Chilling Success: KSA's Cold Chain Market Surges with Government Support: What's on the Horizon? : Ken Research

 With the surge in urbanization, the demand for frozen food items and their efficient storage and transportation has propelled the rapid growth of the KSA cold chain market. However, this thriving industry encounters formidable challenges on its path to success. Limited technology infrastructure and labor availability issues pose significant threats to its expansion. Yet, amidst these icy obstacles, a guiding light emerges.

The government steps forward as a staunch ally, spearheading initiatives to address these hurdles and becoming the key catalyst behind the market's flourishing trajectory.
Explore the comprehensive measures and strategic support employed by the government as it resolves the challenges and shapes a promising future for the KSA cold chain market.

1. The Cold Chain Market has grown rapidly owing to an increase in urbanization which led to a demand for frozen food items and their storage and transportation

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2. Increasing pharmaceuticals, online grocery platforms, expansion of cold chain infrastructure, and government initiatives are the key trends and developments in KSA cold chain market

3. However, Limited technology, power outages and labor availability are the major threats to KSA cold chain market

4. But, the Saudi Government is moving towards modernization in their infrastructural development which will facilitate KSA Cold Chain Market growth in the coming years

5. The industry has high potential to grow owing to the Rising Grocery Retail Spending, Geographic location, and increasing government initiatives

Some of the Intelligence Curated by Ken Research in Cold Chain Market Space:

• Indonesia Cold Chain Market Outlook to 2026F Driven by Rising Fisheries Industry & Convenience Food Consumption Owing to Growing Population and Infrastructural Development
• Thailand Cold Chain Market Outlook to 2026F Driven by Rising Import-Export Trade Volume and Domestic Consumption of Meat, Seafood and Popularity of Ready to Eat Frozen Processed Food
• Singapore Cold Chain Market Outlook to 2026F Driven By Rising Meat and Seafood Consumption Coupled With Demand for Temperature Sensitive Health Care Products
• Brazil Cold Chain Market Outlook to 2027- Driven by increasing exports and imports and consolidation of the market by large players
• Portugal Cold Chain Market Outlook to 2026F: Driven by Rising Packaged Foods Consumption Owing to Growing Millennial Population

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KSA's Cold Chain Market

KSA Cold Chain Market Outlook to 2027F: Ken Research

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Rising domestic consumption of meat, increasing seafood exports, rising retail spending, growth of dairy industry, and increasing pharmaceutical imports led to the growth of the Cold Chain Market in KSA.

KSA Cold Chain Market Overview: The Cold Chain Market in KSA is currently at the growth stage and is highly fragmented and is home to 100+ cold transportation & storage players. The market has been driven by rising domestic consumption of meat, increasing seafood exports, rising retail spending, growth of dairy industry, changing lifestyle and societal norms, increasing pharmaceutical imports, rising hygiene and safety concerns and infrastructure development. The KSA Cold Chain Market took a leap from a growth rate of 10.5% in 2018 to a growth rate of 11.5% in 2022P due to the growing consumption needs of the people. Due to the increase in demand for perishables, the cold chain market in KSA has significantly grown.

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Government Initiatives: As part of its Vision 2030 strategy, the KSA government wants to transform the country's ports into modern seaports and turn the country into a global logistics hub. The KSA government is investing heavily in the vast development of the nation's transportation networks in order to increase freight income over the long term. This is being driven by economic growth, rising population, and rapid urbanization. By 2024, an additional 10,000 km of rail line will be added, and multimodal hubs will be built to meet the demand for road-rail and sea-air connectivity.

Challenges Faced by KSA Cold Chain Market: The Cold Chain Industry in Saudi Arabia faces challenges due to the concentration of cold chain facilities in the cities such as Riyadh, Jeddah and Dammam. All the products are transported to different regions in the country from the cold storage warehouses located in these cities which act as distribution centers. This causes delays in the process as it increases the time for cold transport. Cooler and freezer doors that are damaged are one of the most common problems cold storage facilities face. Due to extreme weather conditions, moving cold chain commodities within KSA always bears a higher risk. Transportation in KSA is exposed to very high freight cost in comparison to other SEA countries which is even higher for Cold transportation.

Development in the Cold Storage Industry in KSA: Many cold chain operators are expected to expand their operations and establish many new cold storage warehouses to cater to the large and rising demand for refrigerated storage, providing a significant boost to KSA cold storage industry. The Cold Storage Industry in KSA is experiencing a new wave of technological development which is essential for end users of cold storage services and for the organic growth of cold storage companies.

Analysts at Ken Research in their latest publication “KSA Cold Chain Market Outlook to 2027F- Driven By Increase in Retail Spending, Government Initiatives and Infrastructural Development” by Ken Research observed that KSA Cold Chain Market is in the growing phase. Rising domestic consumption of meat, increasing seafood exports, rising retail spending and infrastructure development are some of the factors that will contribute to the KSA Cold Chain Market growth over the period of 2022P-2027F. It is expected that KSA Cold Chain Market will grow at a CAGR of 15.1% for the above forecasted period.

Key Segments Covered

KSA Cold Chain Market:

By Cold Storage and Cold Transport

By Ownership

• Owned
• 3PL Cold Chain Facilities

By End Users

• Meat and Seafood
• Vaccination and Pharmaceuticals
• Frozen Foods and Others
• Dairy Products
• Bakery
• Fruits and Vegetables

KSA Cold Storage Market:

By Automation

• Automated Pallets
• Non-Automated Pallets

By Temperature Range

• Ambient
• Frozen
• Chillers

By End User

• Meat and Seafood
• Vaccines & Pharmaceuticals
• Frozen Foods and Others
• Bakery
• Dairy Products
• Fruits and Vegetables

By Region

• Riyadh
• Jeddah
• Dammam
• Mecca
• Medina
• Others

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KSA Cold Transport Market:

By Type of Reefer Truck

• Reefer Vans/Trucks
• 20 foot reefers
• 40 foot reefers

By Mode of Transportation

• Land
• Sea
• Air

By Location

• International
• Domestic

By Vicinity

• Inter-city
• Intra-city

By End Users

• Meat & Sea Food
• Vaccines & Pharmaceuticals
• Dairy Products
• Bakery
• Frozen Foods and Others
• Fruits & Vegetables

Key Target Audience

• Cold Storage Companies
• Cold Chain Companies
• Cold Transport Companies
• Captive Cold Storage Companies
• Captive Cold Chain Companies
• Logistics Companies
• Non-captive Companies
• Cold Chain Associations
• Logistics Associations
• Private Equity Firms
• Venture Capitalists

Time Period Captured in the Report:

• Historical Period: 2017-2022P
• Base Year: 2022P
• Forecast Period: 2022P– 2027F

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Companies Covered:

• Agility Logistics
• Wared Logistics
• NAQEL Express
• Almajdouie Logistics
• Mosanada Logistics
• Agility Logistics
• Takhzeen Logistics
• Etmam Logistics
• Tamer Logistics
• United Warehouse Company
• Himmah Logistics
• Globus Logistics
• Storkom Logistics
• Four Winds
• Flow Progressive
• Sasat Logistics
• Al Theyab Global Logistics
• IFFCO Logistics
• RTL Racktech

Key Topics Covered in the Report

• KSA Cold Chain Market Overview
• Ecosystem of KSA Cold Chain Market
• KSA Cold Chain Industry Evolution
• KSA Cold Chain Market Segmentation
• Industry Analysis of KSA Cold Chain Market
• Value Chain of Cold Chain Market in KSA

• End User Analysis of KSA Cold Chain Market
• KSA Cold Transport Market Overview
• KSA Cold Storage Market Overview
• Key Growth Drivers in KSA Cold Chain Market
• SWOT Analysis of KSA Cold Chain Industry
• Future Outlook of KSA Cold Chain Industry

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KSA Cold Chain Market

Related Report by Ken Research: –

Portugal Cold Chain Market Outlook to 2026F

Brazil Cold Chain Market Outlook to 2027

Vietnam Cold Chain Market Outlook to 2026F

Nigeria Cold Chain Market Outlook to 2026

South Africa Cold Chain Market Outlook to 2026F