Revenue Forecast

The revenue estimate for the base year 2023 is $29.8 billion, with a CAGR of 12.6% for the study period 2023–2030.

The Impact of the Top 3 Strategic Imperatives on the Farm-to-Fork Cold Supply Chain Industry

Geopolitical Chaos

• Why: Fluctuating industry conditions stemming from geopolitical instability in Europe and the Middle East are causing increased uncertainty in the food supply chain. Droughts, wildfires, floods, and other unseasonal climate conditions have further disrupted an already precarious food supply chain.
• Frost Perspective: As conflict in Europe and the Middle East coupled with climate change cause deep uncertainty in the food supply chain, ecosystem players will need to store and move perishables for longer and at greater distances, which will create more interest in cold supply chain solutions.

Customer Value Chain Compression

• Why: The COVID-19 pandemic created a lot of online shoppers who now regularly buy groceries through online platforms. This is especially true for larger cities that are close to farms and other sources of food. This change has created an upheaval in traditional supply chains as local vendors, stores, and farmers markets are being replaced by a direct-to-consumer model.
• Frost Perspective: As the direct-to-consumer model becomes more prevalent, farmers and local vendors are being forced to adapt to working with direct-to-consumer players who rely on a very fast and compact delivery cycle. This also requires less refrigeration in the supply chain and dampens demand for cold chains.

Transformative Megatrends

• Why: The sustainability trend is significantly influencing the food sector, as consumers and stakeholders increasingly prioritize environmentally friendly practices. Cold chain technology, which encompasses the transportation and storage of temperature-sensitive foods, is going through transformative changes to minimize its environmental footprint.
• Frost Perspective: Sustainable initiatives in cold supply chain technology, such as energy-efficient refrigeration systems and smart logistics to optimize routes and reduce fuel consumption, become strategic advantages if correctly implemented. These initiatives are making cold chains more environmentally friendly and enabling companies to provide a stronger sustainability narrative.

Regional Segmentation

NALA

• Key players: In North America, the United States is the major producer of grain, meat, and dairy products. In Latin America, Argentina and Brazil are the biggest producers of these products.
• Climate: Across North America, the climate varies significantly. The North experiences cold winters while southern regions have milder winters and hotter summers. In Latin America, climates are also diverse, ranging from tropical environments in countries such as Brazil to arid regions in Mexico's Northern deserts.
• Crop types: Crops include grains, corn, soybeans, apples, citrus fruits, tropical fruits, coffee, sugarcane, and various vegetables.
• Infrastructure: The cold supply chain infrastructure is well developed in North America, but in Latin America some countries have modern facilities while others face significant limitations.

EMEA

• Key players: In Europe, Germany is a significant producer of barley, as are Russia, France, and Ukraine for wheat. In the Middle East, Saudi Arabia also stands out for barley production and Turkey for its grain.
• Climate: The climate ranges from a Mediterranean climate in the south to subarctic climates in the north of Europe as well as arid deserts in parts of the Middle East and tropical climates in sub-Saharan Africa.
• Crop types: Crops include grains, vegetables, and fruits (e.g., grapes for wine) in European countries. In the arid regions of the Middle East, focus is on drought-resistant crops, such as durum wheat and barley, while in some African countries, tropical fruits are the main crop.
• Infrastructure: Although countries such as Germany and France have robust supply chain infrastructures, regional conflicts across Eastern Europe, the Middle East, and sub-Saharan Africa are restraining infrastructure development for logistics operations.

APAC

• Key players: China and India are by far the most influential partners in Asia-Pacific, with the important production of rice, wheat, and sugarcane.
• Climate: APAC has diverse climates, including tropical, subtropical, temperate, and arid regions. Monsoons, typhoons, and seasonal variations can impact agriculture in some areas.
• Crop types: Crops include rice, wheat, soybeans, tropical fruits, vegetables, and seafood.
• Infrastructure: Investment constraints are affecting the possibility to develop a robust cold supply chain infrastructure, which is particularly relevant in rural and remote areas.

Competitive Environment