Frozen Food Demand Soars, Straining Cold Storage Supply Chains
The demand for frozen food has experienced a significant surge, putting immense pressure on the critical cold storage supply chains. Without robust infrastructure in place, the rapid growth and safety of the global frozen food market, valued at a staggering $265 billion, could be at risk.
According to the report, almost every American household purchases frozen food at least once a year. In 2022, frozen food sales in the United States alone exceeded $72 billion, as reported by the American Frozen Food Institute. This upward trend is expected to continue, with Alison Bodor, CEO of the American Frozen Food Institute, confirming the sustained growth of the market.
The COVID-19 pandemic played a pivotal role in driving frozen food sales even higher, reaching over $65 billion during the lockdowns in 2020. Consumers learned the value of bulk buying, and frozen food emerged as a top choice due to its long shelf life.
Maintaining the quality and safety of frozen food requires a sophisticated supply chain. Perishable items must be kept at the appropriate temperature throughout a complex network of refrigerated trucks and cold storage facilities. Unfortunately, poor cold storage supply chains contribute to a significant loss of food worldwide, estimated at around 13% annually, according to a study conducted by Columbia University's Climate School.
Recognizing the need for innovation, companies like Phononic and Lineage Logistics are disrupting the cold storage industry. Phononic, a solid-state cooling company, aims to minimize food waste by offering temperature-sensitive refrigerator totes that improve the efficiency of shipping to e-grocers and grocery stores.
Meanwhile, Lineage Logistics focuses on optimizing the food supply chain by ensuring safe temperatures throughout the entirety of the cold chain. With over 430 locations across 20 countries, Lineage Logistics operates a global network of temperature-controlled cold storage facilities and employs specialized warehouse racks designed for maximum efficiency, including blast freezing millions of pounds of products daily.
As the demand for frozen food continues to soar, it is crucial to enhance and strengthen cold storage supply chains. Investing in modernization and resilience will play a vital role in meeting consumer demands, reducing food waste, and maintaining the integrity of the frozen food market in the future.
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