Showing posts with label UAE Cold Transportation Market Size. Show all posts
Showing posts with label UAE Cold Transportation Market Size. Show all posts

Thursday, April 14, 2022

UAE Cold Chain Market Research Report with Size, Share, CAGR Status, Future Outlook, Growth Analysis, Key Manufacturers and Forecast 2025: Ken Research

Overview: UAE contributes to the second highest revenue share in the cold chain sector in the GCC region. It has consolidated its position as a global transshipment 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. Considering the very high temperature and humidity levels observed in the UAE most of the year, cold supply chain logistics practices have become more important to the businesses in the country. There is a boom in the construction of refrigerated facilities in the UAE. Heavy government and direct foreign investments in transportation and storage infrastructure to reduce dependence on oil exports; increase in retail and consumer spending especially in groceries, dairy, meat, international food and growing food demand from the increasing flow of tourists for Expo 2020 are some of the major growth drivers.

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

Market: The cold chain industry is in growth stage amounting to USD ~ Mn revenue in 2020, growing at a CAGR of ~% during the period 2015-2020. Meat & Sea Food, Dairy and Pharmaceuticals are important end users for cold chain market in UAE. The pharmaceutical sector has witnessed a higher growth rate especially after the pandemic and the UAE government has taken several initiatives to enhance the infrastructure for the same.

The UAE cold chain market was slightly disrupted due to Covid-19. However, the industry did not declined much owing to the nature of the industry which deals in the perishable products and cold storage warehousing market has gained higher traction in comparison to other logistics market. The market operations are concentrated in two major emirates: Dubai and Abu Dhabi, where majority of cold warehouses are located in free-zones in such as Jebel Ali Free Zone, DIP, DIC, Al Aweer, etc.

UAE Cold Chain Market Segmentation

By Cold Warehousing & Cold Transportation: The cold storage market is dominating the market and contributed majority revenue share to the cold chain industry. Cold Transportation caters to distribution of food and pharma domestically and internationally via land, sea and air. 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, increasing import of perishables, tech advancements and growing end users in emerging markets. Seasonal surge in demand is seen especially during the Ramadan festival.

UAE Cold Warehousing Market Segmentation: 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.

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UAE Cold Transportation Market Segmentation

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.

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.

Competition Scenario in UAE Cold Chain Market

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, number of pallets, 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.

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