UAE Cools Down with a $4.8 Billion Cold Chain: Market Poised for Growth by 2027: Ken Research

UAE cold chain market chills its way to $4.8 billion by 2027, driven by rising imports and population growth. Refrigerated warehousing leads, with frozen food storage and pharmaceuticals gaining traction. International players join domestic companies, with technology playing a key role. AI, e-commerce, and sustainability shape the future of the UAE’s cold chain.

Gurugram, India, May 20, 2024 (GLOBE NEWSWIRE) — The UAE cold chain industry is experiencing a temperature drop, and it’s a good thing! The market is projected to reach a refreshing $4.8 billion by 2027, driven by a growing population, rising imports, and government initiatives aimed at enhancing food security. This press release, based on Ken Research’s insightful report “UAE Cold Chain Market Outlook to 2027: Thriving with Rising Imports and Government Support,” explores the key trends propelling this dynamic market and offers valuable insights for investors, logistics companies, and food and beverage businesses alike. 

Keeping it Cool: Key Drivers in the UAE’s Cold Chain Market 

Several key factors are keeping the UAE’s cold chain market from overheating: 

  • High Dependency on Imports Fuels Demand: The UAE relies heavily on imports for its food and beverage requirements. This necessitates a robust cold chain infrastructure to ensure the safe and efficient transportation and storage of perishable goods. The Ken Research report estimates that a significant portion of the market growth will be driven by the increasing demand for cold chain solutions for imported food items. 
  • Growing Population Demands Efficient Food Distribution: The UAE’s expanding population, with a growing middle class and rising disposable incomes, is creating a higher demand for fresh and processed food products. This necessitates efficient cold chain logistics to ensure food safety and minimize spoilage. 
  • Government Investment Chills Infrastructure Bottlenecks: The UAE government recognizes the importance of a well-developed cold chain for food security and economic diversification. Investments in infrastructure development, including building new cold storage facilities and upgrading transportation networks, are expected to accelerate market growth. 

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Alternative Stat-Based Headings 

  • Import Reliance Drives Growth: UAE Cold Chain Market Cools Down to $4.8 Billion by 2027 (Highlights the role of imports) 
  • Population Boom Heats Up Demand: Rising Food Consumption Drives UAE Cold Chain (Focuses on the impact of population growth) 

Market Segmentation: Keeping Different Products at the Perfect Temperature 

The UAE’s cold chain market caters to a variety of food and beverage categories and requires specialized storage solutions. Here’s a closer look at the segmentation within this dynamic market: 

  • Refrigerated Warehousing Takes the Lead: Dominant Market Share Expected for Refrigerated Warehousing: Refrigerated warehouses, providing temperature-controlled storage for perishable food and beverages, are expected to hold a dominant market share by 2027. This segment plays a crucial role in maintaining product quality and minimizing spoilage during storage. 
  • Frozen Food Storage Gains Traction: The demand for frozen food storage facilities is on the rise, driven by the growing popularity of frozen convenience foods and processed meats. This segment requires specialized storage solutions to maintain extremely low temperatures. 
  • Pharmaceutical Cold Chain Emerges: The UAE’s expanding pharmaceutical industry is creating a demand for specialized cold chain solutions for the storage and transportation of temperature-sensitive pharmaceuticals. This segment requires strict adherence to international regulations and specialized temperature control measures. 

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Building a Competitive Landscape: Collaboration and Innovation Pave the Way 

The UAE’s cold chain market features a blend of established players and emerging forces: 

  • International Logistics Giants Enter the Arena: Recognizing the UAE’s strategic location and potential, international logistics companies with expertise in cold chain solutions are entering the market. They bring global best practices and advanced technologies to enhance efficiency. 
  • Local Players Gain Momentum: Domestic UAE cold chain companies are capitalizing on the market growth by expanding their service offerings and storage capacities. These companies offer local knowledge and agility, catering to the specific needs of the UAE market. 
  • Focus on Technology Integration: Technology adoption is crucial for optimizing cold chain operations in the UAE. Companies are implementing solutions like real-time temperature monitoring systems, warehouse management software, and data analytics tools to improve visibility, reduce waste, and ensure optimal resource utilization. 

The Future is Smart and Sustainable: Emerging Trends Shaping the Landscape 

The UAE’s cold chain market is poised for exciting advancements: 

  • Integration of Artificial Intelligence (AI): AI is expected to play a transformative role in the UAE’s cold chain logistics. AI can be used for tasks like predictive maintenance of cold storage facilities, demand forecasting, and route optimization, leading to improved efficiency and cost savings. 
  • E-commerce Drives Last-Mile Delivery Solutions: The growth of e-commerce for food and beverage products necessitates efficient last-mile cold chain solutions. This segment focuses on maintaining product freshness during the final leg of the journey to the consumer’s doorstep. 

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Download the full report to gain a comprehensive analysis of the UAE’s Cold Chain Market and its exciting future. This report equips you with the knowledge needed to navigate this dynamic landscape and position yourself for success in the vital UAE cold chain industry.


UAE Cold Chain Market Segmentation

By Market Type

  • Cold Storage
  • Cold Transport

By End User

  • Pharmaceuticals and Vaccines
  • Fruits and Vegetables
  • Dairy Products
  • Meat
  • Processed foods
  • Seafood
  • Ice cream and frozen desserts
  • Others

By Provider Type

  • 3PL
  • 2PL

UAE Cold Storage Market Segmentations

By Temperature Range

  • Chilled
  • Frozen

By Major Cities

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Others

UAE Cold Transport Market Segmentation

By Mode of Transportation

  • Land
  • Sea
  • Air

By Location

  • International
  • Domestic

By Type

  • Long Haul (First + Mid Mile)
  • Short Haul (Last Mile)

By Temperature Range

  • Chilled
  • Frozen

By Vicinity

  • Inter-City
  • Intra-City

For More Insights On Market Intelligence, Refer To The Link Below: –

UAE Cold Chain Market

Related Reports by Ken Research: –

Australia Cold Chain Market Outlook to 2027 Driven by Rising Meat and Seafood Consumption Owing to Growing Demand for Fresh Food

The Australia cold chain market is anticipated to grow with a CAGR of 10.3% due to the ever-growing demand Majority of the end users’ segments are expected to register a robust CAGR in the Australia Cold Chain Market in the upcoming years Demand for perishable food products is expected to increase due to the rising disposable income and retail spending of the people in the country, which will necessitate the development of cold storage facilities and positively affect the market growth.

Global Cold Chain Market Outlook to 2027 Driven by Rising Import-Export Trade Volume and Domestic Consumption of Meat, Seafood, Fruits and Vegetable, the popularity of Ready to Eat frozen processed food

According to Ken Research estimates, the Global Cold Chain Market will expand at significant rate by 2027, owing to the growing demand of processed ready-to-eat food, rising export volumes, expanding storage capacity and new and advanced technologies.

Indonesia Cold Chain Market Outlook to 2026F Driven by Rising Fisheries Industry & Convenience Food Consumption Owing to Growing Population and Infrastructural Development

According to Ken Research estimates, the Indonesia Cold Chain Market grew at a CAGR of 10.7% in the period of 2016-2021 – is expected to grow at a CAGR of 12.9% in the forecasted period of 2021-2026F, owing to the change in lifestyle and urbanization, growing fisheries sector, expansion of existing cold storages and rising domestic consumption of meat.

Thailand Cold Chain Market Outlook to 2026F Driven by Rising Import-Export Trade Volume and Domestic Consumption of Meat, Seafood and Popularity of Ready to Eat Frozen Processed Food

According to Ken Research estimates, the Thailand Cold Chain Market is forecasted to grow more than THB 20 Bn by 2026F, owing to the growing demand of processed ready-to-eat food, rising export volumes, expanding storage capacity and new and advanced technologies. The Thailand Cold Chain Industry comprises of Cold Storage and Cold Transport with presence of major companies such as JWD logistics, Thaimax, Yokorei and Interexpress Logistics operating in the market.

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Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth

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