Market Trends of North America Food Cold Chain Logistics Industry
The rising consumption of frozen food
Frozen food businesses have adeptly responded to consumer preferences by launching products that are low in trans fats, low in overall fat content, multigrain, whole wheat, and minimal in chemical preservatives. The North American frozen ready meals sector is primarily fueled by a rising appetite for affordable, high-quality frozen pizzas and convenient breakfast options. Research indicates that North America stands out as one of the globe's pivotal frozen food markets.
In January 2024, Tyson Foods, one of the leading player in the frozen food arena, inaugurated a state-of-the-art 355 million USD production facility in Bowling Green, Kentucky, with a focus on amplifying its bacon production capacity. This strategic initiative not only solidifies Tyson Foods’ leadership stance in the category but also positions the company to capitalize on the surging market demand for its offerings.
Consumers are increasingly opting for frozen fruits and vegetables, granting them the luxury of savoring seasonal delights year-round. Advancements in cold chain infrastructure across North America are further propelling this industry. When it comes to country-specific growth, the United States leads as the top income generator, trailed by Mexico and Canada. In January 2024, entertainment icon Dolly Parton collaborated with Conagra Brands to launch a new line of retail food products. The primary impetus driving North America's frozen food industry is the demand for convenience; these products significantly reduce cooking, preparation, and cleanup time for consumers.
As consumers juggle busy lifestyles and demanding work schedules, there's been a notable uptick in the consumption of convenience foods, including ready-to-eat (RTE) and ready-to-cook (RTC) items, mixed vegetables, and meals. This shift has subsequently spurred a heightened demand for frozen vegetables in North America. Moreover, the surging trend of veganism is further bolstering the appetite for frozen vegetables in North America. Consequently, as more consumers gravitate towards fruits and vegetables, there's been a pronounced uptick in the demand for their frozen counterparts.
Surge in demand for Refrigerated Storage and Cross-Border Trade in U.S.-Mexico
Driven by the surging demand for temperature-sensitive products like fresh produce, dairy, meat, and seafood, the market for refrigerated storage is witnessing robust growth. This trend has spurred the expansion of a lucrative cold chain along pivotal U.S.-Mexico trade routes, with experts predicting sustained momentum.
Cross-border trade sees Mexico predominantly exporting fresh and frozen produce led by avocados, tomatoes, cucumbers, and bell peppers northward, while the U.S. sends beef, dairy, chicken, and pork southward. While 2024 has seen a slight deceleration in commerce, both sides celebrated record trade figures in 2022 and 2023, For instance, In 2023, the United States engaged in trade with Mexico, exchanging goods valued at nearly 799 billion U.S. dollars.
Intermodal transport is gaining traction in cross-border trade. A year ago, Canadian Pacific Kansas City (CPKC) launched MMX, a dedicated rail service for refrigerated shipping from the Midwest to Mexico. Shortly after, CPKC joined forces with Americold Realty Trust, integrating Americold's warehouse facilities into the CPKC network. The inaugural facility in Kansas City, Mo., is currently under construction, with completion anticipated within a year, and more facilities are planned. To bolster capacity, CPKC is also erecting a second span of the international rail bridge in Laredo, slated to be operational by the end of 2024.
In conclusion, the refrigerated storage market and cross-border trade between the U.S. and Mexico continue to evolve, driven by increasing demand for temperature-sensitive products and innovative transport solutions. This growth trajectory is expected to persist, fostering further advancements in the cold chain infrastructure.
