Changes and Response Strategies in the Global Cold Chain Food Trade After the COVID-19 Pandemic

I. Major Changes in the Cold Chain Food Trade After the Pandemic

1. Structural Adjustments in Market Demand
   ✅ Rising Demand for Healthy and Safe Food:

Consumers are more concerned about food safety, driving demand for organic, traceable, and high-protein frozen foods.

Sales of pre-prepared meals and quick-frozen prepared foods (such as frozen pizzas and ready meals) have surged (global market growth of 12% annually).

✅ Strengthening Regional Procurement Trend:

Supply chain disruptions during the pandemic have prompted companies to reduce their reliance on a single source and shift to “nearshoring” (e.g., Europe imports more fruits and vegetables from North Africa rather than Asia).

China and Southeast Asia have become key nodes in the global cold chain food supply chain (e.g., Thai durian exports to China have increased by 35%).

2. Innovation in Supply Chain Models
   ⚠️ Rising Logistics Costs:

Ocean refrigerated container freight rates have increased by 200% compared to pre-pandemic levels, leading to a shortage of cold chain air freight capacity.

Some companies have switched to the China-Europe Railway Express, a dedicated cold chain service (which reduces transportation time by 50% compared to ocean freight).

✅ Accelerated digital transformation:

Blockchain traceability (e.g., Walmart requires full traceability for some fresh produce).

Smart temperature control: IoT sensors monitor temperature and humidity in real time, reducing waste by 15%.

3. Tighter policies and regulations
   🌍 Strengthened import inspections:

China implements a “circuit breaker mechanism” for imported cold chain foods (imports are suspended if a positive test is detected).

The EU strengthens COVID-19 testing for cold chain foods (new regulations in 2023 require nucleic acid sampling for some products).

📉 Increased trade barriers:

The US FDA tightens its review of seafood and dairy imports.

Japan raises pesticide residue standards, impacting Chinese vegetable exports.

II. Core response strategies for businesses

1. Diversified supply chain
   Establish a multi-regional sourcing network: For example, sourcing frozen shrimp from Vietnam and South America simultaneously to reduce the risk of supply disruptions.

Investing in overseas warehouses: Establishing cold storage facilities in target markets (e.g., Europe and the US) to shorten delivery times.

2. Enhance cold chain logistics resilience

Optimize multimodal transport: Combine ocean, rail, and road transport (e.g., Russian seafood entering China via the China-Europe Express).

Partner with third-party cold chain platforms: Such as Maersk Cold Chain and SF Express International Cold Chain to provide end-to-end temperature control services.

3. Strengthen food safety and compliance

Obtain international certifications: HACCP, BRCGS, ISO 22000, etc. to enhance market access.

Digital traceability system: Use blockchain to record data from the entire production, transportation, and testing process.

4. Develop high-value-added products

Processed foods: For example, frozen seasoned shrimp (with a 30% premium over raw shrimp).

Functional health foods: High-protein frozen meals and low-GI instant foods cater to emerging consumer trends.

5. Address green trade barriers

Sustainable packaging: Use biodegradable materials (e.g., mushroom mycelium insulated boxes).

Carbon footprint management: Optimize transportation routes and adopt low-carbon refrigeration technologies (e.g., liquid nitrogen freezing).

III. Future Trends and Recommendations

1. Long-Term Trends
   🔹 Regional supply chains gaining greater importance: RCEP and the African Continental Free Trade Area (AfCFTA) are driving intraregional cold chain trade.
   🔹 Technology-driven efficiency improvements: AI-powered demand forecasting and the expansion of autonomous refrigerated trucks are being used.
   🔹 Policy risks becoming more commonplace: Companies need to continuously monitor changes in inspection and quarantine policies across countries.
2. Recommended Actions for Companies
   1️⃣ Short-Term:

Sign long-term agreements with logistics providers to secure cold chain capacity.

Pre-test export products for COVID-19 (e.g., China’s requirements for Russian frozen fish).

2️⃣ Medium-Term:

Deploy processing plants or partner with contract manufacturers in potential markets (e.g., Southeast Asia and the Middle East).

Introduce intelligent warehousing systems (e.g., AGV robots sorting frozen goods).

3️⃣ Long-Term:

Invest in emerging sectors such as cell-cultured meat and plant-based frozen foods.

Participate in the development of international standards (such as ISO cold chain logistics standards) to enhance your voice.

Conclusion
In the post-pandemic era, global cold chain food trade will exhibit three key characteristics: increased security, regionalization, and digitalization. Companies must proactively adapt to these changes through supply chain optimization, technological innovation, and compliance management to gain an advantage in this increasingly competitive market. It is expected that by 2025, smart cold chains and sustainable packaging will become industry standards, and those who take early steps will gain a larger market share.