According to a recent report published by KD market Insights, “UK cold chain Logistics Market by End user Industry: Opportunity Analysis and Industry Forecast, 2018–2026,” the UK cold chain logistics market size was valued at £3.5 billion in 2018 and is projected to reach £18.78 billion by 2026.
The meat, fish, and sea food segment dominates the UK cold chain logistics market, closely followed by fruits & vegetables. In addition, the dairy & frozen desserts segment is expected to grow at a significant rate during the forecast period.
Cold chain can be defined as the technology required to maintain a product within a specified low-temperature range from harvest/production to consumption. It is necessary that the refrigeration units used within the cold chain are designed to maintain the temperature within the preferred range and prevent variation in temperature.
Its effectiveness relies on shipments of produce being brought to the required temperature before loading in the reefers, which requires specialised storage and unloading/loading facilities.
In addition, maintaining appropriate temperature conditions in the supply chain and monitoring temperature-sensitive products is necessary.
The rise in online grocery shopping has resulted in the increased refrigerated warehouses and multiple export industries are dependent on the vital links that the cold chain solutions system provides.
Moreover, businesses invest millions in UK cold chain logistics industry to create effective, efficient, and reliable process because end-to-end cold chain security can be a weak link in the system.
Single breakdown in the cold chain logistics chain can lead to catastrophic losses of products and capital.
In addition, the UK has been named as the third largest online grocery market in the world after South Korea and Japan. Around 6.1% of grocery sales in the UK are made online, which has propelled the UK cold chain logistics market growth. An increase in number of refrigerated warehouses is needed to maintain the integrity of grocery sold online and is expected to boost the growth of the cold chain logistics market in UK.
A new range of reefers are available online, which are equipped with an array of sensors used to monitor the temperature inside and shut down the cooling system when necessary.
In addition, shipping lines implement remote monitoring systems, which enable monitoring of humidity and location of reefers. These reefers are equipped with a wireless communication system and GPS device, providing updates to access any issues along the cold chain.
An increase in cold chain technology is boosting the global market overall, with the UK showing that they are ahead of the game when it comes to implementing logistical innovation for perishable produce.