Dive Brief:
- Cold-storage facilities, trucks and warehouses are becoming increasingly common in emerging markets, according to a recent Wall Street Journal report.
- The report finds global cold-storage capacity reached 600 million cubic meters this year, although global cold-chain growth slowed to 8.6% in the past two years, compared to the 20% growth rate experienced between 2012 and 2014.
- Data from the Global Cold Chain Alliance revealed cold-storage warehouse capacity over the past two years grew by nearly a third in Mexico, by 41% in China, and nearly tripled in Uzbekistan.
Dive Insight:
Cold chains, or temperature-controlled supply chains are typically associated with food products or pharmaceutical goods. As a result, the Global Cold Chain Alliance reports cold chain infrastructure grows alongside disposable income, given the higher demand for perishable foods.
So although North America continues to dominate in cold chain infrastructure—the top 25 warehousing companies in the region count for 15% (86 million cubic meters) of the world's cold-storage capacity—emerging markets are increasing in importance to the global chain.
India and China, in particular, are expected to drive future cold chain growth according to a report by Zion Market Research, perhaps due to the growing pharmaceutical market in those countries. China can now count on 107 million cubic meters of refrigerated warehouse capacity.
