Saudi Arabia Cold Chain Logistics Market
Saudi Arabia Cold Chain Logistics Market Size Zooming 2.6X at Robust CAGR of 17.7% to Reach USD 9.4 Billion by 2029
Published | 03 November 2023
Saudi Arabia cold chain logistics market is flourishing due to a growing demand for temperature-sensitive goods, expansion of the food and pharmaceutical industries, government initiatives to improve supply chain infrastructure, and the need to comply with stringent regulations for the safe transportation of perishable products.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Saudi Arabia cold chain logistics market size at USD 3.54 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Saudi Arabia cold chain logistics market size to grow at a robust CAGR of 17.7% reaching a value of USD 9.4 billion by 2029. The driving factors of the Saudi Arabia cold chain logistics market include the growing demand for temperature-sensitive goods, such as pharmaceuticals and perishable foods, due to population growth and changing consumer preferences. Government initiatives to promote food safety and quality standards are boosting investments in cold chain infrastructure. Also, the expansion of the healthcare sector and increasing pharmaceutical production necessitate efficient cold chain solutions. Further, globalization and international trade are driving the need for robust cold chain networks to maintain product integrity during transportation. These factors, coupled with advancements in technology and an increasing focus on sustainability, are propelling the growth of the Saudi Arabia cold chain logistics market.
Cold Chain Logistics – Overview
Cold chain logistics is a specialized supply chain process that involves the storage, transportation, and handling of temperature-sensitive products, such as food, pharmaceuticals, and vaccines. Maintaining a consistent low temperature throughout the entire journey is essential to preserve product quality and safety. This process typically includes refrigerated storage, insulated packaging, temperature monitoring, and specialized transportation equipment. Cold chain logistics plays a critical role in ensuring that perishable goods reach consumers in optimal condition, preventing spoilage and maintaining product efficacy, making it vital for industries reliant on maintaining specific temperature conditions during distribution.
Prolonging Israel-Hamas War Could Escalate Geopolitical Tensions across Middle East and other Regions
The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war.
Also, the war in West Asia and escalating geopolitical tensions in West Asia and Middle East will affect industries across verticals and regions. Instability in the region, including conflicts and trade disputes, often disrupts the flow of raw materials and the manufacturing process, leading to uncertain supply levels and increased costs. Also, the heavy reliance on imported components for cold chain logistics exacerbates vulnerability to global disruptions. These geopolitical and supply chain challenges hamper the market's growth potential, making it crucial for industry stakeholders to navigate these complexities for sustained success.
Impact of COVID-19 on Saudi Arabia Cold Chain Logistics Market
The COVID-19 pandemic significantly impacted the Saudi Arabia cold chain logistics market. With the urgent need for the efficient distribution of vaccines and medical supplies, the demand for cold storage and transportation solutions surged. The sector witnessed increased investments in temperature-controlled facilities and advanced refrigeration technologies to ensure the safe storage and transport of sensitive healthcare products. This pandemic-induced focus on cold chain logistics not only bolstered the healthcare sector but also spurred growth in the food and pharmaceutical industries, as stringent temperature control measures became a priority for various goods, driving long-term expansion and modernization in the Saudi Arabian cold chain logistics market.
Saudi Arabia Cold Chain Logistics Market - By End Use Industry
By end use industry, Saudi Arabia cold chain logistics market is divided into Fruits & Vegetables, Bakery & Confectionary, Dairy & Frozen Desserts, Drugs & Pharmaceuticals, Meat, and Fish & Sea Food segments. The pharmaceuticals segment is the largest in the Saudi Arabia cold chain logistics market. This segment plays a crucial role in ensuring the safe and efficient distribution of pharmaceutical products, vaccines, and other healthcare-related items that require strict temperature control. Given the growing healthcare industry and the increasing demand for pharmaceuticals in Saudi Arabia, the drugs & pharmaceuticals segment witnessed significant growth. It stands out as the most prominent category within the cold chain logistics market, ensuring the integrity and effectiveness of vital medical supplies throughout the country.
Saudi Arabia cold chain logistics market is fiercely competitive. Major companies in the market include Americold Logistics Lineage Logistics Holdings, Nichirei Corporation, Burris Logistics, Agro Merchants Group, Kloosterboer, Tippmann Group, and VersaCold Logistics Services. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in Saudi Arabia cold chain logistics market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Saudi Arabia Cold Chain Logistics Market. It also highlights the factors driving forecasts of total Market size. The report promises to provide recent technology trends in Saudi Arabia Cold Chain Logistics Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Saudi Arabia Cold Chain Logistics Market, By Business Type (Warehousing, Transportation (Railways, Airways, Roadways, Waterways); By End-use Industry (Fruits & Vegetables, Bakery & Confectionary, Dairy & Frozen Desserts, Drugs & Pharmaceuticals, Meat, Fish & Sea Food), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: November 2023
A growing demand for temperature-sensitive goods, expanding pharmaceutical and food industries, stringent quality and safety regulations, increased international trade, and a focus on reducing food waste, which require efficient and reliable cold chain infrastructure, are expected to contribute to the growth of the Saudi Arabia Cold Chain Logistics Market during the forecast period between 2023 and 2029.
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