Market Size of Japan Cold Chain Logistics Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 20.52 Billion |
Market Size (2029) | USD 26.79 Billion |
CAGR (2024 - 2029) | 5.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Japan Cold Chain Logistics Market Analysis
The Japan Cold Chain Logistics Market size is estimated at USD 20.52 billion in 2024, and is expected to reach USD 26.79 billion by 2029, growing at a CAGR of 5% during the forecast period (2024-2029).
With COVID-19 in effect, the Japanese Trade Ministry reported a 7.5% Y-o-Y increase in the sale of drugstores in March 2020. Along with this, the Japan Supermarkets Association, in response to the self-imposed quarantines and the need to cook at home, reflected a 7.4% Y-o-Y increase in the demand and sales of groceries at the supermarkets in March 2020. All these factors led to a negative impact on the cold chain logistics market in Japan. COVID-19 impacted Japan's cold chain operations, including increased food safety concerns.
Japan is regarded as a mature market for cold chain logistics and is dominated by several players. Rapid advancements in biopharmaceuticals and regenerative medicine recently increased the demand for the cold pharmaceutical chain in Japan. This trend is expected to continue with the COVID-19 vaccines introduction and other treatments. Cold chain logistics in Japan was initially established for the fresh, refrigerated, and frozen food industries. Cold chain logistics focuses on the timely distribution of products within a constantly controlled temperature and humidity environment.
Most cold storage facilities in Japan are owned and operated by major cold chain corporations, with only a small number available for lease. Advances in using e-commerce to sell frozen and chilled goods will accelerate cold storage development in areas with latent needs.
Factors such as an increase in the number of refrigerated warehouses and growth in the pharmaceutical sector are expected to drive the growth of Japan's cold chain logistics market. Some of the challenges in the market are the irregular distribution of cold storage capacity, lack of proper logistical connectivity support, and the need for high capital investment.
Japan Cold Chain Logistics Industry Segmentation
Cold chain logistics includes transporting temperature-controlled products, such as temperature-sensitive foods, equipment, and biopharmaceutical products. The Japan Cold Chain Logistics Market is segmented by service (storage, transportation, value-added services (blast freezing, labeling, inventory management, etc.)), temperature type (chilled and frozen), and application (horticulture (fresh fruits & vegetables), dairy products (milk, ice-cream, butter, etc.), meats, fish, poultry, processed food products, pharma, life sciences, and chemicals, and other applications). The report offers market size and forecasts for Japan Cold Chain Logistics Market in value (USD) for all the above segments.
By Services | |
Storage | |
Transportation | |
Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.) |
By Temperature Type | |
Chilled | |
Frozen |
By Application | |
Horticulture (Fresh Fruits & Vegetables) | |
Dairy Products (Milk, Ice-cream, Butter, etc.) | |
Meats, Fish, Poultry | |
Processed Food Products | |
Pharma, Life Sciences, and Chemicals | |
Other Applications |
Japan Cold Chain Logistics Market Size Summary
The Japan cold chain logistics market is a well-established sector, characterized by its mature infrastructure and dominance of major players. The market is primarily driven by advancements in biopharmaceuticals and regenerative medicine, which have heightened the demand for cold pharmaceutical chains. This trend is expected to persist with the introduction of COVID-19 vaccines and other treatments. Initially focused on the food industry, cold chain logistics in Japan now encompasses a broader range of products requiring temperature-controlled environments. The market faces challenges such as irregular distribution of cold storage capacity and high capital investment requirements, but it is also benefiting from the increasing demand for chilled and frozen foods, driven by demographic changes and evolving consumer preferences.
The pharmaceutical sector plays a significant role in the growth of Japan's cold chain logistics market, supported by the country's aging population and its position as a major producer and importer of advanced medical facilities. The government's initiatives to promote generic drugs and support the biologics sector present substantial opportunities for market expansion. The COVID-19 pandemic has further accelerated demand for cold chain storage and transportation facilities, particularly with the import of vaccines. The market is relatively fragmented, with numerous local and international players competing on cost, storage fees, and space. Recent developments, such as the construction of new refrigerated storage facilities and strategic partnerships, highlight the ongoing efforts to meet the growing demands of the global cold chain industry.
Japan Cold Chain Logistics Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.1.1 Criticality of the healthcare sector
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1.2.1.2 Increased consumer demand for fresh foods
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1.2.2 Restraints
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1.2.2.1 Inadequate packaging or damaged products
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1.2.2.2 Disrupted temperature control
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1.2.3 Opportunities
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1.2.3.1 Technological Innovations
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1.3 Technological Trends and Automation
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1.4 Government Regulations and Initiatives
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1.5 Industry Value Chain/Supply Chain Analysis
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1.6 Spotlight on Ambient/Temperature-controlled Storage
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1.7 Industry Attractiveness - Porter's Five Forces Analysis
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1.7.1 Threat of New Entrants
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1.7.2 Bargaining Power of Buyers/Consumers
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1.7.3 Bargaining Power of Suppliers
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1.7.4 Threat of Substitute Products
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1.7.5 Intensity of Competitive Rivalry
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1.8 Impact of Emission Standards and Regulations on Cold Chain Industry
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1.9 Impact of COVID - 19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Services
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2.1.1 Storage
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2.1.2 Transportation
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2.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
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2.2 By Temperature Type
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2.2.1 Chilled
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2.2.2 Frozen
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2.3 By Application
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2.3.1 Horticulture (Fresh Fruits & Vegetables)
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2.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
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2.3.3 Meats, Fish, Poultry
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2.3.4 Processed Food Products
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2.3.5 Pharma, Life Sciences, and Chemicals
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2.3.6 Other Applications
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Japan Cold Chain Logistics Market Size FAQs
How big is the Japan Cold Chain Logistics Market?
The Japan Cold Chain Logistics Market size is expected to reach USD 20.52 billion in 2024 and grow at a CAGR of 5% to reach USD 26.79 billion by 2029.
What is the current Japan Cold Chain Logistics Market size?
In 2024, the Japan Cold Chain Logistics Market size is expected to reach USD 20.52 billion.