Cold Chain Market in India Set to Cross Rs. 6400 Crores (US$ 11 Billion) by 2017
Government initiatives, growing organized retail, pharmaceutical industry, horticultural produce and food processing would spur the demand for cold chain logistics in the coming years.
Majority of the cold chain infrastructure in India was developed in 1960s which majorly supports the storage of potatoes and potato seeds. About 75% of the total capacity of cold storages is suitable only for potatoes. Cold chain Infrastructure for other temperature sensitive goods is at abysmal state right now. On an average, about 30-40% of horticultural produce gets wasted annually in India. Even though India is the second largest producer of vegetables worldwide but its share in global export of vegetables is around 1.3% only. This is mainly caused by the lack of cold chain infrastructure which includes both storage and transportation facilities.
According to recently published report by TechSci Research “India Cold Chain Market Forecast and Opportunities, 2017” the cold chain market of India is anticipated to grow at the compounded annual growth rate (CAGR) of 28% during 2012-2017, which will make it a whooping US$ 11.6 Billion (Rs. 6,400 Crore) market. The Indian cold chain market is highly fragmented in which about 3500+ players are present. There are a large numbers of small players present in the Indian cold chain industry; some of the well-known organized companies are Snowman, FHEL, RK Foodland Pvt. Ltd., MJ Logistic Services Ltd. etc.
From the past few years, Indian cold chain industry has witnessed some positive changes. Private sector participation has increased in the cold chain industry to cater to the increasing demand for cold chain logistics. The majority of the cold storages built in last few years are meant for multi-purpose storage and this trend is expected to continue in coming years as well. The focus of cold chain logistics provider has been increased towards the milk and milk products, frozen fruits and vegetables, meat etc. The low profit margin in traditional items like potatoes, onions etc has led to an increased focused on high valued items. Government of India has taken various initiatives to attract private investment in this sector. Even though these initiatives have not caused any dramatic changes till now but in coming years they are expected to reap the fruit. The demand for cold chain logistics from organized retail, pharmaceutical industry has been growing day-by-day. These sectors are booming at great pace which will further enhance the demand for cold chain logistics in coming days. The shift towards horticulture and processed food is also expected to increase the demand for cold chain solutions in India.
“It is anticipated that many large domestic and foreign companies will join the league in coming years to cater the growing demand of cold chain logistics. This will inject required investment and latest technology in the Indian cold chain industry in near future. Cold chain industry of India is also expected to witness some major mergers and acquisitions by the big companies to establish their base and to expand their reach.” said Mr. Karan Chechi, Research Director with TechSci Research.
‘India Cold Chain Market Forecast and Opportunities, 2017’ has evaluated the future growth potential of cold chain market and provides statistics and information on market structure, trends and opportunities. The report includes segmental market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in cold chain market worldwide.