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. 3PL Cold
Storages UAE
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.
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
- Others
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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
Related
Reports
Contact Us:-
Ken
Research
Ankur
Gupta, Head Marketing & Communications
