Saturday, May 30, 2026

China's Cold Chain Logistics Grows Steadily in Q1

Valyrian News Network 4 min read

China’s Cold Chain Logistics Grows Steadily in Q1

China’s cold chain logistics sector maintained steady growth in the first quarter of 2026, with total food cold chain demand reaching 0.867 billion tons — a year-on-year increase of 4.46% — according to data released on May 25 by the China Federation of Logistics & Purchasing (CFLP). The sector’s resilience reflects sustained consumer demand, government consumption-promotion policies, and continued investment in cold chain infrastructure.

Steady Growth in Demand and Revenue

The Q1 figures, reported by CCTV News, show that cold chain logistics service enterprises generated total revenue of 141.248 billion yuan (approximately $19.5 billion USD), up 3.76% year-on-year. The growth rate accelerated by 0.16 percentage points compared to the same period last year, signaling gathering momentum in the sector.

Qin Yuming (秦玉鸣), Secretary-General of the CFLP Cold Chain Logistics Professional Committee, attributed the performance to multiple converging factors. “The pulling effect of consumption on cold chain continues to be significant,” Qin said. “Combined with the national package of consumption-promotion policies and continued investment in cold chain infrastructure, these factors have jointly driven the sustained growth of the overall cold chain logistics sector.”

According to Beijing Daily, orders are increasingly concentrating among leading enterprises, with major players growing 2 to 5 percentage points faster than the industry average. These firms have managed cost pressures from rising fuel prices and declining freight rates through centralized fuel procurement, route optimization, oil-price-linked contracts, and the transition to new energy vehicles.

Smart Cold Storage and Automation Investments

Investment in cold storage infrastructure continues to rise, with a notable shift toward smart and automated facilities. In Nanchong, Sichuan province, the region’s first smart cold chain logistics processing center recently began operations, representing a total investment of approximately 1.25 billion yuan. The facility deploys over 500 IoT sensors to enable full supply chain visualization, control, and early warning management.

Cheng Wei (程维), Warehouse Manager at Sichuan Tianfu Shuleng Economic Industry Co., Ltd., described the facility’s automated temperature control system: “When the warehouse temperature rises above -18°C, our system will automatically trigger a restart on the smart platform to cool down. When it reaches -22°C, it automatically shuts off.”

In another innovation milestone, Shenzhen Port Logistics Group deployed China’s first “hot-cold shuttle” unmanned forklifts in its cold storage facilities. These forklifts operate seamlessly between -25°C freezers and ambient-temperature loading bays, addressing the challenges of extreme temperature differentials. The technology has improved warehouse efficiency by approximately 40%, reducing per-pallet retrieval time from 5 minutes to 3 minutes using LiDAR and digital twin technologies.

New Energy Refrigerated Truck Sales Surge

A major highlight of the Q1 data is the rapid adoption of new energy refrigerated trucks. National refrigerated truck sales reached 14,074 units in Q1, up 27.98% year-on-year. Within this, new energy refrigerated truck sales surged to 4,945 units — a 66.55% increase — achieving a penetration rate of 35.14%, up 8.14 percentage points from the previous year.

Qin Yuming noted that the operational cost advantages of new energy cold chain vehicles, combined with the state’s continuous improvement of charging infrastructure, have made them the main force of urban distribution. “The continued increase in new energy refrigerated truck penetration is due to the overall operational cost advantages of new energy cold chain vehicles,” he said, adding that this trend also provides strong support for the industry’s green transformation.

Industry operators confirmed the benefits. He Jiyong (贺继勇), Warehouse Manager at Zhejiang Mingxingpei Supply Chain Co., Ltd., noted that “new energy vehicles cool faster and maintain more stable temperatures.” A meat processing enterprise that invested over 10 million yuan to purchase 50 new energy refrigerated trucks in April reported a roughly 30% reduction in cold chain logistics costs.

Broader Implications and Outlook

The steady growth in cold chain logistics signals resilient consumer demand in China despite broader economic headwinds. The sector serves as a bellwether for China’s consumption-driven economic model, with growth reflecting recovery in food service, fresh food e-commerce, and retail sectors.

The focus on smart cold storage and automation aligns with China’s broader push for industrial digitalization, while the rapid adoption of new energy vehicles in logistics supports the national “Dual Carbon” strategy. As Chinabuses.com reported, China’s cold chain logistics demand exceeded 3.9 billion tons in 2025, with new energy refrigerated truck penetration reaching 63% for the full year — suggesting significant room for further growth in the current 35% penetration rate.

Looking ahead, the sector faces questions about whether the growth trajectory can be sustained through Q2 and H2 2026 amid potential economic headwinds, and how smaller enterprises will cope with cost pressures that leading firms have so far managed to absorb. However, with continued government support for cold chain infrastructure and green logistics, the industry appears well-positioned for steady expansion.