Cold Chain Federation Unveils Vital Economic Contributions in 2024 Report at Cold Chain Live!

Date: 03 September 2024
Cold Chain Federation Unveils Vital Economic Contributions in 2024 Report at Cold Chain Live!
The Cold Chain Federation has unveiled its highly anticipated Cold Chain Report 2024 during Cold Chain Live! 2024 in Telford. This comprehensive report not only updates essential statistics on cold storage and temperature-controlled distribution but also includes a major study by Oxford Economics on the sector's critical role in driving the UK's economic activity.

The cold chain is indispensable for the safe storage and transportation of temperature-sensitive products, such as food, beverages, medicines, and horticultural products. The report examines three primary channels of impact: Direct, Indirect, and Induced.

Key Findings:

- £14 billion in economic value
- 184,000 jobs supported
- £3.7 billion in tax revenue generated

The sector’s geographically widespread nature supports economic activity across all UK regions, with significant job concentrations in the East Midlands (23,000 jobs), East of England (22,000 jobs), and North West (21,000 jobs).

Maritime Trade and Refrigerated Containers

A new aspect of the report highlights maritime trade and the use of refrigerated shipping containers (reefers). In the past year, 342,425 reefers were imported into UK ports, consistent with 2022 figures, with London Gateway handling 51% of all traffic. The sector did, however, experience a 9% decrease in exports.

State of the Cold Chain

Year-on-year comparisons reveal a 46% surge in energy costs from 2022 to 2023. Positively, over a quarter of cold stores now operate on renewable energy. Other key statistics include a 3% increase in cold stores operating blast freezers, a 4% rise in the use of CO2 as a primary refrigerant, and a 4% increase in diesel costs for Transport Refrigeration Units.

Beyond the Numbers

The cold chain supports:
  • UK manufacturing: Facilitating £53 billion in chilled and frozen food, beverage, and pharmaceutical sales in 2023.
  • International trade: Supporting £12 billion in UK exports and £32 billion in frozen and chilled goods imports.
  • Regional economies: Driving economic activity with significant job concentrations in various regions.

Impact on UK Manufacturing and Horticulture

Nearly half (49%) of all UK-produced food and beverages, valued at £50 billion, require chilling or freezing, underscoring the cold chain’s importance. Additionally, the cold chain supports the UK's horticultural sector, contributing to £1.7 billion worth of ornamental plant production in 2023.

Expert Insights

Prof Toby Peters, Professor of Cold Economy at the University of Birmingham, emphasized, "This Report helps shine a light on the criticality of supporting cold chain development and will help ensure the sector finally gets the recognition it deserves."

Deputy CEO of the Cold Chain Federation, Tom Southall, stated, "The Cold Chain Report 2024 unequivocally demonstrates the cold chain’s status as a cornerstone of the UK economy; from supporting millions of jobs to facilitating billions in trade, this sector is a vital engine of growth. We urge policymakers and industry leaders to recognise the cold chain’s immense potential and invest in its continued development."

Cold Chain Live! 2024 Highlights

Cold Chain Live! 2024 serves as the definitive conference for the UK’s temperature-controlled storage and distribution industry, gathering 500 food logistics professionals for two days of insight, discussion, and debate.

Conference Topics

Discussions at the conference featured:
  • The State of the UK Cold Chain in 2024
  • Embracing a Changing Workforce to Futureproof the Cold Chain
  • Sustainability
  • Resilience & Social Responsibility
The Cold Chain Report 2024 underscores the sector's critical contributions and calls for ongoing support and recognition to sustain its essential role in the UK economy.

Read the full report online.
Find out more on our website about: cold chain, CO2

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