Temperature Controlled Packaging Solutions Market Size, Share & Trends Analysis Report By Product (Insulated Container, Insulated Shipper), By Application (Food & Beverage, Healthcare), And Segment Forecasts, 2019 - 2025

Report Overview

The global temperature-controlled packaging solutions market size was valued at USD 9.6 billion in 2018. The rising demand for fresh and frozen food, coupled with increasing application in the pharmaceutical industry, is expected to propel the growth of the market in the future. Furthermore, the rapid growth of the cold chain industry on a global level is expected to have a positive impact on market growth.

Changing lifestyles and busy schedules have fueled the demand for frozen foods across the globe. Consumer preferences are shifting towards ready to eat meals due to time constraint. These frozen and ready to cook foods require a specific temperature for their shipment. Therefore, a favorable trend of the consumption of frozen foods is expected to promote the scope of temperature-controlled packaging. U.S., China, India, and the Philippines are the countries with a high demand for frozen food. The rising purchasing power of the South Asian countries including Bangladesh, Pakistan, and India has also been increasing the demand for convenient meals. Furthermore, over the past few years, increasing participant rate of women in the workforce has promoted the scope of processed foods.

Growing health consciousness among consumers has boosted the demand for fresh fruits and vegetables over the world. Over the past few years, China and South Africa have witnessed significant growth for fresh foods. As a result, grocery retailers including supermarkets, hypermarkets, and convenience stores, have increased the investment for advanced packaging technology for fruits and vegetables.

Furthermore, Netherlands, U.K., and Belgium are the leading importers of fresh fruits and vegetables from developing countries. Banana is the most consumed fruit in the countries of the U.S. and Europe. Therefore, the fresh fruit and vegetable suppliers across the globe are projected to use temperature-controlled packaging solutions for their finished goods over the next few years.

Booming international trade and trade liberalization including the North America Free Trade Agreement (NAFTA) and European Union Free Trade Agreement (FTA) has boosted the logistics industry significantly. The transportation and packaging sector is a major part of this industry and it has been witnessing significant growth over the years.

Similarly, the cold chain industry is growing at a lucrative rate over the world on account of the expansion of the international trade of perishable goods. Technological development has fueled the growth of this industry and increased the demand for insulated packaging across the world.

Application Insights

Food and beverage emerged as the largest application segment in the temperature-controlled packaging solutions market and accounted for 49.3% share in 2018. This growth is attributed to the increasing demand for fresh and frozen foods across the world. In 2017, Germany imported fresh foods valued more than USD 12 billion. In the same year, India had exported around USD 1,459.9 million of fruits and vegetables including mangoes, walnuts, bananas, grapes, pomegranates, onions, bitter gourd, mushrooms, green chilies, potatoes, and okra.

Major importing economies of fruits and vegetables in India include Netherland, U.K., UAE, Bangladesh, Sri Lanka, Nepal, Malaysia, Qatar, and Saudi Arabia. In 2015, the U.S. had exported a total USD 6.3 billion fruit and vegetable while the import crossed USD 17.60 billion. The import value of fresh, dried, and frozen fruit fruits and vegetables in the U.S. has increased by 5% from 1990 to 2015. These favorable factors in the fresh fruits and vegetable industry are expected to expand the scope of packaging product forms in the future.

The product demand in the healthcare industry is expected to witness the fastest growth, at a CAGR of 8.8% from 2019 to 2025. Extensive application reach of the pharmaceutical industry is fueling the demand for the product significantly. The U.S. Food and Drug Administration (U.S. F.D.A.) has specified thermal requirements for transportation, handling, and storage of the drugs. These containers meet the thermal and hygiene requirement of the healthcare products including drugs, vaccines, blood, and organs. Over the past few years, international health organizations including the World Health Organization (WHO) have been emphasizing the reduction of vaccine waste. Furthermore, increasing initiatives to monitor vaccine wastage is expected to fuel the demand for the product in the future.

Product Insights

Insulated shippers held the largest share of 56.3% in 2018. A wide range of applications in several industries including pharmaceutical, food and beverage, and chemical, is expected to promote the utility of shippers. Constantly improving technology has been boosting the demand for the insulated shippers. For instance, implementation of phase change materials (PCMs) and vacuum insulated panels (VIP) technology has enabled the insulated shippers to offer a range of temperatures with low distribution costs. These products have gained significant utility for the shipment of clinical and pharmaceutical products.

Insulated containers generated a revenue of USD 4.2 billion in 2018. These containers are majorly used for the shipment of foods, chemical, biologic materials, blood, and organs. These containers are a crucial part of the cold chain to control and document the temperature of the entire distribution channel. 

Regional Insights

As of 2018, North America dominated the market with more than 40.0% share. The high adoption rate of temperature packaging in the healthcare industry of the U.S. and Canada is expected to remain favorable for the industry. Furthermore, the rising importance of convenience foods among the working-class population of the U.S. is expected to upscale the requirements of temperature-controlled packaging.

Increasing demand for fresh fruits and vegetables is also driving the market in this economy. Technological improvement of the packaging industry not only ensures a long shelf life of fruits and vegetables but also maintains the nutritional value of the finished goods. The presence of a large number of frozen food producers in the U.S. has fueled the demand for the product.

North America dominates the pharmaceutical industry in the world. Multinational companies including Johnson & Johnson; Merck &Co; and Pfizer Inc. hold a significant part of this industry. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), pharmaceutical companies in the U.S. hold the majority of the intellectual property rights of the new medicines and conduct more than 50% of the pharmaceutical R&D. This booming industry is expected to increase the demand for the product in near future in this region.

Key Companies & Market Share Insights

Key industry participants include Cryopak Industries Inc.; DGP Intelsius; Cold Chain Technologies, Inc.; Envirotainer AB; Softbox Systems Ltd.; AmerisourceBergen Corporation; DHL International GmbH; Sonoco Products Company; Inmark Temperature Controlled Packaging; and APEX Packaging Corporation. Over the past few years, leading manufacturers in the industry are increasing spending on R&D to improve the product. For instance, in January 2019, Softbox Systems Ltd. launched a new pallet as well as parcel shipping systems in the Temperature Controlled Logistics (IQPC) sector in London. The products include Tempcell ECO, Tempcell MAX, and Silverpod MAX. Among them, Tempcell ECO is a 100% recyclable parcel shipper catering to the life science sector. These parcels are made of corrugated paper materials.

Temperature Controlled Packaging Solutions Market Report Scope

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 in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global temperature-controlled packaging solutions market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Insulated container

  • Insulated shipper

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Food & beverage

  • Healthcare

  • Others

• Region Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa