Europe cold chain logistics market seen tripling by 2032

Allied Market Research says the Europe cold chain logistics market could jump from $64.10 billion in 2022 to $239.71 billion by 2032, driven by pharmaceuticals, food, and temperature-sensitive goods. The report points to Germany and France as key markets and flags growing demand for warehousing, chilled transport, and end-to-end logistics services.

Why it matters: - Europe’s cold chain logistics market is expanding fast as demand rises for temperature-controlled storage and transport across pharmaceuticals, food, flowers, and other perishable goods. - The market’s projected growth signals more investment in warehouses, monitoring tools, and last-mile delivery capacity. - Food waste is a major pressure point. Reliable cold chain systems can help reduce spoilage, protect product quality, and cut emissions.

What happened: - Allied Market Research projected the Europe cold chain logistics market will grow from $64.10 billion in 2022 to $239.71 billion by 2032. - The report forecast a 14.6% compound annual growth rate from 2023 to 2032. - Germany was identified as a major contributor because of its pharmaceutical base and demand for refrigerated warehouses and distribution centers. - DHL Supply Chain began building an approximately 32,000-square-meter logistics center in Florstadt, Germany, in June 2021. - The Florstadt facility is expected to add warehouse space for pharmaceutical and medical products in temperature zones of 15-25°C, 2-8°C, and -24°C. - A sample of the research report is available online. - A purchase page for the full report is also available. - Purchase inquiry is available for buyers seeking more information.

The details: - The report said AI and blockchain could improve efficiency, security, and visibility in cold chain logistics. - Data loggers, real-time monitoring systems, wireless sensors, and LoRaWAN networks were highlighted as tools for tracking temperature, moisture, and other conditions. - The bakery and confectionery segment was described as one of the fastest-growing areas in the market. - Growth in online retail and demand for faster logistics are supporting bakery and snack supply chains. - The seed and flower cold chain segment is growing as demand rises for fresh flowers and plants. - The report said 25% of flowers sold in the EU are imported from outside the region, mainly from Kenya, Ecuador, and Ethiopia. - Flowers are kept at 2-4°C during transport to preserve fragrance and freshness for up to three weeks. - The report cited Zero Waste Europe data showing the EU wastes an estimated 88 million tons of food each year, about 20% of total food production. - The food cold chain is described as an integrated temperature-controlled transportation and distribution system that keeps products safe and fresh from source to destination. - The report said many agricultural products degrade in one hour at 25°C at a pace similar to one week at 1°C, underscoring the need for better temperature control. - The European chilled cold chain segment has seen more adoption of technology, more sustainable practices, and stronger demand for end-to-end services. - The shift includes alternative fuels and efforts to reduce food waste. - Chilled transport demand is being lifted by fruits and vegetables, bakery products, and other temperature-sensitive goods.

Between the lines: - The report suggests cold chain logistics is moving from a back-end shipping function to a technology-driven service layer for healthcare and food distribution. - The emphasis on AI, blockchain, and IoT points to a market where visibility and compliance are becoming competitive advantages. - The COVID-19 pandemic exposed supply-chain weaknesses, but it also accelerated consumer acceptance of temperature-controlled home delivery for perishables. - The strongest growth areas named in the report line up with everyday demand, not just industrial use, which broadens the market base.

What’s next: - The report expects the dairy and frozen dessert segment to post significant growth. - The chilled temperature category is expected to grow strongly. - Warehousing is projected to be the fastest-growing business type. - France is expected to record the highest CAGR among European countries during the forecast period. - Major players in the market include NOATUM LOGISTICS, MSC Mediterranean Shipping Company, Agromerchants Group, GEODIS, Kloosterboer, Deutsche Post AG (DHL Group), DSV, Kuehne + Nagel International AG, Blue Water Shipping, and Lineage Logistics Holdings.

The bottom line: - Europe’s cold chain logistics market is set for rapid expansion, with pharmaceuticals, food safety, and temperature-sensitive retail demand driving the next phase of growth.