U.S. Cold Chain Packaging Market Growth & Trends
The U.S. cold chain packaging market size is expected to reach USD 8.66 billion by 2025 at a 14.1% CAGR during the forecast period, according to a new report by Grand View Research, Inc. Market growth is profoundly influenced by extensive demand for perishable goods worldwide and availability of food and health supplies.
Current economic and political scenario has also played a crucial role in industry growth. For instance, trade conflict between U.S. and China is expected to negatively impact the growth of the cold chain market in U.S. In March 2018, U.S. imposed a 25% tariff on steel and 10% on aluminum imported from China. China, in turn, announced a 15–25% tariff on products imported from U.S., including pork, fruits, wine, nuts, and vegetables. These high tariffs imposed on food and agriculture produce is expected to negatively affect market growth.
Furthermore, outsourcing cold and frozen storage operations offer manufacturers various cost benefits. This can help eliminate costs associated with warehouse space and management, technology, transportation, and labor. Operational costs such as employee salaries, heating and cooling expenses, insurance, and electric power costs can also be reduced by working with supply chain partners. As a result, manufacturers can increase their profit margins and focus on core business activities such as quality product manufacturing, growing customer base, and satisfaction of customer needs.
Raw material suppliers in the cold chain packaging market supply primary materials required for producing isolated containers, in addition to other packaging components. Insulating materials used in cold chain packaging include expanded or extruded polystyrene, polyurethane, and polyethylene. These are manufactured using core materials such as silica or fiberglass in a multilayer polymer or vacuum aluminized coating. Thermal Conservation Technologies; va-Q-tec AG; and Thermal Visions, Inc. are some of the raw material providers in U.S.
Cold chain packaging manufacturers use raw materials for producing insulated containers. They are responsible for designing and developing packaging solutions depending on user requirements. The raw materials used vary depending on duration of temperature control required for the packaged product as well as on external temperature. Polystyrenes, polyurethane, and Vacuum Insulated Panels (VIP) are used depending on external temperatures and duration of shipping. Manufacturers develop packaging products depending on the industries they would be used in as well as other aspects such as weight and size.
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U.S. Cold Chain Packaging Market Report Scope Report Attribute Market size value in 2020 — USD 4,477.0 million Revenue forecast in 2025 — USD 8.66 billion Growth Rate — CAGR of 14.1% from 2018 to 2025 Base year for estimation — 2017 Historical data — 2014–2016 Forecast period — 2018–2025
U.S. Cold Chain Packaging Market Report Highlights
The U.S. refrigerated warehouse capacity was pegged at 2.92 billion cubic feet in 2017
Ammonia and carbon dioxide have been the most popular inorganic refrigerants over the years and is expected to witness substantial growth during the forecast period
Product manufacturers are focusing on understanding carrier ambient environment in order to develop efficient packaging and devise risk mitigation strategies
Companies offering solutions in cold chain packaging maintain a network of distributors located in different regions. For instance, Pelican BioThermal LLC has a network of dealers located in South America (NatBio), Asia Pacific (Giddi Pharma, Pharmaserv Express, and others), and Europe (DS Smith)
Some of the key industry participants are ACH Foam Technologies, Inc.; Cold Chain Technologies, Inc.; Cryopak Industries, Inc.; Cold Box Express, Inc.; and Intelsius.
Some key players operating in the U.S. cold chain packaging market include Sonoco Thermosafe; Sofrigam; Softbox Systems, Inc.; Va-q-tec AG; and Creopack.
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