Refrigerated Transport Market

Refrigerated Transport Market Size & Growth (2023 - 2028)

The global refrigerated transport market is expected to reach USD 20.80 billion by 2028, up from USD 15.57 billion in 2022 and grow at a compound annual rate of 5.2% over the forecast period from 2023 to 2028.

Refrigerated transport is a method of shipping seafood, frozen food and medicine, and requires temperature-controlled vehicles. Refrigerated transportation helps to preserve and protect food, drugs and medical supplies. Thanks to this transport service, perishable supplies move from one point to another in a controlled environment by maintaining quality, freshness and away from foodborne illness.

Refrigerated transport is one of the key links in the distribution chain of the cold chain for foodstuffs and food products. Innovative technologies support the growth of this market in food processing, along with increased world trade. Perishable foods can be transported without getting dirty by keeping them at low temperatures. The refrigerated transport industry is booming in the United States with the FDA Food Safety Modernization Act (FSMA) regulations which promote cold and refrigerated transport.

Recent developments:

• In July 2019, Nestlé launched its YES! Snack bars in a new recyclable paper envelope. The launch supports the confectionery industry with the use of recyclable paper containers.

• In March 2019, Nestlé opened a new R&D center in Beijing and a systems technology center in Shenzhen. The new R&D center has enabled the company to accelerate innovation based on trends in China to meet consumer demands. The systems center has strengthened its collaboration with Chinese partners and suppliers in the field of systems.

• In February 2019, Kraft Heinz partnered with Indo Nissin Foods (India) to offer products such as cup noodles and Top Ramen instant noodles. The development has helped the company distribute and make its global product portfolio available to Indian consumers.

Market growth and trends:

Increased R&D investment in refrigeration technology will boost market opportunities, in particular the growing initiative and funding from government organizations for research and development of fuel cell technologies. In addition, the growth of research activities on subjects such as the innovative membrane for fuel cells, the creative components for reversible fuel cells and liquids will stimulate the growth of the refrigerated transport market in the near future.

The growing need for technological evolution from conservative energy sources to renewable energies will stimulate the adoption of fuel cells in refrigerated transport. The development of urban infrastructures, such as smart transport and smart cities in emerging countries, will create growth opportunities for refrigerated transportation. Growing city management solutions will drive market growth further.

Drivers and Restraints:

Drivers:

The main driver of the global refrigerated transportation market is the increased demand for frozen food in homes, as well as for foodservice operators, such as fast-food restaurants, fast food restaurants and other restaurants that require frozen food. This is attributed to the increasing globalization and technological developments of refrigerated transport systems for fresh and temperature-controlled food products. Also, strict government regulations on the production, processing, transportation and quality of frozen food should further supply the market demand. This has increased customer loyalty to refrigerated food products, also stimulating the refrigerated transport market. Integration of transport systems and multi-temperature systems, increased demand for edible items stored cold and frozen, and accelerating the pace of international trade creates immense growth opportunities for the global refrigerated transport business.

Restraints:

The limitations of the global refrigerated transport market include significant capital investments, particularly in developing economies. In addition, environmental variations reduce the efficiency of transport infrastructure, further increasing the overall cost. However, with the growing demand for prepared meals, the impact of this restriction is expected to diminish in the future. The recent increase in crude oil prices increases in fuel costs and lack of adequate infrastructure for cold storage also hamper the market expansion.

REFRIGERATED TRANSPORT MARKET REPORT COVERAGE:

Market segmentation:

The report on the global refrigerated transport market is segmented by application, mode of transport, technology, temperature and vehicle type. 

Refrigerated Transport Market- By Application:

the global refrigerated transport market is segmented into chilled food and frozen food. The frozen foods like fish and seafood are likely to register the highest growth rate in this market in the coming years.

Refrigerated Transport Market - By Mode of Transport:

the world refrigerated transport market is divided into road, sea, rail and air.

Refrigerated Transport Market - By Technology:

the global market for refrigerated transport is segmented as steam compression systems, air evaporators, eutectic devices and others. 

Refrigerated Transport Market - By Temperature:

the global refrigerated temperature transport, the market is segmented by a single temperature and multi-temperature.

Refrigerated Transport Market - By Vehicle Type:

the worldwide refrigerated transport business is separated as LCV, MHCV, and HCV. Of these, the LCV segment accounts for the principal portion due to their increasing usage for delivery of different products in a vicinity.

Regional Analysis:

The regions covered in the global refrigerated transport market are North America, Europe, Asia-Pacific and the rest of the world. Geographically, the Asia Pacific refrigerated transport market is foreseen to witness the most substantial growth in the estimated period due to the increasing trade activities and favorable government policies.

Key Market Players:

The main players in the global refrigerated transport market are General Mills (United States), Conagra Foods (United States), Kraft Heinz Company (United States), Nestlé (Switzerland), Associated British Foods (United Kingdom), Kerry Group (Ireland), Unilever (United Kingdom), McCain Foods Limited (Canada), Samworth Brothers Limited (United Kingdom) and Iceland Foods Ltd. (United Kingdom).

These players have opted for different organic and inorganic strategies to increase their market share. Nestlé, one of the main players in the market, has adopted a well-established distribution strategy, which has allowed products to be delivered to urban and rural markets. It has adopted various strategies, such as acquisitions, expansions and investments, new product launches and agreements in the frozen and refrigerated food segment, which has increased the use of refrigerated transport. In addition, with the growing preference for food along the way, the demand for refrigerated and frozen products is expected to increase, which, in turn, will help the business increase sales.