The cold chain market involves a temperature-controlled supply chain for storing and transporting temperature sensitive products such as vaccines, pharmaceutical drugs and frozen food until their final destinations. It requires specialized refrigerators, cold storage facilities and thermal packaging to maintain the recommended temperatures, usually between 2°C to 8°C during transport and storage. Growth in the biopharmaceutical and pharmaceutical industries have increased research and production of temperature sensitive drugs such as insulin, vaccines and monoclonal antibodies. Increasing prevalence of chronic diseases and changing lifestyle habits have also boosted the demand for these drugs globally. The increasing healthcare expenditure and regulatory focus on temperature monitoring have driven investments in innovative cold chain logistics. The global cold chain market is estimated to be valued at US$ 270.8 Mn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for temperature sensitive pharmaceutical products: As mentioned in the heading, the growing production and demand for vaccines, biologics and other pharmaceutical drugs that require temperature-controlled transportation and storage is a key factor driving the cold chain market growth. These drugs requiring thermal management during handling and distribution are increasing for treatment of chronic diseases.
Regulatory safety guidelines: Stringent regulations stipulating temperature norms by regulatory bodies like FDA and EMA during transportation of drugs are encouraging investments in advanced cold chain logistics and monitoring technologies. Adherence to safety guidelines enhances quality standards and compliance. This regulatory driver is propelling the market opportunities.
Segment Analysis
The global Cold Chain market is segmented based on End Use, Temperature Type and Technology Type. By End Use, the Pharmaceutical segment is dominating the market with over 40% share. Pharmaceutical drugs require temperature controlled supply chain to maintain the potency and efficacy of the drugs throughout their shelf life. By Temperature Type, the Frozen segment holds the major share as most vaccines and other biologics require ultra-low temperatures for transportation and storage. By Technology Type, the refrigerated transport segment leads the market attributed to extensive usage of refrigerated trucks and containers for cross border pharmaceutical shipment.
PEST Analysis
Political: Regulations around quality standards, temperature control requirements during shipment support market growth. However, policies restricting cross border movement impact transnational shipments.
Economic: Rising healthcare expenditure, growth in biopharma industry, increasing demand for temperature sensitive drugs and vaccines fuel market expansion.
Social: Aging population, increasing disease prevalence bolster demand for drugs and biologics necessitating robust cold chain infrastructure.
Technological: Advancements in monitoring devices, cold chain packaging solutions and materials help achieve seamless temperature controlled end to end supply chain.
Key Takeaways
The Global Cold Chain Market Size is expected to witness high growth at a CAGR of 7.3% during the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific region contributes over 35% market share attributed to rising healthcare infrastructure development especially in emerging countries like India and China.
Key players: Key players operating in the Cold Chain market are Novo Nordisk A/S, Pfizer, Inc., Eli Lilly and Company, Changchun GeneScience Pharmaceutical Co., Ltd., Sandoz International GmbH, Ipsen Pharma, LG Chem, Merck KGaA, Genentech, Inc., Ferring B.V., AnkeBio Co., Ltd, Reliance Life Sciences, JCR Pharmaceuticals Co., Ltd, Zhongshan Sinobioway Hygene Biomedicine Co., Ltd and USV Private Limited. The market is consolidated with top 5 players accounting for over 45% shares.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
