China cold chain market is in its infancy stage with high
double digit growth and is highly fragmented in nature. The Cold
Chain Market in China has increased at a five year CAGR of 20.3% during
the period 2012-2017. China has witnessed significant growth during the review
period owing to the Chinese population which started becoming sensitive towards
the food quality. Owing to this, there has been a surge in demand for
refrigerated deliveries and warehouses near major population centers. Rising
demand of meat and seafood has intensified the demand for cold storage and
transport systems in the country making a positive impact on the cold chain
market in China. A major driver of cold chain bio-pharma expansion in China has
been insulin. Presently, 25.0% of the world diabetic population lives in China
which has created a significant demand for the cold chain services in order to
store and transport the vaccines with safety and quality.
Cold storage has dictated the cold chain market in 2017 by
attributing a major revenue share. The cold storage market increased at a five
year CAGR of 21.2% during 2012-2017 owing to the growth factors including
retail business expansion in the country which requires cold storage to keep
their stock in good quality. Solidus Logistics, SF express, Rokin Logistics,
DCH and CMAC are the major cold transport companies operating in China. The
industries demanding cold transport include supermarket and hypermarket.
Seafood and meat industry dominated the cold chain market
during 2017 in China with China being one of the largest seafood consuming
countries in the world. Chinese have a preference for fresh fruits and
vegetables which require the cold chain systems for these products. China is
the producer for half of the world’s vegetables and is responsible for 30.0% of
the fruits production. China bakery industry has been growing with the
population embracing the western and urban lifestyle.
3PL cold storage has dominated the overall China cold storage
market revenues in 2017. The companies rent these services in case they lack
pallet capacity and need to service a client. Various companies have their own
cold storage system and provide services to their clients. Examples of these
include Swire Cold Storage Limited, Solidus Logistics, Itochu Logistics, SF
Express, Rokin Logistics, DCH Logistics, CMAC, Zheng Ming and others.
There has been an increase in the number of cold trucks by
the companies during the review period which cater to various industries
including manufacturing, seafood and meat, pharmaceutical, ecommerce and
others. The increasing demand for processed meat and seafood triggered the
demand for cold transport in the country.
Domestic transport facilities have commanded the cold
transport market in China during 2017. The companies include Zheng Ming
Logistics, SF Express, Solidus Logistics, China Railway Express Co. Ltd and
others. These companies are based in China and hence have a strong network
system. International transport facilities attributed a comparatively smaller share
in the revenues of China cold transport during 2017. The companies providing
these services include Swire Cold Storage Limited, DCH logistics, CMAC,
SinoTransPFS and others.
The road transportation has the highest value as the numbers
of cold trucks are present in high numbers in the country. In addition to this,
the numbers of companies providing the road cold transportation services are
higher in number as compared to the ones providing air and sea transportation.
In addition to this, the rail transportation has been started to be used for
the transportation of few fruits and vegetables.
In the near future, the developing market for chilled and
frozen food will also prove to be a growth driver for the cold transportation
industry in the country due to the changing food consumption pattern with the
population more inclined towards convenient food. Chinese consumers associate
imported goods with quality and safety such as fruits and vegetables &
dairy products and also the consumers prefer buying from the online platform.
Several cold transport service providers are looking for mergers and
acquisitions in the country to synergies and gain mileage/ infrastructure. In
future, it is expected that measures will be taken in improving the China cold
chain transportation standards and supply and marketing integration system of
cold chain transportation will be established by building quality tracking
system, cold-chain transportation system of major product areas and major
product variety, perfect and scientific industrial chain and fundamental
facilities of cold-chain transportation.
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