Showing posts with label China Cold Storage Industry. Show all posts
Showing posts with label China Cold Storage Industry. Show all posts

Wednesday, May 16, 2018

China Cold Chain Market including Cold Storage and Transportation Industry to Register High Growth on Account of High Demand from Express Logistics Sector: Ken Research

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.

For more information on the market research report please refer to the below link:

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