Organic food drives growth in US cold chain logistics

Dublin, Ireland: The cold chain logistics market of the United States is expected to grow 2% between 2020-2025, driven by demand for beverages and organic food, according to a new report.

The presence of large beverage companies in the US, given their immense dependence on cold storage transport, is one of the major factors that are expected to fuel the demand for refrigerated vehicles. The growth in the import and exports of these products is increasing the demand for refrigerated transportation, the report, United States Cold Chain Logistics Market – Growth, Trends, and Forecasts (2020 – 2025), says.

The food and beverage industry alone contributes 5% to US gross domestic product and the rise in the industry is expected to drive a steady demand for refrigerated transport.

About 95% of new drugs that are coming in the market are developed and manufactured in the US that require proper temperature-controlled logistics. The demand for organic food in the country has been continuously increasing due to rapid urbanization and an increase in the adoption of a healthy dietary lifestyle. Diseases like diabetes, blood pressure, and obesity, and excessive contamination in conventional food are driving organic food sales. Organic fruits and vegetables are one of the largest and fastest-growing segments of the US food market.

The Organic Trade Industry reported that in 2018, about 14% of all fruit and vegetable sales in the US were categorized as organic leading to a total of $52.50bn organic food sales in the country, 5.5% of all food sold in retail. The increasing demand and inculcation of these products in the retail stores, storage and transportation from the farmland to the shops and from shops to the customers require huge inputs from the cold chain logistics sector to facilitate its growth, the report says.

Chilled or perishable food items, pharma products, nuclear reactors etc; all pose multiple challenges for transport, in response to which the cold chain management is increasing its complexity significantly. The refrigerated trucks that can hold goods in multiple segments at different temperatures are developed and are gaining popularity in recent years in the United States. These trucks are particularly used for the retail purpose, where temperature-controlled goods are in relatively small quantities from regional distribution centres.

Acknowledging the increasing vehicle population and global warming, the multi-temperature refrigerated trucks play a major role in the United States logistics market facilitating maximum utility with customisable and regulated temperature.

The cold chain logistics market of the US is highly fragmented, aiding the domestic as well as international transportation of temperature-sensitive goods. It is undergoing developments with the introduction of solar-powered refrigerated units, multi-temperature trucks and freight optimisation software.

For more information about this report see https://www.researchandmarkets.com/r/ffntd4

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