COVID-19 caught the world off-guard and quickly changed the world almost overnight. The pandemic has impacted nearly every industry worldwide, and the refrigerated transport market is no exception.

How exactly has COVID-19 impacted the demand for refrigerated transport? Keep reading below to find out how this unpredicted pandemic might forever change the refrigerated transport market.

A Booming Refrigerated Transport Market

Globally, the refrigerated transport market was valued at 15.5 billion USD in 2019. This market value takes into account not only refrigerated trucks but climate-controlled containers on ships and rail too.

Before the pandemic, the industry as a whole was growing rapidly. It was estimated that by 2025, the market would surpass 20 billionUSD.

The steady growth was likely due to the emerging markets of Asia and shifting consumer preferences. A steady increase in seafood and fish accounts for much of the growth of refrigerated transport worldwide.

Market researchers also believe that the fast-paced modern lifestyle also contributes to the explosion in demand. People are consuming ready-to-eat frozen meals more than ever, and an increase in free trade is expanding the options consumers have.

On top of that, global warming is believed to be causing a greater need for cold transportation as temperatures continue to rise.

COVID-19 Initial Impact

Everything was looking up for the refrigerated transport market until COVID-19 brought the world to a screeching halt. The food supply chain was disrupted in the chaos of border closures worldwide.

The confusion escalated into disaster as perishable goods weren’t able to reach their destination, and much of the goods went to waste. Food processing during the height of the lockdown was slow due to labor shortages and quarantine measures.

That led to a dramatic decrease in food transport, as many countries saw at least a 20% decrease in truck traffic. To compound the problem, most restaurants shut their doors for the foreseeable future.

However, that didn’t mean that cold transport was down and out because consumer demand shifted quickly. Instead of eating out, many people were forced to consume food at home.

In France and Germany, consumers were purchasing, on average, over 50% more frozen foods. Citizens worldwide began to stock up on frozen foods, and that trend doesn’t seem to be slowing down.

Unexpected Future

Luckily, it seems like the refrigerated transport market is bouncing back into good shape. Its resilience is most likely due to being a crucial part of the food supply chain.

However, there is an entirely different dimension to cold transport that many haven’t considered, and that’s the pharmaceutical industry.

This unprecedented situation offers unusual opportunities, and it appears that the cold transport market could see a massive demand for pharmaceutical transportation.

As we speak, there are dozens of COVID-19 vaccine candidates, and eventually, the successful candidate will need to be distributed. Vaccines are temperature-sensitive and must be transported in a climate-controlled manner.

It’s estimated that 60 to 70% of all people will need to be immunized to defeat COVID-19 successfully. That means the refrigerated transport system will be critical in the months ahead and beyond.

COVID-19 only slowed the demand for refrigerated transport temporarily. Shifting consumer demand to frozen foods and vaccine distribution due to the pandemic makes the market poised for explosive growth.

COVID-19 Effects On Refrigerated Transport Demand was last modified: by