North America & Europe Cold Chain Packaging Materials Market, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: North America & Europe Cold Chain Packaging Materials Market


The North America and Europe cold chain packaging materials market size was estimated at USD 13.1 billion in 2018 and is expected to register a CAGR of 7.1% over the forecast period. Growing demand for temperature-controlled transportation of food products and pharmaceuticals such as specialty drugs, blood, and tissue in the defense sector in North America and Europe regions is expected to boost the market growth over the forecast period.
The consumption of cold chain packaging materials in North America and Europe is witnessing growth on account of the rising demand for premium quality food products and advanced temperature-sensitive pharmaceuticals. In addition, the introduction of new regulations and guidelines, particularly in Europe, has created the need for efficient cold chain packaging materials, thereby driving the market in North America and Europe.

Rising environmental concerns related to increasing packing waste are driving the demand for recyclable materials while ensuring efficient and safe delivery of products. However, organizations in the U.S. are involved in international trade practices and consume a high amount of synthetic materials owing to their superior insulation ability.

Technology has increasingly become an important component of packing solutions and assists in manufacturing smarter, cost-effective, and performance-optimized materials. Emerging trends in recycling technology to obtain higher value from recyclate and maximizing the use of recycled waste in packaging are expected to propel the demand for cold chain packaging materials in North America and Europe.

Wood fiber, pulpwood, old corrugated containers, textiles, polystyrene, and other chemicals such as caustic soda and starch are the raw materials required in cold chain industry. The choice of thermal insulation material plays a crucial role as the design, cost, R-value, availability, and end usehave major impact on the performance of the overall cold chain system.

Government regulations, trade policies, changing market conditions, subsidies, tax benefits, and other measures offer small-scale and local manufacturers a competitive edge and are encouraging new entrants to invest in the markets in North America and Europe. However, major players in the market position themselves through product and process innovation.
Source Insights

Cold chain packaging solutions such as recyclable non-woven textiles, jute, paper, and cardboard are obtained from natural sources that are eco-friendly and recyclable with a low carbon footprint. The market for natural packaging materials in Europe and North America is expected to grow at a CAGR of 7.3% over the forecast period owing to rising demand from the packaging of fruits & vegetables, food products, and meal-kits including prepared foods and desserts.

Increased environmental and social awareness and pollution caused due to packaging materials, severe regulations pertaining to pollutants, and increasing burden on landfills are driving the demand for natural packaging materials. Recyclability of these products is the major driving factor expected to aid market growth over the forecast period.
Synthetic materials such as expanded polystyrene, polyurethane, gel packs, nonwoven plastics, bubble wraps, and styrofoam are manufactured by permanent chemical reactions and cannot be broken down for recycling or involved in complex recycling processes. However, high-performance efficiency of these materials is driving the demand for packing of temperature-sensitive products.

Synthetic packaging solutions are expensive in comparison to natural materials owing to the high manufacturing and recycling costs associated with them. However, these materials have high insulation value that enables efficient transportation, prevention of food products, and pharmaceuticals from spoiling and ensure safe and sustainable delivery of products.

Product Insights of North America & Europe Cold Chain Packaging Materials Market

Nonwoven textiles exhibit high tear resistance and are easy to recycle and compost. These textiles are light weight and offer energy-efficient production, distribution, and storage. Rising demand for innovative products and green alternatives to non-biodegradable packaging solutions are expected to drive the market growth of recyclable nonwoven textiles.

Jute is an eco-friendly, recyclable insulation packaging resource, and is a superior alternative to unsustainable, non-renewable, and heavily polluting products in cold chain packaging materials market. Major players in application industries in Europe and North America including meal kit service provider, Plated, have adopted recycled jute sacks over plastic liners to offer eco-friendly packaging solutions to their consumers, which, in turn, is expected to drive the demand for cold chain packaging materials.

Cardboard segment accounted for 31.1% of the market revenue share in 2018 and is expected to witness growth owing to its rising demand in the e-commerce industry. Cardboard is a multi-functional packaging resource and can be used in primary, secondary, and tertiary packaging. The material is manufactured from renewable and recyclable resources such as wood fibers, which is available in several grades & weights and is relatively inexpensive.
Expanded Polystyrene (EPS) is a widely utilized cold chain packaging solution for food, pharmaceuticals, and meat & seafood products. The cost-effective and lightweight EPS offers high durability and lowers microbiological growth in food products, which, in turn, is likely to propel market growth in North America and Europe on account of increasing online food delivery business.

Application Insights of North America & Europe Cold Chain Packaging Materials Market

Fresh foods such as fruits, vegetables, poultry, meat, and dairy products require an efficient cold chain system owing to their perishable nature. The expansion of retail food chains by multinationals, rise in e-commerce for fresh food & grocery sales, and increasing number of prepared food delivery channels and companies are driving the demand for cold chain packaging materials across both the regions.

Temperature control box liners, corrugated outer box, eco-friendly waterproof poly film, and insulation using wool and cotton recycled textile fibers are majorly used in cold chain packaging of personal care products. Manufacturers of cosmetic products use these supplies to maintain the integrity of expensive products throughout the supply chain. These factors are expected to drive the market demand in the personal care industry in North America and Europe.

Flowers, candy, desserts segment is expected to grow at a CAGR of 8.0% from 2019 to 2025 owing to the rising imports of fresh-cut flowers in the U.S. from several countries across the regions. North America and Europe are the major consumers of these products and a wide variety of papers, recycled nonwoven textiles, and cardboard boxes are used in their cold chain packaging, which is likely to drive market growth.

Meat & seafood segment accounted for 33.8% of the revenue share in 2018 owing to the rising demand for fresh, frozen, and processed fishery products in both Europe and North America regions. These products are highly perishable and require cold chain packaging for distribution. Specially treated, tasteless, and odorless paper, which resists meat juices, fat, and grease, is used to ensure odorless delivery.

Regional Insights of North America & Europe Cold Chain Packaging Materials Market

North America accounted for 54.3% share in 2018 owing to the high penetration of the products in meat & seafood industry. North America is the major producer and consumer of cold chain packaging solutions on account of the increasing demand for the materials in flowers, candies, desserts and pharmaceuticals applications.

Mexico cold chain packaging materials market is likely to ascend at a CAGR of 9.5% over the forecast period. It is expected to account for a significant share over the forecast period on account of increasing trade of perishable food products and health supplies in the country. Mexico's proximity to the U.S. makes it a key market for the export growth, thereby driving the demand.

The industry in Europe is expected to register a growth rate of 7.4% from 2019 to 2025 owing to the growth of processed food and pharmaceutical industries. In addition, rising demand for cold chain systems in grocery and defense sectors in Europe is expected to have a positive impact on the market growth over the forecast period.
Rising consumption of meat and seafood products in France is anticipated to propel the demand for cold chain packing materials in food delivery services in European region over the forecast period. Increasing consumer demand for better tasting food with fresh ingredients is likely to have a positive impact on the demand for cold chain packing materials with superior characteristics.

North America and Europe Cold Chain Packaging Materials Market Share Insights

The market for cold chain packaging materials in North America and Europe is characterized by the presence of manufacturers and service providers catering to the global markets. Major players in the market compete on the basis of manufacturing efficiency, affordability, and the use of eco-friendly cold chain packaging solutions that are biodegradable, reusable, compostable or easily recyclable.

Major factors influencing the competitive market position of companies in North America and Europe include product quality, cost, price, and services offered. In addition, widespread network of product distribution through agents, resellers, and distributors or direct distribution to the end users aids major players to capture a more significant share of North America and Europe cold chain packaging materials market geographically.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of North America & Europe Cold Chain Packaging Materials Market Research Report

This report forecasts revenue growth at the regional and country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the North America and Europe cold chain packaging materials market report on the basis of source, product, application, and region:

Source Outlook (Revenue; USD Million, 2019 - 2030)

  
Natural
  
Synthetic

Product Outlook (Revenue; USD Million, 2019 - 2030)

  
Recycled non-woven textile
  
Jute
  
Paper
  
Cardboard
  
Expanded Polystyrene (EPS)
  
Polyurethane
  
Others

Application Outlook (Revenue; USD Million, 2019 - 2030)

  
Meal-kits
  
Pharmaceutical
  
Personal care
  
Flowers, Candies, Desserts
  
Meat & Seafood
  
Others