How Is The Cold Chain Market Positioned In Saudi Arabia?
Saudi Arabia is the largest country in the middle-east and accounts for a majority share in the cold chain industry in GCC region. Owing to the arid climatic conditions of the country, majority of the food requirements including meat and seafood, fruits and vegetables and others are met through imports from other countries such as Brazil, India, Australia and others. Pharmaceutical supplies demanded within the country are also majorly imported. Over the last few years, the dairy industry in the Kingdom has seen a significant boom and has necessitated the development of cold chain facilities in the country. The revenue of the industry has grown from USD ~ Million in 2013 to USD ~Million in the year 2018 with a CAGR of ~%. The growth of the industry can be attributed to factors such as growth in end user industries, increase infrastructure investment, emergence of new players, and shift from owned warehouse to leased warehouses.
Other factors such as increase in consumer retail spending and the number of modern grocery retail stores have also augmented the growth of the market over the period 2013-2018. There is particularly very high demand for cold chain facilities during Hajj and Ramadan and the storage facilities across the country usually witness maximum capacity utilization during this period.
Majority of the cold chain facilities in the country are concentrated in major cities such as Riyadh, Jeddah and Dammam and the products are transported from these cities to other regions in the country. Cold chain facilities in the country are becoming increasingly sophisticated along with the provision of advanced IT solutions for warehouse and transportation management. To ensure optimal utilization, companies have started using automation technologies and focus on on-demand warehousing.
Saudi Arabia Cold Chain Market Segmentation
By Type of Market
In 2018, the cold storage market dominated the cold chain industry and contributed the maximum revenue owing to growth demand for cold storage facilities by end user industries such as dairy, meat & seafood and pharmaceutical products.
By End-User Application
The dairy products accounted for the largest contribution to the revenue of the cold chain industry in KSA due to the booming dairy industry in the country. Meat and Seafood was analyzed to be a significant revenue contributor due to the rising exports and imports from the country. The remaining share was contributed by Pharmaceuticals, Fruits and Vegetables and Other products such as bakery and confectionery, processed foods and ready-to-eat meals which are usually imported into the Kingdom.
In 2018, Third Party Logistics (3PL) cold chain facilities accounted for majority share in the revenue of the cold chain industry due to the rising shift towards outsourcing cold chain requirements in the country. The 3PL operators have expertise and offer a wide range of integrated services to the clients which have lead to the high share of 3PL companies.
By Temperature Range
The chilled storage segment was observed to be the leading segment and contributed the maximum share to the revenue of the cold storage industry due to the large demand from dairy products and pharmaceuticals manufactures/importers that have shifted from owning their own facilities to procuring logistics services from a 3PL player.
Owing to its central location in the country, superior infrastructure facilities, large urban population and availability of manpower, Riyadh was analyzed to be the leading contributor to the revenue of the cold storage industry with a share of ~% in 2018. The other major cities including Jeddah and Dammam contributed ~% and ~% share respectively due to the proximity to the sea, presence of well developed port infrastructure and high population. The remaining share was contributed by other cities such as Mecca, Medina and more.
Key Segments Covered
By Type of Market
By Major Cities
By Mode of Transport
By End-User Application
Meat and Seafood
Fruits and Vegetables
Third Party Logistics (3PL)
Key Target Audience
Cold Chain Companies
Private Equity Investors
Express Logistics Companies
Investors and Private Equity Companies
Meat and Seafood Companies
Fruits and Vegetables Companies
Time Period Captured in the Report
Historical Period: 2013-2018
Forecast Period: 2018-2023E
United Warehouse Company Limited
Etmam Logistics (Shahini Group)
Key Topics Covered in the Report
Saudi Arabia Cold Chain Market Value Chain
Saudi Arabia Cold Chain Market Size by Revenue, 2013-2018
Saudi Arabia Cold Chain Market Segmentation, 2018
Saudi Arabia Cold Chain Market Competitive Landscape
Saudi Arabia Cold Storage Market Operating and Profitability Model
Saudi Arabia Cold Chain Market End-User Potential
Saudi Arabia Cold Chain Market Company Profiles of Major Players
Saudi Arabia Cold Chain Market Future Outlook and Projections, 2018-2023E
Saudi Arabia Cold Chain Market Future Segmentation, 2018 – 2023E
Saudi Arabia Cold Chain Market Analyst Recommendations
For More Information, refer to below link:
Indonesia Cold Chain (Cold Transport And Storage) Market Outlook To 2021 – By End Users (Meat And Seafood, Vaccines And Other Pharma Products, Bakery And Confectionary, Fruits And Vegetables And Others)
Ankur Gupta, Head Marketing & Communications