Growing urbanization at an exuberant pace has increased the demands for convenient and packaged food products in the United States and it is creating a need for temperature-controlled supply chain or cold chain management. Also, the changing lifestyle of people and their inclination towards processed meals and ready-to-eat food. Maintaining the freshness and nutrition in packaged food from manufacturing until its consumption is essential for both the manufacturers and the consumers. Cold chain vaccine, coolbox, and ice packs have become commonplace in food and beverages industry of the US. A cold chain system is a temperature-controlled supply chain used to preserve, extend, and to ensure the shelf life of perishable food and frozen food products. Other than the food and beverages industry, the cold chain systems are extensively used in the pharmaceutical and healthcare industry. Transportation of temperature sensitive medication, storing vaccines, blood samples, and other cellular fluids are some of the generic tasks that engross the demands for cold chain in the pharmaceutical industry. Thus, cold chain services are necessary for a significant number of commodities, some of the major cold chain services include transient storage, warehouse cold storage, and refrigerated transportation of products via road, air, marine, and railways.
The heavy application of cold chain in the various end-user industries have bolstered the United States cold chain market size which held the global value of $15.70 billion in 2018. Foreseeing its growing prevalence in the pharmaceutical and food and beverages industry the market value is projected to grow at a positive CAGR of 3.3% during the forecast period 2019 to 2025.
Application Analysis in the U.S. Cold Chain Market
Food and beverage sector is estimated to be the fastest growing application segment in the US cold chain market. The growing trend of online sale of food and beverages in the region amalgamated with robustly expanding trend of hypermarkets that necessitates a temperature controlled supply chain is adding impetus to the application growth of this segment. For instance, the United States Department of Agriculture analyzed the Walmart’s non-food and food grocery sales, which were estimated to be $136.2 billion in 2016. Among these, specialized food stores, including meat and seafood markets, candy and nut stores, and retail bakeries accounted for the 3.4 percent of the total $648 billion value in in the same year. Hence, the governing trend of supermarket and supercenters in the U.S and its strong growth is directly proportional to the US cold chain market.
Similar to the retail sector, the U.S retail e-commerce sales are also amplifying. The U.S Department of Commerce states that retail e-commerce sales for the second quarter of 2019 were $146.2 billion, an increase of 4.2 percent from the first quarter of 2019. Apart from the food retail services, the US cold chain market is gaining further traction from its burgeoning food outlets. According to Centers for Disease Control and Prevention, more than 36 % of adults that is more than 1 in 3 consume fast food on a given day in the United States. As such outlets are reliant on efficient supply chain on a daily basis the cold chain is an imperative constituent of the chain. Consequently, the F&B sector is progressing with an application CAGR of 4.6% in US cold chain market.
Top Trends in the U.S. Cold Chain Market
· Transportation is one of the most important components of the supply chain. Efficient and ethical transit of food and beverage products is important for the shelve life of the product. Temperature controlled cryogenic trucks are gaining prevalence in the food and beverage industry for transportation. These trucks are highly efficient and provide unmatched temperature control system. This cold chain transit method is witnessing high demands owing to the growing demands for packaged food. These trucks are equipped with advanced power options that enable the truck operator or driver to save a massive amount of energy by utilizing minimum energy during the non-peak hours such as during nights. On the other hand, during the day time, this system uses the previously saved energy for cooling the insides of the truck. The United States has a vast network of trucking, being a large country, trucks are considered an appropriate mode of transport for transferring food at long destinations.
· The cold chain technology is being supported by data analytics, deep learning, and artificial intelligence. Collecting and analyzing data from multiple sources and then converting them to a useful and actionable knowledge has enhanced the operations, logistics, and business processes in the United States cold chain market. The United States is a technological hub, the region homes a great number of advanced big data and machine learning companies. These companies provide third-party services to food companies that produce packaged food products. Their services mainly include data analysis and resultant insights. These insights help the food companies to plan their logistics and operations in the most efficient and the fastest way possible.
· Food business witnesses issues such as food loss and health risks due to spoiled packaged food frequently. This leads to a significant loss to food companies which is thereby encouraging the companies to explore rational solution such as smart sensors to increase the efficiency and reliability in product delivery. Smart sensors with radio-frequency identification (RFID) are used in transportation and storage purposes that actively monitor the food condition.
U.S. Cold Chain Market Competitive Landscape
The companies influencing the U.S. cold chain market are Americold Logistics, LLC; AGRO Merchants Group North America, Burris Logistics, Cloverleaf Cold Storage, Henningsen Cold Storage Co., Lineage Logistics Holdings, LLC; Nordic Logistics, LLC; Preferred Freezer Services, United States Cold Storage, and Wabash National Corporation.
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