UK Cold Chain Logistics Market to Grow by USD 8.50 Billion from 2025-2029, Driven by RFID Adoption and AI-Redefined Market Landscape – Technavio

NEW YORK, Jan. 13, 2025 /PRNewswire/ — Report with market evolution powered by AI – The cold chain logistics market in UK size is estimated to grow by USD 8.50 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 9.9% during the forecast period. Use of RFID in cold chain logistics is driving market growth, with a trend towards increased use of IoT and technological solutions with cold chain. However, poor customer satisfaction poses a challenge. Key market players include AP Moller Maersk AS, AGRO Merchants Group, Andrew Marr International Ltd, Central Insulations Ltd, Chiltern Cold Storage Group Ltd., Kerry Logistics Network Ltd., Lineage Logistics Holdings LLC, Magnavale Ltd, NewCold Cooperatief UA, Posten Norge AS, Reed Boardall Cold Storage Ltd., Seafast Logitics Ltd., Trade Distribution Ltd, and XPO Inc..

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Market Driver

Cold chain logistics is a critical aspect of the global supply chain, particularly for perishable items like seafood, fruits and vegetables, dairy products, eggs, and protein-rich foods. Trends in this market include the growth of online platforms for grocery delivery and the increasing demand for cold chain solutions for biologics, cell therapies, and vaccines. Logistics networks are digitalizing with IT spending on cloud computing and temperature monitoring devices, while automation and sensors enable real-time temperature control. Sustainable shipping products and warehouse management systems are essential for reducing food waste and maintaining product quality. The market for cold chain logistics solutions is expanding, driven by globalization and the need for temperature-controlled storage and transport for perishable food items, agricultural products, and pharmaceuticals. E-commerce and retail chains are significant consumers, with convenience stores and hypermarkets also relying on cold chain logistics for inventory management and shipment integrity. The market for cold chain logistics is expected to grow significantly in the coming years, driven by the increasing demand for perishable food products, meat, and temperature-sensitive items like vaccines and biologics. RFID tags and IoT technology are also playing a role in improving the efficiency and effectiveness of cold chain logistics, ensuring product recalls are minimized and shipment integrity is maintained. 

The cold chain logistics market is experiencing significant growth due to the integration of technology and the Internet of Things (IoT). Vendors provide tools for automating warehouse processes, integrating cross-functional components, and identifying sustainability drivers. IoT solutions use sensors and robotic systems in facilities, with analytics tools processing data efficiently. Fuel cells-based forklifts generate energy through hydrogen reactions, providing high-energy output and byproducts of electricity, heat, and water. These advancements help reduce operating costs for warehousing service providers. 

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Market Challenges

• Cold chain logistics is a critical aspect of the global supply chain, particularly for perishable items such as seafood, fruits and vegetables, dairy products, and vaccines. The market faces numerous challenges, including ensuring the quality and integrity of temperature-sensitive products like online grocery delivery, protein-rich foods, and biologics. Logistics networks must maintain chilled and frozen temperatures using automated warehouses, sustainable shipping products, and advanced packaging solutions. Digitalization, including IT spending on cloud computing and temperature data tracking through sensors and IoT devices, plays a crucial role. Product recalls and food waste are significant concerns, requiring stringent quality standards and efficient warehouse management. Cold storage logistics solutions, including temperature monitoring devices and RFID tags, help maintain the integrity of shipments during transportation. Globalization and e-commerce have increased demand for cold chain logistics, particularly for perishable food items and vaccinations. Collaboration between logistics providers, retailers, and manufacturers is essential to meet the growing demand for cold chain solutions while minimizing food waste and ensuring product quality.
• Cold chain logistics is a critical aspect of supply chain management for businesses dealing with temperature-sensitive products. However, challenges persist when engaging vendors for cold chain solutions. One issue is insufficient capacity due to inadequate product data collection systems. This hinders effective inventory management, leading to increased storage costs for enterprises and potential customer dissatisfaction. Another challenge is the use of low-cost cold chain carriers, which can result in product damage or loss during transportation. These incidents may lead to fines from regulatory bodies, further increasing expenses for businesses. Addressing these issues requires careful vendor selection and implementation of cold chain solutions to ensure product integrity and customer satisfaction.

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Segment Overview

This cold chain logistics market in UK report extensively covers market segmentation by

1. Application 
• 1.1 MFS
• 1.2 Dairy and frozen desserts
• 1.3 FVB
• 1.4 Others
2. Type 
• 2.1 Refrigerated warehouse
• 2.2 Refrigerated transportation
3. Geography 
• 3.1 Europe

1.1 MFS- The cold chain logistics market plays a crucial role in preserving the quality and nutrition of perishable food items, particularly meat, fish, and seafood (MFS). These foods have limited shelf lives and require refrigeration to maintain their quality. The temperature requirements for storing MFS vary; fresh seafood must be kept at 32 degrees F (0 degrees C), while frozen seafood needs to be stored at 0.40 degrees F (-18 degrees C) or less. The growing consumption of meat, with an expected increase of 4 kg (8.8 pounds) per capita from 2015 to 2030 (European Commission), fuels the demand for cold chains. Consumers prefer frozen meat for its convenience and health benefits, leading to a rise in demand for sophisticated cold chain solutions. Key players like JBS SA and Tyson Foods Inc. Focus on exporting frozen meats, further boosting the market. Companies such as Lineage Logistics are expanding their capabilities to meet this demand, ensuring efficient and safe delivery of frozen products. The popularity of frozen meats also encourages the launch of new frozen food ranges, driving innovation and investment in the cold chain logistics market.

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Research Analysis

Cold Chain Logistics is a critical aspect of ensuring the quality and safety of temperature-sensitive goods, particularly in industries such as pharmaceuticals and food. This market encompasses various aspects, including vaccine distribution, inventory management, and supply chain optimization. The importance of cold chain logistics in pharmaceutical logistics cannot be overstated, as it ensures the efficacy and safety of drugs, especially those requiring refrigeration or frozen storage, such as vaccines and medical devices. Food security is another significant area where cold chain logistics plays a crucial role. Temperature-controlled distribution networks help maintain the freshness and safety of perishable food items, reducing food waste and ensuring food safety. Sustainable logistics practices, such as refrigerated vehicles and warehouse automation, are increasingly being adopted to minimize the carbon footprint of cold chain operations. Supply chain disruptions, be it due to natural calamities or other unforeseen circumstances, can significantly impact the cold chain. Cold chain innovation, such as digital health solutions and clinical trial logistics, is helping to improve supply chain resilience and visibility. Cold chain logistics also plays a crucial role in e-commerce and food delivery services, ensuring the timely and safe delivery of healthcare products and fresh food. In the realm of biotechnology, cold chain logistics is essential for the transportation and storage of biological materials, such as cell lines and vaccines, used in drug development and research. Cold chain management is also critical in healthcare technology, where temperature-sensitive medical equipment and supplies need to be transported and stored effectively. Cold chain logistics is an ever-evolving field, with continuous innovation in temperature-controlled packaging, sustainable cold chain, and cold chain optimization. The market is expected to grow significantly in the coming years, driven by the increasing demand for temperature-sensitive goods, particularly in the healthcare and food industries.

Market Research Overview

Cold Chain Logistics is a critical aspect of the global supply chain, particularly for perishable items such as seafood, fruits and vegetables, dairy products, eggs, and protein-rich foods. The market for cold chain logistics solutions is expanding due to the growth of e-commerce, online grocery delivery, and the increasing demand for temperature-sensitive products like biologics, cell therapies, and vaccines. Digitalization is playing a significant role in this sector with the adoption of IT spending, cloud computing, and IoT technologies for temperature monitoring, warehouse management, and shipment integrity. Sustainable shipping products and automated warehouses are also gaining popularity to reduce food waste and improve product quality. The market is expected to grow significantly due to globalization, increasing demand for perishable food items, and vaccination campaigns. Temperature monitoring devices, sensors, RFID tags, and packaging products are essential hardware components in this industry. Cold chain logistics solutions ensure the quality and integrity of temperature-sensitive products, from production to delivery, meeting the stringent quality standards required for perishable food products and pharmaceuticals.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application

• MFS
• Dairy And Frozen Desserts
• FVB
• Others

• Refrigerated Warehouse
• Refrigerated Transportation

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

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SOURCE Technavio