Who would have thought that cold chains would also play a critical role in blurring the geographical divides? But if one were to read the latest report from Technavio, it will be clear that the cold chain market has taken globalization to a new level. With an expected CAGR of 12% by 2021, the global cold chain market has influenced and encouraged businesses in more ways than one.
Frozen for a reason
Simply put, cold chains involve the transport of temperature sensitive products without hampering its overall quality. Though many of us might think that cold chains are a recent technological development, interestingly its roots can be traced to the late 1800s. The process which has been a key component of the food trade in the yesteryears has today emerged as a vital part of pharma and biomedical industry as well.
Cold chains work on the understanding that every product has a unique chemical and biological composition of its own. This formula needs to be retained by ensuring appropriate physical conditions like temperature and storage conditions. Thus by bringing science and technology together, cold chains make the transport of critical vaccines, medicines, as well as exotic fruits and vegetables easier.
Is APAC the new destination for cold chain market?
The logistics behind cold chains are quite demanding. No wonder, until recently developed regions like the Americas and Europe have been the hub of cold chain facilities. But with a rising middle class, high disposable income, change in lifestyle choices, and growing awareness, APAC has emerged as the next destination for the cold chain market.
Especially in China and India, the demand for fresh fruits and vegetables along with better vaccines and medicines have aroused the interest of several investors in cold chain market. High demand has also triggered the need to look out for strategies to reduce the cost of cold chain plants.
At the same time governments in the APAC region are also working towards bringing down the GHG emissions. As cold chains consume enormous amounts of fuel, the carbon footprint is sure to go high. Tackling this challenge, along with meeting the rising demands for cold chain products needs a well thought out policy approach.
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