Report Overview

An increasing number of refrigerated warehouses, growing processed food sector, and a spurring demand from the pharmaceutical sector are propelling the growth of Vietnam Cold Chain Logistics Market during the forecast period between 2023 and 2029.

Vietnam Cold Chain Logistics Market – Industry Trends & Forecast Report, 2029

Vietnam cold chain logistics market size is projected to grow at a CAGR of 12.24% during the forecast period between 2023 and 2029. The Vietnam cold chain logistics market is growing due to an increasing demand for fresh and frozen foods and beverages, rising demand for pharmaceuticals, vaccines, and healthcare products that require temperature-controlled transportation and storage is also contributing to the growth. Also, the growth of e-commerce and online grocery delivery services is fueling demand for cold chain logistics. The government initiatives to improve food safety and hygiene standards are driving the adoption of cold chain logistics. Technological advancements in refrigeration, tracking, and monitoring systems are enabling more efficient and reliable cold-chain logistics operations.

Vietnam Cold Chain Logistics Market - Overview

Cold chain logistics refers to the management of temperature-sensitive products, such as perishable foods, pharmaceuticals, and vaccines, throughout the supply chain. It involves the use of temperature-controlled facilities, equipment, and transportation to maintain product integrity and safety from the point of origin to the point of consumption. The cold chain starts from the manufacturer or producer and includes storage, transportation, and distribution until the final destination. The temperature is carefully monitored and maintained at a specific level throughout the cold chain, and any deviations can result in product degradation, spoilage, or even harm to consumers. Effective cold chain logistics is crucial for ensuring product quality, safety, and efficacy.

Growth Drivers

Increasing Demand for Fresh and Frozen Foods

Vietnam cold chain logistics market is poised for significant growth during the forecast period, due to the increasing demand for fresh and frozen foods in the country. With a rising middle class and a growing population, more Vietnamese consumers are increasingly seeking out high-quality food products that require strict temperature-controlled transportation and storage. This has led to a surge in demand for cold chain logistics services, which enable the safe and efficient movement of perishable goods from producers to retailers and end consumers. Thus, companies involved in the Vietnam cold chain logistics market are expected to see strong growth in the coming years, driven by the increasing demand for fresh and frozen foods.

Restraints

Lack of Proper Infrastructure and Technology

Vietnam's cold chain logistics market is experiencing significant growth due to the increasing demand for fresh and frozen products. However, the market is facing several restraints that hinder its potential growth. One of the major challenges is the lack of proper infrastructure for cold chain logistics, including temperature-controlled storage facilities and transportation systems. This leads to inefficiencies and high logistics costs. Also, there is a shortage of skilled labor and expertise in cold chain management. Another significant restraint is the lack of adoption of advanced technologies, such as automation and IoT, which could improve operational efficiency and reduce wastage. These challenges need to be addressed to unlock the full potential of Vietnam's cold chain logistics market.

Impact of COVID-19 on the Vietnam Cold Chain Logistics Market

The COVID-19 pandemic significantly impacted the Vietnam cold chain logistics market. With the surge in demand for healthcare products, including vaccines and medical supplies, the need for temperature-controlled storage and transportation increased. The pandemic also highlighted the importance of maintaining a robust and efficient cold chain system to ensure the safety and efficacy of vaccines and other temperature-sensitive products. Hence, the Vietnam government has taken steps to invest in the country's cold chain infrastructure, including building new facilities and upgrading existing ones. Despite the challenges posed by the pandemic, the Vietnam cold chain logistics market is expected to continue to grow during the forecast period.

Vietnam Cold Chain Logistics Market

Segmental Coverage

Vietnam Cold Chain Logistics Market – By Type

On the basis of type, Vietnam cold chain logistics market is divided into Warehousing and Transportation segments. The transportation segment is further classified into Railways, Airways, Roadways, and Waterways subsegments. The transportation segment is a higher contributor to the Vietnam cold chain logistics market. It involves the movement of temperature-sensitive goods from one place to another, such as from warehouses to retail outlets or directly to consumers. This segment is essential for maintaining the quality and safety of perishable goods during transportation, including food, pharmaceuticals, and other sensitive products. The Vietnam cold chain logistics market also includes other segments such as warehousing, but transportation remains the most significant segment due to its critical role in ensuring the efficiency and effectiveness of the entire cold chain logistics system.

Vietnam Cold Chain Logistics Market – By End User

On basis of end user, Vietnam cold chain logistics market is divided into Fruits & Vegetables, Bakery & Confectionary, Dairy & Frozen Desserts, Meat, Fish & Sea Food, and Drugs & Pharmaceuticals segments. The market is divided into various sectors based on the type of product being transported, with fruits and vegetables being one of the largest segments. These products require specific temperatures, humidity, and ventilation to maintain their quality and freshness during transportation and storage. The demand for Vietnam cold chain logistics market is increasing due to the country's growing economy and rising demand for high-quality and fresh fruits and vegetables.

Competitive Landscape

Major players in Vietnam cold chain logistics market include Americold Logistics LLC, Burris Logistics, Cold Box, Conestoga Cold Storage, Congebec, Lineage Logistics Holdings LLC, Nichirei Corporation, and Tippmann Group. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Type

• Warehousing

• Transportation

1. Railway

2. Airways

3. Roadways

4. Waterways

By End User

• Fruits & Vegetables

• Bakery & Confectionary

• Dairy & Frozen Desserts

• Meat, Fish & Sea Food

• Drugs & Pharmaceuticals

• Others