Inbound Logistics | December 2024

A Cold Treat

From ice cream to fresh produce to life-saving vaccines, the cold chain market is booming. Enter a wave of innovative solutions—smart packaging, cutting-edge telematics, and advanced freezing technologies—that are transforming the way temperature-sensitive goods journey from producers to doorsteps. By Karen Kroll

U ntil recently, few people other than supply chain and logistics professionals paid much attention to cold chain functions. That changed with the pandemic, which demonstrated the importance of robust cold chain solutions. Between 2024 and 2032, the global cold chain logistics market is projected to more than double, jumping from about $325 billion to $862 billion ( see chart, page 33 ). To meet the growing demand on the cold chain, companies are innovating with new packaging and storage materials, robust communication technology, and improved processes for freezing goods. These innovations will be essential, given the challenges ahead. For one, the average age of a cold chain facility is approximately 42 years. “There’s an aging infrastructure that’s currently in high demand,” says Kevin Coleman, CEO of CJ Logistics Americas. The shortcomings in some current cold chain solutions make them less than ideal. Poor cold chain infrastructure could be responsible for up to 638 million tons of food loss annually, according to a 2024 study from the Center for Sustainable Systems at the University of Michigan. The toll that some cold chain solutions impose on the environment is also attracting greater scrutiny. It’s estimated that around 15% of global fossil fuel energy is used in the refrigerated transport sector, finds a study by researchers at Italy’s Università di Salerno. DRIVING COLD CHAIN GROWTH Innovations in cold chain solutions will also be key to complying with regulations, such as the Food Safety Modernization Act. Its rule on food traceability means companies need to ensure their systems can provide the

traceability information required for foods covered by the act, says Sara Stickler, president and CEO with the Global Cold Chain Alliance and Global Cold Chain Foundation. Technologies that support data collection and the monitoring and recording of temperatures are

particularly relevant. The compliance date for the rule is January 20, 2026. Consumers have become accustomed to enjoying access to fresh produce year- round, with many items coming from around the world, says Pawan Joshi, executive vice president, products and strategy with E2open, which offers a connected supply chain software platform. Meeting this demand requires a reliance on the cold chain. Cold chain technology

ii UNICEF’s contribution to Immunization Supply Chain in the first 50 years of the Expanded Programme on Immunization Cold chain innovations allow UNICEF to safely store and transport vaccines in special carriers, even in remote and challenging environments.

is also key in healthcare. For example, UNICEF delivers more than two billion vaccine doses each year, says Thomas Sorensen, chief of immunization technology with the organization. Cold chain equipment plays a pivotal role in keeping vaccines cold and protected as they travel. From telematics to packaging to cold storage, companies are advancing cold chain solutions. Here’s a closer look at these innovations.

December 2024 • Inbound Logistics 29

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