UAE Cold Chain Logistics Market Size (2024 - 2029)

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 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.