Cold Chain: how the market will evolve in the coming years
Just like many other sectors, the cold chain industry has been affected by Covid-19. However, the pandemic has had a mostly positive influence, leading that sector out of a phase of moderate growth (April 2020 to April 2021), into a period of more solid growth in the fourth quarter of last year, with the arrival of the vaccines.
Experts predict that this trend will continue until at least 2026, with estimated compound annual growth rates (CAGR) of 11.6%. This unusual and rather bleak situation shows how the Coronavirus still plays a major role in both health issues and the economy.
Cold chain monitoring: obstacles and problems
Although Covid-19 has brought a very positive outlook for the cold chain, it has also led to several difficulties which must be faced at a practical level. These include, for example, vaccine storage, which must be carried out in accordance with stringent regulations mainly regarding temperature.
Considering that from production to use, a vaccine must always be subject to strict controls, depending on the substance in question, the correct cold chain can only be provided via the use of suitable instruments which are able to monitor each phase of the process accurately.
The creation of a secure storage route involves significant costs, linked to the installation of systems required to monitor it. The deployment of sensors and the operation of the entire network are not the only factors requiring investment; technologies used to ensure that huge quantities of medicines can be transported over long distances also present a considerable financial burden.
Many small and medium businesses involved in the transport and storage of vaccines are unable to adopt systems for monitoring the cold chain in real time because the expense is so great that firms would not be able to recoup it. This is a determining factor which forms a very large barrier to expansion in the cold chain market.
Challenges and solutions to improve the cold chain
In just a few years, cold chain companies wishing to stay in business will be obliged to convert to a system with adequate monitoring facilities. Considering that the high costs of transition, as mentioned above, which are in some cases unsustainable, many companies will be forced to use other tactics such as automation in order to achieve their objective.
One solution could be to use warehouse space more effectively via the introduction of robotised equipment to be used for moving of stock and in loading and unloading procedures. This would favour an optimal use of stockholding areas, a reduction in wear and tear and increased reliability, resulting in significant decreases in expenditure.
Another benefit linked to automation involves the possibility of limiting losses due to the deterioration of goods. By introducing strategies such as stock rotation, checks on goods in transit, transport and position process management, warehouses can guarantee the distribution of fresh products, while giving precedence to those nearing their sell-by date.
As well as contributing to significantly reducing company spending (in the middle term), the simple steps mentioned above would also incentivise businesses to reinvest in adequate technologies to improve the entire cold chain monitoring process.
On the subject of technological evolution, it is interesting to observe how several types of sensor have been developed, some of which are designed to meet the needs of companies with reduced purchasing power. As a result, experts predict that investment in that area will be consistent and increasingly frequent.
Translated by Joanne Beckwith
