The report titled "
Saudi Arabia Cold Chain Market Outlook to 2023 – By Cold Storage (Ambient, Chilled and Frozen Warehousing) and Cold Transport (Land, Sea and Air), By Application (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others) and By Ownership (Integrated and Third Party Logistics)" provides a comprehensive analysis on the Cold Chain Market in Saudi Arabia. The report covers various aspects including overview and market size, market segmentation, stakeholders, value chain analysis, major players, competitive landscape, operating and profitability model, end-user potential in the cold chain industry and many other influential factors. It also covers growth drivers, trends and developments, issues and challenges in the cold chain market along with the regulatory framework of the industry and SWOT analysis. The report concludes with market projections and analyst recommendations highlighting the major opportunities and cautions for the cold chain market players.
Saudi Arabia Cold Chain Market Overview and Size
The cold chain market in Saudi Arabia is at growth stage. Saudi Arabia is emerging as a transshipment hub due to its central location in the GCC region and government impetus to transform the country into a logistics hub. The increasing dependence of the country on imports to meet its food requirements has necessitated the development of cold chain facilities. Along with cold storage and transportation services, cold chain operators offer value-added services such as labeling, packaging, and palletizing among others to stay competitive. In the review period 2013-2018, the Saudi Arabia cold chain market has increased at a positive CAGR of 9.7% largely due to rising food and pharmaceutical imports, growth of the dairy industry, increasing number of modern grocery retail stores, government initiatives to reduce dependence on oil-exports and others.
Saudi Arabia Cold Chain Market Segmentation
By Type of Market (Cold Storage and Cold Transport): The cold storage market was observed to dominate the market and contributed majority revenue share to the cold chain industry. The high demand for perishable products such as dairy, meat and seafood and pharmaceuticals have led to the growth of cold chain facilities in the country. Majority of the cold storage warehouses are located in major cities such as Riyadh, Jeddah, Dammam, Mecca and Medina.
By End-User Application (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others): In Saudi Arabia cold chain market, dairy industry was analyzed to account for the majority share in terms of revenue in 2018. Robust output of the dairy industry in recent years has positively impacted cold chain industry in Saudi Arabia.
Meat and Seafood contributed the second highest revenue share which is followed by other categories such as Pharmaceuticals, Fruits and Vegetables and other products. It was witnessed that there is high degree of seasonality in the demand for cold chain facilities during the Ramadan and Hajj seasons. Thousands of pilgrims visit the country during Hajj which escalates the demand for food products, particularly meat and dairy products.
By Ownership (Owned/Integrated and Third Party Logistics (3PL) Warehouses):
The cold chain market in Saudi Arabia is dominated by Third Party Logistics (3PL) facilities. The 3PL segment accounted for the largest share in generating revenue for the market. This is majorly due to the large number of 3PL operators providing wide variety of integrated services and increasing shift towards outsourcing cold chain requirements by manufacturing industries. On the other hand, owned cold chain facilities accounted for lesser revenue in the industry as rising costs of maintaining cold storage warehouses and refrigerated fleet and the capital-intensive nature of the businesses make it difficult for small and medium companies to operate in the market.
Saudi Arabia Cold Storage Market Segmentation
By Temperature Range (Ambient, Chilled and Frozen): Out of the three temperature ranges, chilled storage was observed to be the leading revenue share segment to the cold storage industry owing to robust demand for dairy, pharmaceuticals and other processed foods in the country. The remaining revenue was contributed by ambient and frozen storages. Saudi Arabia is one of the largest consumers of meat and seafood in the world and the largest consumer of red meat in the GCC region. It also produces a considerable amount of meat along with importing a majority of it.
By Major Cities (Riyadh, Jeddah, Dammam and Others): The city of Riyadh was analyzed to account for the highest share in the revenue of the cold storage market as city acts as a hub from where products are transported to other regions of the country as it is centrally located in the country. Jeddah contributed the second highest share which was followed by Dammam. Few cold chain companies also operate in Mecca and Medina due to the large number of pilgrims visiting the cities during Hajj which increases the demand for food items such as meat and seafood, dairy and others.
Saudi Arabia Cold Transport Market Segmentation
By Mode of Transport (Land, Sea and Air): Cold transport through land contributed the highest revenue to the cold transport industry as food imports into the country through ports are transported to different cities via land transport. Being land locked in the north and south, majority of the domestic transportation takes place through well-developed road infrastructure in the country. Sea and air transport accounted for the remaining share in the industry.
By Location (Domestic and International): Cold transportation to domestic markets accounted for majority of the revenue of the KSA cold transport industry due to the reliance of the country on imports for its food requirements.
Competitive Landscape in Saudi Arabia Cold Chain Market
Competition in Saudi Arabia cold chain market is highly fragmented. The cost of labor, land and energy is consistently rising in Saudi Arabia, thus companies providing cold storage facilities to their clients are implementing automation technologies such as Automated Storages and Retrieval Systems, Cloud Storage, Internet of Things etc. to gain competitive advantage. Major players in the cold chain market include Agility Logistics, Mosanada Logistics, Takhzeen Logistics, Etmam Logistics, Tamer Logistics, Wared Logistics, United Warehouse Company, Himmah Logistics, Globus Logistics, Storkom, Sasat Logistics, Four Winds, Flow Progressive and Others.
Saudi Arabia Cold Chain Market Future Outlook and Projections
In future, it is anticipated that Saudi Arabia Cold Chain market in terms of revenue will increase at a double digit CAGR of 11.2% during the period 2018-2023E. Positive growth in the market is attributed to rise in manufacturing activity in the pharmaceutical sector, growth in dairy industry and rising food imports. Improvement in infrastructure and entry of new players due to simplification of industry regulations and government initiatives to boost the logistics sector is expected to propel the growth of the market. Additionally, increasing adoption of warehouse automation technologies such as EDI, RFID, AS/AR and others are expected to improve operational efficiency in Saudi Arabia cold chain market over the forecast period 2018-2023E.
Key Segments Covered
By Type of Market
Cold Storage
By Temperature
Frozen
Chilled
Ambient
By Major Cities
Riyadh
Jeddah
Dammam
Others
Cold Transport
By Mode of Transport
Land
Sea
Air
By Location
Domestic
International
By End-User Application
Dairy Products
Meat and Seafood
Pharmaceuticals
Fruits and Vegetables
Others
By Ownership
Owned
Third Party Logistics (3PL)
Key Target Audience
Cold Chain Companies
Logistics Companies
Government Associations
Express Logistics Companies
Industry Associations
Warehousing Companies
E-Commerce Operations
Investors and Private Equity Companies
Logistics Companies
Dairy Companies
Meat and Seafood Companies
Fruits and Vegetables Companies
Pharmaceutical Companies
Time Period Captured in the Report
Historical Period: 2013-2018
Forecast Period: 2018-2023E
Companies Covered
Agility Logistics
Mosanada Logistics
Tamer Logistics
United Warehouse Company Limited
Wared Logistics
Takhzeen Logistics
Etmam Logistics (Shahini Group)
Himmah Logistics
Globus Logistics
Flow Progressive
Four Winds
Storkom
Sasat Logistics
Key Topics Covered in the Report
Introduction on Saudi Arabia Cold Chain Market
Saudi Arabia Cold Chain Market Value Chain
Saudi Arabia Cold Chain Market Size by Revenue, 2013-2018
Saudi Arabia Cold Chain Market Segmentation, 2018
End User Industry Analysis and Future Growth Potential
Saudi Arabia Cold Chain Market Competitive Landscape
Saudi Arabia Cold Chain Market Company Profiles of Major Players
Saudi Arabia Cold Chain Market Future Outlook and Projections, 2018-2023E
Saudi Arabia Cold Chain Market Future Segmentation, 2018 - 2023E
Saudi Arabia Cold Chain Storage Market Operating and Profitability Model
Saudi Arabia Cold Chain Market Analyst Recommendations
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