The need to reduce food waste around the world is driving innovation in food and beverage cold chain logistics.
According to Technavio senior industry analyst Sharan Raj M, most of the food wastage around the world is attributed to the lack of adequate cold chain solutions.
“In developing countries more than 20% of the food wasted is due to the lack of cold storage facilities,” he said. Globally, over 25% of the food produced is wasted annually. With the global population increasing and demanding more food, reducing food wastage is essential.
“There is a need for better food and beverage cold chain logistics across the world,” said Raj M. The sector, however, has some very real challenges. “There is an extremely high cost involved in building and operating cold chains, while seasonal demand for refrigerated products often leads to capacity-related issues,” he said.
Seasonality in turn impacted on infrastructure investment.
“Certain products are only in demand at certain times. During the harvest months demand for logistics and its related infrastructure is high; however, during the rest of the year, the inflow is low, leading to underutilised warehouse space until the next harvest season.”
INSERT
20%
The percentage of food wasted in developing countries due to lack of cold storage.
