Africa Food Cold Chain Logistics Market Size (2024 - 2029)

Africa Food Cold Chain Logistics Market Analysis

The Africa Food Cold Chain Logistics Market size in terms of gross merchandise value is expected to grow from USD 9.19 billion in 2024 to USD 13.28 billion by 2029, at a CAGR of 7.94% during the forecast period (2024-2029).

Changes in lifestyle and urbanization contributing to increased domestic consumption of processed foods and a shift in consumption patterns, including increased consumption of fresh fruits, as people become more health concerned, need to address food wastage and ensure food security, are the factors assisting the market's growth.

The climate change crisis has significantly contributed to the dire food insecurity and food wastage in Africa. Over one-third of food produced in Africa is estimated to be lost to spoilage or waste. The United Nations Food and Agriculture Organization estimates that over 40% of food in Sub-Saharan Africa perishes before it reaches a consumer. This can be as high as 60% for fresh produce in Sub-Saharan Africa.

The leading cause of food wastage is spoilage due to the lack of cold storage facilities to extend the shelf life, especially temperature-sensitive food items. Farmers and agri-traders in Africa rely on makeshift coolers or outdated, generic cold rooms. These systems are unreliable, poorly maintained, and have high operational costs.

Cold storage or cold supply chain products can help reduce spoilage and maintain quality and efficacy, but they require sufficient electricity to work effectively. In Africa, according to the African Development Bank (AfDB), electricity is out of reach for more than 640 million people, and the ability to sustainably maintain constant cold temperatures remains a challenge. There is an urgent need to deploy resilient, reliable, and sustainable cold chains to tackle food and medicine losses in Africa.

Several startups in Africa are innovating digital solutions to respond to emerging challenges. These startups offer cold storage products and solutions that are energy-efficient and compliant with export standards. They are also affordable and well-equipped with temperature and performance monitoring systems.

According to a Cold Chain Storage industry report, the cold chain infrastructure is developing in East Africa, with cold chain infrastructure in Southern Africa being more developed and geared toward exporters.

Africa Food Cold Chain Logistics Industry Segmentation

A cold chain is a temperature-controlled supply chain. Cold chain logistics is a technology and process that enables the safe transportation of temperature-sensitive goods and products along the supply chain. The market size captures the revenue accrued by the logistics companies by providing services such as transportation, storage, and other value-added services. The current market report scope captures only cold chain logistics spending related to food cold chain and does not include other products such as pharmaceuticals and chemicals.

The African food cold chain logistics market is segmented by service (storage, transportation, and value-added services), temperature (chilled, frozen, and ambient), product category (horticulture, dairy products, meat, poultry, and seafood, processed food products, and other categories), and country (Egypt, Nigeria, South Africa, and other countries). The report offers market size and forecast in value (USD) for all the above segments.