Passive Cold Chain Market Forecast ‘2031: What’s Trending in Temperature-Controlled Packaging Space?

The world we live in is changing, and so is the way we keep things cool. The fact being that the dismal global per capita availability of nutritious food and critical medicines cannot be resolved by increasing production, it signals that better cold chain management could be the answer to multiple issues that world at-large faces today; including but not limited to #food-security and #health-equity. The emerging positive trend in the temperature controlled logistic space is the increased adaption of passive cold chain solutions such as insulated containers and thermal pallet blankets. Cold Chain validators, both in manufacturing and freight companies are well acknowledging the effective use cases of #netzero insulation materials, primarily for their efficiency in maintaining specific temperature ranges in the #cold-supply-chain, in an exceedingly #cost-effective manner.

The Short Term View.

A recent Forbes survey says that the inflated growth of 3 PL service industry in the next three years is largely derived from cold chain services. The industry survey reflected that 62% of 3PL specifiers admitted that passive cold chain solution are moderately important in their process with 38% saying they are critically important. Grand View Research, the global pharmaceutical cold chain market is expected to reach a value of US$16.7 billion by 2025.

The Long Term View

The global market for passive temperature-controlled packaging solutions is heating up and indicates a similar trend, with significant growth projected in the coming years. In 2021, the passive cold chain industry clocked a close to 10 billion dollars but is forecasted to reach anywhere ABOVE $25 BILLION by 2031. That’s a rapid growth of 9%+ CAGR running unfettered for a decade.

Market Segmentation of Passive Cold Chain industry: 2031 Forecast.

The market is segmented based on product type, application, and end-use industry. Insulated containers are anticipated to remain the leading segment, accounting for over 60% of the market share by the end of 2031. The frozen segment is estimated to expand at a CAGR of 9.4%, contributing nearly 49% of overall sales by the end of 2031. And the pharmaceutical segment is anticipated to exhibit significant growth, expanding at a CAGR of 9.8% during 2021-2031.

Amongst other passive solution, Thermal Covers, Insulated Containers, Vaccine Cooler Bags, Shipping-Container Thermal Liners, Insulated Containers form a functional effective tool kit for cold chain industry professionals, aiding them in reducing their total cost of ownership (TCO) but with increased temperature maintenance efficiency; even in case of intercontinental transits.

Macro Factors driving market growth.

Demand for Cost-efficient Cold Chain Packaging Solutions:

The growing demand for cost-efficient packaging solutions is expected to drive the adoption of passive temperature-controlled packaging. These solutions offer the flexibility of transportation, ease of handling, and protection against damage during transit.

Criticality of Temperature Control in Pharmaceuticals:

The pharmaceutical industry is witnessing an increasing need for temperature-controlled packaging solutions. Biologic and pharmaceutical drugs require optimal temperature handling during shipping and logistics activities. Passive temperature-controlled packaging solutions are widely used for these products, ensuring their safety and integrity throughout the supply chain.

Consumer Demand in the Food and Beverage Industry:

The food and beverage industry also plays a significant role in driving the demand for passive temperature-controlled packaging solutions. With the growing demand for perishable food products, such as meat, seafood, and dairy products, there is an increased need for temperature assurance during transit and storage. Passive packaging solutions help preserve the quality and extend the shelf life of these products.

The Air Freight Industry:

The aviation industry is a crucial end-user segment for passive temperature-controlled packaging solutions. With the rise in international trade and the transportation of pharmaceutical products across the globe, airlines are actively investing in temperature-controlled cargo systems. These systems provide the necessary temperature stability during air transport, ensuring the quality and efficacy of pharmaceuticals. The International Air Transport Association (IATA) has established stringent guidelines, such as the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma), to ensure the safe transportation of pharmaceutical products by air.

What’s Missing?

The passive cold chain industry offers many benefits such as lower cost, lower environmental impact, higher flexibility, and higher reliability than active cold chain solutions and therefore, insulated packaging offered by Mettcover Global are gaining significant market share with in the temperature controlled logistic space. We also admit that there are some challenges that need to be addressed such as regulatory compliance, quality assurance, infrastructure development, skilled workforce development, and technology adoption. The passive cold chain industry, as a whole, needs to collaborate with various stakeholders such as shippers, carriers, regulators, technology providers, and consumers to overcome these challenges and achieve its full potential.