UAE Cold Chain Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.64 Billion |
| Market Size (2029) | USD 1.04 Billion |
| CAGR (2024 - 2029) | 10.29 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
UAE Cold Chain Logistics Market Analysis
The UAE Cold Chain Logistics Market size is estimated at USD 0.64 billion in 2024, and is expected to reach USD 1.04 billion by 2029, growing at a CAGR of 10.29% during the forecast period (2024-2029).
- The latest economic insight report for the Middle East revealed that economic growth in the United Arab Emirates is expected to remain robust in 2024 despite slowing down in 2022-2023. The slowdown in growth will be largely driven by the OPEC+ policy, which may reverse some of the past year’s increase in oil production.
- The market for cold chains in the United Arab Emirates is anticipated to grow strongly in the coming years due to the rise in food consumption, the expanding tourist industry, and the growing demand for frozen and ready-to-eat food. A few key growth causes include the development of cold storage for retail distribution, the building of new warehouses, the government's creation of significant food and pharmaceutical reserves, and the rise in end consumers.
- The pharmaceutical industry's increased production activity, infrastructure expenditures, the dairy industry's expansion, and rising import and export volumes are all credited with the market's growth.
- Under the country’s economic diversification plans like UAE Vision 2021, Abu Dhabi Vision 2030, and Dubai’s Industrial Strategy 2030, aimed at reducing the economy’s dependence on Hydrocarbon exports, the development of the logistics sector is held as an important strategic goal for sustained long term growth of the economy as UAE becomes a crucial trans-shipment hub for Europe-Asia-Africa trade. There is a boom in the construction of refrigerated facilities in the United Arab Emirates.
- In July 2023, A.P. Moller - Maersk (Maersk) inaugurated its first cold store in the United Arab Emirates. Spanning an area of 13,000 square meters, the new facility marks Maersk’s third warehousing and distribution center in Dubai. Moreover, the new cold store facility is strategically positioned within Dubai Industrial City, offering enhanced connectivity to major transportation and logistics hubs, including Jebel Ali Port, Al Maktoum International Airport, and an Etihad Rail freight terminal. In addition, it offers direct road access for swift distribution across the United Arab Emirates.
UAE Cold Chain Logistics Market Trends
The Pharma and Life Sciences Segment Occupies the Largest Market Share in the UAE Cold Chain Logistics Market
- The pharma and life sciences segment in the United Arab Emirates has skyrocketed in sales in the past few years. As most items in this segment are temperature-sensitive, the cold chain market has also seen a steep rise in sales in the region. In November 2022, Etihad Cargo, the cargo and logistics arm of Etihad Aviation Group, in partnership with Etihad Airport Services and Abu Dhabi Airports, prepared to launch a new state-of-the-art pharmaceutical cool chain facility.
- Due to an upcoming operation, the facility will significantly expand the pharmaceutical handling and storage at Abu Dhabi International Airport (AUH). Etihad Cargo's customers will benefit from the carrier's expanded International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) Pharma certification for pharmaceutical and life science logistics and provision of world-class, end-to-end temperature-controlled solutions for the transportation of pharmaceuticals across the carrier's global network.
- Before the opening of the new pharmaceutical facility at the carrier's Abu Dhabi hub, Etihad Cargo transported over 50,000 tons of cool chain products, including pharmaceutical and healthcare products via its PharmaLife product and fresh produce via its IATA CEIV Fresh-certified FreshForward product, in the past twelve months. The strong collaboration between Etihad Cargo, Etihad Airport Services, and Abu Dhabi Airports will continue to increase pharmaceutical cargo volumes and further position Abu Dhabi as a major solutions provider in the logistics supply chain.
- Aligned with Abu Dhabi’s Economic Vision 2030, a state-of-the-art Hayat Biotech Life Sciences Park is set up in Abu Dhabi’s KEZAD. This innovative and integrated hub is dedicated to R&D in life sciences, biotechnology, and vaccine production. The park’s design fosters an ecosystem of collaboration and knowledge exchange.
- In April 2023, Saudia Cargo added Tower Cold Chain to its approved roster of temperature-controlled containers for shipping pharmaceutical, biotech, and life science products in a new global rental agreement. The deal reinforces Saudia Cargo’s commitment to having the broadest possible selection of cold chain products (both in terms of cargo size and temperature requirements).
- A key benefit of Tower Cold Chain’s technology is its reliability in maintaining product integrity without electricity, even in extreme heat, meaning that a robust solution is required to prevent temperature excursions. Tower’s passive solutions are proven to maintain temperatures for up to 120 hours without intervention or external power.
The Chilled Segment is Expected to Gain Traction in the Coming Years
- Pharmaceuticals and medical products often require strict temperature control to ensure their efficacy and safety. Chilled transportation plays a crucial role in maintaining the integrity of these products during transit. In July 2023, AD Ports Logistics (ADPL), a subsidiary of AD Ports Group, and Acino, a Swiss pharmaceutical company that develops and manufactures well-proven and innovative medicines, signed an agreement for ADPL to provide Acino with global freight forwarding services in the Middle East and North Africa (MENA) region.
- ADPL will use its fully integrated and GDP-certified end-to-end pharma cold chain capabilities to carry important drugs from Acino's worldwide sites of origin to markets in the MENA area under the terms of the deal. ADPL's Healthcare and Lifesciences division will be required to provide specific transport and handling skills for pharmaceutical items.
- The scope of the goods forwarding services will comprise first-mile transport, ports and airport loading, customs clearing, and final-mile logistics, according to the conditions of the agreement. Since its inception in 2020, ADPL has collaborated with global logistics companies to create one of the world's most integrated pharmaceutical supply chains capable of carrying medicines at storage temperatures ranging from -80°C to +25°C.
- In November 2022, Invictus Investment announced a capital investment of AED 2.8 million (USD 760,000) to acquire a fleet of more than eight refrigerated trucks to facilitate the transit of perishable commodities between Sudan, the United Arab Emirates, and Saudi Arabia.
- The specially designed vehicles will deliver vital products such as cold lamb, beef, goat meat, and fruits. This is the first important purchase to help Invictus Investment extend its product and services in climate-controlled transport and storage facilities, prioritizing asset allocation.
UAE Cold Chain Logistics Industry Overview
Large enterprises claim a sizable portion of the highly fragmented UAE cold chain market. The market mostly centers on areas like Dubai and Abu Dhabi's ports and free zones. These areas have seen a growth in cold chain businesses due to their closeness to the sea and airports, rising metropolitan populations, well-developed transportation infrastructure, and well-developed transit systems. Cold chain companies compete in the nation in terms of location, cost, temperature range, product range, warehouse infrastructure, and industry experience.
Additionally, international companies are investing in the market and buying regional companies to increase their presence there. Regional enterprises invest in similar cold chain infrastructure investments to compete with multinational corporations. Additionally, businesses are putting more money into logistics for fruits, vegetables, flowers, cosmetics, and consumer goods. They are also attempting to strengthen the cold chain.
Major players in the cold chain market are GAC Dubai, GSL Logistics, Mohebi Logistics, CEVA Logistics, and RHS Logistics.
UAE Cold Chain Logistics Market Leaders
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CEVA logistics
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Mohebi Logistics
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RHS Logistics
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GAC Dubai
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Global Shipping And Logistics LLC
*Disclaimer: Major Players sorted in no particular order
UAE Cold Chain Logistics Market News
- June 2024: Khalifa Economic Zones Abu Dhabi - KEZAD Group, the largest operator of integrated and purpose-built economic zones, and Astha Biotech, a UAE-based investment and development company, inked a lease agreement for a new facility in KEZAD Al Ain. The agreement, formalized during the “Make It In The Emirates Forum 2024”, marks the debut of the UAE's premier company dedicated to microalgae production. These microalgae boast applications spanning health, cosmetics, food, and aquaculture, backed by an initial investment of AED 44 million (USD 12 million) from Astha Biotech.
- May 2024: At Jebel Ali Free Zone, Dubai, RSA Cold Chain, a collaboration between UAE's RSA Global and the US's Americold, a prominent player in cold chain solutions, reached a pivotal moment. They commenced the construction of their Advanced Regional Distribution Centre. This state-of-the-art facility, equipped with eight chambers and a total pallet capacity of 40,000 positions, is designed to meet local supply chain and distribution needs. It offers advanced inventory holding for Middle East distribution via a bonded tax-free economic free zone. The facility also enables seamless logistics by moving inventory within its premises from bonded to non-bonded without delays or costs, setting a new benchmark in the cold chain industry.
UAE 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 DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Food Imports To Drive The Market Growth
4.2.2 Growing Pharmaceutical Market
4.3 Market Restraints
4.3.1 Labour Shortage
4.3.2 Operation Costs
4.4 Market Opportunities
4.4.1 Technological Adavncements
4.4.2 Sustainability Initiatives
4.5 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Government Regulations and Initiatives
4.7 Technological Developments in the Sector
4.8 Value Chain / Supply Chain Analysis
4.9 Insights Into Refrigerants and Packaging Materials Used in Refrigerated Warehouses
4.10 Insights Into Multi-temperature Controlled Vehicles
4.11 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Services
5.1.1 Storage
5.1.2 Transportation
5.1.3 Value Added Services (Blast Freezing, Labeling, and Inventory Management)
5.2 By Temperature Type
5.2.1 Chilled
5.2.2 Frozen
5.2.3 Ambient
5.3 By End Users
5.3.1 Horticulture (Fresh Fruits and Vegetables)
5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
5.3.3 Meats, Fish, and Poultry
5.3.4 Processed Food Products
5.3.5 Pharma and Life Sciences
5.3.6 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 GAC Dubai
6.2.2 Global Shipping And Logistics LLC
6.2.3 CEVA Logistics
6.2.4 RHS Logistics
6.2.5 Mohebi Logistics
6.2.6 Al-Futtaim Logistics
6.2.7 Hellman Worldwide Logistics
6.2.8 DB Schenker: Global Logistics Solutions
6.2.9 MH Khoory Trading & Ship Chandlers LLC
6.2.10 Tameem Logistics
6.2.11 Khalidia Shipping*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport and Storage Sector to Economy)
8.2 Insights on Capital Flows (Investments in the Transport and Storage Sector)
8.3 E-commerce and Consumer Spending-related Statistics
8.4 External Trade Statistics - Exports and Imports, by Product and by Country of Destination/Origin
UAE Cold Chain Logistics Industry Segmentation
To guarantee that the requisite low-temperature range is constantly maintained, a cold chain is a temperature-controlled distribution network that integrates refrigerated production, cold storage, and cold chain transportation facilities across the air, water, and rail lines. The market for cold chains is expected to expand quickly due to rising food consumption, an expanding tourism industry, and an increase in demand for frozen and ready-to-eat foods.
The UAE cold chain logistics market is segmented by service (storage, transportation, value added services (blast freezing, labeling, inventory Management)), temperature type (chilled, ambient, and frozen), end users (horticulture (fresh fruits and vegetables), dairy products (milk, ice-cream, butter, etc.), meats, fish, poultry, processed food products, pharma and life sciences, and other applications). The report offers market size and forecasts for the UAE cold chain logistics market in value (USD) for all the above segments.
| By Services | |
| Storage | |
| Transportation | |
| Value Added Services (Blast Freezing, Labeling, and Inventory Management) |
| By Temperature Type | |
| Chilled | |
| Frozen | |
| Ambient |
| By End Users | |
| Horticulture (Fresh Fruits and Vegetables) | |
| Dairy Products (Milk, Ice-cream, Butter, etc.) | |
| Meats, Fish, and Poultry | |
| Processed Food Products | |
| Pharma and Life Sciences | |
| Other End Users |
UAE Cold Chain Logistics Market Research FAQs
How big is the UAE Cold Chain Logistics Market?
The UAE Cold Chain Logistics Market size is expected to reach USD 0.64 billion in 2024 and grow at a CAGR of 10.29% to reach USD 1.04 billion by 2029.
What is the current UAE Cold Chain Logistics Market size?
In 2024, the UAE Cold Chain Logistics Market size is expected to reach USD 0.64 billion.
Who are the key players in UAE Cold Chain Logistics Market?
CEVA logistics, Mohebi Logistics, RHS Logistics, GAC Dubai and Global Shipping And Logistics LLC are the major companies operating in the UAE Cold Chain Logistics Market.
What years does this UAE Cold Chain Logistics Market cover, and what was the market size in 2023?
In 2023, the UAE Cold Chain Logistics Market size was estimated at USD 0.57 billion. The report covers the UAE Cold Chain Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Cold Chain Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the UAE Cold Chain Logistics Market?
The challenges faced by the UAE Cold Chain Logistics Market are a) High capital investment for infrastructure development b) Lack of standardized regulations across the country c) Shortage of skilled workforce for operating and maintaining cold chain systems d) Infrastructure limitations, including inadequate warehousing facilities and transportation bottlenecks
What are the key opportunities in the UAE Cold Chain Logistics Market?
The key opportunities in the UAE Cold Chain Logistics Market are a) Expansion of pharmaceutical exports, leveraging the UAE's strategic location b) Adoption of advanced technologies like IoT, data analytics, and blockchain for better monitoring and efficiency c) Collaboration and partnerships between different stakeholders in the supply chain d) Development of sustainable cold chain solutions using eco-friendly technologies
UAE Cold Chain Logistics Industry Report
The UAE cold chain logistics market is experiencing significant growth, driven by the expansion of the pharmaceutical and healthcare sectors, as well as the food and beverage industry. Key market segments include refrigerated warehouses and refrigerated transportation, covering railways, airways, roadways, and waterways. The market caters to a diverse range of applications such as fruits and vegetables, bakery and confectionery, dairy and frozen desserts, meat, fish, seafood, drugs, and pharmaceuticals. Strategic initiatives and investments in the medical and food sectors are enhancing the UAE's infrastructure to meet stringent regulatory requirements and consumer demands for quality and safety. The growth is further supported by the need for efficient cold storage and transportation solutions to maintain the integrity of temperature-sensitive products. Logistics companies in UAE and supply chain companies in UAE play a crucial role in developing the cold chain logistics infrastructure across major regions including Dubai, Abu Dhabi, and Sharjah. For detailed statistics on the UAE Cold Chain Logistics market share, size, revenue growth rate, and a market forecast outlook, refer to industry reports by Mordor Intelligence™. Get a sample of this industry analysis as a free report PDF download.
