Indian cold chain market to reach Rs 4.3 trillion by 2027

By 2027 the cold chain logistics segment is expected to hold a share of around 55.51 per cent of the overall market

REFCOLD India, 2023, South Asia’s leading exhibition and conference dedicated to refrigeration and cold-chain technologies commenced at the Chennai Trade Centre. The three-day expo will host over 200 exhibitors, along with more than 10,000 visitors and innovators from retail, pharma, seafood, milk and dairy products, fruits & vegetables, frozen foods, food service, processing, production, distribution, logistics, and transportation Industries.

Organised in collaboration between the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE) and Informa Markets, REFCOLD India 2023 is set to redefine the industry landscape. This well-reputed event represents a significant step forward in the refrigeration and cold-chain sector, unveiling a vast potential cold-chain market of around INR 4.3 trillion by 2027.

The event’s grand inauguration was spearheaded by a rich array of dignitaries including Guest of Honour – Dr R Velraj, Vice Chancellor, Anna University; Raja M Sriraam_, _Chairman, RECFOLD Chennai, ISHRAE; Yogesh Thakkar, National President, ISHRAE, Anoop Ballaney, National President-Elect, ISHRAE and Yogesh Mudras, Managing Director, Informa Markets in India.

India’s cold chain market is segmented into cold chain storage and cold chain logistics. As of 2022, the cold chain logistics segment accounted for 55.42 per cent of the total market share. By the end of 2027, the cold chain logistics segment is expected to hold a share of around 55.51 per cent of the
overall market. The wastage levels in perishables in India are significantly high- 4.6- 15.9 per cent in fruits, 5.2 per cent in inland fish, 10.5 per cent in
marine fish, 2.7 per cent in meat and 6.7 per cent in poultry. Adequate and efficient cold chain infrastructure from farm gates to consumers is required to
arrest the high losses in the supply chain of perishables.

Many global cooling and logistics companies are stepping up their operations in the cold chain sector in India eyeing the huge potential in a large agriculture-driven country, which also happens to be the world’s second-largest producer of grains, vegetables, and fruits. The country’s vast production base, which includes meat, seafood, exotic fruit and vegetable varieties has a sizable agro-export market as well, with India exporting fruits and vegetables worth INR 160 Bn.

Sharing his ideas on the way to sustainable refrigeration and cold chain solutions, Dr R Velraj, Vice Chancellor, Anna University, said “Technology empowers us and represents the contribution of the engineer. 15 per cent of agricultural production is wasted, while over 10 per cent of marine products lose value owing to inadequate preservation. Sustainability in economic progress depends on inclusivity. Speaking on the occasion, Yogesh Thakkar, National President of ISHRAE said, _”The adoption of integrated cold chain solutions has the potential to significantly revolutionize the traditional perishables sector, bringing about substantial changes in the market landscape and overall growth. This is especially important in a country where
agriculture employs 60 per cent of the population.