Chilling Potential: Sectors Expected to Drive UAE Cold Chain Logistics Market Growth

 

The United Arab Emirates (UAE) is set to witness a growth in its cold chain market, with projections indicating that it will hit $800 million by 2025. The cold chain industry is a crucial component of the logistics sector, which encompasses the transportation and storage of temperature-sensitive goods such as food, pharmaceuticals, and chemicals. The industry's growth is driven by several factors, including the need for imports of food products and pharmaceuticals due to the arid climate of the country.

In 2020, the cold storage and cold transport markets contributed 60 and 40 percent share respectively to the cold chain industry in the UAE. The cold storage market is dominated by the food and beverage sector, while the cold transport market is driven by pharmaceuticals, chemicals, and food products. The growth of these two sectors is expected to continue in the coming years.

The different sectors that are expected to drive the growth of the cold chain logistics market in the UAE include healthcare, retail, and e-commerce. The healthcare sector is expected to grow due to the increasing demand for medical equipment, pharmaceuticals, and vaccines. The retail sector is expected to grow due to the increasing number of supermarkets and hypermarkets in the country. E-commerce is also expected to contribute to the growth of the cold chain industry, with more people shopping online and expecting their goods to be delivered in a temperature-controlled environment.



The UAE government has taken initiatives to support the growth of the cold chain industry, including UAE Vision 2021, Abu Dhabi Vision 2030, and Dubai's Industrial Strategy 2030. These initiatives aim to diversify the economy, promote sustainable development, and enhance the country's competitiveness in the global market.

The need for imports of food products and pharmaceuticals due to the arid climate of the country has created a demand for full-fledged distribution centers, such as logistics facilities, cold and dry storage, and retail facilities. This has led to the rise of third-party logistics (3PL) companies that provide end-to-end logistics solutions for temperature-sensitive goods.

In conclusion, the UAE cold chain market is expected to grow due to the increasing demand for food items and the growth of the pharmaceutical industry. The different sectors that are expected to drive the growth of the cold chain logistics market in the country include healthcare, retail, and e-commerce. The government's initiatives, combined with the rise of 3PL companies, will continue to support the growth of the cold chain industry in the UAE.

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