In the wake of the pandemic, the demand for temperature-sensitive products has never been higher – and the need for efficient, well-functioning cold chains has never been more apparent. With global supply chains already under pressure, the cold chain faces unique additional challenges.
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Over the last two years, vaccine distribution, food supply shortages, and increased in-home deliveries have brought cold chain discussions front and center. Changes in consumer preferences and the growing popularity of e-commerce mean that the cold chain is here to stay. Around the world, rising healthcare standards, healthier food choices, and growing middle classes demand an efficient and intricately linked cold chain to ensure temperature-sensitive products reach the end consumer fresh and on time.
Around the world, rising healthcare standards, healthier food choices, and growing middle classes demand an efficient and intricately linked cold chain to ensure temperature-sensitive products reach the end consumer fresh and on time.
Cold chains – supply chains specializing in the planning, storing, loading, and movement of temperature-sensitive products – encompass various products. Everything from food to over-the-counter beauty products, pharmaceuticals, vaccines, and more must be transported at specific temperatures and via fixed timeframes. Further, cold chains face not only the same difficulties as other supply chains (i.e. port congestion, cost pressures) but additional challenges in heavy infrastructure investments, temperature monitoring, strict regulations, and a shortage of qualified and skilled workers.
Cold chain is one of the fastest growing markets globally, driven by industries that are becoming increasingly reliant on cold chain innovations. Cold chain accounted for $248.4 billion in 2020 in the United States alone, and is expected to exceed $410 billion by 2028. This growth has been driven partly by demand for healthier foods – high in proteins, vitamins, minerals, and fats – which must be transported at specific temperatures. Additionally, a growing number of clinical trials in the US use temperature-sensitive materials, such as tissue and blood samples, further spurring cold chain demand and innovation.
Cold chain accounted for $248.4 billion in 2020 in the United States alone, and is expected to exceed $410 billion by 2028.
Given such growth, cold chains today must account for increased demand and find new and innovative methods for storing and transporting their products correctly. Some of the challenges facing cold chains today include:
Today’s cold chains can help establish new standards of precise transportation and seamless product deliveries that will serve as benchmarks to measure other areas of the supply chain.
Looking ahead, changes in consumer behavior and new purchasing preferences have become the new normal in many parts of the world. Today’s cold chain is positioned well to meet the rising demand and increased globalization of its operations. Moreover, today’s cold chains can help establish new standards of precise transportation and seamless product deliveries that will serve as benchmarks to measure other areas of the supply chain.
If you would like to learn more about the current state of cold chains, take a look at our 2023 27th Annual Third-Party Logistics Study.
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