Report Overview

UAE Cold Chain Logistics Market - Industry Trends & Forecast Report, 2029

The UAE cold chain logistics market size was estimated to be worth USD 2.37 billion in 2022. During the forecast period between 2023 and 2029, the UAE cold chain logistics market size is projected to grow at a CAGR of 8.1%, reaching a value of USD 4.09 billion by 2029. Major growth factors for the UAE cold chain logistics market include rising consumer demand for packaged and frozen food products of high quality, along with stringent food safety regulations in the country. Furthermore, economic diversification, along with a flourishing tourism sector, is anticipated to present lucrative growth opportunities for the cold chain logistics market during the forecast period.

UAE Cold Chain Logistics Market – Overview

Cold chain logistics refers to the management of temperature-sensitive products, such as perishable foods, pharmaceuticals, and vaccines, throughout the supply chain. It involves the use of temperature-controlled facilities, equipment, and transportation to maintain product integrity and safety from the point of origin to the point of consumption. The cold chain starts from the manufacturer or producer and includes storage, transportation, and distribution until the final destination. The temperature is carefully monitored and maintained at a specific level throughout the cold chain, and any deviations can result in product degradation, spoilage, or even harm to consumers. Effective cold chain logistics is crucial for ensuring product quality, safety, and efficacy.

UAE Cold Chain Logistics Market

Growth Drivers

Expanding Food and Beverages Sector

The UAE cold chain logistics market is expected to grow at a significant rate over the projected period, owing to the rising demand for fresh and frozen goods in the country. With greater disposable income and a larger workforce, more people are looking for high-quality food goods that require secure temperature control throughout shipping and storage. This has resulted in an increase in demand for cold chain logistics services which enable the safe and efficient transportation of perishable commodities from manufacturers to retailers and end users.

Restraints

High Installation and Maintenance Cost of Cold Chain Storages & Transportation

The exorbitant initial investment required for cold chain logistics development, as well as the significant overhead expenses associated with its upkeep, is a key impediment to the UAE cold chain logistics market. The total cost of construction of such a unit is roughly USD 33,300, but a basement unit has an initial cost of more than USD 50,000. The location of a warehouse has a considerable impact on the cost of constructing a cold storage facility. Building a cold storage facility in an urban region is often more expensive than in a rural area.

UAE Cold Chain Logistics Market

Segmental Coverage

UAE Cold Chain Logistics Market – By Type

Based on type, the UAE cold chain logistics market is split into refrigerated warehouses and refrigerated transportation. The refrigerated warehouse segment holds a larger share in the UAE cold chain logistics market. Rising demand for frozen food items as a result of shifting consumption patterns, rising disposable income, and a growing workforce in the country are compelling private firms to invest in robust cold chain warehouse infrastructure, driving overall market growth.

UAE Cold Chain Logistics Market – By Temperature

Based on temperature, the UAE cold chain logistics market is split into frozen and chilled segment. The frozen segment accounts for a higher share in the market. Several products, including certain vegetables, such as peas and meat, including poultry and beef, needed to be kept at the frozen temperature (-18° to -25°) to remain fresh. Furthermore, the demand for frozen food among urban cities owing to the change in consumption patterns of consumers is also influencing the growing demand for frozen cold chain logistics in the market.

UAE Cold Chain Logistics Market – By Application

Based on application, the UAE cold chain logistics market is segmented into dairy & frozen desserts, fish, meat & seafood, bakery & confectionery, fruits & vegetables, pharmaceuticals, and others. The dairy & frozen desserts segment dominates the UAE cold chain logistics market. The use of efficient cold chain logistics is crucial for temperature-sensitive products, such as ice cream, to increase their shelf-life and prevent spoilage. The pharmaceuticals segment also holds a substantial market share, a several biologics, vaccines, or components of cells must be kept in a temperature-controlled environment.

Competitive Landscape

Major players operating in the UAE cold chain logistics market include Agility Logistics, Emirates SkyCargo, Aramex, Gulf Drug, DHL Supply Chain, Al-Futtaim Logistics, Transmed, Owaisis Group, Al Reyami Group, and Agthia Group. 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 July 2023 - Maersk, a shipping and logistics company based in Denmark, opened its third warehousing and distribution (W&D) facility in Dubai, UAE.

Scope of the Report

By Type

• Refrigerated Warehouse

• Refrigerated Transportation

By Temperature

• Frozen

• Chilled

By Application

• Dairy & Frozen Desserts

• Fish, Meat & Seafood

• Bakery & Confectionary

• Fruits & Vegetables

• Pharmaceuticals

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Cold Chain Logistics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. UAE's Expanding Food and Beverage Sector
         2. Government's Efforts to Diversify the Economy Beyond Oil
         3. Thriving Tourism and Hospitality Industry
      2. Restraints
         1. High Cost of Establishing and Maintaining Temperature-controlled Warehouses and Transportation Infrastructure
         2. Stringent Regulations and Compliance Requirements for Cold Chain Logistics, Especially for Pharmaceuticals and Food Safety
      3. Opportunities
         1. Streamlining Customs Processes and Trade Facilitation Measures
         2. Continued Investment in Cold Storage Facilities and Transportation Infrastructure
      4. Challenges
         1. Price Sensitivity among Consumers and Businesses
   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. UAE Cold Chain Logistics Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Refrigerated Warehouse
         2. Refrigerated Transportation
      2. By Temperature
         1. Frozen
         2. Chilled
      3. By Application
         1. Dairy & Frozen Desserts
         2. Fish, Meat & Seafood
         3. Bakery & Confectionary
         4. Fruits & Vegetables
         5. Pharmaceuticals
         6. Others
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. UAE Cold Chain Logistics Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Covid-19 on UAE Cold Chain Logistics Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. Agility Logistics
   2. Emirates SkyCargo
   3. Aramex
   4. Gulf Drug
   5. DHL Supply Chain
   6. Al-Futtaim Logistics
   7. Transmed
   8. Owaisis Group
   9. Al Reyami Group
   10. Agthia Group
   11. Other Prominent Players
8. Key Strategic Recommendations
9. 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, By Country
   5. Assumption & Limitation

*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       UAE Cold Chain Logistics Segmentation                                    

Figure 2       UAE Cold Chain Logistics Market Value Chain Analysis                                   

Figure 3       Company Market Share Analysis, 2022                            

Figure 4       UAE Cold Chain Logistics Market Size, By Value (USD Billion), 2019–2029                                  

Figure 5       UAE Cold Chain Logistics Market Share, By Type, By Value, 2019–2029                            

Figure 6       UAE Cold Chain Logistics Market Share, By Temperature, By Value, 2019–2029                                          

Figure 7       UAE Cold Chain Logistics Market Share, By End-Users, By Value, 2019–2029                             

List of Tables      

Table 1        UAE Cold Chain Logistics Market Size, By Type, By Value, 2019–2029

Table 2        UAE Cold Chain Logistics Market Size, By Temperature, By Value, 2019–2029

Table 3        UAE Cold Chain Logistics Market Size, By End User, By Value, 2019–2029

Table 4        Agility Logistics Company Overview

Table 5        Agility Logistics Financial Overview

Table 6        Emirates SkyCargo Company Overview

Table 7        Emirates SkyCargo Financial Overview

Table 8        Aramex Company Overview

Table 9        Aramex Financial Overview

Table 10      Gulf Drug Company Overview

Table 11      Gulf Drug Financial Overview

Table 12      DHL Supply Chain Company Overview

Table 13      DHL Supply Chain Financial Overview

Table 14      Al-Futtaim Logistics Company Overview

Table 15      Al-Futtaim Logistics Financial Overview

Table 16      Transmed Company Overview

Table 17      Transmed Financial Overview

Table 18      Owaisis Group Company Overview

Table 19      Owaisis Group Financial Overview

Table 20      Al Reyami Group Company Overview

Table 21      Al Reyami Group Financial Overview

Table 22      Agthia Group Company Overview

Table 23      Agthia Group Financial Overview