Source: Supply Chain Dive
Date: 15th December 2025

R&D investment accelerates as packaging providers seek safer, more sustainable alternatives to dry ice.

The cold-chain packaging sector is undergoing a period of adjustment as global dry ice supply struggles to keep pace with rising demand. Production constraints linked to carbon dioxide availability have created persistent shortages, with no immediate resolution expected, and concerns are growing about tighter supply conditions in 2026. As a result, packaging manufacturers are accelerating research and development efforts to reduce reliance on dry ice and introduce alternative temperature-controlled solutions.

Dry ice has long been a cornerstone of temperature-sensitive logistics due to its extreme cooling capability, long duration, and ability to sublimate without creating liquid residue. Its cost efficiency has made it particularly attractive for frozen shipments. However, as availability tightens and prices rise, alternative solutions that were once considered cost-prohibitive are becoming more commercially viable.

Although dry ice remains cheaper than many substitutes, the widening cost gap is narrowing. Single-use alternatives such as salt-based cooling media and advanced phase-change materials carry significantly higher unit costs but offer advantages in terms of supply stability, safety, and regulatory compliance. This shift is forcing packaging buyers to reassess total landed cost, not just packaging unit price.

The supply imbalance is already affecting industries heavily dependent on cold-chain integrity, particularly those serving time-sensitive or direct-to-consumer channels. Packaging providers are responding by diversifying temperature profiles, developing reusable systems, and improving performance predictability across refrigerated and frozen ranges.

The situation also highlights an important segmentation within cold-chain logistics. While dry ice is primarily used for deep-frozen shipments, recent growth in pharmaceutical distribution, especially temperature-controlled but non-frozen products, is accelerating the adoption of alternative cooling technologies. This trend is expected to continue as sustainability and safety considerations become more central to cold-chain strategy.

Shippers may face increased complexity in cold-chain planning as dry ice availability becomes less predictable. This is likely to drive greater adoption of alternative packaging systems, requiring earlier coordination with packaging suppliers and logistics partners to ensure temperature compliance.

Importers could experience higher packaging and handling costs in the short term, particularly for frozen or ultra-low-temperature goods. However, diversified cooling solutions may improve supply reliability and reduce disruption risk over time.

Exporters, especially in pharmaceutical, biotech, and frozen food sectors, may gain a competitive advantage by adopting innovative, non–dry ice solutions that support regulatory compliance and sustainability goals. Early investment in alternative cold-chain packaging could help secure capacity and protect service levels as supply constraints persist.