Global Temperature Controlled Packaging Market - 2022-2029

Market Overview

The global temperature controlled packaging market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 10.02% within the forecast period (2022-2029).

Temperature controlled packaging is essential for different shipping kinds of goods, from perishable foods to pharmaceutical drugs and it's particularly significant in situations where temperature-controlled warehousing and shipping are not available. However, making effective temperature-controlled packaging can challenge manufacturers, mainly small businesses.

Temperature controlled packaging is a completely optimized solution with simple packing, volume efficiency, reduced inventory needs and lower distribution costs to protect valuable, critical goods such as diagnostics/clinical trials, perishable goods, pharmaceuticals, tissue, frozen foods, vaccines and blood supplies around the world.

Market Dynamics

Increasing demand for transportation of pharmaceutical medicines, vaccines, drugs and clinical trial distribution products, tissue, donor organs and blood transfers around the globe.

Increasing demand for transportation of pharmaceutical medicines, vaccines, drugs and clinical trial distribution products, tissue, donor organs and blood transfers around the globe

The increasing need and demand for the transportation of medicines, drugs, clinical trial distribution products, tissue, vaccines, donor organs and blood transfers around the globe drive the temperature-controlled packaging market. Additionally, rising pharmaceutical spending globally due to the increasing prevalence of infectious and chronic ailments boosts the temperature-controlled packaging market.

For instance, according to the International Air Transport Organization (IATA), the air cargo share of global pharmacy transport decreased from 17 percent in 2000 to 11 percent in 2013. And in comparison with ocean shipping, In 2018, about 0.5 million tonnes of pharmaceutical goods were flown, whereas approximately 3.5 million tonnes were shipped by ocean.

One of the main reasons for the preference for ocean transportation is the issue of temperature excursions because air freight has far more temperature excursions than road or ocean freight. If time is not a significant factor, ocean freight is the safer alternative for temperature-sensitive pharmaceuticals in cold chain logistics. The growing need for the pharmaceutical industry's cold chain and temperature-controlled facilities is helping the market grow.

Other than that, in terms of value, cold chain logistics are estimated to have over 26 percent of the pharmaceutical industry in 2019. That share has also increased exponentially during the COVID-19 situation. That share is expected to increase because there is increasing demand and needs for temperature-controlled products with the emergence of many advanced therapies derived from human cells.

Lack of appropriate infrastructure and environmental conditions are restraining the market

The products that are temperature sensitive may be subjected to a decrease in quality during the transportation process, so utmost care is needed, which also depends on the degree of infrastructure availability and the surrounding environment.

For instance, the cold chain system is assumed to be at high risk, mainly in tropical countries where a power supply is unpredictable and facilities for its maintenance are not well developed compared to developed countries which may hinder market expansion.

In tropical areas, it is common to see 30 to 50 percent of refrigerators and freezers being out of order. In developed countries also, the problem is critical. For example, in U.S., there is a lack of refrigerator temperatures that fall within the satisfactory range, which is 63 percent below the minimum.

Some of the general weakness of Cold chain management that also hinders the growth of temperature-controlled packaging that are frequently observed throughout transportation and storage are delays during transportation, quality of refrigerators, a method of storage, too long storage at the health facilities, inappropriate use of refrigerators, power disruption, equipment breakage and deficiency of human resources proficient in managing the cold chain.

Due to the lack of appropriate infrastructure and environmental constraints, the cold chain remains a highly susceptible point for national immunization and drug distribution programs in developing countries, mainly those with tropical climates.

For instance, in Ethiopia, there is a real difficulty in vaccines losing their effectiveness during cold storage at these centers.

COVID-19 Impact Analysis

The spread of COVID-19 has had a positive impact on the global temperature controlled packaging market, with demand surging from the medical and food industries

The Healthcare industry has evolved as the largest gainer from COVID-19 through increased sales of drugs, medical consumables and equipment for diagnostics and treatment of the disease. The sales of several drugs, including antivirals such as Remdesivir and Favipiravir, have witnessed an unprecedented spike owing to their efficacy in treating COVID-19 patients. It has led to production surges, shipment and distribution activities of these drugs globally, increasing the demand for temperature-controlled packaging services

The market has also turned positive with the increased cost of shipping and freight services, leading to high sales revenue and profit margins for cold-chain providers

Also, the pandemic highlighted the need for effective healthcare systems in countries worldwide, thereby augmenting the market growth over the forecast period. Governments and healthcare organizations are likely to increase spending on developing adequate healthcare infrastructure, including medicine production, storage and distribution networks; this will drive investments in the temperature-controlled packaging market and will propel the market growth

The penetration of temperature-controlled packaging will likely reach new avenues in the food and beverage industry post-pandemic owing to increasing awareness of food safety and quality. The market is likely to witness robust growth from supermarkets and hypermarkets, storage warehouses and export solutions, particularly in categories such as dairy, meat and seafood

Segment Analysis

The global temperature controlled packaging market is segmented by type, product, application, end-user and region.

Passive temperature controlled packaging systems are cost-effective and are widely preferred for shipments with a low-risk profile

Based on product, the global temperature controlled packaging market is segmented into active and passive systems. The passive system holds a major share in temperature controlled packaging market. Passive temperature controlled packaging systems look like conventional outer packaging for the products; however, they internally consist of insulation materials and thermal media, which act in concert to resist changes in product temperature driven by adverse external temperatures.

These systems require the packaging of products in controlled conditions and the system can be packed and sealed before dispatch. Once sealed, passive systems require no further temperature-specific handling until they reach their destination. Passive temperature controlled packaging systems is widely preferred for shipments with a low-risk profile. These are cost-effective packaging solutions as compared to active systems.

These systems hold a major market share in 2019, with around 64% of the global temperature-controlled packaging market and are expected to dominate during the forecast period owing to lower cost and continuous product developments.

Geographical Analysis

The well-established pharmaceutical production industry resulted in significant demand for temperature controlled packaging services in countries like India and China

Led by the food industry, the regional market is likely to witness robust growth in other key industries, including healthcare, chemicals and renewable energy sources.

China, Japan and India are the dominating markets, accounting for 70% of the regional sales revenue in 2019. The food and beverages industry accounted for 70% of the total revenue in 2019. Fresh fruits and meat products became the largest food categories under temperature-controlled shipment services. Wine and dairy

China and India are the largest agricultural countries and major producers of fruits and vegetables globally. The large population and seasonal production in these countries led to a strong cold-chain network

Also, China is one of the leading exporters of fresh and frozen vegetables, leading to temperature-controlled airfreight services. The active pharmaceutical ingredients (API) business is another major contributor to the market growth in the country

Passive solutions, providing controlled temperature using dry ice and gel packs, are considered the preferred choice of cold-chain services in these countries owing to their low cost and adequate reliability in the food industry. The well-established pharmaceutical production industry resulted in significant demand for temperature controlled packaging services in India. The country evolved as the world's largest provider of generic drugs, accounting for nearly 20% of the export volume.

Also, India has been producing over 50% of the global demand for several vaccines. These drugs and vaccines are highly temperature-sensitive and must be shipped in controlled environments, thus driving the need for temperature controlled packaging.

ompetitive Landscape

The global temperature controlled packaging market is highly competitive with local and global key players. The key players contributing to the market's growth are FedEx Corporation, AmerisourceBergen Corp, Cold Chain Technologies, Inc, va-Q-tec, Cryopak A TCP Company, IGH Holdings, Inc, Deutsche Post AG, Sofrigram, Atlas Molded Products, Pelican BioThermal, LLC, Sonoco Products Company, United Parcel Service of America, Inc., Intelsius, Softbox among others.

The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the temperature controlled packaging market.

• In March 2021, Pelican BioThermal expanded its dry ice shipper options with parcel sizes ranging from 1.1 to 179 liters and temperature ranges of minus 65 to 20 degrees Celsius to support exponential growth in cell and gene therapy shipments worldwide.
• In April 2020, Pelican BioThermal expanded its partnership with new distributors: BioThermal SA in South Africa, Popular International in Pakistan, Uni Pharma in Taiwan and Netherlands-based Vonk B.V.

Sofrigam

Overview: Sofrigam is an international group comprising companies to meet cold chain management needs throughout the pharmaceutical supply chain. Sofrigam group is segmented into 4 business divisions: Coldway Technologies, ColdShop, Ater Metrology and Sofrigam. Sofrigam develops and designs cold chain management solutions, including containers, packaging, bags and pouches for pharmaceutical, biotechnological and chemical companies. Sofigram provides temperature-controlled packaging solutions to Pharmaceutical, chemical and biotechnology companies. The company has protected over 1000 million vaccines from pioneering in cold chain technology.

Product Portfolio: Patient Bags: Last Mile Insulated Pouch - Healthcare professionals design the product for caregivers, pharmacists and patients to transport temperature-sensitive medications on short trips. The product is reusable for 50 trips and the kit cooling kit maintains the drug temperature between +2C and +8 °C for 1 hour.

Clinical Trial Bags - The product is designed to keep the drug between 2 and 8°C for 17 to 23 hours to ensure optimal conditions for successfully testing the drug.

Vaccine Bags - The product was designed in cooperation with leading pharmaceutical companies for transporting and maintaining vaccines between 2 to 8°C for up to 12 hours, serving in extreme conditions during vaccination campaigns

Key Development

• On February 18, 2021, Sofrigam and Logmore formed a strategic partnership to innovate smart temperature-controlled packaging for vaccination campaigns.

Why Purchase the Report?

• Visualize the global temperature controlled packaging market segmentation by type, product, application, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the temperature controlled packaging market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global temperature controlled packaging market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global temperature controlled packaging market report would provide approximately 69 market data tables,70 figures and 214 pages.

Target Audience 2022

• Service Providers/ Buyers
• Residential
• Research Laboratory
• Restaurant Business
• Energy & Utilities Companies
• Distributors