New Technological Change in Cold Chain Industry
According to
Harsh Mittal, Senior Research Analyst at Ken Research, “Cold
chain logistics infrastructure
network can be improved by covering all major food consumption and production
areas. New technologies involving the use of IOT in the monitoring of the cold
chain and new refrigeration technology such as NXT COLD employing Electronic
Refrigerant Injection Control Technology can be used to improve energy
efficiency as the biggest cost of running a cold storage plant is of
electricity.”
Ken Research estimates that the cold chain
market in Oman is expected to grow at CAGR of 11.4% for the next five years to
reach over USD 75 million by 2022.”
Oman have
been chosen as a hot spot for cold chain sector due to strategic location and
rapid diversification of economic activities basis which the sector has seen
increase in investment activities. The government has made huge attempts to
diversify the economy and reduce its dependence on oil. The logistic sector has
been identified as the major sector which can contribute to the GDP of the
country because of the strategic geographical location of Oman. With the
development in the logistics sector and increase in the trade amount of goods
with temperature dependent storage requirement, the demand for cold storage
infrastructure have continued to prosper.
Early Stage Cold Chain Sector
Cold Chain
sector in Oman is currently in its early growth stage however, there are limited
players which provide cold chain services to varied end users such as meat,
vegetables, dairy, poultry and pharmaceuticals. Cold storage capacity, which is
generally measured in the number of pallets, stands at 400,000 as on December
2017 and looking at the focus of the government to make Oman a gateway to all
the goods that arrive at GCC by developing the infrastructure and employing the
latest technology,
Oman cold
chain market is highly concentrated in nature and is at the nascent stage because
of poor infrastructure, imperfect logistics system and low promotions. The
major players in the country in the cold chain services include Agility
Logistics, Al Madina Logistics, Enhance Oman, AL Khaleej Cold Store and ILS
Logistics. Cold chain companies compete on various factors including the
storage capacity, number of pallets, space, distribution network, number of
clients, service verticals and others.
Compelling Potential with Growing End User Industries
Growth in end
user industries for cold chain services such as pharmaceuticals, meat &
seafood, frozen food and others have increased the demand for both cold
transport and cold storage in the country. E-commerce industry has grown at a
significantly high rate which has given a boost to the cold chain industry. However,
despite of surge in demand, the occupancy rate of the cold storage facilities
across the industry currently stands at around 60%. Cold Chain companies
usually hold the inventory for 60-90 days. The price for the cold storage
facility is OMR 0.35 per pallet per day.
The growing
consumption of food and increasing food safety concerns in the market as well
as the growing trend among Omani people for the consumption of frozen meat and
seafood is anticipated to propel the demand of cold chain services in Oman. In
addition to this, growth in pallet capacity by cold chain companies and
establishment of global logistics partner will support market growth.
For
more information on the research report, refer to below link:
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