Cold Chain Market in India 2023-2028

The Indian cold chain market is vital for reducing post-harvest losses and ensuring the safe storage and transport of perishable goods. With significant government support, including the Pradhan Mantri Kisan Sampada Yojana, and advancements in infrastructure, the sector is projected to grow rapidly. Increased demand for processed foods, pharmaceuticals, and dairy products drives the need for seamless cold storage and logistics solutions, establishing India as a key player in global cold chain systems.

Market insights:

The cold chain market in India is expected to reach a value of INR 5.09 Trn during the 2024 ─ 2029 forecast period, expanding at a compound annual growth rate (CAGR) of ~16.43%.

The Integrated Cold Chain and Value Addition Infrastructure Scheme has approved 372 projects, creating over 38 million metric tons of storage capacity and generating 2.23 lakh jobs. Rising urbanization and e-commerce boost demand for temperature-controlled solutions, particularly for processed foods, vaccines, and frozen goods. State-of-the-art technologies like IoT-based monitoring and automated warehouses are gaining traction.

Major players like Snowman Logistics and DHL are expanding footprints, leveraging demand for last-mile delivery solutions. Growth is also catalysed by increasing agricultural exports, with a focus on reducing post-harvest losses and maintaining quality standards.

Segment insights:

The market is segmented into cold chain storage and cold chain logistics.

Cold chain storage includes refrigerated warehouses, facilitating the storage of perishables like fruits, vegetables, dairy, and pharmaceuticals. Recent investments under the PMKSY scheme emphasize farm-level cold storage to minimize wastage and enhance farmer incomes. Automated and temperature-regulated facilities are growing in adoption.

Cold chain logistics focuses on refrigerated transportation, including trucks, containers, and rail services. Government incentives support the adoption of energy-efficient vehicles and insulated transport. Last-mile delivery for e-commerce groceries and meal kits has surged, requiring advanced logistics. This segment ensures seamless connectivity across supply chains, aided by tracking systems for real-time visibility and compliance with temperature-sensitive goods.

Market trends:

Emerging market trends include the adoption of renewable energy solutions like solar-powered cold storages and energy-efficient refrigeration units, reducing operational costs. IoT integration enables remote monitoring, enhancing efficiency. Growth in pharmaceutical cold chains, driven by vaccine storage and biologics, creates high-value opportunities. The rising popularity of processed and frozen foods among urban consumers has accelerated investments in refrigerated retail chains. Geographical expansion into underserved rural markets offers untapped potential, supported by government subsidies for infrastructure in difficult areas.