Market Trends of China Cold Chain Logistics Industry
This section covers the major market trends shaping the China Cold Chain Logistics Market according to our research experts:
Changes in Consumer Habits Fueling the Demand for Cold Chain Facilities
The cold chain market of China is likely to become the most rewarding sub-industry in the logistics sector backed by the changing consumption patterns and increasing demand for commodities like fresh food and medicine. The Chinese residents see a change in food consumption backed by the increased disposable income and growing market demand for the cold chain of food alongside the accelerating urbanization in China. Cold chain logistics in China is mainly driven by meat, seafood, quick-frozen food, fruits & vegetables, and dairy products. Fruit & vegetable market holds the largest market segment in terms of cold chain circulation followed by seafood.
Chinese governments at all levels are racking up the investments in cold chain infrastructure, facilitating enlargement of cold chain logistics. In 2019, the Chinese cold chain logistics market showed an annual compound rate growth of 10.5% between 2010 and 2019.
Major e-commerce players and logistics giants like JD.com are focusing on collaborating or establishing self-operating cold chain warehouses in order to expand their cold-chain delivery services in the country.
Developments in Chinese Biotech Sector
The Chinese biotech is particularly undergoing notable developments. Many biotech firms in the market are building on recent progress in genomics, focusing on rare genetic diseases.
The development is supported by the Chinese rules and regulation acting as a layer of protection for the market. The rules of sharing of medical information are very stringent as compared to the US and other developed countries, which means Chinese companies have access to far more patient data than their western rivals.
The Chinese government is pumping billions into biotech research and development. According to official figures, scientific R&D spending topped USD 291 billion in 2018, just over 2% of gross domestic product, and the government is targeting even higher spending of 2.5% of GDP this year.
The Chinese government has introduced a centralised procurement process, known as 4+7 bulk tendering intended to bring down prices for common drugs. This regulatory change has helped the generic drugmakers focus on volume and big companies with advanced research teams chase higher margins.
