The global temperature-controlled packaging market size was worth US$ 42,134.00 million in 2019 and is estimated to reach US$ 90,664.09 million by 2027, growing at a CAGR of 10.023 % during the forecast period (2020-2027).
Temperature controlled packaging is essential for shipping different kinds of goods from perishable foods to pharmaceutical drugs and it’s particularly significant in situations where temperature-controlled warehousing and shipping are not available. However, making effective temperature-controlled packaging can be a challenge to manufacturers, mainly for small businesses.
Temperature controlled packaging is a fully optimized solution with volume efficiency, simple packing, reduced inventory needs and reduces lower distribution costs to protect valuable, critical goods such as pharmaceuticals, diagnostics/clinical trials, perishable goods, frozen foods, tissue, vaccines and blood supplies around the world.
By Type segment, Insulated Containers holds the highest market share of 56.10% in 2019 due to the effectiveness of product performance. The Insulated Containers segment was worth US$ 23,636.76 million in 2019 and is expected to grow with a CAGR of 10.52% in the forecast period.
By product type segment, passive systems hold the highest market share of 64.06% in 2019 due to demand of this type of packaging in the shipping of pharmaceutical drugs and vaccines.
In the end-user segment, food & beverage holds the highest market share of 70.19% in 2019 due to the high necessity of temperature-controlled packaging services.
By geography, North America is the dominating market with a market share of 33.24% in the global temperature controlled packaging market due to presence of major players, developed supply chain infrastructure and high investment by the stake-holders.
Market Dynamics
Drivers
- Increasing demand for transportation of the pharmaceutical medicines, vaccines, drugs and clinical trial distribution products, tissue, donor organs, blood transfers around the globe
Restraints
- Lack of appropriate infrastructure and environmental conditions are restraining the market
Lack of appropriate infrastructure and environmental conditions are restraining the market
The products that are temperature sensitive may be subjected to a decrease in quality during the process of transportation, so utmost care is needed, which also depends on the degree of infrastructure availability as well as the surrounding environment. For instance, the cold chain system is assumed to be at high risk, mainly in tropical countries where a power supply is unpredictable and facilities for its maintenance are not well developed compared to developed countries which may hinder the market expansion. In tropical areas, it is common to see 30 to 50 percent of the refrigerators and freezers being out of order. In developed countries also the problem is critical. For example, in the USA there is a lack of refrigerator temperatures that fell within the satisfactory range, which is 63 percent fell below minimum.
Some of the general weakness of Cold chain management that also hinders the growth of temperature-controlled packaging that are frequently observed throughout transportation and storage are delays during transportation, quality of refrigerators, a method of storage, too long storage at the health facilities, inappropriate use of refrigerators, power disruption, equipment breakage, and deficiency of human resources proficient in managing the cold chain. Due to the lack of appropriate infrastructure, the cold chain remains a highly susceptible point for national immunization and drug distribution programs in developing countries, mainly those with tropical climates, because of environmental constraints. For instance, in Ethiopia, there is a real difficulty of vaccines losing their effectiveness during cold storage at these centers.
Geographical Analysis
North America evolved as the largest regional market in the global temperature controlled packaging market, holding a share of 33.24% in total dollar sales in 2019. The large-scale utilization of this technology in pharmaceutical and food industries in the United States led to significant demand and growth potential in the region
North America temperature controlled packaging market valued USD 14,005.34 million in 2019 and is estimated to reach USD 27,820.73 million by 2027, growing at a CAGR of 9.0% during the forecast period
The U.S dominated the regional market with a revenue share of 82.15% in 2019. Also, it is the largest market in terms of revenue globally, with a dollar sales of USD 11,505.39 million in 2019, majorly owing to its world’s largest pharmaceutical market. The spending on prescription drugs in the U.S. is recorded at approximately USD 500 billion in 2019 and is estimated to reach USD 600 billion by 2023
This high growth potential had led to several pharmaceutical supply chain providers towards integration of temperature controlled storage and logistic services. Companies such as Yourway are offering extensive temperature-sensitive services for shipping of pharmaceutical raw materials and finished products
The spread of novel coronavirus has offered new growth avenues for these companies with significant growth in demand for antiviral medications and extensive vaccination programs in late 2020.
In U.S., the temperature controlled supply chain management for pharmaceutical and biotechnical products is regulated by FDA regulations and ICH guidelines
Also, transportation of healthcare products by air requires to meet the technical standards set by the International Air Transport Association (IATA). IATA in its Temperature Control Regulations (TCR) commissioned the requirements for shipment of temperature-sensitive healthcare and life science products including vaccines
The processed food industry is another key sector in the market growth. With changing consumer preferences towards chilled, frozen, ready-to-eat, and ready-to-cook food products, the need for temperature controlled packaging systems has rapidly grown in the region. Canada and the United States have been witnessing significant growth in the sales of frozen food with the rising trend of convenience among the millennial and adult population. Demand for fruits and vegetables, dairy products, seafood and processed meat are projected to support the growth of temperature-controlled packaging as these food products require cold-chain packaging and logistics
For instance, the frozen seafood and poultry categories in the U.S. has grown at a rate of 35% in terms of dollar sales in 2020. These temperature sensitive food products require time and temperature controlled packaging to ensure safe, cost-effective logistics and maintain quality of the perishable foods
