Supermarket ‘mainstreaming’ to drive cold chain growth

By Justine Irish D. Tabile, Reporter

THE cold chain industry is expected to grow by at least 8% each year over the next five years with frozen or chilled food becoming more mainstream and shedding its luxury image, the Cold Chain Association of the Philippines (CCAP) said.

CCAP estimated a growth range of 8-10% annually, making it among the fastest-growing segments within the logistics and food supply ecosystem.

“As consumers become more aware of food safety and quality, chilled and frozen products are no longer viewed as premium or niche — they are becoming mainstream,” President Anthony S. Dizon said in a statement over the weekend.

“This shift is pushing demand for cold chain capacity across storage, processing, and especially transportation,” he added.

In particular, the shift from traditional wet markets to supermarkets and retail outlets offering chilled and frozen products is expected to reshape demand for cold storage facilities and refrigerated transport.

CCAP said post-harvest food losses remain significant in the Philippines, especially in regions with limited access to cold chain infrastructure.

“Improving refrigerated transport is widely seen as one of the most effective ways to preserve product quality, stabilize prices, and extend market reach for farmers and food producers,” CCAP said.

However, the association sees last-mile and regional refrigerated delivery as a key bottleneck as food distribution expands into provincial and inter-island routes.

“This challenge is compounded by the Philippines’ tropical climate and relatively high electricity costs, which place a premium on energy-efficient cooling solutions,” it said.

For this reason, Mr. Dizon said that the next phase of cold chain growth will demand higher operating efficiency and reliability.

“The industry has embraced state-of-the-art technologies because sustainability of investment is critical,” he said. “Operators are looking for solutions that reduce spoilage, manage energy costs, and perform consistently across longer and more complex delivery routes.”