Saudi Arabia Chain Logistics Market Size (2024 - 2029)

The Saudi Arabia cold chain logistics services market is experiencing significant growth, driven by an increasing urban population and shifting consumer preferences that demand enhanced refrigerated storage and transport solutions. Despite the rapid expansion of the market for refrigerated and frozen products, challenges such as limited integrated supply chains and a lack of standardization hinder the implementation of effective cold chain systems. The COVID-19 pandemic has further transformed the sector, impacting operations, supply chains, and regulations. Additionally, the burgeoning halal food market and the pharmaceutical industry in Saudi Arabia are key sectors fueling the demand for cold chain logistics, supported by government incentives that encourage domestic and international collaborations.

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Market Size of Saudi Arabia Chain Logistics Industry

Saudi Arabia Chain Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.51 Billion
Market Size (2029) USD 2.60 Billion
CAGR (2024 - 2029) 11.39 %
Market Concentration Low

Major Players

Saudi Arabia Chain Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Chain Logistics Market Analysis

The Saudi Arabia Chain Logistics Market size is estimated at USD 1.51 billion in 2024, and is expected to reach USD 2.60 billion by 2029, growing at a CAGR of 11.39% during the forecast period (2024-2029).

  • The growing urban population and changing consumer perceptions have boosted the demand for refrigerated storage and transport. The market for refrigerated/frozen products is rapidly growing in Saudi Arabia. However, implementing the cold chain in Saudi Arabia involves several challenges. One of the major challenges is the lack of integrated supply chains or limited integrated supply chains from farm to fork, coupled with the lack of standardization.
  • The COVID-19 pandemic has overturned the cold chain logistics sector through massive changes in operations, supply chains, regulations, and workforce requirements. It has also transformed the market with a lasting impact on the future. The Saudi Arabian halal food market has grown due to increased demand for packaged halal foods among non-Muslims, strong import and export regulations and policies regarding halal food and products, and an increasing Muslim population in the country.
  • Another key sector that requires cold chain logistics is the pharmaceutical industry, which is growing rapidly in Saudi Arabia. Different government-sponsored incentive schemes enabled several domestic players to form joint ventures and collaborations with global and regional pharma corporations, intending to grow domestic manufacture and supply to various sections of the country.

Saudi Arabia Chain Logistics Industry Segmentation

Cold chain logistics comprises establishments primarily engaged in operating refrigerated warehousing, storage facilities, and transportation of goods in temperature-controlled vehicles. The services provided by these establishments include blast freezing, tempering, and modified atmosphere storage services. A complete background analysis of the Saudi Arabia Cold Chain Logistics Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The Saudi Arabian cold chain logistics market is segmented by Service (Storage, Transportation, and Value-added Services), by Temperature (Chilled and Frozen), and by End User (Horticulture, Dairy Products, Meats, Fish, and Poultry, Processed Food Products, Pharma and Life Sciences, and Other End Users). The report offers the market sizes and forecasts for the Saudi Arabian cold chain logistics market in value (USD Million) for all the above segments.

By Service
Storage
Transportation
Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
By Temperature
Chilled
Frozen
By End User
Horticulture (Fresh Fruits and Vegetables)
Dairy Products (Milk, Ice-cream, Butter, etc.)
Meats, Fish, and Poultry
Processed Food Products
Pharma and Life Sciences
Other End Users
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Saudi Arabia Chain Logistics Market Size Summary

The cold chain logistics services market in Saudi Arabia is experiencing significant growth, driven by increasing urbanization and evolving consumer preferences that demand efficient refrigerated storage and transport solutions. The market is expanding rapidly, particularly in sectors such as halal food and pharmaceuticals, which are seeing heightened demand due to regulatory frameworks and demographic shifts. The pharmaceutical industry, in particular, is benefiting from government incentives and strategic partnerships with global corporations, aiming to enhance domestic production and reduce import dependency. The healthcare sector's reforms and the rise in health insurance penetration are further propelling the demand for cold chain logistics, as the country seeks to localize a substantial portion of its pharmaceutical needs.

Saudi Arabia's position as a leading importer of food and agricultural products within the Gulf Cooperation Council (GCC) underscores the critical role of cold chain logistics in maintaining the supply of perishable goods. The country's high consumption of poultry and red meat, coupled with its reliance on imports from major meat-producing nations, necessitates robust cold storage and transportation solutions. The market is characterized by fragmentation, with rising costs prompting companies to adopt automation and advanced technologies to enhance efficiency. Major players are investing in large-scale logistics parks, such as the one being developed by A. P. Moller - Maersk and Saudi Ports Authority, to accommodate the growing demand for cold chain facilities and support the burgeoning eCommerce sector.

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Saudi Arabia Chain Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Government Regulations and Initiatives

    5. 1.5 Technological Trends and Automation in Cold Storage Facilities

    6. 1.6 Industry Value Chain / Supply Chain Analysis

    7. 1.7 Porters Five Force Analysis

      1. 1.7.1 Threat of New Entrants

      2. 1.7.2 Bargaining Power of Buyers/Consumers

      3. 1.7.3 Bargaining Power of Suppliers

      4. 1.7.4 Threat of Substitute Products

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Insights into Refrigerants and Packaging Materials used in Refrigerated Warehouses

    9. 1.9 Insights into Multi-temperature Controlled Vehicles

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. Market Segmentation

    1. 2.1 By Service

      1. 2.1.1 Storage

      2. 2.1.2 Transportation

      3. 2.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)

    2. 2.2 By Temperature

      1. 2.2.1 Chilled

      2. 2.2.2 Frozen

    3. 2.3 By End User

      1. 2.3.1 Horticulture (Fresh Fruits and Vegetables)

      2. 2.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)

      3. 2.3.3 Meats, Fish, and Poultry

      4. 2.3.4 Processed Food Products

      5. 2.3.5 Pharma and Life Sciences

      6. 2.3.6 Other End Users

Saudi Arabia Chain Logistics Market Size FAQs

The Saudi Arabia Chain Logistics Market size is expected to reach USD 1.51 billion in 2024 and grow at a CAGR of 11.39% to reach USD 2.60 billion by 2029.

In 2024, the Saudi Arabia Chain Logistics Market size is expected to reach USD 1.51 billion.

Saudi Arabia Cold Chain Logistics Services Market Report Snapshots

Saudi Arabia Cold Chain Logistics Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)