Report Overview

Rising demand for perishable goods, e-commerce growth, expanding food retail, pharmaceutical needs, and advanced cold chain technologies drive the growth of Indonesia Cold Chain Logistics Market during the forecast period between 2024 and 2030

Indonesia Cold Chain Logistics Market – Industry Trends & Forecast Report, 2030

Indonesia Cold Chain Logistics Market size by value was estimated at USD 4.97 billion in 2023. During the forecast period between 2024 and 2030, Indonesia Cold Chain Logistics Market size is expected to expand at a CAGR of 10.60% reaching a value of USD 10.22 billion by 2030. The growth of Indonesia's Cold Chain Logistics Market is driven by several factors. Increasing demand for perishable goods, such as fresh produce and seafood, is a major driver. The rise of e-commerce and online grocery shopping has also boosted the need for efficient cold chain solutions. Additionally, the expanding food retail sector and the pharmaceutical industry's requirements for temperature-sensitive products contribute to market growth. Advances in cold chain technology and infrastructure further support this expansion.

Cold Chain Logistics Market – Overview

Cold chain logistics involves the transportation and storage of temperature-sensitive products, such as food, pharmaceuticals, and chemicals, under controlled conditions. This process ensures that products remain within a specific temperature range throughout the supply chain, from production to delivery. Key components include temperature-controlled packaging, refrigerated transport, and specialized storage facilities. Effective cold chain logistics prevent spoilage, maintain product quality, and ensure compliance with regulatory standards, ultimately safeguarding public health and enhancing customer satisfaction.

Indonesia Cold Chain Logistics Market

Growth Drivers

Increasing Disposable Income

Rising disposable income in Indonesia is significantly driving the cold chain logistics market. As consumers' purchasing power increases, there is a higher demand for perishable goods such as fresh produce, dairy, and meat products. This shift necessitates efficient cold chain solutions to maintain product quality and safety. Additionally, the growing middle class is more inclined towards convenience foods and online grocery shopping, further boosting the need for advanced cold chain logistics.

Challenges

Lack of Proper Cold Storage Facilities and Transportation Networks

Indonesia Cold Chain Logistics Market faces significant challenges due to inadequate cold storage facilities and transportation networks. Many regions lack sufficient refrigerated warehouses and reliable cold transport options, leading to inefficiencies and increased spoilage of perishable goods. This infrastructure gap hampers the market's growth potential and affects the quality and safety of temperature-sensitive products. Addressing these issues is crucial for the development of a robust and efficient cold chain logistics system.

Impact of Escalating Geopolitical Tensions on Indonesia Cold Chain Logistics Market

Escalating geopolitical tensions impact Indonesia's Cold Chain Logistics Market by disrupting supply chains and increasing operational costs. Trade restrictions and tariffs can lead to delays and higher prices for imported goods, affecting the availability of temperature-sensitive products. Additionally, heightened security measures and political instability in key trading regions can complicate logistics planning and execution. These challenges necessitate more robust and flexible cold chain solutions to ensure the integrity and safety of perishable goods. Companies may need to invest in alternative routes and technologies to mitigate risks, ultimately driving up costs and affecting market growth.

Indonesia Cold Chain Logistics Market

Indonesia Cold Chain Logistics Market – By Service Type

By service type, Indonesia Cold Chain Logistics Market is divided into Storage, Transportation, and Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.) segments. The transportation segment is the largest in Indonesia Cold Chain Logistics Market. This dominance is driven by the increasing demand for the efficient movement of temperature-sensitive goods, including food and pharmaceuticals, across the archipelago. The need for reliable and timely delivery, combined with Indonesia's expansive geography, has fueled the growth of transportation services in the cold chain logistics sector, making it the most significant segment compared to storage and value-added services.

Indonesia Cold Chain Logistics Market – By Technology

By technology, Indonesia Cold Chain Logistics Market is divided into Air Blown and EUTECTIC segments. The air-blown segment is the largest in Indonesia Cold Chain Logistics Market. Air-blown systems are widely used due to their efficiency in maintaining temperature-sensitive goods during transportation, particularly in Indonesia's challenging climate. These systems offer precise temperature control, making them ideal for transporting perishable goods like food, pharmaceuticals, and other temperature-sensitive items. The segment's dominance is driven by the growing demand for fresh and frozen products, ensuring product quality and extending shelf life.

Indonesia Cold Chain Logistics Market – By Temperature

By temperature, Indonesia Cold Chain Logistics Market is divided into Chilled and Frozen segments. The frozen segment is the largest in Indonesia Cold Chain Logistics Market. This dominance is driven by the high demand for frozen food products such as seafood, meat, and processed foods, which require consistent low-temperature storage and transportation. The increasing preference for convenience foods and the expanding food service industry further boost the need for efficient frozen logistics solutions. Additionally, advancements in refrigeration technology and the expansion of cold storage facilities support the growth of this segment.

Competitive Landscape

Key players in the highly competitive Indonesia Cold Chain Logistics Market include Kiat Ananda Group, Enseval Putra Megatrading Tbk, PT MGM Bosco Logistics Bekasi, GAC Samudera Logistics, Pluit Cold Storage PT., PT. International Mega Sejahtera, YCH Group, PT. Wira Logitama Saksama, PT. Agility International, PT Halal Logistic Multi Terminal Indonesia, PT Dua Putra Perkasa Pratama, and other prominent players. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2023: ASSA, one of the largest logistics companies in Indonesia, Triputra Group, a significant agricultural conglomerate in Indonesia, and MKA & ITS all participated in the USD 3.8 million (RM17 million) seed round that was completed by Coldspace, a Indonesian provider of integrated cold chain solutions. Coldspace, a supplier of complete end-to-end cold chain solutions for B2B and B2C clients in Indonesia, was established in December 2022.

• June 2022: Fresh Factory, an integrated cold chain enabler and fulfillment firm located in Indonesia, announced that it has received USD 4.5 million in initial investment from East Ventures. PT. Saratoga Investama Sedaya TBK, Trihill Capital, Indogen Capital, Prasetia Dwidharma, Number Capital, Y Combinator, and angel investors were also participants in the round, according to a release from Fresh Factory. The investment will be used by Fresh Factory to expand the warehouses to all secondary cities in Java as well as the major cities in Sumatra and Sulawesi, the statement claims. To increase adoption and achieve operational excellence, the company will also make human and technology investments.

Scope of the Report

By Service Type

• Storage

• Transportation

• Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)

By Technology

• Air Blown

• EUTECTIC

By Temperature

• Chilled

• Frozen

By Application

• Horticulture (Fresh Fruits & Vegetables)

• Dairy Products (Milk, Butter, Cheese, Ice Cream, etc.)

• Fish, Meat, and Poultry

• Processed Food Products

• Pharma and Life Sciences

• Other Applications (Chemicals, Bakery Product, etc.)