India Cold Chain Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 11.64 Billion |
| Market Size (2029) | USD 18.19 Billion |
| CAGR (2024 - 2029) | 9.72 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Cold Chain Logistics Market Analysis
The India Cold Chain Logistics Market size is estimated at USD 11.64 billion in 2024, and is expected to reach USD 18.19 billion by 2029, growing at a CAGR of 9.72% during the forecast period (2024-2029).
- The rising demand for perishable goods has been propelling market growth. Due to a shift in consumer behavior, e-commerce and online pharmaceutical shopping are driving the market.
- The Indian cold chain industry is still in its infancy, making it one of the most promising fields in the cold chain warehousing and logistics industry. India is on track to become the world's fifth-largest economy by 2027. As a well-established key player in the global market, investment in India's supply chain infrastructure is expected to rise year on year. Fortunately, the Indian government is a driving force in developing the cold chain industry, and it encourages private participation through various subsidy schemes and grants. The Ministry of Food Processing Industries (MoFPI) launched a program dedicated to cold chain, value addition, and preservation infrastructure.
- India is the world's largest producer of milk and the second-largest producer of fruits and vegetables, and it produces a significant amount of seafood, meat, and poultry. However, due to the inexperienced cold chain supply, food and agricultural products are significantly lost. According to the Food and Agriculture Organization, approximately 1.3 billion tonnes of food are lost yearly, accounting for one-third of total food production. These losses are estimated to be between USD 8 and USD 15 billion annually. To avoid these issues, the cold chain sector must be developed. Aside from perishable food, the pharmaceutical industry is another critical sector that relies on a reliable cold supply chain network. Vaccine storage and transportation, life-saving drugs, and other pharma raw materials led to a robust and well-managed cold supply chain network.
- In December 2023, the Indian government is implementing various schemes for setting up cold storage for perishable horticultural produce, under which financial assistance will be available throughout the country. The agricultural sector is witnessing a paradigm shift with its cold chain infrastructure in the country. Aiming in the same direction, the Indian government is implementing various schemes for setting up cold storage for perishable horticultural produce, for which financial assistance is available throughout the country.
- The components are demand/entrepreneur driven, for which the government assists in the form of credit-linked subsidy, providing 35% of the project cost in general areas and 50% in hilly and scheduled areas through respective State Horticulture Missions (SHMs). The initiative is aimed at avoiding damage to agriculture and horticultural produce. Besides cold storage, financial assistance is also provided for setting up a pre-cooling unit, cold room, pack houses, integrated pack house, preservation unit, reefer transport, and ripening chamber under the Mission for Integrated Development of Horticulture (MIDH).
- According to the Food and Agriculture Organization, one-third, or around 1.3 billion tonnes, of all food produced annually is lost. These losses cost USD 8 to 15 billion annually, according to estimates. To prevent these issues, the cold chain industry must grow in India.
India Cold Chain Logistics Market Trends
Chilled Segment is Gaining Huge Momentum in the Coming Years
- The expanding need for cold chain storage facilities and the increasing varieties of frozen commodities such as ice cream, meat, and seafood are moving the cold chain market ahead.
- Because frozen food products lengthen the storage time of foods by rendering them more inert, the frozen sector of the cold chain logistics market is expected to grow quickly during the projected period.
- Chilled foods, for safety or quality reasons, are designed to be stored at refrigeration temperatures (at or below 8ºC, targeting 5ºC) throughout their life.
- This method of freezing aids in slowing biological and chemical processes that cause food to decay and limit its shelf life. Frozen food has more nutrients than chilled food, which makes it more appetizing. The need for convenience is driving up consumer demand for frozen foods.
- According to the United Nations Food and Agricultural Organization (FAO), more than 40% of food losses occur during post-harvesting and processing, particularly in poor nations. This necessitates the establishment of long-term, energy-efficient cold chains capable of increasing food supply in these nations by about 15%, or over 250 million tons.
Asia-Pacific is Expected to Hold Significant Market Share
- India is the second-largest producer of fruits and vegetables, with its share in world production at 11.38% and 11.78%, respectively. India is the largest producer of mango, banana, guava, papaya, lemon, lime, and okra and the second-largest producer of potato, tomato, onion, cabbage, cauliflower, and brinjal. A study conducted by the ICAR-Central Institute of Post-Harvest Engineering & Technology (CIPHET) points out that in India, for fruits and vegetables, the post-harvest losses range from 4.58 to 15.88% of the country’s horticulture production. The Government of India, through the Mission for Integrated Development of Horticulture (MIDH), has enabled area expansion, the development of nurseries, and the construction of farm ponds.
- According to the sources, food grain output has consistently grown over the last decade from 257.1 million tons in 2012-13 to 315.6 million tons in 2021-22. Food grain production in 2022-23 is 30.8 million tons higher than the previous five years’ average. Fruit production is estimated to be 108.34 million tonnes in the year 2022-23 as compared to 107.51 million tonnes in the year 2021-22. The production of vegetables is estimated to be 212.91 million tonnes in the year 2022-23 compared to 209.14 million tonnes in the year 2021-22.
- India leads the world in the production of banana, papaya, mango, and guava, along with ginger and okra. During 2021-2022, India exported fresh fruits and vegetables worth USD 1.527.60 million, which comprised fruits worth USD 750.7 million and vegetables worth USD 767.01 million. India mostly exports to its neighbors, namely the UAE, Bangladesh, Pakistan, Saudi Arabia, Sri Lanka, and Nepal.
India Cold Chain Logistics Industry Overview
The Indian cold chain logistics market is fragmented in nature, with the presence of a large number of local players attending to the growing demand. Some of the major players in the market include Gati Kausar India Pvt. Ltd, Snowman Logistics Pvt. Ltd, ColdEx Logistics Pvt. Ltd, and Stellar Value Chain Solutions Pvt. Ltd, among others. Companies investing in streamlining the supply chain and having advanced technology have an edge in getting a good share of the market. Furthermore, global players can partner with local companies to invest in the market and gain profits.
India Cold Chain Logistics Market Leaders
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Gati Kausar India Pvt Ltd
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Snowman Logistics Pvt Ltd
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ColdEx Logistics Pvt Ltd
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Stellar Value Chain Solutions Pvt Ltd
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Future Supply Chain Solutions
*Disclaimer: Major Players sorted in no particular order
India Cold Chain Logistics Market News
- January 2024: Snowman Logistics initiated operations at a newly leased multi-temperature-controlled warehouse in Guwahati, Assam. The total capacity of the warehouse is 5,152 pallets, and this facility features eight chambers and four loading bays equipped with the latest infrastructure. Specifically designed to accommodate products from ambient temperatures to minus 25 degrees Celsius, the warehouse will primarily provide storage, handling, and transportation services for ice cream, poultry, ready-to-eat food, dairy products, confectionery, bakery products, seafood, fruits, and vegetables. Other products include pharmaceuticals, specialized chemicals, and various commodities. With this expansion, the company’s overall pallet capacity has soared to 1,41,000+ pallets, strategically distributed across 20 cities, thereby expanding its foothold in Northeast India.
- December 2023: TCI Express, with its rapidly expanding Rail Express vertical, bolstered its customer base from 250 to 2,200, extended its network from 10 routes to 125, and efficiently ensured optimal capacity utilization, thereby boosting industry growth and efficiency. TCI Express prioritizes railway delivery for cost-effective express services, optimizing economies of scale at its branches and along routes to provide efficient logistics solutions to its customers.
India Cold Chain Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Method
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS DYNAMICS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Urbanization and Changes in Lifestyles
4.2.1.2 Increased Organized Food in Retail Stores
4.2.1.3 Increasing Demand from the Pharmaceutical Industry
4.2.2 Restraints
4.2.2.1 Lack of Sufficient Infrastructure
4.2.3 Opportunities
4.2.3.1 Favourable Government Policies
4.2.3.2 Increasing Perishable Trade
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Technological Trends and Automation
4.6 Government Regulations and Initiatives
4.7 Spotlight on Ambient/Temperature-controlled Storage
4.8 Impact of Emission Standards and Regulations on Cold Chain Industry
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Storage
5.1.2 Transportation
5.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
5.2 By Temperature Type
5.2.1 Chilled
5.2.2 Frozen
5.3 By Application
5.3.1 Horticulture (Fresh Fruits & Vegetables)
5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
5.3.3 Meats, Fish, Poultry
5.3.4 Processed Food Products
5.3.5 Pharma, Life Sciences, and Chemicals
5.3.6 Other Applications
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Gati Kausar India Pvt Ltd
6.2.2 Snowman Logistics Pvt Ltd
6.2.3 ColdEx Logistics Pvt Ltd
6.2.4 Stellar Value Chain Solutions Pvt Ltd
6.2.5 TCI Express
6.2.6 Future Supply Chain Solutions
6.2.7 M.J. Logistics Services Ltd
6.2.8 Fresh and Healthy Services Ltd
6.2.9 R.K. Foodland Private Ltd
6.2.10 Gubba Cold Storages Ltd
6.2.11 Cold Star Logistics Pvt Ltd*
- *List Not Exhaustive
6.3 Other Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
India Cold Chain Logistics Industry Segmentation
Cold chain logistics allows temperature-sensitive goods and products to be transported safely throughout the supply chain. It heavily relies on science to evaluate and account for the relationship between temperature and perishability. A complete background analysis of the Indian cold chain logistics market, including the assessment of the economy and contribution of sectors, market overview, market size estimation for crucial segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact are present in the report.
The Indian cold chain logistics market is segmented by service (storage, transportation, and value-added services), by temperature type (chilled and frozen), and by application (horticulture, dairy products, meats, fish, poultry, processed food products, pharma, life sciences, chemicals, and other applications). The report offers market size and forecast value (USD) for all the above segments.
| By Service | |
| Storage | |
| Transportation | |
| Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.) |
| By Temperature Type | |
| Chilled | |
| Frozen |
| By Application | |
| Horticulture (Fresh Fruits & Vegetables) | |
| Dairy Products (Milk, Ice-cream, Butter, etc.) | |
| Meats, Fish, Poultry | |
| Processed Food Products | |
| Pharma, Life Sciences, and Chemicals | |
| Other Applications |
India Cold Chain Logistics Market Research FAQs
How big is the India Cold Chain Logistics Market?
The India Cold Chain Logistics Market size is expected to reach USD 11.64 billion in 2024 and grow at a CAGR of 9.72% to reach USD 18.19 billion by 2029.
What is the current India Cold Chain Logistics Market size?
In 2024, the India Cold Chain Logistics Market size is expected to reach USD 11.64 billion.
Who are the key players in India Cold Chain Logistics Market?
Gati Kausar India Pvt Ltd, Snowman Logistics Pvt Ltd, ColdEx Logistics Pvt Ltd, Stellar Value Chain Solutions Pvt Ltd and Future Supply Chain Solutions are the major companies operating in the India Cold Chain Logistics Market.
What years does this India Cold Chain Logistics Market cover, and what was the market size in 2023?
In 2023, the India Cold Chain Logistics Market size was estimated at USD 10.51 billion. The report covers the India Cold Chain Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Cold Chain Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the Cold Chain Logistics Industry in India?
The challenges faced by the Cold Chain Logistics Industry in India are a) High initial investment costs for establishing cold storage facilities and maintaining temperature-controlled transportation b) Logistical challenges such as infrastructure limitations, uneven distribution of cold storage facilities c) Compliance with stringent regulatory requirements
Cold Chain Logistics in India Industry Report
The India Cold Chain Logistics Market is witnessing robust growth due to increasing demand in sectors like perishables, pharmaceuticals, and alternative proteins. Market segmentation highlights the diverse services offered by cold storage companies, including refrigerated warehousing and transportation. This industry employs advanced technologies like dry ice, gel packs, eutectic plates, and liquid nitrogen, catering to both frozen and chilled storage needs, showcasing the industry's sophistication. The growth in organized retail and e-commerce significantly enhances consumer access to temperature-sensitive goods, thereby driving the demand for effective cold-chain logistics solutions. Particularly, the healthcare sector relies on these logistics networks for the safe transport of biopharmaceuticals and vaccines, emphasizing the sector's critical impact. With ongoing investments aimed at enhancing infrastructure and technology to improve supply chain efficiencies and reduce wastage, India's cold storage market size is poised for continued expansion. Access comprehensive statistics, market share, size, and revenue growth rates from industry reports offered by Mordor Intelligence™, providing detailed analysis and market forecast outlooks. Gain insights with a free sample PDF report download on Cold Chain Logistics in India to understand future and current market dynamics.
