The Cold Chain Packaging Market Is Estimated To Witness High Growth Owing To Increasing Demand For Temperature Controlled Packaging
The cold chain packaging market is estimated to be valued at US$ 26.94 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The cold chain packaging market consists of perishable products that require strict temperature controlled logistics from the point of origin to the final destination. The market covers various industry sectors such as food and beverages, healthcare, and chemicals. Pharmaceutical companies widely use cold chain packaging for transportation and distribution of vaccines, biologics, and other temperature sensitive drugs.
Market Dynamics:
The major drivers contributing to the growth of the cold chain packaging market are increasing demand for temperature controlled packaging from the food industry and rising healthcare expenditures globally. According to the World Health Organization, global healthcare expenditure reached US$ 8.5 trillion in 2020, up from US$ 7.8 trillion in 2019. This indicates growing demand for vaccines and biologics globally, which requires cold chain logistics and packaging for transportation and storage. Moreover, changing lifestyle and consumption patterns have increased the demand for processed and packaged food products. Proper cold chain management plays a vital role in maintaining the quality and safety of perishable food items during supply chain and transportation.
SWOT Analysis for Cold Chain Packaging Market
Strength:
- Growing demand for temperature-sensitive foods and pharmaceutical products provides opportunities for cold chain packaging market.
- Different types of materials and technologies used in cold chain packaging such as EPS molded packing, insulated packaging solutions ensure products safety and quality.
- Usage of renewable sources and eco-friendly materials in manufacturing reduce environmental impact.
Weakness:
- High initial investments required for setting up an efficient cold chain supply which increases the overall operational costs.
- Managing an unbroken cold chain from production to the end consumer requires extreme coordination which is a complex task.
Opportunity:
- Increasing globalization in trade has encouraged perishable food exports from countries with a comparative advantage in agricultural production.
- Growth in organized retail and e-commerce sectors driving the demand for temperature-controlled logistics.
Threats:
- Price fluctuations in raw materials can negatively impact profit margins of packaging manufacturers.
- Stringent regulations regarding material disposal and recycling may add compliance burden.
Key Takeaways
The global Cold Chain Packaging market is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand for temperature-sensitive products across industries. North America dominated the market in 2023, accounting for around 30% of the global Cold Chain Packaging demand due to strong infrastructure, healthcare systems and organized retail industry in the region.
Regional analysis
Asia Pacific is projected to be the fastest growing region in the Cold Chain Packaging market due to rising middle-class population, changing consumer lifestyle and growing demand for perishable foods in developing countries like India and China. Countries in Western Europe and North America dominated with over 60% share together in 2023 led by high consumption of packaged food and pharmaceuticals requiring temperature-controlled logistics and storage.
Key players
Key players operating in the Cold Chain Packaging market are Pelican BioThermal LLC, Sonoco Thermosafe, Cold Chain Technologies Inc., Cryopak, Sofrigam Company, Intelsius (A DGP Company), Coolpac, Softbox Systems Ltd, Clip-Lok SimPak, and Chill-Pak. The market is competitive with leading players focusing on new product development, mergers, acquisitions and global expansion to gain significant market share.
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https://www.rapidwebwire.com/cold-chain-packaging-market-size-share-growth-outlook-2023/
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