Indian Cold Chain Market to Reach Around INR 2162.56 Billion in 2025, Driven by the Growth of the Food Processing Sector

The rising population and changing consumption patterns are increasing the adoption of fresh products, such as fresh fruits and vegetables and processed meat, milk, and other products. The need for efficiently transporting food products is aiding the Indian cold chain market expansion.

By 2026–2027, the Production-Linked Incentive (PLI) scheme is projected to have enabled the growth of food processing capacity by over INR 30,000 crore and generated extra employment possibilities, both direct and indirect, for roughly 2.5 lakh people. Additionally, India is the largest producer of milk, and in FY 2022–23, the country produced around 230.58 million metric tonnes of milk. Being perishable and temperature-sensitive, such products require cold chain logistics.

The growth of the food and beverage sector in India further drives the demand for cold chain logistics. In FY 2022-23, the total meat production in the country was 9.77 MT. Cold chain logistics helps reduce spoilage and waste as well as improve the quality of products. This further leads to cost savings and increased profits for businesses.

The expansion of cold chain fleets and the acquisition of such vehicles expand the cold chain market in India. In December 2023, AVG Logistics (NSE: AVG) acquired over 50 cold chain vehicles from global multinational companies to strengthen its fleet operations. These vehicles were acquired after detailed due diligence and an assessment of vehicle quality and condition. This move aims to significantly improve AVG's capacity to provide recently agreed-upon long-term deals, including both dry and frozen items, with the biggest MNC FMCG company in India.

Figure: % share of Meat Production in top 5 States of India

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Market Analysis by Services, Product, Sector, Segment, and States:

• The market, on the basis of services, can be divided into cold chain storage and cold chain transportation.
• Based on product, the Indian cold chain market can be divided into fruits and vegetables, meat and fish, dairy products, and healthcare products.
• The various sectors in the market include private, cooperative and public.
• Based on segment, the market can be divided into organised and unorganised.
• The major states for cold chain in India include Uttar Pradesh, West Bengal, Punjab, Gujarat, Bihar, Andhra Pradesh, Madhya Pradesh, Maharashtra, Karnataka, Haryana, Chhattisgarh, Rajasthan, Orissa, and Tamil Nadu, among others.

Key Findings of the Report:

• The food processing sector is a major driver of cold chain logistics in India, as it primarily consists of perishable products such as food items, fruits, vegetables, and dairy products. India's food processing sector is one of the largest sectors globally. By 2025–26, this sector is projected to reach USD 535 billion.
• India’s booming pharmaceutical market is expected to reach USD 130 billion by 2030. India supplies roughly 40% of US generic demand and 25% of UK pharmaceutical demand. As a result, a temperature-controlled cold chain is required to maintain the quality of the pharmaceuticals.
• Government schemes such as National Horticulture Board (NHB) schemes, and Integrated Cold Chain and Value Addition Infrastructure, drive the Indian cold chain market growth.
• The escalating growth of the e-commerce sector further necessitates cold chain logistics to ensure on-time product delivery while maintaining quality. By 2030, India is anticipated to emerge as the third-largest consumer market globally, which, in turn, can potentially increase the opportunities for the e-commerce sector.

Key Offerings of the Report:

• The EMR report gives an overview of the Indian cold chain market for the periods (2019-2025) and (2026-2035).
• The report also offers the historical (2019-2025) and forecast (2026-2035) markets for the services, products, sectors, segments, and states of cold chain in India.
• The report analyses the market dynamics, covering the key demand and price indicators in the market, along with an assessment of the SWOT and Porter’s Five Forces models.

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