that their products reach consumers safely and without issue.
The modernization of cold chain warehouses is a movement that is growing in popularity across the global cold chain market. Companies are focusing on the ability to store food products in a way that keeps them safe and fresh. This is important because it helps to keep customers happy, as well as keeping food products from going bad. There are a number of companies that are focusing on this area of modernization. Some of these companies are able to offer innovative solutions that help to improve the cold chain process. They also have the ability to provide support for larger businesses, which means that they can help to improve the overall efficiency of the food system.
One company that is focusing on the modernization of cold chain warehouses is Capgemini SA. They offer a number of solutions that help to improve the management of the cold chain process. These include their Cloud-Based Warehouse Management Solution and their Food Safety Platform. Their platform provides support for a variety of different systems, which means that businesses can easily integrate it into their existing processes. Another company that is focused on the modernization of cold chain warehouses is PCC Technology Limited. They offer a number of solutions that help to improve the management and flow of information throughout the cold chain process.