Press release
South Africa Cold Chain Market Set to Surpass $13 Billion by 2029 Amid Rising Demand and Infrastructure Growth
Trends Defining the Future
• The increasing adoption of technologies, such as IoT sensors, real time monitoring and GPS tracking has enhanced the efficiency of cold chain logistics in South Africa. These technologies help maintaining and monitoring temperature control ensuring reduce wastage and improving product integrity.
• South Africa market is investing heavily in cold storage facilities, including construction of warehouses spanning 25,500 square meters with an investment plan of $10 million by 2025. This can accommodate 37,000 pallets, enhancing the region's capabilities in exporting frozen goods. The development is initiative to strengthen infrastructure and reduce cost.
• Recent initiatives by governments aims to improve transport facilities and support agriculture and pharmaceutical sectors in the South Africa market. The National Transport Master Plan 2050, is likely to boost the cold chain logistic sector in South Africa by enhancing multimodal transport systems.
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Competition Landscape in South Africa Cold Chain Market
The South Africa cold chain Sector is highly competitive and fragmented. This market is characterized by mix of both domestic and international players competing for market share. Key players dominating the market include Imperial Logistics, DSV A/S, and Barloworld Logistics. Imperial logistics offers comprehensive range of services like contract logistics, road freight, and lead logistics provider solutions has reported revenue of $3.75 billion in 2024. On the other has DSV A/S with headquartered in Denmark and a reported revenue of $6.17 billion in 2024, provides wide range of services such as air and sea freight.
Power Outages & Rising Tariffs
Despite several advancements, South Africa cold chain market faces frequent power outages. This power outages also known as load-shedding which sometimes last up to 10 hours a day, interrupts the continuous operations of refrigeration systems leading to the risks of temperature sensitive products and increasing operational costs for providers by 30-40%. Furthermore, the 18.65% increase in the electricity tariffs as of 2024, following an already a major 15% hike in 2023 also acts as a major challenge for the cold chain providers in South Africa.
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Future Outlook
The development of the cold chain market in South Africa is driven by investment activity, government support, infrastructure development and technological advancement. As a result, the market is expected to exceed $13 billion by 2029, growing at an annual average rate of 7.94% during the forecast period. The issue of regular load shedding and the increase in power tariffs over the last two years by 33.65% remains a challenge. With increasing regional cold chain demand and domestic and international players competing for the market, South Africa solidify its role as leading cold chain hub.
Get an In-Depth Research Analysis of the South Africa Cold Chain Market Size and Forecast [2023-2029] https://www.tracedataresearch.com/industry-report/south-africa-cold-chain-market
Consultant at TraceData Research In their latest publication "South Africa Cold Chain Market Outlook to 2029: By type (Refrigerated Storage, Refrigerated Transportation), By temperature range (Chilled (0°C to 5°C), Frozen (-18°C to -25°C), Super-Frozen (Below -25°C)) and By end user industry (Food and Beverage, Pharmaceuticals and Healthcare, Retail and Supermarkets, Agriculture and Chemicals)" believe that investment in advanced monitoring technologies and renewable energy solutions is crucial for growth in the South Africa cold chain market.
Explore Our Other Related Report by Trace Data: -
Nigeria Cold Chain Market- https://www.tracedataresearch.com/industry-report/nigeria-cold-chain-market
UAE Cold Chain Market-https://www.tracedataresearch.com/industry-report/uae-cold-chain-market
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