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Cold storage & refrigeration market: A structured overview
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Monday, 15 December, 2025, 12 : 00 PM [IST]
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Venkatesh Ganapathy
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The Indian cold chain market is on a trajectory of explosive growth, with multiple reports confirming a robust upward trend. The market, valued between Rs 2.29 lakh crore (Rs 2,287.5 billion) and $5,423.1 million in 2024, is projected to reach between Rs 3.79 lakh crore by 2028 and $18,258.3 million (approximately ?6,061.7 crore) by 2030-2033. This represents a compound annual growth rate (CAGR) ranging from 10.86% to 22.7%, solidifying India's position as the fastest-growing cold chain market in the Asia-Pacific region.
This expansion is fuelled by a powerful convergence of factors. On the demand side, rising consumer appetite for perishable goods—including fruits, vegetables, dairy, meat, and frozen foods—is a key driver, further accelerated by the rapid expansion of organised retail, e-commerce, and quick-commerce grocery delivery. Simultaneously, the pharmaceutical sector's growing need for temperature-sensitive products like vaccines and biologics is creating sustained demand. Government initiatives, such as the Pradhan Mantri Kisan Sampada Yojana and the Agriculture Export Policy, provide crucial top-down support through subsidies and infrastructure development incentives.
The industry is undergoing a fundamental shift in its operational model. There is a clear move away from large, centralised warehouses towards a decentralised network of smaller, tech-enabled facilities located closer to urban consumption centres. This strategic pivot is essential for enabling faster last-mile and same-day deliveries. Accompanying this structural change is a wave of technological adoption, including automation, IoT for real-time monitoring, and AI for improved logistics efficiency. A focus on sustainability is also evident, with a shift towards eco-friendly refrigerants like Ammonia and the exploration of energy-efficient solutions like solar-powered cold storage.
The market is segmented, with cold chain storage currently dominating over transportation, and the private sector leading investment. The food and beverage sector remains the largest, but the pharmaceutical sector is a high-growth area. A significant opportunity exists in reducing the substantial post-harvest losses in the fruits and vegetables sector, where spoilage rates can reach 30%. Addressing this wastage is not only an economic necessity but also vital for national food security and farmer prosperity. Other key opportunities involve tapping into overlooked rural markets and serving the growing export potential for Indian agricultural and pharmaceutical products.
Despite the optimistic outlook, the industry must navigate significant challenges. These include high capital and operational costs, inadequate and unreliable power infrastructure, especially in rural areas, and a historically fragmented supply chain. However, the convergence of strong policy support, booming demand, technological modernisation, and the critical need to reduce waste positions the cold storage industry for a fundamental transformation. It is increasingly seen as a critical component of India's modern economic infrastructure, vital for future growth and development.
India's cold chain infrastructure is a vital component of its agricultural and economic framework, essential for preserving perishable produce like fruits, vegetables, dairy, and meat through a temperature-controlled supply chain. With the agriculture sector contributing 18.3% to the GDP and employing nearly half the population, the efficiency of this cold chain is directly linked to national food security and farmer prosperity. The market is experiencing rapid growth, projected to expand from Rs 1,81,490 crore in 2022 to Rs 3,79,870 crore by 2028, at a CAGR of 12.3%. Enhancing this infrastructure is critical to achieving the dual objectives of drastically reducing post-harvest losses—which are a major challenge—and creating a surplus for exports, thereby boosting farmer incomes and contributing to the Sustainable Development Goal of zero hunger.
Recognising this imperative, the Government of India has launched a multi-pronged strategy, deploying several key schemes to build and modernise the cold chain network. The cornerstone of this effort is the Pradhan Mantri Kisan Sampada Yojana (PMKSY), which has been extended with significant funding. Its most relevant component is the Integrated Cold Chain and Value Addition Infrastructure scheme, designed to create seamless, "farm-gate to consumer" infrastructure. This scheme provides financial assistance for a wide range of facilities, including pre-cooling units, multi-temperature cold storage, and refrigerated transport. As of late 2022, it had already created 8.38 lakh MT of new cold storage capacity through hundreds of approved projects. Other components of PMKSY, such as Operation Greens (focusing on tomatoes, onions, and potatoes) and initiatives for agro-processing clusters, further strengthen the value chain for specific commodities.
The government's approach is notably sector-specific and collaborative. The Mission for Integrated Development of Horticulture (MIDH) provides assistance for cold storage construction focused on horticultural produce. Similarly, the Pradhan Mantri Matsya Sampada Yojana targets critical gaps in the fisheries value chain with a major emphasis on cold chain infrastructure, having already contributed to a significant rise in fish production. To ensure adequate funding, the government has leveraged financial institutions. The Reserve Bank of India has classified cold storage development as a Priority Sector Lending activity, while NABARD manages both a special fund for affordable credit and has conducted crucial studies identifying a national requirement for an additional 3.5 million MT of cold storage capacity.
The importance of cold chain infrastructure in India cannot be overstated. As the population continues to grow, ensuring food security necessitates not just increasing production but, more critically, eliminating the massive wastage in the supply chain. The government has adopted a comprehensive, multi-sectoral approach, offering financial incentives to a wide range of stakeholders—from private companies and cooperatives to Farmer-Producer Organisations (FPOs)—to build a modern cold chain network. This strategic focus is poised to drive the sector's growth, creating employment, enhancing exports, and securing the nation's food supply for the future.
Cold storage constitutes a specialised category of refrigeration engineered specifically for the preservation of perishable commodities. Utilising integrated refrigeration units and advanced insulation, these facilities sustain a predetermined low-temperature environment, effectively decelerating the biological and microbial processes that lead to spoilage. This technology is indispensable across industries for maintaining the integrity, safety, and extended viability of temperature-sensitive products, including foodstuffs and critical medical supplies.
India’s cold storage and refrigeration market is influenced by sustainability, innovation, and advanced technology. India’s need for temperature-controlled logistics has seen a pronounced increase. The integration of automation, energy-efficient designs, and data intelligence can enable the establishment of a future-ready cold chain ecosystem. The capacity growth must be driven by a strategic approach, innovative technology, and a commitment to product integrity. The expansion must be demand-led. Upgrading legacy facilities with automation, high-performance insulation, and efficient refrigeration is crucial to maximise capacity.
(The author is associated with ICFAI Business School
as a faculty member)
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