China Cold Chain Market (By Type: Storage, Transportation; By Temperature Range: Chilled, Frozen; By Application) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The China cold chain market was estimated at USD 8.38 billion in 2022 and it is expected to surpass around USD 47.08 billion by 2032, poised to grow at a CAGR of 18.84% from 2023 to 2032.

Key Pointers

• In terms of type, the storage segment led the market in 2022 and held a revenue share of more than 54%. 
• The monitoring components segment is anticipated to witness the fastest CAGR of 24.33% throughout the forecast period. 
• Based on temperature range, the frozen segment led the market in 2022 with a revenue share of more than 60%. 
• The food & beverages segment led the market in 2022 with a revenue share of more than 78%. 
• The processed food segment is anticipated to grow at the fastest CAGR of 20.65% throughout the forecast period.

Report Scope of the China Cold Chain Market

The market is witnessing a remarkable surge in demand, primarily fueled by the rapid expansion of the nation's food and pharmaceutical industries. As the country's population increases and urbanizes, there has been an escalating demand for fresh produce and temperature-sensitive goods. Consequently, this surge in demand has placed substantial pressure on the supply chain to uphold product quality and safety, thereby driving a greater reliance on efficient cold chain logistics. Furthermore, a key factor contributing to the market's expansion is heightened consumer awareness and emphasis on product quality and safety. After recognizing the significance of maintaining the integrity of their products throughout the supply chain, businesses have invested significantly in the development of a robust cold chain infrastructure to instill and preserve consumer trust and confidence.

The proactive role of the Chinese Government in implementing stringent regulations and food safety standards has played a pivotal role in stimulating the cold chain market's growth. For instance, in December 2019, the Chinese Government enacted new laws to bolster food safety standards and practices nationwide. These regulations signify a commitment by the government to improve the safety and quality of food products available to consumers. The authorities introduced more rigorous and comprehensive supervision measures to monitor the food supply chain. Through their concerted efforts to enhance food safety and reduce wastage, the government has fostered an environment conducive to the wider adoption of cold chain practices within the food sector.

RFID technology has emerged as a pivotal driver in the cold chain market, enhancing visibility and efficiency in the entire process. Maintaining optimal product temperatures during transportation and storage is a critical concern among the challenges encountered in the cold chain. In addition, the application of data analytics and AI in the cold chain has revolutionized supply chain management. The processing and analyzing of vast amounts of data collected from various sources enables companies to optimize their operations, forecast potential issues, and derive valuable insights to enhance overall efficiency. The convergence of these technological advancements in the market has revolutionized the landscape, enabling more efficient and reliable transportation and storage of temperature-sensitive goods.

Type Insights

In terms of type, the storage segment led the market in 2022 and held a revenue share of more than 54%. By Type, the market is segmented into storage, transportation, packaging, and monitoring components. The storage component plays a critical role in the cold chain industry, providing specialized facilities and solutions to maintain perishable food products at optimal low temperatures throughout their journey from production to consumption. This segment is divided into two key categories: reefer containers and warehouses. Several factors, including evolving consumer preferences, population growth, and urbanization, drive the escalating demand for perishable food. In addition, technological advancements have significantly contributed to the increased efficiency and reliability of cold storage solutions, further solidifying their indispensable role in the industry. These temperature-controlled storage systems are paramount in preserving perishable goods' quality, safety, and freshness, such as fruits, vegetables, dairy products, meat, and seafood.

Various cold storage facilities are utilized within the storage segment, including refrigerated warehouses, walk-in coolers, freezers, and refrigerated containers for transportation. These sophisticated storage solutions are meticulously designed to maintain temperature-sensitive items within the required range, effectively preventing spoilage, bacterial growth, and degradation in product quality. As the demand for perishable food rises, the storage component's significance in the cold chain becomes even more pronounced. With the relentless pursuit of technological advancements, these temperature-controlled facilities and solutions continuously strive to optimize their capabilities, ensuring the safe and efficient preservation of perishable goods throughout the entire supply chain. This, in turn, reinforces the cold chain industry's ability to meet consumers' expectations for high-quality and fresh products, thereby driving its continued growth and prominence in the marketplace.

The monitoring components segment is anticipated to witness the fastest CAGR of 24.33% throughout the forecast period. Monitoring components in temperature-controlled food logistics is indispensable, ensuring that perishable goods consistently maintain the required temperature range throughout transportation, storage, and distribution processes. Several key drivers fuel the market for these monitoring components. One significant factor is the growing emphasis on food safety and quality regulations enforced by governments and regulatory bodies worldwide. In response to these stringent requirements, businesses are adopting advanced monitoring technologies to uphold the integrity of their products throughout the entire supply chain.

Essential components in this domain include advanced temperature sensors, data loggers, real-time tracking systems, and sophisticated software solutions. When integrated harmoniously, these components provide accurate and real-time information regarding temperature-sensitive products' storage and transportation conditions. By constantly monitoring temperature fluctuations and potential deviations, these components play a pivotal role in safeguarding perishable items' quality, safety, and freshness. The increasing adoption of these monitoring components is a strategic move by businesses to meet regulatory standards and gain a competitive edge in the market. Maintaining the desired temperature range is crucial to prevent product spoilage, bacterial growth, and deterioration in quality, all of which can harm consumer trust and brand reputation.

Temperature Range Insights

Based on temperature range, the frozen segment led the market in 2022 with a revenue share of more than 60%. Based on temperature range, the market is segmented into chilled, frozen, and deep frozen. The rapid expansion of e-commerce and online grocery platforms has further emphasized the need for reliable frozen temperature range services. The surge in online food purchases necessitates a seamless cold chain infrastructure to deliver frozen products to consumers' doorsteps while upholding the desired temperature throughout the supply chain. The demand for efficient frozen temperature range logistics is fueled by various factors, including the increasing popularity of frozen meat products due to their longer shelf life, convenience, and wider availability.

The growing trend of frozen bakery items as a convenient choice for consumers has led to a surge in demand for reliable cold chain solutions to ensure their quality and appeal upon delivery. The significance of this temperature range extends to the transportation of frozen bakery items such as cakes and bread. These perishable goods require stringent temperature control from production facilities to distribution centers and ultimately to consumers. Ensuring frozen meat products maintain their required low temperatures, typically below -18°C, is essential to preserve their quality, taste, and safety. The cold chain logistics for frozen meat necessitates specialized refrigerated transport vehicles with advanced temperature control systems. These vehicles maintain a consistently low temperature, safeguarding the meat from spoilage, bacterial growth, and degradation during transit.

Application Insights

The food & beverages segment led the market in 2022 with a revenue share of more than 78%. Based on application, the market is segmented into fruits & vegetables, fruit pulp & concentrates, fish, meat, and seafood, bakery & confectionary, dairy products, processed food, and others. The market is primarily driven by the growing demand for fresh, high-quality, and safe protein sources that significantly influence the need for efficient cold-chain logistics. The expansion of the food service industry, including restaurants, hotels, and catering services, has escalated the demand for a steady and reliable supply of fish, meat, and seafood. The cold chain ensures these establishments receive a consistent stream of premium products, enabling them to cater to their discerning clientele with delectable and high-quality culinary offerings. Furthermore, China's growing appetite for international cuisine and exotic delicacies has intensified the demand for an efficient cold chain network. Importing and exporting fish, meat, and seafood products necessitate stringent temperature-controlled logistics to ensure the safe and timely delivery of these perishables, thereby expanding the sector's importance in trade.

The processed food segment is anticipated to grow at the fastest CAGR of 20.65% throughout the forecast period. The changing consumer lifestyle and preferences have increased demand for convenient, ready-to-eat food options. Processed food caters to these needs, offering a wide range of convenient and easy-to-prepare meals. Secondly, urbanization and busy schedules have resulted in a growing reliance on processed food products, as they provide a quick and accessible solution for consumers with limited time for cooking. In addition, the expansion of the population and the rise of disposable income have further fueled the demand for processed food, especially in emerging economies. Moreover, advancements in food processing technology and packaging techniques have contributed to the growth of the processed food market. These innovations have improved the quality and variety of processed food products, attracting more consumers to choose these convenient options.

China Cold Chain Market Segmentations:

By Type 

• Storage
  • Facilities
    • Refrigerated Warehouse
    • Private & Semi-Private
    • Public
    • Cold Room
• Equipment
  • Blast Freezer
  • Walk-in Cooler and Freezer
  • Deep Freezer
  • Others
• Transportation
  • Transportation (By Mode)
    • Road
    • Sea
    • Rail
    • Air
• Transportation (By Offering)
  • • Refrigerated Vehicles
    • Refrigerated Containers
• Packaging
  • Crates
  • Insulated Containers & Boxes
    • Large (32 to 66 liters)
    • Medium (21 to 29 liters)
    • Small (10 to 17 liters)
    • X-small (3 to 8 liters)
    • Petite (0.9 to 2.7 liters)
  • Cold Chain bags/vaccine bags
  • Ice Packs
  • Others
• Monitoring Components
  • Hardware
    • Sensors
    • RFID Devices
    • Telematics
    • Networking Devices
• Software
  • On-premise
  • Cloud-based

By Temperature Range 

• Chilled
• Frozen
• Deep Frozen

By Application 

• Food & Beverages
  • Fruits & Vegetables
  • Fruit Pulp & Concentrates
  • Dairy Products
    • Milk
    • Butter
    • Cheese
    • Ice Cream
    • Others
  • Fish, Meat, and Seafood
  • Processed Food
  • Bakery & Confectionary
  • Others
• Pharmaceuticals
  • Vaccines
  • Blood Banking
  • Others
• Others