Rising Demand for Temperature-Sensitive Products and Government Support Propel Cold Chain Industry
Storyline
- As per Ken Research, the UAE cold chain market is poised for significant growth, fueled by increasing demand for food items, a thriving pharmaceutical industry.
- Import-driven surge: Rising 3PL companies, strategic pharmaceutical growth, and food imports.
- Government initiatives driving growth: Economic diversification, logistics development.
- Rising cold transportation demand: 42% revenue share projected by 2025.
- UAE's cold chain industry: dominated by the cold storage segment.
1. Diverse Revenue Streams & a growing market
Know More about the Cold Chain Dynamics in UAE
The UAE cold chain industry witnessed a substantial contribution from cold storage and cold transport markets, accounting for approximately 60% and 40% of the total revenue in 2020, respectively. However, the cold transportation market is expected to see a decline in revenue share to around 42% by 2025, attributed to the surging demand for temperature-sensitive products in the country.
2. Driving Factors
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Factors such as the rise in refrigerated warehouses, growth in the pharmaceutical sector, and an increasing demand for perishable products like dairy, meat, and seafood are anticipated to drive the growth of the cold chain logistics market in the UAE.
3. Import-Driven Growth
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The UAE heavily relies on food imports due to its arid climatic conditions, with around 80% of its food requirements met through imports. Additionally, the pharmaceutical sector has witnessed exponential growth, with Covid-19 being a major driving force. The country's strategic location provides logistics access to 43 countries worldwide.
4. Surge in 3PL Companies & a Fragmented market
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The market has witnessed a rising demand for fully integrated distribution centers, driving the growth potential for 3PL companies that handle sophisticated supply chains. With increasing opportunities, many 3PL companies are expanding their operations across various UAE cities. Moreover, the overall market is highly fragmented which indicates the increasing interest of cold chain companies in UAE.
Conclusion
As per Ken Research, the UAE cold chain market is poised for significant growth, fueled by increasing demand for food items, a thriving pharmaceutical industry, and the government's continuous efforts to enhance logistics infrastructure. With a projected positive CAGR of 4.8% in terms of revenue during the forecast period 2022-2027, the cold chain industry is set to play a pivotal role in supporting the UAE's economic diversification and promoting sustainable logistics solutions.
Major Players Mentioned in the Report:
UAE Cold Chain Market (Cold Storage Companies)
- FI
- Mohebi Logistics
- CEVA Logistics
- RSA Global
UAE Cold Chain Market (Cold Transportation Companies)
- Triburg
- Transcorp
- Badami Logistics
- Tameem Logistics
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- Agricultural & Sea food Producers
- Importers & Exporters
- E-Commerce & Online Grocery Platforms
- Retail & Super market Chains
- Pharmaceutical & Healthcare Companies
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027
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