Showing posts with label UAE Cold Chain Market. Show all posts
Showing posts with label UAE Cold Chain Market. Show all posts

Tuesday, August 8, 2023

Thriving UAE Cold Chain Market: Growth Prospects and Government Initiatives: Ken Research

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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

UAE Cold Chain 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

UAE Cold Chain Market

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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

UAE Cold Chain Market

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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

UAE Cold Chain 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 Researchthe 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

For more insights on market intelligence, refer to the link below: –

UAE Cold Chain Market

Related Reports By Ken Research

Indonesia Cold Chain Market Outlook to 2026F

Thailand Cold Chain Market Outlook to 2026F

Monday, March 27, 2023

Future Outlook of UAE Cold Chain Market: Ken Research

 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.

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.

UAE Cold Chain Market Analysis

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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
  • Othe

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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

For more insights on the market intelligence, refer to below link:-

UAE Cold Chain Market

Related Reports by Ken Research: –

Competition Benchmarking of Top Logistics Players in UAE in Transportation, Warehousing, 3PL, International Express, Domestic Express, Automotive, Pharma, Oil and Gas and Retail Logistics

UAE E-Commerce Logistics Market Outlook to 2025

Monday, February 28, 2022

UAE Cold Chain Market is Thriving with the Advent of Government’s Economic Diversification Plans Coupled with UAE’s Increasing Adoption of Technology and Automation: Ken Research

The report titled 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 provides a comprehensive analysis on the Cold Chain Market in the UAE. The report covers various aspects including overview and market size, market segmentation, stakeholders, value chain analysis, major players, competitive landscape, operating and profitability model, end-user potential in the cold chain industry and many other influential factors. The report concludes with market projections and analyst recommendations highlighting the major opportunities and cautions for the cold chain market players.

UAE Cold Chain Market Overview and Size

The cold chain market in UAE is at growth stage. It has consolidated its position as a global transhipment hub due to its central location in the GCC region. The high dependence of the country on imports to meet its food requirements has necessitated the development of cold chain facilities. In the review period 2015-2020, the UAE cold chain market has increased at a positive CAGR of 5.0% largely due to heavy government and direct foreign investments in transportation and storage infrastructure, increase in retail and consumer spending especially in groceries, dairy, meat, international food and EXPO 2020.

UAE Cold Chain Market Segmentation

Cold Warehousing

The cold storage market is dominating the market and contributed majority revenue share to the cold chain industry. Majority of the cold storage warehouses are located in free-zones in Dubai and Abu Dhabi like JAFZA, DIP, DIC, Al Aweer, etc. Some of the key growth drivers include increase in retail distribution cold storage, set up of new warehouses, creation of large food and Pharma reserves by government, growing end users in emerging markets. Seasonal surge in demand is seen especially during the Ramadan festival.

Cold Transportation

The industry caters to distribution of food and pharma domestically and internationally via land, sea and air.  The market experienced a slight slowdown in growth during 2020 owing to global pandemic Covid-19, which led to lockdown across the country for few months. Some of the key growth drivers include increase in retail distribution, growing end users in emerging markets, increasing import of perishables, tech advancements such as Transport Management Systems used by cold chain players.

UAE Cold Warehousing Market Segmentations:

By Temperature Range (Ambient, Chilled and Frozen): Chillers and freezers were quite high in demand in the year 2020 given the increase in the consumption of frozen and fresh food items.

By Ownership (Integrated and Contract Warehouses): Integrated logistic facilities generate larger revenue share. This is majorly due preference of logistics companies to invest into warehouses and closely monitor operations themselves as opposed to outsourcing them.

By End-User Application (Meat and Seafood, Dairy Products, Pharmaceuticals, Fruits and Vegetables and Others): Meat and Seafood contributed the highest revenue share owing to the tremendous increase in the demand for meat during the lockdown. The demand for pharmaceutical products was quite high due to the onset of the pandemic.

By Major Emirates (Dubai, Abu Dhabi, Sharjah and Others): Dubai accounts for the highest share in the revenue of the cold storage market as it acts as a hub from where products are transported to other regions.

By Areas (JAFZA, DIP, DIC, Al Aweer and Others): Jebel Ali Free Zone accounted for the maximum share in the revenue of the cold storage market and hosts over 8,700 companies. It is considered as the world's largest free zone.

UAE Cold Transportation Market Segmentations:

By Mode of Transport (Land, Sea and Air): Cold transport through land contributed the highest revenue to the cold transport industry as food imports into the country through ports are transported to different cities via land transport. Majority of the domestic transportation takes place through the well-developed road infrastructure in the country as most places are quite accessible via road.

By Type of Freight (Domestic and International): Cold transportation to international markets accounted for majority of the revenue of the UAE cold transport industry due to the reliance of the country on imports for its food requirements.

By End-User Application (Meat and Seafood, Dairy Products, Pharmaceuticals, Fruits and Vegetables and Others): Meat and seafood has positively impacted cold chain industry followed by Dairy Products. UAE has the highest consumption levels for meat and seafood in the world.

By Contract and Integrated Logistics:  The cold chain market in the UAE is dominated by 3PL facilities, generating largest share in market revenue. This is majorly due to the large number of 3PL operators providing wide variety of services and increasing shift towards outsourcing cold transport requirements by cold chain companies.

Competitive Landscape

Competition in UAE Cold Storage Market is highly fragmented with ~20 large companies acquiring chunks of market share. The market is highly concentrated in places like Dubai and Abu Dhabi ports and free zones. The rising urban population, developed transport infrastructure in these regions along with the proximity to the sea and air ports has been the key factors leading to the growth of the cold chain businesses in these areas. The cold chain companies in the country compete on a host of parameters such as location, price, temperature range, product range, warehouse infrastructure, industry expertise, clientele, etc. Major players in the cold chain market include GAC, GSL, Mohebi Logistics, CEVA Logistics, RHS, Hellmann, DB Schenker and others.

UAE Cold Chain Market Future Outlook and Projections

The Cold Chain market in UAE is expected to experience medium level of growth at a single digit CAGR in terms of revenue during the period 2020-2025F. Positive growth in the market is attributed to rise in manufacturing activity in the pharmaceutical sector, investments in infrastructure, growth in dairy industry and rising import export volumes. The industry is expected to witness entry of new players and new mergers and acquisition between the players. Additionally, increasing adoption of warehouse automation technologies such as EDI, RFID, AS/AR and others are expected to improve operational efficiency in UAE cold chain market over the forecast 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
  • Othe

Request For Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTE1MTg1

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

Competition Benchmarking of Top Logistics Players in UAE in Transportation, Warehousing, 3PL, International Express, Domestic Express, Automotive, Pharma, Oil and Gas and Retail Logistics

UAE E-Commerce Logistics Market Outlook to 2025 – Driven By Growth in Online Shoppers Along With Introduction of New Age Technologies by Logistics Players

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