US Cold Chain Logistics Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Cold Chain Logistics Market 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.

Modern advancements are shaping logistics companies towards a better future; the use of IoT devices and automates all logistics activities, enhances real-time temperature monitoring thereby cutting down the risk from spores, and cold chains take up energy-efficient or even sustainable technologies to meet its demands from the consumers or to meet the demand arising with “green practices”.

Warehouse & Storage Employees” is the general upward trend of warehousing & storage employees from January 2019 to January 2022. This surge supports the increased need for warehousing services, especially for the U. S. Cold Chain Logistics Market. Growing demand for cold storage and effective storage and distribution of perishable products including food, pharmaceuticals, and chemicals facilitates the need for a competent workforce for the facilities.

This also points to higher recruitment during this period, consistent with the overall expansion of the logistics industry as a result of factors like increased e-commerce purchases and the size and complexity of the networks. Employment in cold chain logistics has been rising, suggesting that the industry is in good health and expanding, therefore a commendable initiative in promoting cold chain logistics in the country.

US Cold Chain Logistics Market: Significant Growth Factors

The US Cold Chain Logistics Market presents significant growth opportunities due to several factors:

• Economic Growth and Urbanization: Demand for fresh and quality products such as food, pharmaceuticals, and chemicals increases. The greater the urban population, the greater the need for more efficient and better cold chain logistics in cities so that there is an adequate supply of perishable commodities. By increasing infrastructures like the availability of cold storage facilities in a city, businesses can conveniently reach consumers with temperature-sensitive products. High demand for fresh and frozen food combined with pharma demand in developing countries results in demanding and advancing cold chain services. Urbanization leads towards online and convenience, thus also supporting the demand for reliable cold chain logistics.
• Emergence of Fresh and Frozen Products: Emergence Because of the healthy preference shifting of consumers towards freshness or other types of fresh frozen foods, demand increases highly. Fresh products and frozen ones involving a cold chain during their storage and transportation for maximum freshness and safety are very much conscious among people today. Fresh produce such as fruits, vegetables, dairy, and meat will safely arrive at their destination in cold storage and refrigerated transportation.

• Growth in the Pharmaceutical Sector: The Pharmaceutical Sector is an area of growth due to increased needs in the pharmaceutical sector for temperature-sensitive drugs, vaccines, and biologics as a result of growing demands. Life-saving drugs produced with advancements in medical science require stricter temperatures in the storage and transportation process. Demand is also expected to grow with the advent of new biological drugs and vaccines. Pharmaceutical companies have been investing a lot in cold storage and refrigerated transport to ensure that products do not lose their quality during transportation, which continues to fuel the market expansion. People are waking up to the benefits of using aromatherapy in health and wellness. This just fuels further demand for aromatherapy diffusers because most individuals prefer to augment natural approaches to stress relief, improvement in sleep quality, and good well-being. A holistic health trend like these fuels and propels further demand for aromatherapy which has primarily become a part of most people’s daily lives, investing in these products.

• E-commerce Development: E-commerce has changed the nature of selling and delivering goods, especially perishable goods such as food and beverages and pharmaceuticals. The trend of ordering groceries, frozen foods, and medicines through the Internet calls for the assurance of safe delivery with cold chain logistics. With the world growing in online shopping, third-party logistics providers are now more businesses getting their cold chain operations done using third-party logistics providers (3PLs) so the goods can be delivered within their due time. Cold Chain Logistics will continue to flourish because of the ease it gives to shop online with increasing demand for fresh goods, which are temperature sensitive.

• Investment in Cold Storage Facilities: New refrigerated warehouses are emerging, and the older ones are being upgraded to cope with the increased demand for temperature-sensitive products. These facilities are equipped with the latest technologies, such as automated racking systems, energy-efficient refrigeration, and real-time temperature monitoring. Investment in cold storage increases the capacity to store goods but also improves the efficiency of the whole supply chain.

US Cold Chain Logistics Market – New Acquisitions and Mergers

The US Cold Chain Logistics Market has seen several New Acquisitions and Mergers in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of product launches in the US Cold Chain Logistics Market include:

• In July 2024, OIA Global broadened its footprint in Europe with the acquisition of Sandford Freight, a major logistics supplier located in Ireland. This acquisition fortifies the service offerings of OIA in APAC, making it more competitive within the $60B annual global logistics and supply chain management industry. It provides a major positive for OIA’s expansion strategy, with an increased operational presence in Ireland to be able to support its customers better.

• In July 2024, Barcoding Inc and DecisionPoint Systems merged to create a larger, scale-based supply chain, logistics solutions company. This brings together the complementary strengths of both firms, to scale this across a broader range of customers and sectors through added capability; making the combined entity a considerable force in our industry in providing an expanded new groundbreaking service to be offered based on its technology innovation.

• In May 2024, GrubMarket acquired Butter, a provider of AI-powered software that specializes in food supply chain technology through the acquisition by an American business. The acquisition reinforces GrubMarket’s status as a tech market leader, incorporating cutting-edge AI solutions into its food logistics and distribution network across the United States.

• In January 2024, in a few million-dollar deal UAE-based Elite Logistics procured LogX adding to its logistics muscle and reach. The purchase solidifies the firm’s stronghold in the logistics space, while also allowing it to cater to a wider clientele more efficiently across industry verticals.

These new acquisitions and mergers helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the US Cold Chain Logistics Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Cold Chain Logistics Market – Significant Threats

The US Cold Chain Logistics Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Economic Downturns: Economic recessions or downturns are a major force that could impact the US Cold Chain Logistics Market, as less consumer spending and less demand for non-essential goods might reduce the volume of temperature-sensitive products being moved. The growth of the market is closely related to economic stability; this can cause organizations to tighten the budget, reduce investment, or even postpone the building or improvement of any cold chain logistics infrastructure or services.

• Highly competitive Innovative Industry Growth: The US Cold Chain Logistics Market is witnessing intense competition. Large players in the market and new entrants are constantly vying with each other to outdo one another, which has created pricing pressures, reduced profit margins, and constant innovation to maintain some level of competitiveness. Market organizations are always driven to improve their service offerings, incorporate advanced technologies, and differentiate to maintain or grow market share.

• Technological Obsolescence: Fast changes in cold chain technologies, for example, refrigeration systems or monitoring tools, can make existing technologies and or solutions obsolete. Organizations must work with technologies of moderately disadvantageous because of the pace at which it evolves or shifts its direction toward new technologies. Due to progressive consumer goods, organizations must continuously invest in research and development that advances technology, irrespective of level, and stay updated on market requirements.

• Supply chain Disruptions: It is from the global interruption and delays in the chain that as a first, it was going to affect the capacity of the services and products rendered by the given company. Organizational practice’s leadership ranges in age with experience like how the boat moves with south western. Since it cannot be common because of such experience and lacks common thoughts, the limits to any potential interruption remain whole investments as nature requires more supply as things progress. Supply chain disruptions can original shipment centre key component suppliers for repeatable savings merge on requests, shipments on inlays simply.

• Regulatory Forces: Adoption of regulatory forces about kitchen foods, US Centers for Disease Control Pharmaceuticals, and legislative initiatives in our environmental impact may hold obligations for organizations to comply with compliance or validate existing processes. Increasing rules or obligations can even deter the current delivery of what the company states is compliant. Organizations may have to reduce the risk of unwanted exposures and damages until they can demonstrate, statistically, that they are in compliance with the rules or have the right to do so.

Category-Wise Insights:

By Type

• Refrigerated Storage: This type includes cold storage, which is a specially designed storage warehouse to cater to specific temperature requirements of perishable goods. It covers a wide spectrum of products ranging from fresh fruits & vegetables, and dairy products to pharmaceuticals that need to be stored in a specified temperature range for an extended period and it should be safe and fresh until it is distributed in the market. The growing demand for fresh, organic food and the strong growth of the pharmaceutical sector have increased the demand for more sophisticated and energy-efficient refrigerated storage.

• Refrigerated Transport: These are refrigerated vehicles, which carry in-built refrigeration systems, such as refrigerated trucks, trailers & containers, and specialized railcars used in the transportation of temperature-sensitive products. Maintaining the desired temperature throughout a shipment process to avoid spoilage or degradation of products is crucial. This segment is expected to take traction during the forecast period, considering the growing international trade of fresh and frozen food and the increasing demand for safe and reliable transportation systems for pharmaceuticals and vaccines.

• Cold Boxes: Cold boxes are insulated boxes that can store the products temporarily or be taken from one place to the other for temperature-sensitive goods delivery, generally it travels up to the last mile of distribution. These comprise the Health Care and Food logistics industry which requires maintaining cold chains until the point of delivery. Cold boxes are gradually adopting this technology as these cold boxes are flexible and more comfortable to transport while efficiently delivering the product until last-mile delivery.

• Monitoring Equipment: This category pertains to devices and networks that are applied in monitoring and tracking temperature and humidity levels of products during the cold chain. Sophisticated monitoring equipment, many times interwoven with IoT and cloud-centric systems, provides live data and also warnings/alarms so that products are kept within what is safe regarding temperature. For these purposes, the use of such equipment is becoming increasingly indispensable to ensure compliance with regulations and the maintenance of the quality and safety of perishable commodities.

By Application

• Food & Beverages: The demand for the preservation and safety of commodities such as fruits, vegetables, dairy, meat, and seafood is the biggest driver for the cold chain logistics sector. With consumers still demanding fresh and minimal processing foods, the need for a reliable cold chain is greater. This category also houses frozen and pre-packaged food that must be held at a consistent temperature to retain freshness.

• Pharmaceuticals: Cold Chain Logistics is very important to the pharmaceutical industry because it ensures the safe storage and transportation of temperature-sensitive drugs, vaccines, and biologics. As pharmaceuticals continue to grow and develop, especially in the fields of biologics and personalized medicine, the need for temperature-controlled logistics is on the rise. This part is also regulatory-driven in that it requires very close temperature controls and records down the supply chain.

• Chemicals: Some chemicals must be stored and transported at specific temperatures to maintain their stability and effectiveness. The cold chain logistics sector is one of the most important sectors of certain industries (pharmaceuticals, agriculture, manufacturing) where temperature-sensitive chemicals are being used. This part is governed by the requirements of safe and legal shipping of hazardous or sensitive materials.

• Agriculture: The agricultural sector is responsible for storing and shipping fruits, vegetables, flowers, and other perishables from the farms to the markets. Cold chain logistics is a must in terms of cutting down on post-harvest losses, increasing the shelf life of products, and ensuring that fresh produce can reach the consumer’s hands in the best possible condition. As more consumers desire fresh foods and products grown locally, the agricultural requirement for effective cold chain solutions is growing.

• Others: That would further branch into specialty uses of cold chain logistics into cosmetics, specialty food, and a few industrialized products. Many of them have to be kept in certain temperatures in order to provide quality and usability and therefore the supply chain can’t do much without the cold chain.

By Temperature Range

• Chilled: Chilled logistics are used for products that require to be stored and transported at temperatures between 2°C and 8°C. Examples include dairy, meat, and fresh produce. Chilled logistics are also required for some pharmaceutical products such as vaccines. As demand for fresh food and medicines is on the rise, the need for chilled logistics is increasing. Companies like Lineage Logistics specialize in providing chilled storage and transport solutions for the food and pharmaceutical industries.

• Frozen: This is a category that entails items to be preserved at freezing temperatures usually at a temperature of -18°C or lower. Such examples include frozen foods, ice cream, and pharmaceutical products. These must be held to ensure quality and safety when kept and shipped. Frozen in particular plays a major role, especially in today’s food world where everything is being processed as frozen foods because they can stay for long and are very convenient.

• Ambient: Ambient logistics describe the transportation and storage of products at room temperature between 15°C and 25°C. These are not temperature-sensitive products; these include dry foodstuff, canned goods, and some cosmetics. Ambient is less critical than chilled or frozen logistics but is still vital for safely transporting shelf-stable products. More and more consumers are purchasing ambient products online as a result of the growth of e-commerce, thus increasing the demand for ambient logistics solutions.

By End Use

• Food Service: Cold chain logistics is the lifeline of the food service industry, which includes restaurants, catering, and food delivery services. Perishable ingredients and ready-to-eat meals must be kept and transported at safe temperatures to uphold food safety and quality. The food service segment is growing as consumer demand for fresh and prepared meals increases, particularly with the rise of online food delivery platforms.

• Retail: This is a category of supermarkets, grocery stores, and convenience stores using cold chain logistics to make sure their perishable products remain fresh and safe for the consumer. Increasingly more retailers are investing in complex cold chain systems to reduce food waste, increase shelf life, and satisfy consumer demand for fresh high-quality products. This also includes the new emerging online grocery shopping in the retail sector that requires dependable last-mile cold chain logistics.

• Medical Facilities: This sector contains hospitals, and clinics, among others using cold chain logistics to handle vaccine transportation, Biologics, and temperature-sensitive medication. Companies, such as Cryoport, specialize in medical cold chain solutions guaranteeing that those products may safely reach a destination and can therefore remain viable. Indeed, with the growing demand for vaccines and other biological drugs, medical cold chain service continues rising.

• Industrial: The industrial sector involves the storage and transportation of temperature-sensitive chemicals and materials used in the processes of manufacturing. This material which is often a key component in high-value goods must be kept at a certain temperature for safety and quality reasons, therefore cold chain logistics is very important. This part focuses on safe logistics solutions that are efficient and cater to the particular needs of industrial applications.

• Agriculture: Cold chain logistics play a significant role in the agriculture industry through the storage and transportation of fresh produce, flowers, and other perishable commodities. Cold chain logistics is a process that ensures perishable goods are kept at their optimal temperatures from the farm (or factory) to the market to reduce spoilage, extend shelf life, and ensure products reach consumers in the best possible condition. This sector of agriculture is becoming more popular as demand for fresh food as well as locally produced food increases.

By Sales Channel

• Direct: In this channel all the logistics of cold chain storage, transportation, etc are in-house. Due to this, the company is more in control of its logistic process, hence it has greater visibility into its product’s quality and safety. The only thing is that the big producers and distributors who have money to sustain their cold chain system, use this direct channel.

• Third-Party Logistics (3PL): Many companies “subcontract” their cold chain logistics to other companies that specialize in temperature-controlled warehousing and transportation. So, then the companies can do what they do best and leave the intricate details of the cold chain to the 3PLs. The 3PL lane is expanding because companies are finding out that they can save money, and make their operations better by outsourcing their logistics.

• E-commerce: With increasing electronic commerce and internet platforms coming up in the cold chain logistics marketplace, companies can have hundreds of logistics services right on the World Wide Web. It is a bazaar where the shippers and the providers come together, booking and tracking are very easy and prices are good. Online platforms are one of the fastest-growing segments, due to rapid growth in online retail and an increasing need for flexible, on-demand logistics.

Report Scope

Competitive Landscape: US Cold Chain Logistics Market

The US Cold Chain Logistics Market is highly competitive, with a large number of logistics providers and service operators operating in the US. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as technological innovation, mergers and acquisitions, and strategic partnerships.

The US cold chain logistics market is very competitive and characterized by a huge number of players that have made the nature of the market very dynamic. Among the major players are Americold Logistics, Lineage Logistics, United States Cold Storage, and XPO Logistics, which highly compete in offering superior and reliable temperature-controlled solutions. These firms invest highly in innovative technologies such as IoT-enabled monitoring systems and automation to enhance efficiency, ensure reliability, and increase customer satisfaction.

A trend in the market is growing dependence on third-party logistics (3PL) providers. These firms manage a substantial share of refrigerated storage capacity, so businesses can outsource their cold chain operations and concentrate on their core activities. Companies have adopted energy-efficient refrigeration systems and eco-friendly packaging to meet stringent regulatory requirements and cater to environmentally conscious consumers.

The new entrants into the market utilize the support of technology to give diversified services. Such an energetic competitive and innovative climate sustains the continued improvements hence keeping the industry growing through increased demand in the future in temperature-sensitive logistics associated with food, beverage, and drug-related industries.

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