Major Market Drivers
The bulk of India’s cold storage consists of single commodities like potatoes and grains, with less than 10% of agricultural produce passing through a cold chain. Though some CCI components exist, an integrated system still needs to be added for most value chains. Most FFV losses occur between the farmgate and post-harvest handling (the first mile). But there is a 99% gap in required CCI (i.e. packhouses) at this first mile, weakening post-harvest management. This CCI gap persists in the dairy sector (~80%) and fish (70%) value chains.
Growth in the Processed Food Sector
- India’s food processing sector is one of the largest in the world and its output is expected to reach US$ 535 billion by 2025-26.
- By 2030, Indian annual household consumption is expected to triple, making India the fifth-largest consumer in the world.
Growth in Organized Food Retail
Demand for a number of other temperature sensitive commodities and food/ fruits that require cold chain storage and transportation.
Shift Towards Fruits and Vegetables
- Due to increasing risks and investments in grain crops, farmers are moving towards cultivation of fruits and vegetables.
- Concentrating especially on Import of High Value (Economic & Nutritional ) Fruits/ Crops require refrigeration.
Food Outsourcing
- Need for movement of food safely & swiftly throughout the world with increase in population.
- Consumers expect “off season” perishables to be readily available all year round, fruits & vegetables form the foremost category.