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UAE Cold Chain Market Outlook to 2025

By Cold Storage (Ambient, Chilled and Frozen Warehousing) and Cold Transport (Land, Sea and Air), By End User (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others) and By Ownership (Integrated and Contract Logistics)

Region:Middle East

Author(s):Apoorva Narula and Garima Kapoor

Product Code:KR953

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Published On

February 2020

Total pages

138

About the Report

The report titled "UAE Cold Chain Market Outlook to 2025 – By Cold Storage (Ambient, Chilled and Frozen Warehousing) and Cold Transport (Land, Sea and Air), By End User (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others) and By Ownership (Integrated and Contract Logistics)" provides a comprehensive analysis on the Cold Chain Market in the UAE. The report covers various aspects including overview and market size, market segmentation, stakeholders, value chain analysis, major players, competitive landscape, operating and profitability model, end-user potential in the cold chain industry and many other influential factors. The report concludes with market projections and analyst recommendations highlighting the major opportunities and cautions for the cold chain market players.
UAE Cold Chain Market

UAE Cold Chain Market Overview and Size

The cold chain market in UAE is at growth stage. It has consolidated its position as a global transshipment hub due to its central location in the GCC region. The high dependence of the country on imports to meet its food requirements has necessitated the development of cold chain facilities. In the review period 2014-2019, the UAE cold chain market has increased at a positive CAGR of 6.6% largely due to rising food and pharmaceutical imports, growth of the dairy industry, increasing number of modern grocery retail stores, government initiatives to reduce dependence on oil-exports and others.
 

UAE Cold Chain Market Segmentation

Cold Warehousing: The cold storage market is dominating the market and contributed majority revenue share to the cold chain industry. The high demand for perishable products such as dairy, meat and seafood and pharmaceuticals have led to the growth of cold storage facilities in the country. Majority of the cold storage warehouses are located in free-zones in Dubai and Abu Dhabi like DAFZA, JAFZA, DIP, DIC, KIZAD etc.
 
Cold Transportation: UAE has a strong cold transportation market owning to the strategic geographical position on the trans-continental trade route and multi-modal connectivity in UAE. Land freight dominates the market in terms of Revenue followed by sea with air being least used due to its expensive prices.
 

UAE Cold Warehousing Market Segmentations:

By End-User Application (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others): Dairy industry accounts for the majority revenue share in 2019 due to its robust output in recent years. Meat and Seafood contributed the second highest revenue share followed by other categories such as Pharmaceuticals, Fruits and Vegetables and other products.
 
By Integrated (2PL) and Contract Business (3PL and 4PL): Integrated logistic facilities generate larger revenue share. This is majorly due preference of logistics companies to invest into warehouses and closely monitor operations themselves as opposed to outsourcing them.
 
By Temperature Range (Ambient, Chilled and Frozen): Chilled storage was observed to be the leading revenue share segment to the cold storage industry owing to robust demand for dairy, pharmaceuticals and other processed foods in the country. The remaining revenue was contributed by ambient and frozen storages, UAE being one of the largest consumers of meat and seafood in the world.
 
By Areas (DAFZA, ZAFZA, DIP, DIC and Others): Dubai accounts for the highest share in the revenue of the cold storage market as it acts as a hub from where products are transported to other regions .Many vast tax-free trade zones existing there, amongst which Dubai Industrial Park is the largest by volume.
 

UAE Cold Transportation Market Segmentations:

By Mode of Transport (Land, Sea and Air): Cold transport through land contributed the highest revenue to the cold transport industry as food imports into the country through ports are transported to different cities via land transport. Majority of the domestic transportation takes place through the well-developed road infrastructure in the country as most places are quite accessible via road.
 
By Location (Domestic and International): Cold transportation to international markets accounted for majority of the revenue of the UAE cold transport industry due to the reliance of the country on imports for its food requirements. While domestic cold transport accounted for less than 20% of the cold transport revenue.
 
By End-User Application (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others): Dairy industry has positively impacted cold chain industry followed by Meat and Seafood. Other categories include Pharmaceuticals, Fruits and Vegetables and other products.
By Contract (3PL and 4PL) and Integrated Logistics (2PL):
The cold chain market in the UAE is dominated by 3PL facilities, generating largest share in market revenue. This is majorly due to the large number of 3PL operators providing wide variety of services and increasing shift towards outsourcing cold transport requirements by cold chain companies.
 

UAE Cold Chain Market Future Outlook and Projections

In future, it is anticipated that UAE Cold Chain market in terms of revenue will increase at a double digit CAGR of 11.2% during the period 2019P-2025F. Positive growth in the market is attributed to rise in manufacturing activity in the pharmaceutical sector, growth in dairy industry and rising food imports. Improvement in infrastructure and entry of new players due to simplification of industry regulations and government initiatives to boost the logistics sector is expected to propel the growth of the market. Additionally, increasing adoption of warehouse automation technologies such as EDI, RFID, AS/AR and others are expected to improve operational efficiency in UAE cold chain market over the forecast period 2019P-2025F.
 

Key Topics Covered in the Report

  • UAE Cold Chain Market Overview
  • Infrastructure Analysis
  • Existing and Emerging Technologies
  • UAE Cold Chain Market Value Chain
  • UAE Cold Chain Market Size by Revenue, 2014-2019
  • UAE Cold Chain Market Segmentation and segment future, 2019-2025F
  • End user industry analysis and future growth potential
  • Investment Cost, Operational Cost and Margin of Cold Storage Operations
  • UAE Cold Chain Market Competitive Landscape
  • UAE Cold Chain Market Company Profiles of Major Players
  • Regulatory Environment
  • Industry Trends and Developments
  • Industry Issues and Challenges
  • Analyst Recommendation
  • UAE Cold Chain Market Future Outlook and Projections, 2019-2025F
  • UAE Cold Chain Market Analyst Recommendations

Products

Key Target Audience

  • Cold Chain Companies
  • Logistics Companies
  • Government Associations
  • Express Logistics Companies
  • Industry Associations
  • Warehousing Companies
  • E-Commerce Operations
  • Investors and Private Equity Companies
  • Logistics Companies
  • Dairy Companies
  • Meat and Seafood Companies
  • Fruits and Vegetables Companies
  • Pharmaceutical Companies

Time Period Captured in the Report

  • Historical Period: 2014-2019P
  • Forecast Period: 2019P-2025E

Companies

Key Market Segments Covered

By Type of Market
  • Cold Storage
By Temperature
  • Frozen
  • Chilled
  • Ambient
By Major Areas
  • DAFZA
  • JAFZA
  • DIP
  • DIC
  • Others (Includes KIZAD and other Free-Zones and distribution markets)
By Ownership
  • Integrated
  • Contract
By End-User Application
  • Dairy Products
  • Meat and Seafood
  • Pharmaceuticals
  • Fruits and Vegetables
  • Others( includes flowers and ornamental plant, confectionary products)
  • Cold Transport
By Mode of Transport
  • Land
  • Sea
  • Air
By Type of Transport
  • Domestic
  • International
By Ownership
  • Integrated
  • Contract
By End-User Application
  • Dairy Products
  • Meat and Seafood
  • Pharmaceuticals
  • Fruits and Vegetables
  • Others ( includes flowers and ornamental plant, confectionary products)
Companies Covered
  • Gulf Agency  Company
  • Al-Futtaim Logistics
  • Hellman Worldwide Logistics
  • Global Shipping Logistics (GSL)
  • RHS Logistics
  • CEVA Logistics
  • Mohebi Logistics
  • Agility
  • Panalpina-DSV
  • Kuehne- Nagel
  • RSA Cold Chain
  • DB Schenker
  • MHK 
  • Port Khalid Cold Stores
  • Verks Logistics
  • Triburg
  • Sharjah Cold Stores

Table of Contents

1.1. Market Definitions

1.2. Abbreviations

1.3. Market Size and Modeling

Consolidated Research approach

Sample Size Inclusion Table

Limitations

Variables (Independent)

Multi Factor Based Sensitivity Model

Regression Matrix

Final Conclusion

2. Infrastructure Analysis of UAE

Spending on Logistics Infrastructure

2.1. Sea Ports

2.2. Airports

2.3. Roadways

2.4. Railways

3. Existing Technologies in UAE Cold Chain Market (Container Technologies, Warehouse Management System and Others)

4. UAE Cold Chain Market Overview and Genesis, 2014-2019P

4.1. UAE Cold Chain Market Size By Revenues, 2014-2019P

4.1. Value Chain in UAE Cold Chain Market

4.2. UAE Cold Chain Market Segmentation, 2014-2019P

4.2.1. Segmentation by Service Mix (Cold Warehousing and Cold Transportation), 2014 -2019P

5. UAE Cold Warehousing Market Overview and Genesis

5.1. UAE Cold Warehousing Market Size by Revenues, 2014 - 2019P

5.2. UAE Cold Warehousing Market Segmentation, 2014 and 2019P

5.2.1. By Temperature Range (Ambient, freezers, Chillers), 2014 and 2019

5.2.2. By Contract and Integrated Logistics, 2014 and 2019

5.2.3. By End User (Dairy, Meat and Seafood, Pharmaceuticals, Fruits/Vegetables, and Others), 
2014 and 2019

5.2.4. By Major Areas (DAFZA, JAFZA, DIP, DIC and Others)

5.3. UAE Cold Warehousing Market Future Outlook and Projections, 2019P-2025F

5.4. UAE Cold Warehousing Future Market Segmentation, 2019P and 2025F

5.4.1. By Ware House Type (Ambient/ Freezer/ Chiller)

5.4.2. By Contract and Integrated Logistics

5.4.3. By End User (Dairy, Meat And Seafood, Pharmaceuticals, Fruits/Vegetables, and Others)

6. UAE Cold Transportation Market Overview and Genesis

6.1. UAE Cold Transportation Market Size by Revenue, 2014- 2019P

6.2. UAE Cold Transport Market Segmentation, 2014 and 2019

6.2.1. By Mode of Freight (Land, Sea, Air)

6.2.2. By Type of Freight (Domestic / International)

By Type of Domestic Freight (Intercity / Intra city)

By Type of Land Freight (International / Domestic)

By Type of Sea Freight (International / Domestic)

By Type of Air Freight (International / Domestic)

6.2.3. By End Users (Dairy, meat / Seafood, Pharma, vegetables / Fruits and Others), 2014- 
2019P

6.2.4. By Contract (3PL and 4PL) and Integrated Logistics (2PL), 2019

6.3. UAE Cold Transportation Market Future Outlook and Projections, 2019P – 2015F

6.4. UAE Cold Transportation Market Future Segmentation, 2019P -2025F

6.4.1. By Mode of Freight (Land / sea / Air), 2019P – 2025F

6.4.2. By Type of Freight (Domestic / international), 2019P – 2025F

By Type of Domestic Freight (Intercity / Intracity), 2019P – 2025F

By Type of Land freight (Domestic / international), 2019P – 2025F

By Type of Sea freight (Domestic / international), 2019P – 2025F

By Type of Air freight (Domestic / international), 2019P – 2025F

6.4.3. By End Users (Dairy, Fruits and Vegetables, Meat and Seafood, Pharma, Others), 2019P – 
2025F

6.4.4. By Contract (3PL and 4PL)/ Integrated (2PL), 2019P – 2025F

7. Emerging Technologies in UAE Cold Chain Market

Radio Frequency Identification (RFID)

8. Trends and Developments in the UAE Cold Chain Industry

Government Initiatives and InfrastructurE developments

RapiD Growth in Pharmaceutical Sector

Boom in Onlnine SUpermarkets and E-Commerce

Technological Advancements

Adoption of Renewable energy and Other Sustainable Business Practices

9. Issues and Challenges in UAE Cold Chain Market

Other Gulf Countries Emerging As Alternative Trade Hubs

Global Trade and Economic Slowdown

FOod Wastage

Profitability Challenges for industry Players

Other Issues

10. Decision Making Process in UAE Cold Chain Market

11. SWOT Analysis of the UAE Cold Chain Market

12. Government Regulations Affecting UAE Cold Chain Market

12.1. Regulations on Foreign Logistics Companies Investing in UAE

12.2. Product Regulations

12.3. Regulations for Value Added Tax (VAT)

13. UAE Cold Storage Operating and Profitability Model

Introduction

Key Model Assumptions

Operating and Profitability Model for Establishing a New Cold Storage Warehouse in Saudi Arabia

Analysis of the Operating and Profitability Model

14. Competitive Landscape in UAE Cold Chain Market

14.1. Competition Scenario in UAE Cold Chain Market (Competition Stage, Major Players, 
Competing Parameters)

14.2. Strengths and Weaknesses of Major players

14.3. Cross Comparison of Major Players

15. Company Profiles of Major Players in the U.A.E. Cold Chain Market

15.1. Gulf Agency Company Limited (GAC)

15.2. Al Futtaim Company

15.3. Hellmann worldwide logistics

15.4. Global Shipping and Logistics (G.S.L.)

15.5. Rais Hassan Saadi (RHS) Logistics

15.6. CEVA Logistics

15.7. Mohebi Logistics

15.8. Agility

15.9. DSV Panalpina A/S

15.10. Kuehne And Nagel

15.11. Other Companies (RSA Cold Chain, DB Schenker, MHK, Port Khalid Cold Stores, Verks 
Logistics, Tameem Logistics, Sharjah Cold Stores, Bhatia Cold Stores, Triburg)

16. Success Factors for Cold Storage Facilities in UAE

16.1. Factors Determining Cold Storage Design in UAE (Warehouse Layout, Temperature Controlled 
Storage Areas, Cold Rooms, Staging Area, Loading Docks, Other Areas, Temperature Mapping and 
Qualification)

U-Flow Warehouse

Through Flow Warehouse

17. End-User Potential in UAE Cold Chain Market

17.1. Major Product Categories in UAE Cold Chain Market

17.2. Ice Cream and Frozen Desserts Industry

UAE Ice-Cream and Frozen Desserts Market Trends and Consumer Preferences

17.3. Fruits and Vegetables Industry

UAE Fruits and Vegetables Industry Market Trends and Consumer Preferences

17.4. UAE Meat and Seafood Industry

UAE Meat and Seafood Industry Market Trends and Consumer Preferences

17.5. UAE Dairy Industry

17.6. UAE Confectionery Industry

17.7. UAE Pharmaceuticals Industry

18. UAE Cold Chain Market Future Outlook and Projections, 2019- 2025F

18.1. UAE Cold Chain Market Future Projections, 2019-2025F

18.2. UAE Cold Chain Future Market Segmentation, 2019-2025F

19. Analyst Recommendations

Capacity Optimization and Increase Occupancy Rates

Minimize Deadheading Fleet

Sustainabile Business Operations

Competitive Technologies

Market Entry Strategy

Market Expansion Strategy

Location Avenues

Disclaimer

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