A cold chain is a temperature-controlled supply chain that includes refrigerated facilities manufacturing, cold storage, and cold chain transportation facilities via air, across waterways, and rail lines to maintain the requisite low-temperature range at all times. With the rise in food consumption, increasing tourist base in the country, and growing demand for frozen & ready-to-eat food, the demand for cold chains is expected to foresee robust growth in the forthcoming years.
The UAE Cold Chain Market is projected to grow at a 6.9% CAGR during the forecast period, 2022-27, as the country relies heavily on foreign markets for its food security. Cold chain systems are becoming increasingly crucial in the UAE's food goods market as consumers seek better and more nutritious products with more variety. The increasing trade in perishable products, government investments in infrastructure to enhance pharmaceutical exports, and continuous investments in modern logistics to maintain the temperature of products such as fresh agricultural products & manufactured foods has driven the market growth.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Gulf Agency Company, Al-Futtaim Logistics, Hellman Worldwide Logistics, Global Shipping & Logistics LLC, RHS Logistics, CEVA Logistics, Mohebi Logistics, Agility Logistics, Panalpina-DSV, Kuehne- Nagel, RSA Cold Chain, DB Schenker|
|Unit Denominations||USD Million/Billion|
Moreover, the growing government inclination to boost the local production has encouraged the global pharmaceutical players to set up their manufacturing bases in the country. Thus, this has further augmented the need for cold chain logistics in the region. In 2019, Pharmax Pharmaceuticals (Pharmax) inaugurated its first pharmaceutical manufacturing plant in the Dubai Science Park. The company aims to shorten the supply chain for generic medications for chronic conditions in the Middle East countries.
Key Trends in the Market
Temperature changes can cause heavy losses to perishable products stacked in cold storage facilities, necessitating the employment of advanced technologies such as artificial intelligence, the internet of things, and blockchain technology in the cold chain. As a result, the companies have been introducing advanced technology solutions for cold storage to deal with the rising issue of food wastage due to temperature fluctuations, which could lead to microbial development & discoloration of food goods. Thus, this would create a trend in the market for the deployment of advanced technologies in the cold chain facilities during the forecast period.
Impact of Covid-19 on the UAE Cold Chain Market
In the UAE, the COVID-19 epidemic had a favorable impact on the cold chain business. The increase in demand for cold chain facilities such as storage & transportation, particularly for pharmaceutical products, has driven the market's expansion. During the pandemic, the demand for cold chain services for the transportation of temperature-sensitive products such as vaccines & pharmaceutical drugs has heightened across the country for the distribution of vaccines. Thus, this has led to a developing partnership among corporations to distribute vaccines both domestically & globally, necessitating the use of cold transportation. For instance,