Market Size of UAE Cold Chain Logistics Industry
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*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 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 Size Summary
The UAE cold chain logistics market is a pivotal component of the region's supply chain infrastructure, known for its innovation and skill development. This sector is crucial for enhancing productivity and maintaining competitiveness, driven by consumer demand for extended shelf life and high-quality products. The market has seen significant growth due to the increasing need for refrigeration services, particularly in food distribution and pharmaceutical sectors. The COVID-19 pandemic further accelerated this growth, highlighting the importance of cold chain logistics in ensuring the availability and quality of essential goods. The UAE government's strategic initiatives, such as the National Innovation Strategy and Smart Dubai, have bolstered the logistics and warehousing market, encouraging the expansion of cold storage facilities beyond Dubai and Abu Dhabi to meet the growing demand.
The UAE's strategic location and robust infrastructure make it a regional hub for cold chain logistics, attracting substantial foreign direct investment. The country's business-friendly environment and ongoing structural reforms have positioned it as a prime destination for international investors, particularly in the oil, gas, and IT sectors. The demand for premium and specialty foods, driven by rising incomes and a diverse expatriate population, further fuels the cold chain market. Major players in the sector, including GAC Dubai, Mohebi Logistics, and CEVA Logistics, are expanding their operations and investing in advanced logistics solutions to enhance their market presence. The UAE's cold chain logistics industry continues to grow, supported by technological advancements and strategic investments, ensuring its pivotal role in the region's economic diversification and development.
UAE Cold Chain Logistics Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Value Chain / Supply Chain Analysis
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1.5 Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Services
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2.1.1 Storage
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2.1.2 Transportation
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2.1.3 Value Added Services(Blast Freezing, Labeling, Inventory Management)
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2.2 By Temperature Type
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2.2.1 Chilled
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2.2.2 Frozen
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2.3 By End Users
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2.3.1 Horticulture (Fresh Fruits & Vegetables)
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2.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
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2.3.3 Meats, Fish, Poultry
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2.3.4 Processed Food Products
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2.3.5 Pharma and Life Sciences
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2.3.6 Others
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UAE Cold Chain Logistics Market Size 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.