Europe cold chain packaging market valued USD 3,093.33 million in 2019 and is estimated to reach USD YY million by 2027, growing at a CAGR of 5.2% during the forecast period (2020-2027)
Owing to an increase in demand for packed food and importing & exporting of seafood. A cold chain is a temperature controlled supply chain. It is a series of activities such as refrigerated production, storage, and distribution, along with associated equipment and logistics, which maintain the desired low-temperature. The quality of service in cold chains majorly depends on the increasing investments in modern technology and equipment, especially the cold chain packaging solution. Over the last decade, highly competitive markets, such as pharmaceutical market is facing economic hardships, and hence, companies were looking for different methods to improve product packaging strategies through effective packaging techniques such as cold chain packaging.
Based on the application, the Europe cold chain packaging market is broadly segmented as pharmaceutical packaging, food packaging, medical devices, agricultural products, and others. Among all these, pharmaceutical packaging accounted for the highest CAGR of 5.7%, owing to its increasing applications in supply & logistics of biopharmaceuticals, clinical trials, vaccines, and others
Based on material type, the Europe cold chain packaging market is segmented as expanded polystyrene, vacuum insulated panel, polyurethane and others
Expanded polystyrene accounts for the highest market share of 57% as it maintains product safety, security and temperature throughout the cold chain. Expanded polystyrene is expected to grow at a CAGR of XX% during the forecast period
Market Dynamics
Drivers
- Rising demand from various industrial applications such as medical devices and pharmaceutical
- Increasing demand for frozen and dairy products
Restraints
- Disease outbreak in cold storage
- High energy costs
Increasing demand for frozen and dairy products
Frozen and dairy products cold chain packaging protects them from environmental conditions or any type of physical damage. The loss of these products is occurred mostly during the retailer to consumer exchange which means that the product goes through an energy-intensive chain and is not consumed at the end. According to Europeon Cold Storage and Logistics Association, each year one third of global food production is lost or wasted and to avoid this, 60% of food products need to be kept cold. Due to such losses, there is an increasing demand for cold chain packaging during the forecast period. In addition, almost 45 million metric tons of dairy products are annually consumed in the European Union, which has over 300 registered kinds of cheese and dairy products. Increasing consumption of frozen and dairy products in the European nations has augmented the production of such foods, which require an efficient transportation and logistics system. Moreover, Europe is by far the world’s largest importer of frozen vegetables, accounting for around half of global imports. European imports of frozen vegetables have increased annually by an average of 3% in volume in the period of 2014-2018. The largest share of imports is intra-European trade, while only 11% of imports come from developing countries. Belgium is the largest producer of frozen vegetables in Europe, accounting for 27% of total European production. Hence, increase in demand for dairy products and importing & exporting of frozen foods is expected to drive the Europe cold chain packaging market
Country Analysis
The Germany is estimated to grow at a CAGR of 6.0% during the forecast period (2020-2027) to reach a market value of US$ 1,136.82 million by 2027
As per the International publications by Agencies BIO report in 2017, the consumption of organic products in European countries was estimated to around 42 billion and has been reached to US$ 47 billion in 2018. This propels the demand for cold chain packaging used in packing of organic farms products in this region. Further the cold chain packaging market is driven by increasing sale of the food and beverages products in the Europe region due to growing busy lifestyle and rising consumers spending. According to the United States Department of Agriculture in 2018, Germany is the biggest market for food and beverages in the European Union (EU). In 2018, Germany’s GDP reached to around US$ 4 trillion with leading position 4th largest economy in the world due to increased manufacturing facilities related to food and beverages. Germany is also a major producer of food and agricultural products which held a leading position in the global marketplace. Further in 2018, Germany also plays a vital role for producing agricultural goods whose import has been reached to around US$ 108 billion which is increasing at the rate 2.9% compared to 2017. This propels the demand for cold chain packaging require for the agricultural goods, and processed packaged food. In addition to this, in 2018, Germany has also been imported consumer-oriented agricultural products of worth US$ 64 billion from other EU member states which impels the demand for cold chain packaging market. Further Germany’s market demand for cold chain packaging is driven by rising the pharmaceuticals industries, medical technology companies due to surge in the prevalence of chronic ailments and infectious diseases. In overall Europe, Germany has the highest contribution for the cold chain packaging market owing to the presence of medical technology manufacturing companies with 27% of total 27000 small scale and medium enterprises. This propels the demand for the cold chain packaging require for handling and transporting medical devices. Further Germany is the leading provider of pharmaceutical medicines, and products around the Europe region. According to European Council Organization of the EU States Member, Germany exported worth of around US$ 55 billion medicinal products in 2019. Hence for transporting and maintaining good shelf life of these products and to avoid the contamination, the cold chain packaging has created huge demand in this region for pharmaceutical industries