The global sales of passive temperature-controlled packaging solutions is estimated to be worth USD 13,865 million in 2024 and anticipated to reach a value of USD 28,137 million by 2034. Sales are projected to rise at a CAGR of 7.3% over the forecast period between 2024 and 2034. The revenue generated by passive temperature-controlled packaging solutions in 2023 was USD 12,937 million. The industry is anticipated to exhibit a Y-o-Y growth of 7.2% in 2024.
Insulated shippers are predicted to account for 1/3rd of the total market share by the end of 2024. Insulated shippers that include various sizes of EPS (Expanded polystyrene), fiberboard, PUR (Polyurethane), and VIP (Vacuum insulated panel) satisfying various demands of the end-use industries such as products without a corrugate, economic and lightweight solutions for distribution of small sized temperature-sensitive products.
Global Passive Temperature-Controlled Packaging Solutions Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 12,937 million |
| Estimated Size, 2024 | USD 13,865 million |
| Projected Size, 2034 | USD 28,137 million |
| Value-based CAGR (2024 to 2034) | 7.3% |
Chilled passive temperature-controlled packaging solutions anticipated to reach USD 6,887 million by 2024 with a growth rate of 7.5% during the forecast period. Many chemical companies use cold storage for their temperature-sensitive chemicals for preservation and maintaining the quality of these chemicals.
The cold storage helps maintain the texture, taste, or appearance, maintaining the freshness of food thus boosting demand for passive temperature-controlled packaging solutions from the food industry for their perishable products.
The pharmaceutical industry is the second largest consumer after the food and beverage industry of these passive temperature-controlled packaging solutions accounting for 43.1% of the total market share by 2024.
The pharmaceutical industry produces various products such as vaccines, blood products, and gene therapy from the biologics segment are susceptible to temperature changes and are required to be stored and transported under controlled conditions environment fueling sales of the passive temperature-controlled packaging solutions.
Government incentive schemes boosting the existing infrastructure to create new opportunities for passive temperature-controlled packaging solutions with increased storage capacities of these solutions further increasing the exports. In addition to this strict rules and regulations particularly towards industries such as food, chemicals, pharmaceuticals and other allied sectors may pose challenges for the manufacturers.
For instance, one of the key regulations imposed by the FDA i.e. 21 CFR 203.32 prescribing regulations related to the drug sample storage and handling requirements.
The global passive temperature-controlled packaging solutions are poised to gain an incremental opportunity worth USD 15,201 million with a CAGR of 7.3% during the assessment.
The growing demand from the food and beverage industry for perishable products susceptible to temperature-prone conditions drives the market for passive temperature-controlled packaging solutions. Food and pharmaceutical products are shipped to longer distances driving the demand for solutions maintaining temperature for the long term. Further, the introduction of solutions compiled with ocean freight requirements to create opportunities for the market.
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The below table presents the expected CAGR for the global passive temperature-controlled packaging solutions market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 7.0%, followed by a slightly higher growth rate of 7.6% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1 | 7.0% (2023 to 2033) |
| H2 | 7.6% (2023 to 2033) |
| H1 | 7.1% (2024 to 2034) |
| H2 | 7.4% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 7.1% in the first half and slightly decrease to 7.4% in the second half. In the first half (H1) the market witnessed an increase of 10 BPS while in the second half (H2), the market witnessed a decrease of 20 BPS.
Growing Indian Pharmaceuticals Industry to Drive Passive Temperature-Controlled Packaging Solutions Market
The passive temperature-controlled packaging solutions market is driven by growing demand from the pharmaceutical industry. In order to maintain the product quality of vaccines and many other pharmaceutical products that fall under categories such as frozen, chilled, and ambient they require maintaining cold temperatures during transportation.
Invest India predicted that the pharmaceutical industry in India is expected to reach USD 65 billion by 2024 and will become a USD 130 billion market by the end of 2030. Further, it also states that India is the largest supplier of low-cost vaccines across the globe and also accounts for supplying 60% of the globally produced vaccines while being a leading supplier of DPT, BCG, and Measles vaccines.
Many manufacturers to meet the above growing demand offers products such as insulated containers and insulated shippers that comply with all the regulations required for the safe transport of pharmaceutical products. In addition to this innovation in design and customization offered in insulated containers and shippers creating ample space for the product while ensuring safety creating numerous opportunities for the passive temperature-controlled solutions market.
Innovation in Product Materials and Technologies to Drive the Market
Passive temperature-controlled packaging solutions offer a maintained temperature environment for various industries such as food, pharmaceuticals, healthcare, chemicals, and biotechnology. These industry products such as vaccines for pharmaceuticals require specific temperatures during transit.
Innovations and advancements in phase change materials (PCMs) and vacuum-insulated panels have created immense opportunities for manufacturers with increased thermal insulation of the solutions benefitting in maintaining cold temperatures for longer durations.
Further integration of these solutions with IoT technologies offers real-time data for temperature monitoring and data logging. For instance, Nordic’s temperature loggers or RIFD-based shipping labels allow its users to track products product from any location and to analyze its temperature via phone applications.
Further growing sustainable demands of consumers from food and pharmaceutical industries for preservation of their products. To meet these demands manufacturers are producing solutions based on biodegradable and recyclable materials. For instance, Insulated Products Corp (IPC), recently introduced its 100% paper-based insulated pouches serving applications with small-sized temperature-sensitive products.
High Cost of Insulated Containers to Pose Challenges
The high cost of passive temperature-controlled packaging solutions is a great concern for the food & beverages, Chemicals, and pharmaceutical industries for the transportation of their particular products that require a controlled temperature environment in order to preserve product quality during transportation.
Further, distributors of various end-use industries require their shipping equipment to comply with certain regulations as a good distributor practice. For instance, according to the ECA foundation, a pharmaceutical distributor in the EU must comply with the regulations imposed by the EU regulatory body which is (2013/C343/01) for the distribution of pharmaceutical products or solutions that require a maintained cold temperature environment for product quality preservations.
Government Initiatives for Cold Chain & its Robust Infrastructure
Invest India estimated that the Indian market for cold chains grew by USD 23,992 million by 2022 and is expected to grow at a CAGR of 12.3% during 2023 to 2028.
The cold chain infrastructure is becoming a necessity for agriculture and related sectors with regular outcomes of freshly produced fruits, and vegetables that are perishable and require a controlled temperature environment supply chains during transportation that also consist of sufficient storage boosting the quality and integrity of these products.
Enhanced infrastructure and technology in cold chains to reduce wastage and boost exports resulting in better income for farmers. The government of India in December 2022, launched a scheme promoting integrated cold chains and added value to its infrastructure benefitting both the horticulture and non-horticulture sectors by increasing the storage capacity of cold chains by 8.38 lakh MT to create opportunities for the passive temperature-controlled packaging solutions market in the long run.
Efficient Pallet Shippers to Fulfill Ultra Low Temperature Requirements
The pharmaceutical industry is expected to grow at a rapid pace with the rise in demand for medications and existing current cost advantages coupled with FDI initiatives. Various pharmaceutical products manufactured for the treatment of rare diseases often include high-value ingredients with relatively short shelf-life and carry strict temperature requirements such as temperature range between -40 to -150 degrees Celsius.
Thus, increasing usage of ultra-low temperature range pharmaceutical products is, in turn, expected to fuel the demand for temperature-controlled pharmaceutical packaging solutions that offer safe transportation of such ingredients.
Companies can significantly leverage this opportunity and develop packaging solutions catering to this product segment, and gain significant competitive advantage.
Pallet-sized shippers used for airfreight transportation are conventional heavy-duty metal boxes that are actively operated and poses significant transportation problems for long-duration multi-modal routes. However, in recent years, various companies have introduced passive pallet shippers, although some of them did not meet performance requirements, leading to catastrophic consequences. This, in turn, reduces manufacturer credence towards these solutions.
This segment presents a significant opportunity for major temperature-controlled packaging solution providers, to introduce efficient passive pallet-sized shippers as active counterparts are costly and do not suffice remote transportation requirements.
Principal Consultant
The global passive temperature-controlled packaging solutions industry recorded a CAGR of 8.2% during the historical period between 2019 and 2023. The growth of the passive temperature-controlled packaging solutions industry was positive as it reached a value of USD 12,937 million in 2023 from USD 9,439 million in 2019.
The passive temperature-controlled packaging solutions market experienced positive growth from 2019 to 2023 with the outburst of COVID-19. During the period there was high demand generated from the pharmaceutical industry for the transportation of COVID-19 vaccines, biologics and other personalized medicines boosting sales of insulated containers and insulated shippers that offer the maintained temperature environment required for the vaccines during transit.
Additionally, the growing online food service industry and e-commerce that depend on passive temperature-controlled packaging solutions for the delivery of certain products to preserve the quality of food and maintain freshness during transportation is poised to fuel the market growth.
Further, growing demand from consumers for eco-friendly and sustainable products pushes manufacturers to adopt alternative solutions for traditional plastic products, particularly in small-sized temperature-sensitive products.
Stringent rules and regulations imposed by various bodies of various countries for the distribution of temperature-sensitive products and solutions are boosting demand for passive temperature-controlled packaging solutions.
Further customizations and personalization in the design and development of insulated containers and insulated shippers with additional ample space for products ensuring safety creating opportunities in the market.
The growing investment by manufacturers in building innovative packaging materials in Phase change materials (PCMs) and technologies such as RFID-based labels offer benefits such as tracking the product from any location and analyzing the temperature through mobile applications. In addition to this many manufacturers such as Pelican Biothermal have adopted rental businesses for passive temperature-controlled packaging solutions for their clients.
Tier 1 companies comprise market leaders with a market revenue of above USD 80 million capturing significant market share of 10% to 15% in global market. High production capacity and a wide product portfolio characterize these market leaders. These market leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Sonoco Products Company, GEBHARDT Logistic Solutions GmbH, and ACH Foam Technologies, LLC.
Tier 2 companies include mid-size players with revenue of USD 20 to 80 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge.
These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Cold Chain Technologies Inc., Softbox Systems Ltd, va-Q-tec AG, and Snyder Industries Inc.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 20 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis for the passive temperature-controlled packaging solutions market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided.
The United States is anticipated to remain at the forefront in North America, with a value share of 7.7% through 2034. In Asia Pacific, China is projected to witness a CAGR of 9.6% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 6.9% |
| Brazil | 7.4% |
| Russia | 6.1% |
| Spain | 7.1% |
| France | 6.4% |
| China | 9.6% |
| India | 9.4% |
| Japan | 7.1% |
The United States passive temperature-controlled packaging solutions market is predicted to exhibit a CAGR of 7.7% between 2024 and 2034, reaching over USD 943 million by 2024. Currently, the region is poised to hold the highest share of the North American market, and the trend is expected to continue during the forecast period.
The USA biopharmaceutical market is driven by the growing investment in research and development of new therapies for treatment. The manufacturers in the USA market also benefitted from the production and distribution of COVID-19 vaccines. Pharma Foundation stated that the USA biopharmaceutical sector exceeded USD 800 billion in direct output in the year 2022.
The biopharmaceutical industry produces products such as vaccines, therapeutics proteins, blood and blood components, tissues and others. These products are generally temperature-sensitive products that require cold storage for storing and transportation driving the demand for passive temperature-controlled packaging solutions that offer a stable and maintained temperature during transit.
Further stringent regulations imposed by the USA Food & Drug Administration specifying temperatures for certain biologics (yellow fever vaccine expected 0 degrees Celsius or colder) boost demands for passive temperature-controlled packaging solutions that comply with the regulations.
USDA (United States Department of Agriculture) stated that the total sales of Japan's food service industry increased by 14.2% reaching USD 237 billion. This sector is largely contributed by rising tourism with a tourist count exceeding 10 million. The USDA also stated the dependency of Japan’s food industry on imported foods.
Japan imports the following food products confectionery products, dairy products, eggs & products, beef & beef products, wine and related products, beer and others. Many of these imported products such as dairy, and beer are temperature-sensitive products necessitating cold storage with longer duration for storing and transportation fueling demand for passive temperature-controlled packaging solutions offering precise temperatures for longer duration.
The market for passive temperature-controlled packaging solutions in Japan is predicted to gain an incremental opportunity worth USD 1,238 with a growth rate of 7.1% during the forecast period.
The section contains information about the leading segments in the industry. By product type, the insulated containers segment is estimated to grow at a CAGR of 6.9% throughout 2034. Additionally, the chilled segment by application is projected to gain 1/2nd of the total market share by 2024.
| Product Type | Insulated Containers |
|---|---|
| Value Share (2034) | 59.1% |
The insulated containers dominate the passive temperature-controlled packaging solutions predicted for accounting 61.3% overall market share by 2024.
The insulated storage containers consist of an additional insulation layer mainly of polyurethane foam or similar material in between the inner and outer walls of these shipping containers that offers thermal resistance in order to maintain a stable temperature in between the containers catering to varied end-users such as food & beverages, pharmaceuticals, chemicals, and others.
These industries drive continuous demand for passive temperature-controlled packaging solutions for their perishable products such as gourmet cheese, vaccines, craft beers and others.
| End Use | Food & Beverage |
|---|---|
| Value Share (2034) | 48.3% |
The food and beverage segment is forecasted to reach a market valuation of USD 7,065 million by 2024 gaining a 51% market share by 2024. Food and beverage-producing companies producing freshly produced food, seafood, meats and others require packaging that is crucial for preserving the integrity and quality of these products.
This growing need from the food and beverage industry, which relies on temperature-maintained packaging solutions to prevent spoilage and maintain the freshness of particularly high-value products like gourmet cheese, craft beverages, chocolates and others, drives the demand for passive temperature-controlled packaging solutions.
Key players operating in the passive temperature-controlled packaging solutions market are investing in the development of innovative sustainable solutions and also entering into partnerships. Key passive temperature-controlled packaging solutions providers have also been acquiring smaller players to grow their presence to further penetrate the passive temperature-controlled packaging solutions market across multiple regions.
Recent Industry Developments in Passive Temperature-Controlled Packaging Solutions Market
In terms of product type, the industry is divided into insulated shippers, insulated containers, and others. Further, insulated shippers are subdivided into envelops & panels, EPS, PUR, VIP, and others. Insulated containers are categorized as chest and upright.
In terms of application, the industry is segregated into frozen, chilled, and ambient.
The industry is classified by end-use industries as pharmaceuticals, food & beverages and others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, MEA, APEJ and Japan have been covered in the report.
The global passive temperature-controlled packaging solutions industry is projected to witness CAGR of 7.3% between 2024 and 2034.
The global passive temperature-controlled packaging solutions industry stood at USD 12,937 million in 2023.
The global passive temperature-controlled packaging solutions industry is anticipated to reach USD 28,137 million by 2034 end.
Asia pacific except Japan region is set to record the highest CAGR of 9.1% in the assessment period.
The key players operating in the global passive temperature-controlled packaging solutions industry include Sonoco Products Company, GEBHARDT Logistics Solutions GmbH, ACH Foam Technologies, LLC, Cold Chain Technologies Inc., Softbox Systems Ltd, va-Q-tec AG, and Snyder Industries Inc.
1. Executive Summary
2. Industry Introduction
2.1. Market Taxonomy
2.2. Market Definition
3. Market Trends and Success Factors
4. Market Background
4.1. Macro-economic and Industry Outlook
4.2. Market Dynamics
4.3. Value Chain Analysis
4.4. List of Key Market Participants (Manufacturers/Channel Partners)
4.5. Analysis of Key Industry Matrices
4.6. Industry Development Roadmap
5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034
5.1. Historical Market Volume Analysis
5.2. Future Market Volume Projections
6. Pricing Analysis
7. Global Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034
7.1. Historical Sales Analysis
7.2. Future Market Size and Growth Projections
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type
8.1. Insulated Shipper
8.1.1. Envelops & Panels
8.1.2. EPS
8.1.3. PUR
8.1.4. VIP
8.1.5. Others
8.2. Insulated Containers
8.2.1. Chest
8.2.2. Upright
8.3. Others
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application
9.1. Frozen
9.2. Chilled
9.3. Ambient
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use
10.1. Pharmaceuticals
10.2. Food & Beverage
10.3. Others
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
11.1. North America
11.2. Latin America
11.3. APEJ
11.4. Western Europe
11.5. Eastern Europe
11.6. Japan
11.7. Middle East & Africa (MEA)
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
14. APEJ Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
16. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
17. Japan Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments
18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country
19. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Key Countries
20. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. Sonoco Products Company
21.2. Cold Chain Technologies
21.3. Pelican Biothermal LLC
21.4. Snyder Industries, Inc.
21.5. Saeplast Americas Inc.
21.6. Cryopak Industries Inc.
21.7. Sofrigam SA Ltd.
21.8. Inmark Packaging LLC
21.9. Tower Cold Chain Solutions
21.10. va-Q-tec AG
21.11. Tempack Packaging Solutions, S.L.
21.12. EcoCool GmbH
21.13. Inno Cool India Private Limited
21.14. Softbox Systems Ltd
21.15. GEBHARDT Logistic Solutions GmbH
21.16. Aeris Dynamics
21.17. Topa Thermal Packaging
21.18. TPC Packaging Solutions
Packaging
August 2024
REP-GB-5073
173 pages
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Passive Temperature-Controlled Packaging Solutions Market
