Report Overview

South Korea Cold Chain Logistics Market - Industry Trends & Forecast Report, 2030

South Korea Cold Chain Logistics Market size was estimated to be worth USD 5.30 billion in 2023. During the forecast period between 2024 and 2030, South Korea Cold Chain Logistics Market size is projected to grow at a CAGR of 9.50%, reaching a value of USD 9.92 billion by 2030. Major growth factors for South Korea Cold Chain Logistics Market include a spurring demand for perishable and non-durable goods and expanding e-commerce sector. Increasing adoption of work from home (WfH) trend and growing female workforce have escalated the demand for fresh and frozen food products, which is projected to further drive South Korea Cold Chain Logistics Market during the period in analysis.

Cold Chain Logistics – 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.

South Korea Cold Chain Logistics Market

Growth Drivers

High Popularity of Convenience Store Food

The growing popularity of South Korean convenience stores among both citizens and foreigners alike is driving the need for efficient cold chain logistics across the country. The convenience stores offer a wide variety of packaged and frozen food and beverages that cater to the needs of office goers and consumers who lead hectic lifestyles. In addition, convenience store products are also gaining traction due to the growing influence of social media, particularly ‘Korean wave.’ The growing influence of K-pop and Korean TV dramas has established South Korean convenience store products, such as ‘trends.’ As a result, the demand for cold chain logistics is rising in South Korea to maintain continuous supply of goods in these stores, driving Cold Chain Logistics Market across the country.

Challenges

Stringent Domestic and International Regulations

The cold chain logistics companies operating in South Korea need to adhere to stringent domestic and international regulations, particularly during the transportation and storage of perishable goods, such as food and pharmaceuticals. Seafood products and raw fish, for instance, are required to be kept in a temperature-controlled environment at -35°C. Adhering to these stringent regulations can prove challenging to these companies, particularly small players. They also need to deal with complicated documentation requirements and safety certifications, which could increase the cost of operations and limit the growth of South Korea Cold Chain Logistics Market.

Impact of Escalating Geopolitical Tensions on South Korea Cold Chain Logistics Market

Intensifying geopolitical tensions among countries spreading across the major regions could significantly impact various aspects of South Korea Cold Chain Logistics Market. Geopolitical tensions among major countries around South Korea, such as China and North Korea, along with the United States as well, disrupt the global supply chain of the country. This affects the air and freight routes in the region, resulting in delays in logistics operations and increased shipping costs. Such situation could also impose serious complications for the cold chain logistics industry as they fail to meet their target of delivering perishable goods. In addition, trade barriers, such as sanctions and tariffs, could affect the trade relationships of South Korea, resulting in a significant decline in imports and exports and impacting the demand for cold chain logistics services as well.

South Korea Cold Chain Logistics Market

Segmental Coverage

South Korea Cold Chain Logistics Market – By Service Type

Based on service type, South Korea Cold Chain Logistics Market is segmented into transportation, warehousing, packaging, and monitoring. The warehousing segment holds the largest share of South Korea Cold Chain Logistics Market by service type. The changing consumer preferences and increasing spending is influencing the growth of e-commerce, propelling the growth of refrigerated products, such as packaged food, cosmetics, and pharmaceuticals. The demand for warehousing is increasing as a result of growing need for e-commerce platforms to maintain inventory to provide fresh products and on-time delivery to their customers, driving its market.

South Korea Cold Chain Logistics Market – By Temperature Type

By temperature type, South Korea Cold Chain Logistics Market is bifurcated into chilled and frozen segments. The frozen segment accounts for a higher share of the market, owing to the rising demand for frozen food. The hectic lifestyle of South Korean consumers and increasing female workforce is propelling the frozen food consumption as they are cheaper and do not require preparation time. However, the chilled segment also covers substantial market share owing to the high demand in the pharmaceutical sector. Many pharmaceutical products require chilled environment between +2°C and +8°C to prevent degradation and loss of potency.

South Korea Cold Chain Logistics Market – By End User

Based on end user, South Korea Cold Chain Logistics Market is segmented into food and beverages, pharmaceuticals, biotechnology, chemicals, and others. The food and beverage segment dominates South Korea Cold Chain Logistics Market. The high popularity of convenience store and packaged food products in South Korea owing to rapid urbanization and availability of wide range of products, including ready-to-eat meals fuels the need for efficient cold chain logistics in the country. Another factor influencing the segment’s growth is the increasing number of single-person households in the country, which is influencing the demand for packaged food and beverages, driving South Korea Cold Chain Logistics Market.

Competitive Landscape

South Korea Cold Chain Logistics Market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Yusen Logistics Co. Ltd, HL Holdings Corp., Rhenus Group, Borim Logistics, Dongwon Group, Leschaco, CJ Logistics, Daewoo Logistics, and Lotte Global Logistics. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Service Type

• Transportation

• Warehousing

• Packaging

• Monitoring

By Temperature Type

• Chilled

• Frozen

By End User

• Food & Beverages

• Pharmaceuticals

• Biotechnology

• Chemicals

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Korea Cold Chain Logistics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Demand for Fresh and Processed Foods
         2. Aging Population in South Korea
         3. Rapid Growth of E-Commerce, Particularly in Food and Grocery
      2. Restraints
         1. High Operating Costs in South Korea
         2. Strict Regulations and Compliance Requirements
         3. Limited Availability of Skilled Labor
      3. Opportunities
         1. Stringent Food Safety Regulations
         2. Offering Value-Added Services like Temperature Monitoring, Packaging, and Labeling
         3. Adopting Sustainable Practices, such as Energy-Efficient Technologies and Eco-Friendly Packaging
      4. Challenges
         1. Ensuring Consistent Temperature Control Throughout the Cold Chain
         2. Aging Infrastructure in South Korea
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Korea Cold Chain Logistics Market: Marketing Strategies
5. South Korea Cold Chain Logistics Market: Pricing Analysis
6. South Korea Cold Chain Logistics Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Service Type
         1. Transportation
         2. Warehousing
         3. Packaging
         4. Monitoring
      2. By Temperature Type
         1. Chilled
         2. Frozen
      3. By End User
         1. Food & Beverages
         2. Pharmaceuticals
         3. Biotechnology
         4. Chemicals
         5. Others
7. Competitive Landscape
   1. List of Key Players and Their Products
   2. South Korea Cold Chain Logistics Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
8. Impact of Escalating Geopolitical Tensions on South Korea Cold Chain Logistics Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, and SWOT Analysis)
   1. Yusen Logistics Co. Ltd
   2. HL Holdings Corp.
   3. Rhenus Group
   4. Borim Logistics
   5. Dongwon Group
   6. Leschaco
   7. CJ Logistics
   8. Daewoo Logistics
   9. Lotte Global Logistics
   10. Other prominent players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Korea Cold Chain Logistics Segmentation

Figure 2       South Korea Cold Chain Logistics Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       South Korea Cold Chain Logistics Market Size, By Value (USD Billion), 2019–2030

Figure 5       South Korea Cold Chain Logistics Market Share, By Service Type, By Value (USD Billion), 2019–2030

Figure 6       South Korea Cold Chain Logistics Market Share, By Temperature Type, By Value (USD Billion), 2019–2030

Figure 7       South Korea Cold Chain Logistics Market Share, By End User, By Value (USD Billion), 2019–2030

List of Tables      

Table 1        South Korea Cold Chain Logistics Market Size, By Value (USD Billion), 2019–2030

Table 2        South Korea Cold Chain Logistics Market Share, By Service Type, By Value (USD Billion), 2019–2030

Table 3        South Korea Cold Chain Logistics Market Share, By Temperature Type, By Value (USD Billion), 2019–2030

Table 4        South Korea Cold Chain Logistics Market Share, By End User, By Value (USD Billion), 2019–2030

Table 5        Yusen Logistics Co. Ltd Company Overview

Table 6        Yusen Logistics Co. Ltd Financial Overview

Table 7        HL Holdings Corp. Company Overview

Table 8        HL Holdings Corp. Financial Overview

Table 9        Rhenus Group Company Overview

Table 10      Rhenus Group Financial Overview

Table 11      Borim Logistics Company Overview

Table 12      Borim Logistics Financial Overview

Table 13      Dongwon Group Company Overview

Table 14      Dongwon Group Financial Overview

Table 15      Leschaco Company Overview

Table 16      Leschaco Financial Overview

Table 17      CJ Logistics Company Overview

Table 18      CJ Logistics Financial Overview

Table 19      Daewoo Logistics Company Overview

Table 20      Daewoo Logistics Financial Overview

Table 21      Lotte Global Logistics Company Overview

Table 22      Lotte Global Logistics Financial Overview