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Increase in Number of Refrigerated Warehouses, Growth in Pharmaceutical Sector and High Demand for Perishable Products such as Dairy, Meat and Seafood will drive the UAE Cold Chain Market: Ken Research

07-05-2022 07:23 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Ken Research Pvt Ltd

Increase in Number of Refrigerated Warehouses, Growth

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

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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.

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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
By Ownership
By End-User Application
Meat and Seafood
Dairy Products
Vegetables and Fruits
By Major Emirates
Abu Dhabi
By Major Areas
Al Aweer
Cold Transport
By Mode of Freight
By Type of Freight
By Contract and Integrated Logistics
By End-User Application
Meat and Seafood
Dairy Products
Vegetables and Fruits

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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

DB Schenker
Khalidia Shipping
Kuehne and Nagel
Al Futtaim
DSV Panalpina
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

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Ken Research
Ankur Gupta, Head Marketing & Communications

Ken Research Pvt. Ltd.,
Unit 14, Tower B3, Spaze I Tech Business Park, Sohna Road, sector 49 Gurgaon, Haryana - 122001, India

Ken Research is a research based management consulting company. We provide strategic consultancy to aid clients on critical business perspective: strategy, marketing, organization, operations and technology transformation, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies. We provide business intelligence and operational advisory across 300+ verticals underscoring disruptive technologies, emerging business models with precedent analysis and success case studies. Some of top consulting companies and Market leaders seek our intelligence to identify new revenue streams, customer/ vendor paradigm and pain points and due diligence on competition.

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