UAE Cold Chain Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 5.00 % |
| Market Concentration | Low |
Major Players.webp "UAE Cold Chain Logistics Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
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UAE Cold Chain Logistics Market Analysis
The UAE cold chain logistics market is expected to register a CAGR of more than 5% during the forecast period of 2023-2028.
The UAE has a well-established cold chain logistics industry and is one of the most innovative markets in the MENA region regarding skills development for this sector as well. The supply chain has become essential in productivity improvements, extending competitiveness, and increasing productivity levels.
Consequently, consumers increasingly demand extended shelf life and an optimum level of product quality, making logistics management more important than ever before. The demand for refrigeration products and services is expected to be driven by the rising number of consumers looking for convenience in their routine shopping. The increasing demand for food quality, availability, and delivery has resulted in the rising importance of cold chain logistics in the global food distribution sector.
The cold chain business profited from the COVID-19 epidemic in the UAE. Increased demand for cold chain facilities, such as storage and transportation, particularly for pharmaceutical products, has been the primary driver of market expansion.
Due to the nationwide lockdown caused by the global epidemic of Covid-19 in 2020, the market's growth was slightly slowed down. Increased retail distribution, expanding end consumers in developing economies, rising perishables imports, and technological improvements like Transport Management Systems utilized by cold chain operators are some of the major growth factors.
UAE Cold Chain Logistics Market Trends
This section covers the major market trends shaping the UAE Cold Chain Logistics Market according to our research experts:
Dominance of 3PL Companies over Cold Chain logistics
Since the UAE government has implemented initiatives like the National Innovation Strategy, the Dubai IoT strategy, the Dubai Blockchain strategy, the introduction of drones for last-mile delivery, the UAE National AI program, Smart Dubai, the Dubai 3D printing strategy, and the Dubai Data Initiatives, 3PL companies in the UAE are focusing on the logistics and warehousing market, as well as cold storage, dry storage, and supporting retail facilities. Since the majority of cold storage warehouses are currently concentrated in Dubai and Abu Dhabi, several 3PL companies sought to expand their operations to these other locations as well in order to take advantage of the industry's expanding potential.
The UAE government offers a variety of services to non-governmental organizations, relief organizations, as well as their manufacturers and suppliers, including air and ocean freight, customs clearance, warehousing, and local distribution of aid materials. These services are supported by data analytics and control tower services that are intended to boost freight visibility for urgent and complex emergencies.
The value of the inbound foreign direct investment is expected to expand at a 4% annual rate, according to the UNCTAD World Investment Report 2022. Compared to USD 19.884 billion (AED 73.04 billion) in 2020, the overall amount of foreign investment inflows in 2021 was USD 20.7 billion (AED 76 billion). Due to its business-friendly regulations, first-rate infrastructure, and structural improvements aimed at diversifying the economy, the UAE will continue to be a major source of foreign direct investment (FDI) into the region.
CEO of Business Link Hatem El Safty said that the UAE will bring in a significant portion of the USD 66 billion in possible FDI inflows into the Middle East, North Africa, and Pakistan (MENAP) in 2023 because foreign investors find the emirate to be a prime location for investment. Referring to a recent survey from the Institute of International Finance, he stated that the emirate is anticipated to bring in USD 22 billion in FDI this year as a result of its business and visa reforms, while the MENAP area is anticipated to bring in USD 56 billion. The UAE attracted foreign investments in a variety of sectors in 2022. The country is putting various measures into place to encourage investment in the industrial sector and increase its contribution to AED 300 billion (USD 81.68 billion) from AED133 billion within 10 years. The oil and gas sector accounts for 59% of total FDI contributions, followed by 10% in IT and communications.
Rising Imports of Food Products and Pharmaceuticals
With a population of 9.9 million, the United Arab Emirates (UAE) is expected to see real GDP growth of 3% in 2022. Demand for premium, organic, and specialty foods is growing as a result of rising incomes, shifting consumer preferences, and a robust tourism industry. The desire for western-style meals is being fueled in part by a sizable expatriate population. Many hyper/supermarkets offer a large variety of food.
To draw manufacturing and service businesses, Dubai has created Jebel Ali, the largest cargo port in the Middle East, as well as several free trade zones. The UAE serves as a regional commercial hub for the supply of agriculture and food. In Dubai's growing commerce sector, food is imported from the United States, the United Kingdom, France, Brazil, and Saudi Arabia. Dubai exports food to countries such as the US, UK, Germany, China, India, and Japan.
Dubai has developed into the busiest and most international food trading hub in the Middle East as the gateway to the African and Arab markets. The business of importing food and seafood into Dubai is one of the most important components of Dubai's economy. Dubai imported 9.9 million tonnes of food goods for AED57 billion in 2021 to meet demand, and this amount is likely to rise as Dubai's food consumption rises at a rate of 11% annually.
The number of pharmaceutical import shipments into the United Arab Emirates totaled 15.7K, and they came from 555 Suppliers. Most of the pharmaceuticals in the United Arab Emirates are imported from Germany, Mexico, and India. The top 3 pharmaceutical imports are India (350,268 shipments), the United States (180,047 shipments), and Pakistan (149,113 shipments), in that order.
UAE Cold Chain Logistics Industry Overview
Large enterprises are claiming a sizable portion of the extremely fragmented UAE cold chain sector. The market is mostly centered on areas like Dubai and Abu Dhabi's ports and free zones. These areas have seen a growth in cold chain businesses as a result of their closeness to the sea and airports, rising metropolitan populations, well-developed transportation infrastructure, and well-developed transit systems. The grounds on which cold chain companies compete in the nation include location, cost, temperature range, product range, warehouse infrastructure, and industry experience.
Additionally, international companies are making investments in the sector and buying regional companies to increase their presence in the area. Similar investments in cold chain infrastructure are being made by regional enterprises to compete with multinational corporations. Additionally, businesses are putting more money into logistics for fruits, vegetables, flowers, cosmetics, and consumer goods. They are also attempting to strengthen the cold chain.
Major players in the cold chain market are GAC Dubai, GSL Logistics, Mohebi Logistics, CEVA Logistics, RHS Logistics, and others.
UAE Cold Chain Logistics Market Leaders
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CEVA logistics
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Mohebi Logistics
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RHS Logistics
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GAC Dubai
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Global Shipping And Logistics LLC
*Disclaimer: Major Players sorted in no particular order
UAE Cold Chain Logistics Market News
- April 2022: At the 16th annual Logistics Middle East Awards hosted at the Grosvenor House in Dubai, United Arab Emirates, GAC Dubai was recognized as the FMCG Supply Chain of the Year winner for its outstanding service to the region's dynamic Fast Moving Consumer Goods (FMCG) industry.
- March 2022: The first Integrated Logistics Center of Maersk, a business that specializes in integrated container logistics, was established in Dubai, United Arab Emirates. Fast-moving consumer goods (FMCG), technology, cars, retail and leisure, petrochemicals, and other industries will all be represented in the facility's vast range of products. The location of the building is ideal, providing easy access to the Al Maktoum International Airport and seaport operations. This will make it possible for the facility to serve both customers who need air cross-docking and those who are shipping LCL cargo.
UAE Cold Chain Logistics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Services
- 5.1.1 Storage
- 5.1.2 Transportation
- 5.1.3 Value Added Services(Blast Freezing, Labeling, Inventory Management)
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5.2 By Temperature Type
- 5.2.1 Chilled
- 5.2.2 Frozen
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5.3 By End Users
- 5.3.1 Horticulture (Fresh Fruits & Vegetables)
- 5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
- 5.3.3 Meats, Fish, Poultry
- 5.3.4 Processed Food Products
- 5.3.5 Pharma and Life Sciences
- 5.3.6 Others
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 GAC Dubai
- 6.2.2 Global Shipping And Logistics LLC
- 6.2.3 CEVA Logistics
- 6.2.4 RHS Logistics
- 6.2.5 Mohebi Logistics
- 6.2.6 Al-Futtaim Logistics
- 6.2.7 Hellman Worldwide Logistics
- 6.2.8 DB Schenker: Global Logistics Solutions
- 6.2.9 MH Khoory Trading & Ship Chandlers LLC
- 6.2.10 Tameem Logistics
- 6.2.11 Khalidia Shipping*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
UAE Cold Chain Logistics Industry Segmentation
In order to guarantee that the requisite low-temperature range is constantly maintained, a cold chain is a temperature-controlled distribution network that integrates refrigerated production, cold storage, and cold chain transportation facilities across the air, water, and rail lines. The market for cold chains is expected to expand quickly in the future due to rising food consumption, an expanding tourism industry, and an increase in demand for frozen and ready-to-eat foods.
The market is segmented By Service (Storage, Transportation, Value Added Services (Blast Freezing, Labeling, Inventory Management)), By Temperature Type (Chilled, Frozen), By End Users (Horticulture (Fresh Fruits & Vegetables), Dairy Products (Milk, Ice-cream, Butter, etc.), Meats, Fish, Poultry, Processed Food Products, Pharma and Life Sciences, and Other Applications). The report offers Market size and forecasts for UAE Cold Chain Logistics Market in value (USD Million) for all the above segments.
| By Services | Storage |
| Transportation | |
| Value Added Services(Blast Freezing, Labeling, Inventory Management) | |
| By Temperature Type | Chilled |
| Frozen | |
| By End Users | Horticulture (Fresh Fruits & Vegetables) |
| Dairy Products (Milk, Ice-cream, Butter, etc.) | |
| Meats, Fish, Poultry | |
| Processed Food Products | |
| Pharma and Life Sciences | |
| Others |
UAE Cold Chain Logistics Market Research FAQs
What is the current UAE Cold Chain Logistics Market size?
The UAE Cold Chain Logistics Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in UAE Cold Chain Logistics Market?
CEVA logistics, Mohebi Logistics, RHS Logistics, GAC Dubai and Global Shipping And Logistics LLC are the major companies operating in the UAE Cold Chain Logistics Market.
What years does this UAE Cold Chain Logistics Market cover?
The report covers the UAE Cold Chain Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Cold Chain Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the UAE Cold Chain Logistics Market?
The challenges faced by the UAE Cold Chain Logistics Market are a) High capital investment for infrastructure development b) Lack of standardized regulations across the country c) Shortage of skilled workforce for operating and maintaining cold chain systems d) Infrastructure limitations, including inadequate warehousing facilities and transportation bottlenecks
What are the key opportunities in the UAE Cold Chain Logistics Market?
The key opportunities in the UAE Cold Chain Logistics Market are a) Expansion of pharmaceutical exports, leveraging the UAE's strategic location b) Adoption of advanced technologies like IoT, data analytics, and blockchain for better monitoring and efficiency c) Collaboration and partnerships between different stakeholders in the supply chain d) Development of sustainable cold chain solutions using eco-friendly technologies
UAE Cold Chain Logistics Industry Report
The UAE cold chain logistics market is experiencing significant growth, driven by the expansion of the pharmaceutical and healthcare sectors, as well as the food and beverage industry. Key market segments include refrigerated warehouses and refrigerated transportation, covering railways, airways, roadways, and waterways. The market caters to a diverse range of applications such as fruits and vegetables, bakery and confectionery, dairy and frozen desserts, meat, fish, seafood, drugs, and pharmaceuticals. Strategic initiatives and investments in the medical and food sectors are enhancing the UAE's infrastructure to meet stringent regulatory requirements and consumer demands for quality and safety. The growth is further supported by the need for efficient cold storage and transportation solutions to maintain the integrity of temperature-sensitive products. Logistics companies in UAE and supply chain companies in UAE play a crucial role in developing the cold chain logistics infrastructure across major regions including Dubai, Abu Dhabi, and Sharjah. For detailed statistics on the UAE Cold Chain Logistics market share, size, revenue growth rate, and a market forecast outlook, refer to industry reports by Mordor Intelligence™. Get a sample of this industry analysis as a free report PDF download.
