How Is The Cold Chain Market Positioned In South Korea?
South Korea is Asia’s fourth-largest economy has the potential to offer significant growth opportunities in the South Korea Cold Chain Industry. The cold chain business in the country has been significantly growing owing to the growth of international trade of perishable foods, technological advancements in refrigerated storage & transport, government support for infrastructure development of the cold chain industry and increasing need for medicines owing to the aging population of South Korea. Over the last few years, the seafood and pharmaceutical industry in the country has seen a significant boom and has necessitated the development of cold chain facilities in the country. The revenue of the industry has grown from USD ~ Billion in 2013 to USD ~Billion in the year 2018 with a CAGR of ~%.
The growth of the industry can be attributed to factors such as the rise of third party logistics, the emergence of new players, and shift from an owned warehouse to leased warehouses along with growth in end-user industries and increasing infrastructure investment by the government. Other factors such as an increase in the number of modern grocery retail stores and a rise in consumer retail spending have also augmented the growth of the market over the period 2013-2018.
Cold chain facilities in the country are becoming increasingly sophisticated along with the provision of advanced IT solutions for warehouse and transportation management. To ensure optimal utilization, companies have started using automation technologies and focus on on-demand warehousing.
South Korea Cold Chain Market Segmentation
By Type of Market
In 2018, the cold storage market and cold transport market contributed an equal amount of revenue in the cold chain industry owing to the rising consumption of refrigerated products such as meat, seafood, dairy among others in the country which require cold transport facilities in order to be transported to the storage warehouses and then finally, the end-users have contributed to the growth of the industry. Moreover, the increase in retail spending in the country along with the increase in imports of temperature-sensitive products such as meat and related products, tropical fruits, and others, has augmented the growth of the industry over the review period.
By End-User Application
The increased consumption of meat and seafood in-country propelled the growth of the cold chain market in South Korea as these frozen foods need to be stored and transported in temperature-sensitive environments. The segment accounted for the largest contribution of ~% in the overall revenue of the cold chain market in 2018 followed by pharmaceuticals and fruits and vegetables contributing an equal revenue share of ~%. The remaining share was contributed by dairy products, bakery, and confectionery and other products such as processed foods and ready-to-eat meals which are usually imported into the country.
By Ownership
In 2018, Third-Party Logistics (3PL) cold chain facilities were evaluated to be USD ~ Billion in 2018 and accounted for the majority share of ~% in the revenue of the cold chain industry. The 3PL operators have the expertise and offer a wide range of integrated services to the clients. A large number of cold chain operators are resorting to renting or leasing out facilities from Third Party Logistic Cold Chain providers due to the increasing costs of establishing and maintaining their own warehouses and fleet. On the other hand, the owned cold chain segment acquired a share of ~% in 2018.
South Korea Cold Storage Market Segmentation
By Temperature Range
The chilled storage segment was observed to be the leading segment and contributed the maximum share to the revenue of the cold storage industry due to the huge demand for meat and seafood, pharmaceuticals and other processed foods in the country. The remaining revenue was contributed by ambient and frozen storages.
By Region
The northern region comprising of cities such as Seoul and Incheon has a network of well-developed and connected highways and is one of the most populated states of the country. Owing to this, the northern region of South Korea has accounted for ~% share in the cold storage market, generating revenue of USD ~ Billion in 2018. The central region contributed the second-highest share which was followed by the Southern region including cities such as Busan and more due to the proximity to the sea and the presence of well-developed port infrastructure.
South Korea Cold Transport Market Segmentation
By Mode of Transport
Land transport was analyzed to be the dominating mode of transport due to excellent road infrastructure and connectivity in the country. Sea has been the most popular model for handling export and import of various food products and chemicals and contributed a revenue share of ~% in cold transport market followed by air transportation which handles imports of vaccines and expensive seafood in the country.
By Mode of Land Transport
Among the land transport facilities available in the country, the 40 footer reefers are the most commonly used ones because the cold transport business except the last mile delivery is usually done in bulk and the capacity of the truck in metric tons is much higher as compared to other reefers. The remaining share was captured by 20 Footer Reefers and others including 4 wheelers, 6 wheelers, and 8 wheelers
By Location
The larger revenue share of ~% in the cold transportation market of South Korea has been garnered by domestic cold transport. South Korea is an import oriented country import bulk of temperature-sensitive items such as fruits and vegetables, pharmaceutical items and others are then distributed through cold transport within the country. On the other hand, international cold transport has captured a lower revenues share of ~% in the cold transport market of South Korea in 2018
By Vicinity
Due to the well-connected transport infrastructure in the country, it takes less than 6 hours to travel from any one region to the other which has augmented the growth in inter-city business resulting in a higher share of domestic revenue in South Korea cold transport market.
Key Segments Covered:-
By Type of Market
Cold Storage
By Temperature
Frozen
Chilled
Ambient
By Region
North
Central
South
Cold Transport
By Mode of Transport
Land
Sea
Air
By Location
Domestic
International
By Mode of Land Transport
40 Footer reefers
20 Footer reefers
Others (6, 8, 10 wheelers and more)
By Vicinity
Inter-city
Intra-city
By End-User Application
Meat and Seafood
Fruits and Vegetables
Pharmaceuticals/Healthcare
Dairy Products
Bakery and Confectionary
Others
By Ownership
Owned/Integrated
Third-Party Logistics (3PL)
Key Target Audience
Cold Chain Companies
Logistics Companies
Private Equity Investors
Government Associations
Construction Companies
Dairy Companies
Meat and Seafood Companies
Fruits and Vegetable Companies
Pharmaceutical Companies
Ice-Cream Companies
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023E
Companies Covered:-
Lotte Logistics
CJ Logistics
Dongwon Industrial
Borim Logistics
Dongbu Express
Hansol Logistics
DB Schenker
Daelim Corporation
GS Global
DHL
Ottogi Logistics Service Co., Ltd.
Pantos Logistics
Key Topics Covered in the Report:-
Cold Chain Businesses South Korea
South Korea Refrigerated Truck Market
South Korea Reefer Truck Market Size
South Korea Food and Drink Storage Industry
South Korea Lotte Logistics Market Revenue
South Korea CJ Logistics Market Analysis
Cold Storage Seoul Market Growth
South Korea DHL Logistics Competitors
Number of warehouses in South Korea
Dairy Industry Market Size in South Korea in KRW Billion
South Korea Processed Meat and Seafood Market
Confectionery Market Size in South Korea
For More Information, Refer To Below Link:-
Related Reports by Ken Research:-
Contact Us:-
No comments:
Post a Comment