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3 Tailwinds That Will Make UAE Cold Chain Market to Generate Over USD 1 Bn by 2025. Will UAE be able to achieve That Mark?

05-25-2023 09:09 AM CET | Logistics & Transport

Press release from: Ken Research

3 Tailwinds That Will Make UAE Cold Chain Market to Generate Over

The cold chain market in the UAE has increased from around USD 700 Mn in 2015 to USD 900 Mn in 2020, owing to rising grocery retail spending in the country, increasing number of establishments, as per the findings by Ken Research.

1.The value of the Emirati food and groceries market grew at around 6% in 2020.

In 2022, the total retail value excluding sales tax of grocery retailers in the United Arab Emirates touched around 24 bn U.S. dollars, up from around 22 bn U.S. dollars in the previous year. Food retail holds the largest share of the UAE retail market, and it is expected to continue to be the dominant market sector in the future.

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2. SPENDING ON LOGISTICS INFRASTRUCTURE: Major investments to help the Cold Chain Market to grow at around CAGR 7% by 2025
Construction projects worth USD 3.1 bn were announced across GCC in May, 2020 with UAE contributing 55% of the value of total new announcements. Below are few of the investments that the following Emirates has made to this sector - Sharjah had announced plans to spend USD 2.6 bn on infrastructure development as part of its 2020 budget prioritizing capital investments on road and tunnels with a 2% increase from 2019, Abu-Dhabi has announced plans to launch infrastructural projects worth USD 2.72 bn under the public-private partnership model.

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3. UAE secures first rank regionally and 25thrank globally among top 141 countries of the world.

UAE is one of the world's most developed economies and has world-class facilities in terms of roads, airports, sea ports, telecommunications and growing rail network which accelerates economic growth and welfare. Maintaining growth of infrastructural facilities is one of the important pillars of National Agenda. According to the Global Competitiveness report published by World Economic Forum 2019 Edition, it was found that in terms of infrastructure, UAE secures first rank regionally and 25thrank globally among top 141 countries of the world.

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Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.Our Solutions are driven by qualitative and quantitative evaluation of markets across diverse Sectors and Geographies. We assist clients in their objectives related to market entry, product pricing, Product-fit evaluation, competition benchmarking, forecasting business planning and financial planning.

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