Africa Cold Chain Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10.88 Billion |
| Market Size (2029) | USD 14.85 Billion |
| CAGR (2024 - 2029) | 8.28 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa Cold Chain Logistics Market Analysis
The Africa Cold Chain Logistics Market size is estimated at USD 10.88 billion in 2024, and is expected to reach USD 14.85 billion by 2029, growing at a CAGR of 8.28% during the forecast period (2024-2029).
The demand for efficient cold chain packaging solutions in Africa has increased significantly. This increase in interest is due to the continent's growing economy, as well as increasing demand for quality and security of temperature-sensitive products. The cold chain industry is expected to be boosted by the increasing demand for temperature-controlled goods in the continent, the entry of many new businesses, and the government's efforts and programs. To meet the country's long-term transport needs, South Africa has an ongoing plan, namely the National Transport Master Plan 2050, to oversee the construction of multimodal transport systems.
With growing exporters, importers, and logistics operators, South Africa is experiencing an emerging economy. Maintaining an efficient cold chain is essential to facilitate these sectors' growth and maintain their longevity.
A.P. Moller Capital announced that it would acquire Vector Logistics at the beginning of March 2023. According to A.P. Moller Capital, the acquisition provides Vector Logistics a great opportunity to accelerate its mission of going independent in supply chain expertise and logistics services. In this context, it will also expand its coverage to meet growing demand in Africa and broaden its activities to serve the wider geographic area.
Africa Cold Chain Logistics Market Trends
Demand for Packaged and Frozen Food is Rising
In Africa, the demand for packaged, cold-stored foods is increasing. Urbanization, changes in lifestyles, and the growth of a higher class are some of the factors that contribute to this development. The growth in demand for these products is being driven by several factors, including economic development, the proliferation of modern retail outlets, and improvements to cold chain infrastructure.
In February 2024, the strengthened logistics corridor between the Ligurian port of La Spezia in Italy and North Africa was unveiled at the end of Fruit Logistica 2024 in Berlin. The collaboration involves the Harbour System Authority and the Tarros Group, with a focus on enhancing the transportation of agricultural goods between the ports of Marina di Carrara and La Spezia in Italy and several African coastal destinations. The initiative aims to bolster logistical ties, particularly in the agri-food sector.
The African Union prioritizes food security in the region and promotes policy, funding, and multistakeholder interventions in the agricultural value chain. To increase food security and agricultural efficiency, the intervention focuses on direct farm action and support systems facilitating the movement of food from one place to another.
Egyptian Export of Seafood is on the Rise
Egypt's fishing industry is experiencing growth, with a significant connection to cold chain logistics. The sector is expanding as advancements in cold chain technology and logistics contribute to its development. Efficient cold chain systems ensure the preservation of fresh seafood from catch to market. This enhancement in logistics plays a crucial role in extending the shelf life of products, reducing waste, and meeting international quality standards. The integration of cold chain logistics in Egypt's fishing industry is a key factor driving its upward trajectory.
The Ministry of Agriculture and Land Reclamation in Egypt reported that Egyptian fish production hit 2 million tons, marking a rate of 85% self-sufficiency, in July 2023. According to the report, Egypt has the highest fish production in Africa, sixth in the world, and third in tilapia production, and is expected to increase export rates with national projects operating at full capacity.
The Ministry also founded the Lake Protection and Fish Wealth Development Authority to regulate and facilitate the fishing industry to support the fishing sector. For EGP 30,000 (USD 970) per vessel, the government is also equipping fishing vessels with tracking devices. Therefore, with massive production, there is an opportunity for cold chain logistics in the area.
Africa Cold Chain Logistics Industry Overview
Specialized infrastructure, including temperature-controlled storage facilities and transport, is required for the establishment of an African cold chain logistics operation. Existing companies have established relationships with key suppliers and customers, which could create obstacles to entry into the market. However, new entrants can be attracted by the evolving nature of this sector and potential government initiatives. The presence of established companies, both local and international, in the African cold chain logistics market exerts a competitive influence. The quality of the service, reliability, geographic coverage, and technical capabilities of the companies are important factors for competition. The sector is evolving, and companies are constantly innovative to stay ahead of the competition. The leaders in the Southeast Asian postal services market are Nippon Express, UPS, and DHL.
Africa Cold Chain Logistics Market Leaders
-
Nippon Express
-
UPS
-
DHL
-
Kuehne + Nagel
-
Imperial Logistics
*Disclaimer: Major Players sorted in no particular order
Africa Cold Chain Logistics Market News
- October 2023: The International Development Finance Corporation of the United States declared that it would provide funding to build Ifria refrigeration facilities in Senegal and Morocco. The companies signed a commitment letter, which is engaged in the development of cold chains for West and North Africa markets, amounting to USD 20 million.
- April 2023: The UK Government committed to fund GBP 4 million (USD 5.02 million) for an urgent shortage of cold chains in Africa. The funding has been allocated to the UN Environment Programme, the University of Birmingham, the Government of Rwanda, and other project partners in the framework of Defra's GBP 21 million (USD 26.37 million) Sustainable Cooling and Cold Chain Solutions programme.
Africa Cold Chain Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends and Automation in Cold Chain Facilities
4.3 Government Regulations and Initiatives
4.4 Spotlight on Ambient/Temperature-controlled Storage
4.5 Spotlight on Transportation Costs and Storage Costs
4.6 Impact of Emission Standards and Regulations on the Cold Chain Industry
4.7 Impact of Geopolitics and Pandemic on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for Perishable Goods
5.1.2 Increasing Health Awareness
5.2 Market Restraints
5.2.1 High Cost Associated
5.2.2 Lack of adequate infrastructure
5.3 Market Opportunities
5.3.1 Government Initiatives and Investments
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
5.5 Industry Value Chain/Supply Chain Analysis
6. MARKET SEGMENTATION
6.1 By Service
6.1.1 Storage
6.1.2 Transportation
6.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
6.2 By Temperature
6.2.1 Ambient
6.2.2 Chilled
6.2.3 Frozen
6.3 By Application
6.3.1 Horticulture (Fresh Fruits and Vegetables)
6.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
6.3.3 Meat, Fish, Poultry
6.3.4 Processed Food Products
6.3.5 Pharma, Life Sciences, and Chemicals
6.3.6 Other Applications
6.4 By Country
6.4.1 Egypt
6.4.2 Morocco
6.4.3 Nigeria
6.4.4 South Africa
6.4.5 Rest of Africa
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Imperial Logistics LTD
7.2.2 Cold Solutions East Africa
7.2.3 ARCH Emerging Markets Partners Limited
7.2.4 Nippon Express Co. Ltd
7.2.5 Zenith Carex International Limited
7.2.6 Ayoba Cold Storage
7.2.7 Kennie-o Cold Chain Logistics (KCCL)
7.2.8 Trans-nationwide Express PLC (TRANEX)
7.2.9 Kuehne+Nagel
7.2.10 Cool World Rentals
7.2.11 DP World
7.2.12 Lineage Logistics
7.2.13 CCS Logistics
7.2.14 AfriAg*
- *List Not Exhaustive
7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
9.1 Insights into Capital Flows
9.2 External Trade Statistics - Export and Import, by Product and by Country
9.3 Transport and Storage Sector Contribution to the Economy
Africa Cold Chain Logistics Industry Segmentation
The process of transporting, holding, and managing temperature-sensitive products in a controlled environment is referred to as cold chain logistics. For industries dealing with products that are sensitive to temperature variations, including both positive and negative temperature ranges, this is essential.
A complete background analysis of the African cold chain logistics market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
Africa's cold chain logistics market is segmented by service (storage, transportation, and value-added services (blast freezing, labeling, inventory management, etc.)), temperature (ambient, chilled, and frozen), application (horticulture (fresh fruits and vegetables), dairy products (milk, ice-cream, butter, etc.), meats and fish, processed food products, pharma, life sciences, and chemicals, and other applications), and country (Egypt, Morocco, Nigeria, South Africa, and Rest of Africa). The report offers market size and forecasts for the above-mentioned segments in value (USD).
| By Service | |
| Storage | |
| Transportation | |
| Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.) |
| By Temperature | |
| Ambient | |
| Chilled | |
| Frozen |
| By Application | |
| Horticulture (Fresh Fruits and Vegetables) | |
| Dairy Products (Milk, Ice-cream, Butter, etc.) | |
| Meat, Fish, Poultry | |
| Processed Food Products | |
| Pharma, Life Sciences, and Chemicals | |
| Other Applications |
| By Country | |
| Egypt | |
| Morocco | |
| Nigeria | |
| South Africa | |
| Rest of Africa |
Africa Cold Chain Logistics Market Research Faqs
How big is the Africa Cold Chain Logistics Market?
The Africa Cold Chain Logistics Market size is expected to reach USD 10.88 billion in 2024 and grow at a CAGR of 8.28% to reach USD 14.85 billion by 2029.
What is the current Africa Cold Chain Logistics Market size?
In 2024, the Africa Cold Chain Logistics Market size is expected to reach USD 10.88 billion.
Who are the key players in Africa Cold Chain Logistics Market?
Nippon Express, UPS, DHL, Kuehne + Nagel and Imperial Logistics are the major companies operating in the Africa Cold Chain Logistics Market.
What years does this Africa Cold Chain Logistics Market cover, and what was the market size in 2023?
In 2023, the Africa Cold Chain Logistics Market size was estimated at USD 9.98 billion. The report covers the Africa Cold Chain Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Africa Cold Chain Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Cold Chain Logistics Industry Report
Statistics for the 2024 Africa Cold Chain Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Cold Chain Logistics analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Africa Cold Chain Logistics Market Report Snapshots
