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E Insight | How to incoming both opportunities and challenges of cold chain logistics industry?

May 15,2023

Summary

E Insight is a new column set up by Enotek Group after E Class and E Craftsman. With the vision of "Based on enterprise, looking forward to the industry", we hope to share with you the latest industry trends, development trends and policy interpretation.

E Insight is a new column set up by Enotek Group after E Class and E Craftsman. With the vision of "Based on enterprise, looking forward to the industry", we hope to share with you the latest industry trends, development trends and policy interpretation.

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Cold chain logistics refers to the adoption of professional transportation, storage and distribution methods for temperature-sensitive products such as fresh, refrigerated and frozen, so as to ensure the control of temperature and humidity in the whole supply chain and ensure the quality and safety of products. With the rapid development of fresh e-commerce and express industry, cold chain logistics has gradually become an important field in the logistics industry, but also the attention of the government and consumers.

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Global cold chain logistics market demand: According to a report by Mordor Intelligence, a market research company, the global cold chain logistics market scale is about 285 billion US dollars in 2020, and is expected to reach 428 billion US dollars in 2026, with a compound annual growth rate of 7.1%. Globally, cold chain logistics market demand mainly comes from the rapidly growing food and beverage industry, as well as the pharmaceutical and biological products industry.

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China's cold chain logistics market demand: China's cold chain logistics market is also developing rapidly. According to the data of China Business Industry Research Institute, in 2021, China's cold chain logistics market scale reached 477.3 billion yuan, with a year-on-year growth of 15.01%, and it is expected that the cold chain logistics market scale will reach 648.6 billion yuan in 2023. Among them, the food and beverage industry, pharmaceutical and biological products industry is the main demand side of cold chain logistics.

 

In addition, with the development of Internet and logistics technology, a large number of data analysis, artificial intelligence, Internet of Things and other technologies have also been widely used in the field of cold chain logistics. The application of these technologies has further improved the operational efficiency and reliability of cold chain logistics. In the future, with the continuous innovation and application of technology, cold chain logistics will be more intelligent, refined, standardized and green.

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At the policy level, governments have introduced relevant regulations and standards to ensure the safety and quality of cold chain logistics. For example, the European Union promulgated a new food safety regulation in 2017, which clearly defines the standards and processes in the cold chain logistics transportation process to ensure the safety and quality of food. The US Food and Drug Administration (FDA) has also issued strict food safety regulations, requiring manufacturers and logistics enterprises to carry out effective cold chain management and control of food. In addition, some countries and regions have introduced relevant subsidy policies to support enterprises to invest in cold chain logistics.

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At the same time, the Chinese government has also introduced a series of policies and standards to support and regulate the development of cold chain logistics. For example, in March 2022, the National Development and Reform Commission officially issued the "14th Five-Year Plan" for the Development of cold chain logistics, in which the short and medium term development goals of the cold chain logistics industry are clearly defined: By 2025, a cold chain logistics network connecting producing areas and selling places, covering urban and rural areas, and connecting China and the rest of the world will be formed, and a cold chain logistics system that conforms to China's national conditions and industrial structure and meets the needs of economic and social development will be basically completed. The ability and efficiency of regulating cross-season supply and demand of agricultural products and supporting cross-regional circulation of cold chain products will be significantly improved. Its role in supporting and guaranteeing national economic and social development has been significantly enhanced.

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By 2035, China will fully complete the construction of a modern cold-chain logistics system, reach world advanced levels in facility network, technology and equipment, and service quality, and basically modernize its capacity for industry supervision and governance. This will give strong support to the development of a modernized economic system and effectively meet the people's growing needs for a better life.

In addition, local governments in 31 provinces and municipalities have also introduced relevant supporting policies to encourage enterprises to invest in cold chain logistics.

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High technical threshold: technical threshold is one of the main thresholds of cold chain logistics industry. Cold chain logistics involves technologies including temperature control technology, refrigeration equipment technology, transportation technology, tracking technology, etc., which requires enterprises to have high technology research and development capacity and production and manufacturing capacity, in order to develop high-quality cold chain logistics equipment.

High investment in equipment and technology: the cold chain logistics industry has high requirements for equipment and technology, which requires a large amount of investment, including transportation equipment, insulation boxes, temperature control equipment, sensors, etc., and the capital recovery cycle is long, which requires enterprises to have enough financial strength to support.

High quality supervision pressure: The quality of goods involved in cold chain logistics is very important, especially in the fields of fresh food and medicine, and quality problems may lead to serious consequences. Therefore, industry supervision and quality control are very important, which also puts forward higher requirements for the operation and management of industry enterprises.

In the future, with people's higher and higher requirements for food and medicine safety, the development of intelligent cold chain logistics industry will be more and more rapid, and the market demand will be more and more huge. For logistics enterprises, opportunities and challenges coexist, and they need to constantly improve in technology, capital, experience and other aspects, and constantly open up new markets, in order to maintain a leading position and achieve sustainable development.