Reefer Container Market Expected to Reach $19.8 Billion by 2032

According to a new report published by Allied Market Research, titled, “Reefer Container Market," The reefer container market was valued at $9.7 billion in 2022, and is estimated to reach $19.8 billion by 2032, growing at a CAGR of 7.5% from 2023 to 2032.

A reefer container, also known as a refrigerated container, is a type of shipping container used to transport temperature-sensitive items such as food, pharmaceuticals, and chemicals. It enables the safe transportation of temperature sensitive goods when the goods are transported to a great distance. This is possible, as the containers are outfitted with sophisticated cooling and heating systems to keep the proper temperature range constant throughout the travel which allows the goods to be transported in secure and desirable condition. Reefer containers also allow accurate temperature control, which is critical for maintaining the quality and freshness of perishable commodities. Furthermore, these containers provide airtight and safe storage, shielding the cargo from outside elements and any contamination.

The containers are used in various industry for instance in food & beverage. In food & beverage the fish and seafood sector are genuinely global. Its popularity has grown even more globally, with customers opting for a pescatarian diet for health reasons. Therefore, preparing for an increase in demand is critical. However, fragmented participants in the handling and selling of fish and seafood reduce efficiencies across the supply chain. Weather disrupts consignments at sea 4-5 times each year, causing additional unforeseen delays. The delays may result in the decay of the fish and sea food, but with the help of reefer containers such situations can be avoided and the integrity of the food is secured. Many companies rely on reefer containers to transport their fresh seafood products from their processing facilities to international markets. By utilizing reefer containers, they can maintain the required temperature and humidity levels, ensuring that the seafood arrives at its destination with its quality and taste preserved.

For instance, many Asian countries import and export seafood such as China, India, and Indonesia. Countries globally use reefer containers for the export and import of seafood and other food and beverage items. The containers are available in various sizes to transport a variety of seafood items such as fish, shellfish, and crustaceans. These containers provide the temperature-controlled environment required to keep the seafood fresh and avoid rotting throughout the travel. The most used reefer container has size either 20 feet in length or 40 feet in length. But the containers are available in size more than 40 feet in length, size less than 20 feet in length, and 30 feet in length. 

Another company American seafood is a seafood corporation which specializes in the processing and harvesting of seafood. The company process seafood such as crabs, fish, shrimp, crustaceans. The company is predominantly active in the North Pacific Ocean, their operations are global in scope, with a focus on selling high-quality seafood products to consumers worldwide. It uses reefer containers to carry their perishable fish items throughout their operations. During long-distance exports, these containers are critical for maintaining the proper temperature and keeping the freshness of the seafood. American Seafoods exports their Alaskan king crab to markets in Asia. In Asian market the company sells king crabs, after the king crabs are caught and processed, they are carefully packed into reefer containers. These containers are equipped with advanced cooling systems that maintain the necessary low temperatures to keep the crabs fresh and maintain their quality during transit.

Similarly, pharmaceutical businesses also employ reefer containers. Pharmaceutical manufacturers must adhere to high regulatory standards for the health of the public. The Food and Drug Administration and other regulatory organizations establish tight rules for the handling, packaging, and shipping of pharmaceutical chemicals and products, including the containers used to carry these goods. The most essential and obvious advantage of refrigerated pharmaceutical shipping containers is their ability to maintain the proper temperature throughout the pharmaceutical transportation cycle. A temperature difference of two degrees can be enough to destroy the entire batch, resulting in losses of hundreds or thousands of dollars for smaller orders and millions for bigger ones. This problem is compounded when moving medications between places with wide temperature swings.

Pharmaceutical reefer units are offered to control the temperature of pharmaceutical products and allow the shipper to monitor it throughout the journey. These containers are outfitted with sensors that can detect minor temperature differences and even tell whether the products have been exposed to light.

The reefer containers are essential for the any industry that are transporting the perishable or temperature sensitive goods. The containers help to maintain the integrity of any product and helps to monitor the product and the temperature during the transportation. It also helps to maintain the growing demand for any temperature sensitive product either it is food or healthcare product.

Growing demand for fresh and frozen food and expansion of international trade supplement the growth of the reefer container market. However, high capital investment and operational complexities are expected to hamper the growth of the market. In addition, advancement in cold chain technologies and integration of other technology are expected to create ample opportunities for the key players operating in the market.

Russia-Ukraine War Impact Analysis:

Russia-Ukraine war has a negative impact on the logistics sector as well as the shipping industry including reefer container, as there is rise in the prices of the container and the war has created insurance related issues for the any suppliers and buyers in the market. Sanctions imposed by the U.S and the European Union constitute a huge compliance burden for shipping businesses and insurers. Many Western firms have deliberately ceased dealing with Russia, resulting in a complicated and ambiguous legal environment for contracts, including insurance. A long lasting battle is likely to have far-reaching economic and political ramifications, potentially changing global energy and commodity commerce. The International Monetary Fund (IMF) has warned that the war will raise already high shipping costs and may keep them higher—and their inflationary effects for a longer period.

KEY FINDINGS OF THE STUDY

• By size, the 20-40 feet segment dominated the reefer container market in 2022, in terms of revenue.
• Based on industry, the food & beverage segment is anticipated to exhibit a remarkable growth during the forecast period.
• By region, Asia-Pacific is anticipated to exhibit a remarkable growth during the forecast period.

The leading players operating in the reefer container market are Daikin Industries, Ltd., China International Marine Containers (Group) Co., Ltd., Ocean Network Express Pte. Ltd., Hapag-Lloyd AG, MSC Mediterranean Shipping Company S.A., SeaCube Containers LLC, Singamas Container Holdings Ltd., ZIM Integrated Shipping Services Ltd., CMA CGM Group, A.P. Moller – Maersk.