AgTech represents the application of technology – especially software and hardware technology – to the field (pun intended) of farming. AgTech is an industry that encompasses diverse solutions to almost every step in the food production process.

a major business chance

According to Technavio, the global food and beverage cold chain logistics market is forecasted to grow at a CAGR of nearly 7 percent from 2018 to 2022, with the consumption of refrigerated foods such as dairy products and frozen foods helping to drive that growth.

In fact, the global frozen food market was valued at over $262 billion during 2017 (Nielsen estimates annual U.S. sales of frozen food at $53 billion) and is expected to increase more than 26 percent, thanks to a consumer desire for convenience.

“Generally, consumers perceive frozen food as an alternative to fresh and home-cooked food as well as canned food. The convenience that ready-to-eat meals provide consumers has been encouraging the consumption of frozen food. This is primarily because of hectic lifestyles, in addition to other factors. Rapid urbanization is also driving the growth of the market,” says a senior analyst for research on logistics at Technavio.

While demand for frozen foods, as well as fresh produce, is creating a plethora of opportunities for the food logistics sector, it has also created challenges. Thus, it will be essential that the industry support that expansion with continued cold chain innovation.