US Cold Chain Logistics Market Size Likely to Surpass at a CAGR of 6.23% By 2033

As per the current market research conducted by the CMI Team, the US Cold Chain Logistics Market size is expected to record a CAGR of 6.23% from 2024 to 2033. In 2023, the market size is projected to reach a valuation of USD 76.45 Billion. By 2033, the valuation is anticipated to reach USD 131.70 Billion.

US Cold Chain Logistics Market: Growth Factors and Dynamics

• Focus on Reducing Food Waste: Focus on Minimizing Food Waste Reduction of food waste is a great priority in the food chain, and it is during the cold chain logistics that it significantly contributes. There is always proper cold storage and transport that keeps foods at the right temperature with no chance of spoilage and a considerable increase in the shelf life of food items. A population of an increasing global mass and insufficient resources calls for a more significant reduction in food waste.

• Rising Demand for Fresh and Frozen Foods: The need for fresh and frozen foods in the US is a main driver of the cold chain logistics market. Consumers become increasingly health-conscious, thus growing demand for fresh fruits and vegetables, meat, as well as frozen foods with the need for temperature management in transportation and storage. This trend is very strong for urban areas where people are looking for convenient access to fresher and healthier food alternatives.

• Technological Advancements in Cold Chain Logistics: The use of technologies like IoT, real-time tracking systems, and automation will help businesses improve their operational efficiency, reduce costs, and make temperature-controlled logistics more reliable. For instance, IoT gadgets enable firms to monitor, in real-time, the shipment temperature and humidity, guaranteeing that products are still within the specified conditions within transport. Warehouse and storage automated processes increase the speed involved, decrease human error during handling, and ensure adequate product management. These innovative ideas help fulfill the continuous needs of consumers for increased speed and reliability in the delivery of perishable products.

• Sustainability and Environmental Concerns: The transport and storage of temperature-sensitive commodities are highly energy-consuming operations, especially when involving older refrigeration technologies. As a result, companies are seeking even more energy-efficient solutions, for example, renewable energy sources, energy-efficient refrigeration systems, and better design for cold storage facilities. Besides, companies are increasingly looking at sustainable packaging solutions to reduce waste. Through these green approaches, companies not only stay compliant with regulations but also meet the growing consumer need for sustainability. As the market continues to grow green, sustainability will feature greatly in the future of cold chain logistics.

• Regulatory Compliance and Standards: Department of Agriculture (USDA), and the Centers for Disease Control and Prevention (CDC), especially for pharmaceuticals, vaccines, and food products. These standards require the temperature ranges, transportation conditions, and storage practices to be maintained to preserve the integrity of the product. As consumers and governments are becoming increasingly concerned about food safety and health, adherence to these standards is critical for companies operating in this area. Businesses need to continually modify their practices in response to such changes in regulations, which impacts the logistics strategies and technological investments of businesses. Increasing regulatory strings force continuous improvements in operations used in cold chain logistics.

US Cold Chain Logistics Market: New Acquisitions and Mergers

• In 2022, The WoodWick Candle Brand, under Newell Brands, introduced the WoodWick Radiance diffuser, featuring a battery-operated design and iconic hourglass silhouette. This innovative product offers consumers a convenient refill process without needing water, emphasizing ease of use and aesthetic appeal.

• In 2022, Saje Natural Wellness partnered with The Little Market to release a limited-edition Aroma Mosaic diffuser. Inspired by The Little Market’s artisan community, it showcases an intricate etched hexagon-dash pattern, highlighting ethical sourcing and artisan craftsmanship.

• In 2021, Tilley Distribution announced a significant merger with Phoenix Aromas and Essential Oils, enhancing its position as a market leader in flavor and fragrance ingredient distribution. This merger integrates Tilley’s extensive experience in specialty ingredients with Phoenix’s expertise in sourcing high-quality flavor and fragrance components.

Report Scope

US Cold Chain Logistics Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US Cold Chain Logistics Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Positive Impact on the US Cold Chain Logistics Market: The COVID-19 pandemic positively impacted the US cold chain logistics market, especially sectors such as pharmaceuticals, food, and healthcare. The demand for temperature-controlled logistics increased rapidly with the high demand for transporting and keeping vaccines, medicines, and other healthcare essentials in their required temperature conditions. Companies such as Americold Logistics and Lineage Logistics experienced increased business due to the reliable cold storage they provided for COVID-19 vaccines and other temperature-sensitive products. Moreover, the increase in online grocery shopping during the pandemic also increased the demand for cold chain services to deliver fresh produce, frozen foods, and other perishable goods. As consumers are shifting towards online shopping, cold chain logistics companies invest more in last-mile delivery solutions to ensure timely and safe deliveries of perishable items. This accelerated digital transformation and increased investments in technology, such as IoT-enabled tracking and real-time monitoring systems.

• Negative Impact on the US Cold Chain Logistics Market: On the negative side, COVID-19 interfered with supply chains and caused problems for the cold chain logistics market. Lockdowns were very widespread and workforce availability was low, which limited transportation and storage capacities during the early months of the pandemic. The labor shortages at many of the cold storage facilities affected delivery times and slowed operations. Disruption in international trade further caused delays in acquiring raw materials, for instance, refrigerants and packaging materials required for cold chain services. The sudden closing of restaurants, food service operations, and some retail operations reduced the demand for a few temperature-sensitive products. Frozen food demand, for instance, decreased significantly since many food service establishments had to close down. This created uncertainty in the market, with companies struggling to adjust to fluctuating demand and reduced capacity during the pandemic’s peak.

• Current Market Scenario: US cold chain logistics industry’s market scenario: In a nutshell, as shown above, recovery and growth for industries after the pandemic situation. This is being propelled forward with the e-commerce boom, online grocery shopping demand increase, the rise of more businesses with their advanced technology to accommodate growing volume temperature-sensitive product delivery, and increasing efficiency with the incorporation of more energy-efficient refrigeration systems and automated storage solutions. Continued distribution of vaccines and pharmaceuticals also supports the demand for cold chain logistics. Companies like XPO Logistics and United States Cold Storage have increased their cold storage capacity to meet this demand, but labor shortages and increased energy costs are still there. The market is still in the growth phase despite the challenges and this is because fresh and frozen food cravings are on the rise together with healthcare and e-commerce growth.

List of the prominent players in the US Cold Chain Logistics Market:

• Americold Logistics
• Lineage Logistics
• United States Cold Storage
• XPO Logistics
• H. Robinson
• FedEx Cold Chain
• UPS Supply Chain Solutions
• Ryder System Inc.
• Penske Logistics
• Burris Logistics
• DHL Supply Chain
• Performance Team (A Maersk Company)
• KLLM Transport Services
• Cryoport
• AIT Worldwide Logistics
• NFI Industries
• RLS Logistics
• AGRO Merchants Group
• Swire Cold Storage
• VersaCold Logistics Services
• Others

The US Cold Chain Logistics Market is segmented as follows:

By Type

• Refrigerated Storage
• Refrigerated Transport
• Cold Boxes
• Monitoring Equipment

By Application

• Food & Beverages
• Pharmaceuticals
• Chemicals
• Agriculture
• Others

By Temperature Range

• Chilled
• Frozen
• Ambient

By End Use

• Food Service
• Retail
• Medical Facilities
• Industrial
• Agriculture

By Sales Channel

• Direct
• Third-Party Logistics
• Online Platforms