From the period of 2022 to 2028, the Global Cold Chain Packaging Market is expected to reach USD 34.7 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 9.60%.
Any temperature-sensitive substance, such as frozen foods, blood components, stem cells, tissues, cells, vaccinations, and infectious substances, that requires appropriate packaging to withstand the cold temperatures of storage containers throughout the transportation is considered an old chain product. The sterility, safety, and viability of the biopharma items and specimens inside are ensured by secure packaging. Cold Chain Packaging is critical to the growth of global perishable goods trade and the global availability of food and medical supplies. Consumer demand for perishable foods is increasing, international trade is expanding owing to trade liberalization, and the organized food retail business is expanding, among other reasons fueling the market's growth. Cold Chain Packaging is particularly important in the pharmaceutical and biotech industries for maintaining product quality. It has proven to be quite effective in reducing food and beverage sector losses and ensuring maximum freshness. Following the pandemic, the market is expected to grow due to increasing demand for Cold Chain Packaging solutions in the pharmaceutical industry, particularly for vaccine distribution and drug development.
Key Highlights from the Report
- On the basis of Application, the market is segmented into Fruits & Vegetables, Fruit & Pulp Concentrates, Dairy Products, Fish, Meat & Seafood, Processed Food, Pharmaceuticals, Bakery & Confectionaries, and Others. In the global market, the food segment had the highest share. Temperature-controlled Cold Chain Packaging solutions are used to carry frozen food items, vegetables, fruits, fruit pulp, juices, beverages, dairy goods, seafood, confectionary, and other agricultural produce. The food segment is expected to dominate during the projection period due to increased domestic and international commerce of food goods. Because of the increased commerce of medications, vaccines, and other medical drugs, the pharmaceutical market is the fastest growing globally. The pharmaceutical business is aggressively investing in cold pharmaceutical packaging solutions around the world.
- On the basis of Material, the market is segmented into Insulating Material and Refrigerants. In 2021, the insulated container & boxes segment dominated the Cold Chain Packaging Market with a sales share of over 57 percent. This increased market share is attributed to a growing demand for reusable insulated containers in a number of applications, such as vegetables, food processing, and fruits. The domination of this market is due to the rising demand for insulated containers and boxes due to its reusability among food and pharmaceutical firms around the world.
- Asia Pacific is the fastest regional segment in terms of growth. Because of the rapid expansion of cold storage projects, rising disposable incomes, and an expanding population, the region's adoption of cold packing solutions is increasing at a healthy rate. China, Japan, and South Korea have the biggest market share in the area, owing to well-established supply chains and well-known enterprises that offer a wide range of cold packaging solutions.
Stronger Demand from Pharmaceutical Industry to Boost Market Growth
In the pharmaceutical business, Cold Chain Packaging is widely employed for all temperature-sensitive products. Containers, pallet shippers, vacuum insulated panels, crates, boxes, and other pharmaceutical packaging solutions are used for vaccinations, infusions/injections, biologics, hormones, insulin, antibiotics, cellular therapies, reagents, treatments for chronic or rare diseases, and more. When exposed to relatively high temperatures, certain products may lose their qualities. To maintain product quality, sophisticated thermal packing and transportation technologies are required.
High Cost & Complex Regulations to Confine Market Growth
When compared to other packaging products, Cold Chain Packaging is more expensive. The goods are specifically designed to regulate temperature and maintain product quality. Technically skilled personnel and advanced raw materials are necessary to meet specific design and regulatory requirements. All of this comes at a premium price, resulting in higher capital investment and increased packaging costs. The risk of regulatory concerns is increasing as supply chains get more complicated. To prevent these risks, businesses must implement new standards in their daily operations and choose appropriate materials to reduce the environmental effect.
Over the projection period, Europe is expected to have tremendous growth. The cold chain market Western European countries such as Germany, France, the United Kingdom, Italy, and Spain dominate packaging in Europe. In terms of revenue, Europe's market size in 2021 was USD 6.40 billion. In Europe, the temperature profile varies dramatically from nation to country. To transport temperature-sensitive products, innovative temperature monitoring and packaging methods are used. Due to the development and expansion of economies, Central and Eastern European countries are predicted to give multiple growth prospects compared to Western countries.