The global cold chain market has seen unprecedented growth in recent years, driven by surging demand for temperature-sensitive products such as vaccines, biologics, fresh produce, and frozen food. According to market reports, the global cold chain market is projected to reach US$628 billion by 2027, growing at a compound annual growth rate (CAGR) of 18 percent. India, as a significant player in both pharmaceutical manufacturing and agricultural exports, is poised to witness a substantial share of this market.

Kalyan Sivalenka, Founder & Managing Director & CEO of Springforth Capital Advisors, explained: “India is at the cusp of a cold chain revolution. With the rapid growth of sectors like pharmaceuticals, e-commerce, and food processing, the demand for robust cold chain infrastructure is unprecedented.”

Yashpal Sharma, Managing Director of Skyways Group, highlighted the specific investment avenues available within the cold chain sector: “Infrastructure investment in cold storage facilities is only one part of the equation. Equally important is the development of efficient last-mile delivery solutions, which ensure that products maintain their integrity up to the point of delivery,” Sharma remarked.

Challenges in the sector

While the outlook for cold chain logistics is bright, the sector faces several hurdles, especially in emerging markets like India, including high operational costs, inadequate infrastructure, and a fragmented market. “To fully realise the potential of cold chain logistics, regulatory alignment across regions is essential. Consistent policies related to taxation, transportation, and energy use need to be in place,” Sharma added.

Sustainability is another critical issue, as cold chain operations are energy-intensive, and with growing concerns about carbon footprints, there is increasing pressure on the industry to adopt greener practices. “Investing in sustainable cold chain solutions not only aligns with global environmental goals but also offers long-term cost savings,” Sharma commented.

Role of innovation

One of the key themes that emerged during the session was the role of technology in optimising cold chain operations. Both Sivalenka and Sharma stressed the importance of leveraging cutting-edge technologies to enhance operational efficiency and reduce costs.

IoT-enabled (Internet of Things) sensors can provide real-time data on temperature, humidity, and other critical parameters, allowing stakeholders to make informed decisions quickly. AI (Artificial Intelligence), on the other hand, can predict potential disruptions in the supply chain, enabling proactive solutions to prevent product spoilage.

“AI and big data analytics are revolutionising the way cold chain logistics operate,” Sivalenka noted. “Predictive analytics can help in better route planning, minimising delays, and optimising the utilisation of cold storage spaces. These technologies are no longer optional; they are a necessity to stay competitive.”