The cold chain industry in India remains under served and presents huge potential in terms of expansion. As of 2014, there exists a requirement of 3.3 million MT of cold storage and 52.7 thousand reefer trucks. Although, the market has witnessed incline in revenue during 2012-2017 but still the cold chain faces challenges such as high share of single commodity cold storage (dominated by potato), high initial investment, and lack of enabling infrastructure leading to poor quality produce. The market growth was driven by growth in production of horticulture produce, dairy and meat products. Adding to this increasing urbanization and growth of organized retail, food servicing and food processing sectors created demand for cold storage facilities
Agricultural products such as fruits, vegetables, fruit pulp, concentrates and others have accounted for the highest share of the revenue share in India Cold Chain Market in 2017. The country is dominated by a large number of small and medium sized cold storage units located near farms, seaports, airports, pharmaceutical hubs and food processing clusters
India cold chain market is in the growing stage with major players undertaking expansion strategy to tap the huge potential present in sector. The companies compete on various parameters including the warehouse capacity, number of pallets, fleet, temperature range, network coverage and locations. In future, the market is expected to consolidate. The major players in India cold chain market include Snowman Logistics, Cold Star Logistics, Schedulers, Gubba Cold Storage, Kailash Agro Cold Storage, M J Logistics Services Ltd, Deccan Cold Storage Pvt Ltd, Dev Bhumi Cold Chain, Gati Kausar Cold Chain Solutions and ColdEx Pvt. Ltd
The cold chain industry in India is still at a growth stage. Although, the market has witnessed incline in revenue during 2012-2017 but still the cold chain potential remain untapped due to certain reasons such as high share of single commodity cold storage (dominated by potato), high initial investment (for refrigerator units and land), lack of enabling infrastructure such as power & roads, lack of awareness for handling perishable produce and lapse of service either by the storage provider or the transporter leading to poor quality produce.
The growth of online grocery retail and food processing industry will further create demand for cold storage and transportation facilities as major players and QSR chains undertake expansion across various cities in the country. The demand from pharmaceutical industry is expected to grow at the fastest rate. This will be driven by prevalence of diseases which is expected to rise in the country owing to increase in the aging population. The proportion of population above 65 years of age is expected to increase from 6.1% in 2017 to approximately 7.0% in 2019. Further, favorable government initiative such as SAMPADA scheme will facilitate the growth of small and medium size cold chain companies. Implementation of GST is expected to drive the cold chain market revenue as the market will witness better integration of services and increased efficiency.
India 3PL cold chain market is in the growth stage majorly driven by entry and expansion of local and international QSR chains, supermarket chains such as Reliance Fresh, Safal, EasyDay and others. Further, the growth of online grocery stores such as BigBasket, Grofers, and others have further facilitated the 3PL cold chain market due volume growth indicating growing acceptance and penetration of online grocery among consumers. With the constant shift in client business, more customized and value-added services are required along with standardized services offerings. In order to widen their network coverage, large cold chain companies have tied up with local 3PL service providers in order to better serve the local markets
Key Topics Covered in the Report:
India Cold Chain
Cold Chain Logistics India
Potato Storage India
Cold Chain Projects India
Number of Cold Storages India
Value Chain Cold Chain India
Subsidy Scheme for India Cold Chain
Investment Cold Storage Facility India
Uttar Pradesh Cold Chain Market
Size of Cold Storages India
India Dairy Products Market
Number of Reefer Trucks India
Cold Chain Logistics Infrastructure India
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