Monday, March 27, 2023

Future Outlook of UAE Cold Chain Market: Ken Research

 Key Findings

  • Cold storage and cold transport markets contributed ~60% & 40% share respectively to the revenue of the cold chain industry in 2020. However, it is anticipated that the cold transportation market will contribute ~ 42% revenue share by the year ending 2025 owing to the rising demand for temperature-sensitive products in the country.
  • Factors such as increase in number of refrigerated warehouses, growth in pharmaceutical sector and high demand for perishable products such as dairy, meat and seafood are expected to drive the growth of the cold chain logistics market in the country.
  • Rafed, an Abu Dhabi-based healthcare procurement company, has partnered with Abu Dhabi Ports to establish the UAE’s largest cold storage facility for Covid vaccines. The state-of-the-art facility can store vaccines at temperatures ranging from 8 to -80° Celsius.

Government Initiatives:  Under the country’s economic diversification plans like UAE Vision 2021, Abu Dhabi Vision 2030 and Dubai’s Industrial Strategy 2030 aimed at reducing the economy’s dependence on Hydrocarbon exports, development of the logistics sector is held as an important strategic goal for sustained long term growth of the economy as UAE becomes a crucial trans-shipment hub for Europe-Asia-Africa trade. The Federal Competitiveness and Statistics Authority expect logistics to contribute 8% of the economy in 2021, rising from the levels of 5.4% in 2017. The UAE is avidly investing in development projects like the China-led global roads ways project “Modern Silk Route”, Etihad Railways which would function as a viable alternative to road cold transport in the Gulf region.

Rising Imports of Food Products and Pharmaceuticals: Due to country’s arid climatic conditions, around 80.0% of the food requirements of country are met through imports from countries such as Brazil, India, USA and others. The pharmaceutical sector has grown at a greater scale in UAE and also across the globe. Covid-19 is the major driving factor because of which the healthcare industry has been advancing at an alarming rate. Expansion of operations by pharmaceutical companies, the growth of medtech companies and localized research and development in healthcare are major factors that have led to the boom of healthcare sector in UAE. The imports of pharmaceutical products in UAE were USD 4.08 Billion during 2019 and the trade volumes grew from 33,000 tons during the first quarter in 2020 to 48,600 tons in 2021. Around 95% of the global pharmaceutical companies have presence in the UAE which provides logistics access to 43 countries worldwide.

Rising Prevalence of 3PL Companies: The market witnessed a strong demand for full-fledged integrated distribution centers that included logistics’ facilities, cold storage, dry storage and supporting retail facilities, as a result, demand for new-generation logistics facilities (built-to-suit) increased in the market and increase growth potential for 3PL companies that could handle stock distribution for companies with large and sophisticated supply chains. Currently, majority of the cold storage warehouses are concentrated in Dubai and Abu Dhabi, however it was witnessed that many 3PL companies were planning to expand their operations across other cities as well to exploit the rising opportunities in the sector.

Analysts at Ken Research in their latest publication UAE Cold Chain Market Outlook to 2025 – The Cold Chain Market in UAE is Thriving with the Advent of Government’s Economic Diversification Plans Coupled with UAE’s Increasing Adoption of Technology and Automation“ believe that the Cold Chain market in UAE is expected to grow due to growth in the demand for food items, increase in manufacturing activity in the pharmaceutical industry and government initiatives to improve the logistics infrastructure in the country. The market is expected to register a positive CAGR of 7.3% in terms of revenue during the forecasted period 2020-2025F.

UAE Cold Chain Market Analysis

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Key Segments Covered

By Type of Market

Cold Storage

By Temperature

  • Ambient
  • Chilled
  • Frozen

By Ownership

  • Integrated
  • Contract

By End-User Application

  • Meat and Seafood
  • Dairy Products
  • Pharmaceuticals
  • Vegetables and Fruits
  • Others

By Major Emirates

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Others

By Major Areas

  • JAFZA
  • DIP
  • DIC
  • Al Aweer
  • Others

Cold Transport

By Mode of Freight

  • Land
  • Sea
  • Air

By Type of Freight

  • Domestic
  • International

By Contract and Integrated Logistics

  • Integrated
  • Contract

By End-User Application

  • Meat and Seafood
  • Dairy Products
  • Pharmaceuticals
  • Vegetables and Fruits
  • Othe

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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: 2015-2020
  • Forecast Period: 2020-2025F

Companies Covered

  • GAC
  • GSL
  • Mohebi
  • CEVA
  • RHS
  • Hellmann
  • DB Schenker
  • Khalidia Shipping
  • Kuehne and Nagel
  • Agility
  • Al Futtaim
  • DSV Panalpina
  • Triburg
  • RSA Cold Chain
  • Sharjah cold stores
  • Bhatia Brothers
  • Tameem logistics

Key Topics Covered in the Report

  • UAE Cold Chain Market Overview
  • Infrastructure Analysis
  • Existing and Emerging Technologies
  • UAE Cold Chain Market Value Chain
  • UAE Cold Chain Market Size by Revenue, 2015-2020
  • UAE Cold Chain Market Segmentation and Segment Future, 2020-2025F
  • End User Industry Analysis And Future Growth Potential
  • UAE Cold Chain Market Competitive Landscape
  • UAE Cold Chain Market Company Profiles of Major Players
  • Regulatory Environment
  • Industry Trends and Developments
  • Industry Issues and Challenges
  • Analyst Recommendation
  • UAE Cold Chain Market Future Outlook and Projections, 2020-2025F
  • UAE Cold Chain Market Analyst Recommendations

For more insights on the market intelligence, refer to below link:-

UAE Cold Chain Market

Related Reports by Ken Research: –

Competition Benchmarking of Top Logistics Players in UAE in Transportation, Warehousing, 3PL, International Express, Domestic Express, Automotive, Pharma, Oil and Gas and Retail Logistics

UAE E-Commerce Logistics Market Outlook to 2025

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