Cold-Chain Warehouses: Opportunities for Foreign Companies
Market Size and Future Potential
The Indian cold-chain market was valued at approximately USD 15 billion in 2023 and is projected to grow at a CAGR of 14-16% over the next five years, reaching USD 30-35 billion by 2028. Growth is driven by increased urbanization, rising consumer demand for fresh produce, government initiatives, and expansion in food processing, pharmaceuticals, and e-commerce sectors. The demand for cold storage is further bolstered by India’s rising dairy and meat consumption, along with the expansion of Quick Commerce and online grocery platforms.
Cold-Chain Warehouses Sanctioned and Under Development
Over 8,000 cold storage facilities exist in India, with a total capacity of 37-40 million metric tons. The government has sanctioned more than 500 cold-chain projects, many under various public-private partnership (PPP) models. New cold-chain projects, particularly in states such as Uttar Pradesh, Maharashtra, and West Bengal, are under development with government backing.
Government Incentives and Subsidies
The Indian government has introduced several incentives to boost cold-chain infrastructure, including:
50% to 75% capital subsidy under MIDH for setting up cold storage and packhouses.
Financial assistance up to INR 10 crore (USD 1.2 million) per project under the PMKSY for integrated cold-chain development.
Infrastructure status for cold-chain logistics, enabling easier access to low-cost credit.
Tax incentives, including reduced GST (Goods and Services Tax) on cold storage services.
Support from the Agriculture Infrastructure Fund (AIF), offering interest subvention on loans.
Opportunities for Foreign Cold-Chain Equipment Manufacturers
India’s growing cold-chain market presents significant opportunities for foreign manufacturers of refrigeration and storage equipment. High-demand segments include:
Refrigeration Systems – Energy-efficient compressors, ammonia-based cooling systems, and CO2 refrigeration units.
Insulated Panels and Storage Racks – High-quality polyurethane foam (PUF) panels for warehouses.
Temperature Monitoring and IoT Solutions – Advanced temperature and humidity control sensors, real-time monitoring systems.
Refrigerated Transport Vehicles – Multi-temperature transport solutions for dairy, seafood, and pharmaceutical products.
Blast Freezers and Quick-Freezing Units – Required for high-value perishable exports such as shrimp and frozen fruits.
India’s cold-chain sector is undergoing rapid expansion, supported by government initiatives and growing private investments. With increasing demand for efficient cold storage solutions, foreign equipment manufacturers have substantial opportunities to enter the market. Those offering cost-effective, energy-efficient, and sustainable refrigeration solutions will find the most success in India’s evolving cold-chain landscape.
tags: Overseas Marketing, Marketing India, Market Research India, India Marketing Strategy