The Indian cold chain market has been forecast to increase at a compound annual growth rate (CAGR) of 28.7% over the next five years, to be worth a market value of US$11.6 billion by 2017.
Industry growth is being driven by numerous factors including the organised retail and food processing sectors, an increase in shift towards horticultural crops by farmers to evade risk, a rise in demand for cold storage in the pharmaceutical sector and changing consumption patterns.
Cold chain has become an integral part of the supply chain management for the storage and transportation of temperature sensitive goods. Utilization of cold chain logistics includes both cold storage as well as refrigerated transportation and is used to increase the shelf life of food produce.
Cold chains are used primarily for fruits and vegetables, meat and marine products, floriculture, dairy products, ice creams and confectionery.
The Indian cold chain market is highly fragmented and includes in excess of 3500 companies. There are a large numbers of small players present in the Indian cold chain industry, along with some of the more well known companies such as Snowman, FHEL, RK Foodland Pvt. Ltd., MJ Logistic Services Ltd. etc.
According to government's estimates, India has 5,400 cold storage facilities of which 4,875 are in the private sector, 400 in the cooperative sector and 125 in the public sector. Although the combined capacity of the cold storage facilities is 23.66 million metric tons, India can store less than 11% of what is produced.
For more information on the Indian cold chain market, see the latest research: Indian Cold Chain Market Report
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