Cold Chain Packaging Market Size, Share & Trends Report

Cold Chain Packaging Market Size, Share & Trends Analysis Report By Product, By Material (Insulating Material, Refrigerants, Hydrocarbon), By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-135-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 110

Report Overview

The global cold chain packaging market size was valued at USD 15.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 19.4% from 2020 to 2027. The growth can be attributed to the rising demand for packaging solutions from the global food processing industry. The key factors driving this demand are the changing lifestyle of people, growing population, and rapid urbanization in emerging economies such as China, India, and Mexico. While the rising population is triggering demand for food products, changing lifestyles is 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. The annual ground beef demand in the U.S. is more than 6 billion pounds.

U.S. cold chain packaging market size

Furthermore, New Zealand led the world in ice cream consumption in 2019 with a per capita consumption of over 28 liters per year, followed by the U.S. with more than 20 liters per capita per year. Therefore, such a rising demand for processed meat and food is driving the market. The retail sector in developed countries, such as the U.S., is witnessing a change in consumer behavior as shopping patterns continue to shift from conventional retail businesses to online shopping. Online grocery shopping is gaining popularity in line with increasing penetration of the Internet and the subsequent rise in the number of tech-savvy consumers. For instance, sales of packaged food products are contributing significantly toward Amazon’s online grocery sales. Rising demand for packaged food is expected to drive the market growth.

The different food and safety regulations across countries have a significant impact on the future of the temperature-controlled packaging industry. Governments across the region have drafted various rules and guidelines for the storage and transportation of refrigerated products. Various regulations across countries related to food packaging include Food and Drug Administration’s regulations for frozen food in the U.S., India’s Food Safety and Standards (Packaging) Regulations (2018), China’s Food Safety Law, and Canada’s Food and Drugs Act, among others. Companies need to adhere to various standards that meet all the regulations regarding temperature-controlled packaging solutions. Moreover, the rising logistics cost across the globe is anticipated to impact the smooth growth of the market.

Product Insights

The insulated container and boxes segment led the market and accounted for more than 57% of the revenue share in 2019. This high share is attributable to the rising demand for reusable insulated containers across various applications, such as food processing, fruits, and vegetables. The segment is further classified based on payload size by large, medium, small, extra small, and petite. Based on the product, the market has also been classified into crates, cold packs, labels, and temperature-controlled pallet shippers. The crates segment is further classified into applications such as dairy, pharmaceutical, fisheries, and horticulture.

The cold packs segment is estimated to grow at the highest CAGR of more than 21% from 2020 to 2027. The temperature-controlled pallet shipper segment is expected to grow as a high compound annual growth rate over the forecast period. A variety of low-density Polyethylene (LDPE), Polyurethane (PUR), and Expanded Polystyrene (EPS) pallet shippers are available in the market. The temperature-controlled pallet shippers are specifically used for bulk shipments of frozen food, vaccines, and biological samples and specimens.

Material Insights

The insulating materials segment led the market and accounted for more than 65% of the revenue share in 2019. The insulating material segment is further classified into EPS, PUR, Vacuum Insulated Panel (VIP), cryogenic tank, and others. The others segment includes insulting pouches, active thermal systems, and hard-cased thermal boxes. EPS held the largest share in 2019 and is anticipated to maintain its stronghold on the insulating materials market from 2020 to 2027.

The refrigerant segment includes fluorocarbons, Inorganics (ammonia and CO2), and hydrocarbons. There is an increasing emphasis on the use of low Ozone Depletion Potential (ODP) and low Global Warming Potential (GWP) gases. The use of such refrigerant gases helps to tackle environmental and social facets, which proves to be a crucial driver for refrigerant market growth across the globe. Increasing demand for energy-efficient natural refrigerants is also boosting segment growth. Inorganic refrigerants such as ammonia and CO2, as well as hydrocarbon-based refrigerants, are the most popular natural refrigerants. End-users are increasingly opting for these for reducing costs and decreasing adverse environmental impact. The hydrocarbons segment held the largest market share in terms of revenue in 2019 and is anticipated to maintain its dominance over the forecast period.

The major challenge of food processing applications today is to ensure the freshness of perishable goods while also reducing the impact on the environment. The use of synthetic refrigerants such as Hydrofluorocarbon (HFC), Hydrochlorofluorocarbons (HCFC), and Chlorofluorocarbon (CFC) leads to various environmental problems that include depletion of the ozone layer and global warming. Hence, the use of Carbon Dioxide (CO2) and Ammonia (NH3) provides sustainable refrigeration and acts as a long-term alternative to synthetic refrigerants.

Application Insights

The fish, meat, and seafood application led the market and accounted for more than a 25% share of the global revenue in 2019. This high share is attributable to the rising volumes of meat products, including beef and chicken, increasingly being exported from the U.S. and Brazil. As meat products are prone to natural, continuous, and irreversible bio-physiochemical changes, they need to be stored at a suitable frozen temperature range during its transit and storage. The fruits and vegetable segment is expected to expand at a significant CAGR of more than 20% from 2020 to 2027. Fresh fruits and vegetables need to be refrigerated appropriately to maintain their freshness until they reach the end consumer. An efficient packaging solution can help food producers and food processing companies in effectively managing their operations.

Global cold chain packaging market share

The processed food segment is projected to exhibit the highest CAGR from 2020 to 2027. The growth can be attributed to the increased intake of processed foods such as canned meat, canned beans, jams and pickles, chocolate bars, and other food items by the people around the globe. The pharmaceutical industry also drives demand for cold chain packaging solutions, wherein the companies need effective solutions to store and preserve medicines, blood samples, vacancies, and other temperature-sensitive medical items. During the recent wake of the coronavirus pandemic, a high number of blood samples and temperature-sensitive drugs are getting transported. Advanced packaging solutions are helping the companies and laboratories in efficiently managing and monitoring their supply chain operations and maintaining the quality of their temperature-sensitive medical products and test samples.

Regional Insights

North America dominated the market and accounted for over 34% share of global revenue in 2019 and is anticipated to maintain its dominance over the forecast period. The high market share of the region is attributable to significant fragmentation in the North America region owing to the presence of a large number of major industry participants. Moreover, the people are increasing their preference towards the intake of fresh and organic food such as fresh leafy vegetables, organic milk, and organic eggs, which requires critical packaging and handling measures at each level of storage and transit to avoid spoilage. This, in turn, is boosting the regional market growth.

Asia Pacific is projected to be the fastest-growing region owing to rapid economic growth in emerging countries. Emerging economies, such as India, Singapore, Thailand, and China, are expected to contribute to the regional market growth. Due to the growing geriatric population, high demand for medicines will also augment the pharmaceutical market in the Asia Pacific. The ever-increasing population, the rapid industrialization, the continued rollout of transportation and warehousing networks, and the rise in demand for processed and canned food items are some of the factors expected to drive regional growth.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of numerous local companies, especially in the North American region. These companies are staying ahead of the competition by actively engaging in mergers and acquisitions. Such companies are focusing on enhancing their product portfolio as well as expanding the regional presence. For instance, In May 2019, Sealed Air announced the acquisition of Automated Packaging Systems, Inc. (U.S.), one of the leading manufacturers of automated bagging systems. The acquisition would help Sealed Air in the expansion of protective packaging, and it would, in turn, benefit from cross-selling opportunities in the market. In January 2018, Softbox Systems Ltd acquired TP3 Global, a provider of thermal protection covers for the pharmaceutical industry. The former aims to strengthen its product portfolio and expand its presence worldwide with this acquisition. Some of the prominent players in the cold chain packaging market include:

  • Cascades Inc.

  • Cold Chain Technologies

  • Creopack

  • Cryopak A TCP Company

  • Intelsius

  • Pelican Products, Inc.

  • Softbox

  • Sofrigam

  • Sonoco ThermoSafe

  • va-Q-tec

Cold Chain Packaging Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 18.2 billion

Revenue forecast in 2027

USD 63.1 billion

Growth Rate

CAGR of 19.4% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Product, material, application, region

Regional scope

North America; Europe; Asia Pacific; South America; Middle East; Africa

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; China; India; Japan; Brazil

Key companies profiled

Cascades Inc.; Cold Chain Technologies; Creopack; Cryopak A TCP Company; Intelsius; Pelican Products, Inc.; Softbox; Sofrigam; Sonoco ThermoSafe; va-Q-tec.

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Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global cold chain packaging market report based on the product, material, application, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Crates

      • Dairy

      • Pharmaceutical

      • Fisheries

      • Horticulture

    • Insulated Container & Boxes

      • Large

      • Medium

      • Small

      • X-Small

      • Petite

    • Cold Packs

    • Labels

    • Temperature Controlled Pallet Shippers

  • Material Outlook (Revenue, USD Million, 2016 - 2027)

    • Insulating Material

      • Expanded Polystyrene (EPS)

      • Polyurethane rigid foam (PUR)

      • Vacuum Insulated Panel (VIP)

      • Cryogenic Tanks

      • Others

    • Refrigerants

      • Fluorocarbons

      • Inorganics

        • Ammonia

        • Carbon Dioxide (CO2)

      • Hydrocarbon

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Fruits & Vegetables

    • Fruit & Pulp Concentrates

    • Dairy Products

      • Milk

      • Butter

      • Cheese

      • Ice Cream

    • Fish, Meat & Seafood

    • Processed Food

    • Pharmaceuticals

      • Vaccines

      • Blood Banking

    • Bakery & Confectionaries

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • The U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East

    • Africa

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