The cold chain logistics services market in India is expected to grow at a compound annual growth rate (CAGR) of 14% during the forecast period (2020-2025.). This can be attributed to the country’s rapidly expanding food and pharmaceutical industries, which are increasingly relying on cold chain solutions to transport temperature-sensitive products.
The Indian cold chain logistics market is still in its nascent stage, with only a handful of companies operating in the space. However, with the government’s recent push to develop the country’s food processing and cold chain infrastructure, there is expected to be a surge in demand for cold chain services in the coming years.
Some of the leading cold chain logistics service providers in India include Reefer Express Pvt Ltd, coldEX, National cold chain, ColdBox, and Aryan cold chain. These companies offer a range of services such as refrigerated warehousing, transportation, and distribution.
Some of the challenges faced by the cold chain logistics industry in India include lack of awareness, high initial investment, and infrastructural deficiencies. However, with the government’s commitment to boosting the country’s food processing and cold chain infrastructure, these challenges are expected to be overcome in the coming years.
5 Trends in Temperature Controlled Logistics In India
More proficient data tracking –
Data analytics tools are being used by logistics providers to offer more value-added services to their clients. This helps in reducing the time taken for product deliveries and also ensures that the products are delivered at the right temperature.
Increased focus on last-mile delivery –
There is an increased focus on ensuring last-mile delivery of products, as this is the most critical stage in the supply chain. This has led to the development of innovative solutions such as refrigerated vans and mobile coolers.
Rise of e-commerce –
The rise of e-commerce has been a game-changer for the logistics industry. Online retailers are now able to reach a larger customer base with the help of logistics providers.
Growing demand for cold chain solutions in the healthcare industry –
The healthcare industry is one of the major end-users of cold chain solutions. This can be attributed to the growing demand for medicines and vaccines, which need to be transported at a controlled temperature.
Adoption of new technologies –
New technologies such as blockchain and the Internet of Things (IoT) are being adopted by logistics providers to improve the efficiency of their operations.
The future of temperature-controlled logistics in India looks promising, with the country’s food and pharmaceutical industries expected to grow at a rapid pace in the coming years. The government’s initiatives to develop the country’s cold chain infrastructure will provide a further boost to the industry.
Development of Efficient Infrastructure
One of the most important trends in the logistics industry is the development of efficient infrastructure. This includes the construction of new warehouses, cold storage facilities, and distribution centers. The government’s initiatives to develop the country’s food processing and cold chain infrastructure will provide a major boost to the industry.
Static Infrastructure
The government is investing heavily in the development of static infrastructures, such as warehouses and cold storage facilities. This will help in reducing the time taken for product deliveries and also ensure that the products are delivered at the right temperature.
Mobile Infrastructure
Another trend in the logistics industry is the development of mobile infrastructures, such as refrigerated vans and mobile coolers. This helps in ensuring the last-mile delivery of products, as this is the most critical stage in the supply chain.
Technology Adoption
Logistics providers are adopting new technologies, such as blockchain and the Internet of Things (IoT), to improve the efficiency of their operations. These technologies help in tracking the movement of goods and also enable real-time monitoring of temperature-controlled environments.
Outsourcing
Outsourcing is another trend that is gaining popularity in the logistics industry. This helps companies focus on their core competencies and leave the logistics operations to third-party providers.
Frequently Asked Questions
Q. Is cold chain logistics profitable?
A. Yes, the cold chain logistics industry is quite profitable. This can be attributed to the growing demand for temperature-controlled solutions in the food and healthcare industries.
Q. What are the basic issues to consider in cold chain logistics?
A. Some of the key issues to consider in cold chain logistics include product temperature, time in transit, and packaging.
Q. How can logistics improve cold chains?
A. By adopting new technologies and using data analytics tools, logistics providers can improve the efficiency of cold chains. This helps in reducing the time taken for product deliveries and also ensures that the products are delivered at the right temperature.
Q. Which industries use a cold chain?
A. The main industries that use cold chains are the food and healthcare industries. However, there is a growing demand for cold chain solutions in the pharmaceutical and cosmetics industries as well.
