COLD CHAIN PACKAGING MARKET ANALYSIS

Cold Chain Packaging (CCP) is an important process for the secure distribution of temperature-controlled pharmaceuticals and food products. By following strict temperature-related regulations, Cold Chain Packaging ensures that these products remain at an optimal temperature during transport. It also ensures the security of pharmaceuticals and other chemicals during transport. While COVID-19 is the most recent pandemic, more are expected in the coming years. Several companies are ramping up their cold chain packaging infrastructures. COVID-19 has spurred the need for better cold chain packaging solutions. Companies that provide solutions for this critical process are likely to play an essential role in the success of vaccines throughout the world.

Market Statistics:

The global Cold Chain Packaging market was valued at US$ 22.39 Bn in 2021 and is forecast to reach a value of US$ 48.12 Bn by 2030 at a CAGR of 9.70% between 2022 and 2030.

North America held dominant position in the global Cold Chain Packaging market in 2021, accounting for 38.5% share in terms of volume, followed by Europe and Asia Pacific, respectively.

Figure 1. Global Cold Chain Packaging Market Value Share (%), By Region, 2021

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Recent Developments:

1. In January 2021, Pelican Bio Thermal announced its latest partnership with Asiana Airlines, which expands the company’s growing global network.
2. In March 2021, Sonoco Products company collaborated with Unilode Aviation Solutions, one of the market leader in outsourced Unit Load Device (ULD) management and repair services, for the maintenance, repair and handling of Sonoco ThermoSafe’s passive bulk temperature-controlled containers at several key locations. This cooperation will play an important role for the company in enabling the safe and efficient transport of pharmaceuticals and other temperature-sensitive products around the world.

Market Drivers:

Expansion of healthcare and pharmaceutical industry is a prime factor augmenting growth of the cold chain packaging market. According to the IQVIA, in 2020, global sales of biotechnology drug sale products reached USD 284 billion from USD 266 billion in 2019 (source: IQVIA). These high-value pharmaceutical products are generally shipped via the cold chain across the entire distribution network worldwide.

Growing demand for frozen food products is again fostering market growth. The consumption of frozen food is significantly increasing in developed countries, such as the United States, Germany, Canada, and France, among others, which are driving the market for insulated packaging. According to Frozen and Refrigerated Buyer, in 2019, the frozen food sales in the United States were USD 9,384.88 Billion. Ice cream contributed most to the sales of frozen food in the region with USD 1,418.38 Billion, whereas processed chicken/chicken substitute contributed USD 676.29 Billion.

Figure 2. Global Cold Chain Packaging Market Value Share (%), By End User, 2021

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Market Restraints:

Strict government regulation regarding the usage of material with low carbon content is expected to hinder the market growth. For instance, in the United States, the federal regulatory agency is the US Food and Drug Administration (FDA), with other countries managing their own jurisdictions or sharing entities, such as the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use wherein all the agencies are required to ensure compliance by companies. Regulation such as ‘21 CFR 205.50’ state the minimum requirements for storage and handling of prescription drugs and for the establishment and maintenance of prescription drug distribution records.

Increasing cost of raw material is expected to restrict the market growth. Polyurethane (PU) and Polystyrene (PS) is the primary raw material used in the built-up of cold chain packaging solutions. According to the Bank of Ayudhya Public Company Limited, in 2019, the global price of polystyrene stood at approximately USD 1,440 per metric ton. One year later, in 2020, it significantly increased to over USD 1,470 per metric ton. Further, in January 2021, polystyrene prices increased by 5%, compared to December 2020, and are still rising.

Market Opportunities:

Increasing adoption of more advanced manufacturing processes and growing innovation in technology are expected to provide significant growth opportunities over the forecast period. Growing penetration of Expanded Polystyrene (EPS) pallet shippers is expected to positively shape market growth in the forecast period.

Growing consumption of meat products including beef and chicken is also projected to bring bright market growth opportunities. According to the TheWorldCounts, the production of meat has doubled in the 30 years from 1988 to 2018 and increased four-fold since the mid-1960s. And production is expected to continue to grow. By 2050, global meat consumption is projected to reach between 460 Billion and a staggering 570 Billion tons. 570 Billion tons would mean a consumption of meat twice as high as in 2008.

Market Trends/Key Takeaways:

Growing trend of consuming fresh and organic food such as organic milk, fresh leafy vegetables, and organic eggs is projected to uplift the market growth over the forecast period. These food products require critical packaging and handling measures at each level of storage and transit to prevent spoilage.

Rapid urbanization and industrialization is also expected to support the market growth. According to the United Nation, in 2018, 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. Projections show that urbanization, the gradual shift in residence of the human population from rural to urban areas, combined with the overall growth of the world’s population could add another 2.5 billion people to urban areas by 2050, with close to 90% of this increase taking place in Asia and Africa.

Competitive Landscape:

1. Pelican BioThermal LLC
2. Sonoco Thermosafe
3. Cold Chain Technologies Inc.
4. Cryopak
5. Sofrigam Company
6. Intelsius (A DGP Company)
7. Coolpac
8. Softbox Systems Ltd
9. Clip-Lok SimPak
10. Chill-Pak