In conversation with Mr Vincent Wyns, Managing Director International in Reputed Logistics Player of Portugal, we tried to understand the Cold Chain Industry in Portugal. We also discussed the effect of pandemic and the future going forward.
“The cold chain industry has been witnessing a period of high growth in the last couple of years, owing to the higher demands from the food and pharma sector. The industry’s future growth will stabilize and will mostly be driven by the consumption of food items”
What do you think is the current cold chain industry outlook in Portugal?
During last couple of years, specifically pandemic period, strong advancements have occurred in the logistics industry in general, and that includes the cold chain; both Transportation and Warehousing. It was mostly because there was a lot of demand for vaccine storage and transportation, and Portugal was no different than the any other market in the world. Cold Chain market players were constantly trying to add more cold chain capacity, for both warehouses and transportation mostly because of increased vaccine and pharmaceuticals distribution. Within this period, the cold chain market in Portugal grew around 15%.
How do you think will this industry grow in coming future?
There will obviously be growth in the overall market, but it will not be as much as the pandemic period, the future growth will again stabilize. Covid-19 period has been a propeller and it increased the demand rapidly for pharma products, but now it is all going back to the normal again. The y-o-y growth of the market will be around 10%, which is the average growth of Cold Chain market in Portugal. This growth is mostly driven by food consumption within the country.
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Cold chain caters to various industries, so which industry demands the highest for the cold chain?
In terms of volume, the biggest segment that is catered by cold chain industry in Portugal is Food. Meat, seafood, fruits and vegetables take up about 50% of the total, whereas pharmaceutical products are about 15% and the rest consists of dairy, frozen foods, and others.
How is the temperature-controlled transportation classified within the country? What is the most used mode of transportation?
Our neighboring country Spain produces most fresh fruits and vegetables in Europe, so the import as well as transportation within Portugal is mostly from land. Air transportation is expensive, hence only the goods that are needed to be transported quickly, for example more tropical fruits, are transported by air. Land transportation holds the majority and is about 60% of the total transportation, followed by sea which is around 30% and then air transportation, which is 10%.
For any queries or feedback, reach out at namit@kenresearch.com
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