BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the UAE cold chain logistics market size at USD 2.37 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the UAE cold chain logistics market size to grow at a CAGR of 8.1% reaching a value of USD 4.09 billion by 2029. Rising consumer demand for high-quality packaged and frozen food goods, as well as the country’s rigorous food safety rules, are major growth drivers for the UAE cold chain logistics market. Furthermore, economic diversification, as well as the country’s thriving tourism and hospitality industry, are expected to provide lucrative growth opportunities for the UAE cold chain logistics market over the period in analysis.
UAE 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.
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UAE Cold Chain Logistics Market
Segmental Information
UAE Cold Chain Logistics Market – By Temperature
Based on temperature, the UAE cold chain logistics market is split into frozen and chilled segment. The frozen segment accounts for a higher share of the market by temperature. Several products, certain vegetables, such as peas and meat (poultry and beef), are required to be kept at the frozen temperature (-18° to -25°) to remain fresh. Furthermore, the demand for frozen food among urban cities owing to the change in consumption patterns of consumers is also influencing the growing demand for frozen cold chain logistics in the market.
Impact of COVID-19 on the UAE Cold Chain Logistics Market
The unprecedented COVID-19 pandemic proliferated the growth of the UAE cold chain logistics market. The market has gained significant traction in medical supplies and the pharmaceutical industry. The rising demand for healthcare products, such as vaccinations and medical supplies, raised the demand for temperature-controlled storage and delivery. The pandemic also brought to light the significance of maintaining a strong and effective cold chain infrastructure to protect the safety and efficacy of vaccinations and other temperature-sensitive items. As a result, the UAE government has made efforts to invest in the country’s cold chain infrastructure, including the construction of new facilities and the upgrade of existing ones.
Competitive Landscape
Major players operating in the UAE cold chain logistics market include Agility Logistics, Emirates SkyCargo, Aramex, Gulf Drug, DHL Supply Chain, Al-Futtaim Logistics, Transmed, Owaisis Group, Al Reyami Group, and Agthia Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
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