In 2020, the global cold chain logistics market was valued at over $202 billion, or approximately €186 billion. In a report titled “Cold Chain Logistics Market” by Allied Market Research, it was estimated back in 2022 that by 2030, the value of this market would reach over $782 billion (over €721 billion).
However, according to analysts from Transport Intelligence, this level has already been achieved. They estimate that two years ago, the market’s value had reached €764.2 billion, and in 2023, it is expected to reach as much as €776.8 billion. China and emerging markets are expected to be responsible for this growth, primarily in the transportation of food products.
“Globalization and the development of world trade have influenced the import of food and agricultural products from distant countries, which require transportation of products in appropriate conditions,” said Ti.
Changing habits and changing demands
In the first few years of the 21st century, new global consumer trends emerged. On one hand, there was a rise in vegetarianism and veganism, related to growing ecological awareness.
“At the same time, the convenience segment (ready meals) was experiencing a golden period, attributed to the increasing pace of life, lack of time, but with a generally good financial situation of households,” recalls Antoni Obajniewski, business development manager at Fresh Logistics Polska from the Raben Group.
However, as Obajniewski explains, the pandemic rapidly changed consumer habits:
“From culinary explorers, we became conquerors,” Obajniewski tells Trans.INFO. “We packed everything into our trolleys that we had carefully listed earlier, enough for the whole family for up to a week. As a result, the sales volume of fresh products decreased. Those with a longer shelf life dominated – dry, loose, canned and frozen items. At the same time, while stuck at home and somewhat compelled by new circumstances, we also started spending more time in the kitchen, cooking meals ourselves,” he explains.
After the pandemic, interest in fresh products began to recover. The demand for imported products increased, primarily those belonging to exclusive and exotic categories.
“In this way, we somehow manifested the joy of life and emphasised the return to normality,” adds Obajniewski.
The boom halted the rapid increase in food prices. “Once again, eating habits began to change – because we could no longer afford everything. Fresh food is the most expensive. First, there was a process of replacing fresh premium products with cheaper equivalents, and with a further increase in prices, fresh food began to take up less and less space in the store,” adds the representative of Fresh Logistics Polska. However, he states that “the market for fresh products is very dynamic, and the expectations of customers and recipients have a huge impact on these dynamics.”
Meanwhile, customers also began to focus more on the issue of avoiding food waste.
“Transport and the refrigerated storage of products play an important role here, as these solutions increase the durability of products. Moreover, consumers now pay more attention to the quality of the food they eat, which also has an important impact on the method of transport,” notes Tomasz Weber, head of corporate communications at Girteka.
Investments in technology
All of this underscores the need to invest in automatic and digital solutions today.
“Customers have become accustomed to Real-Time Visibility solutions and want to receive updates on their loads in real time,” explains Weber.
This sentiment is also echoed by Antoni Obajniewski. “The short and ultra-short shelf life of fresh products means that the time for deliveries is very limited. Hence, one of the customers’ expectations towards the logistics operator is to inform the customer about obstacles to the execution of the order as close as possible to the moment of such a threat or the likelihood of untimely delivery,” he points out.
This necessity has led to the installation of transmitters in trailers and real-time temperature monitoring, as well as route planning using artificial intelligence (taking into account factors such as road congestion), and supervision through apps for timely departures and entries to the warehouse area.
Therefore, it is not surprising that by 2026, the global market for monitoring supply chains related to cold storage logistics will be worth over $10 million. In 2021, its value reached $4.7 billion, according to data from MarketsandMarkets.
What solutions automate logistics and reduce related costs?
In many cases, Scandinavian countries are leading the way and are slowly starting to introduce home mailboxes for deliveries of temperature-sensitive products. This is intended to reduce costs and speed up delivery, which will also become less burdensome for both the customer and the courier company.
Another example of a solution supporting logistics processes is the ice boxe, which is already used by almost all large retail chains. However, this is only the beginning of automation.
“By selecting the appropriate telemetry solution and integrating it with ERP systems and ice boxes, you can easily introduce a system that meets the expectations of customers, who expect increasingly higher quality,” says Zbigniew Bigaj, co-founder and president of the management board at Blulog.
Automation in warehouses is also becoming increasingly common, where inventory levels are monitored, for example, in terms of batch number or expiration date.
“Modern IT systems, ensuring ongoing data exchange with the client’s ERP system, enable appropriate management and disposal of goods. The system takes into account the specific requirements of recipients, such as the minimum expiration date at the time of delivery. The systems also ensure the traceability of goods throughout the entire logistics chain, which is particularly important in the event of the need to withdraw the entire product or its batch from the market,” describes Antoni Obajniewski.
He reminds us that, apart from WMSs, the key element of the cold chain is the “transport supervision system, i.e. the so-called TMS (Transport Management System), thanks to which you can plan the optimal shipment route, track the status of the transport order, calculate cargo space and cargo costs.”
Systems are not everything; operators also invest in automation and robotics
“An example would be robots for preparing logistic units consisting of more than one flavour of a given product, such as creating homogeneous multi-flavour pallets from pallets. Another example is marking or creating promotional kits using automated lines.
“The food manufacturer not only gains the ability to dynamically meet the customer’s requirements but also eliminates the risk associated with fluctuations in demand for goods subject to additional processing – if this process were carried out at the customer’s production plant. The logistics operator, having a stock of goods in its warehouse, provides such services according to the specific order of the recipient,” adds the expert.
The most important markets for the cold storage sector
The largest refrigerated warehouses are in the United States. In 2020, their capacity there was over 156 million cubic metres. For comparison, in 2018, it was almost 131 million m3.
Which solutions are “must-have”?
Considering the growing value of the cold chain logistics market and its reputation as extremely energy-intensive, the question of reducing CO2 emissions is already one of the most important issues raised to carriers and logistics operators. However, they unanimously draw attention to the fact that they are just one of many participants in the chain.
“I would like ecology to move beyond the declarative zone. On the one hand, a modern fleet and other eco-friendly solutions are a ‘must-have’ when concluding new contracts or participating in tenders. On the other hand, market experience shows that there is no ESG without the cooperation of all entities and market co-responsibility – and many of them simply cannot afford it. Systemic, multi-entity solutions are necessary. Ecology also means regulatory changes and the involvement of the energy sector,” emphasises the representative of Fresh Logistics Polska.
Tomasz Weber shares a similar opinion. “Logistics companies will need to work closely with manufacturers, customers, and suppliers to ensure that the transport of food and/or pharmaceuticals continues to fill supermarket shelves in a sustainable way,” he concludes.
Girteka is focusing on using a zero-emission fleet and educating drivers on driving styles that reduce fuel consumption.
“With over 2.8 trillion kilometres travelled by trucks in 2022, even the smallest change can have a huge impact on the scale,” asserts Weber.
The company is also developing intermodal transport, thanks to which it managed, according to its representative, to “save over 17 million kg of CO2 by delivering over 17,600 shipments by rail.”
Fresh Logistics Polska, in turn, emphasises investments in zero-emission warehouse infrastructure – ecological refrigeration installations based on ammonia, warehouse carts powered by li-ion cells, and “bulk trailers enabling the transport of goods requiring different temperature ranges on one means of transport.”