Mohamed Bushra

ECON 2301

Spring 2024

Current Event 1

The article I’ve chosen is titled “Surging Frozen Food Demand May Stress Critical Cold

Storage Supply Chains”. It was written by Andrea Miller and published to CNBC. This article

explores the significance of robust cold storage supply chain infrastructure for the expansion

and security of the $265 billion global frozen food business. It draws attention to the rising

demand from American consumers for frozen goods, with frozen food sales expected to surpass

$72 billion by 2022. Sales of frozen foods increased as a result of the COVID-19 epidemic

because people began to buy in bulk and valued the longer shelf life of frozen foods. In order to

meet the increasing demand for frozen foods, the article highlights the necessity of an effective

supply chain. Businesses such as Phononic and Lineage Logistics are developing creative ways to

reduce food loss and improve the cold storage procedure.

This piece emphasizes the relationship between supply and demand in the frozen food

market from an economic standpoint. A robust cold storage supply chain is required to

effectively service the growing demand for frozen goods. In order to ensure that the supply of

frozen food keeps up with the rising demand from consumers, the supply chain is essential. Any

interruptions in the supply chain may have an effect on the dynamics of the market, which

could change the price and quantity of frozen food items. This is consistent with the
fundamental economic theory of supply and demand, which states that an imbalance can result

in hazards and inefficiencies in the market.

I concur that the need of a robust cold storage supply chain for the frozen food sector is

emphasized in the essay. The information provided shows that sales of frozen food have

consistently increased, particularly during the pandemic, which lends credence to the idea that

customers are becoming more dependent on frozen goods. The article correctly notes that the

expansion and safety of the sector may be in danger in the absence of an effective supply chain.

The reference to businesses like Phononic and Lineage Logistics that are developing cutting-

edge solutions emphasizes how important it is to modify technology in order to enhance supply

chain management and lower food waste. All things considered, the paper offers a convincing

viewpoint on the difficulties and possibilities facing the frozen food industry.

The article highlights the significant growth in the frozen food market, with the U.S.

frozen food sales surpassing $72 billion in 2022. This trend was accelerated by the COVID-19

pandemic, as people preferred the longer shelf life of frozen goods and embraced bulk

purchasing. To maintain this increase, the article emphasizes the necessity of a robust cold

storage supply chain, noting that inadequate cold storage supply chains result in the loss of

about 13% of the world's food production. It is stated that disruptive businesses like Phononic

and Lineage Logistics are developing creative ways to reduce food loss and improve the

effectiveness of the cold storage procedure. The main point of the essay is how important a

healthy supply chain is to the growth of the frozen food industry.

 Works Cited

Miller, A. (2023, July 18). Surging Frozen Food Demand May Stress Critical Cold Storage Supply

Chains. Retrieved January 28, 2024, from https://www.cnbc.com/2023/07/18/frozen-food-

grocery-sales-vs-critical-cold-storage-supply-chains-.html