The UAE is among the most innovative marketplaces in the MENA region, and it boasts a well-established cold chain logistics industry. The term "cold chain market" refers to the systems and practices required to maintain the integrity and quality of temperature-sensitive products, such as food, drugs, and chemicals, across the supply chain. Distribution, shipping, and refrigeration are required to ensure that these products remain within specified temperature ranges. The cold chain market is essential for maintaining product quality, prolonging shelf life, and preventing spoiling as the demand for perishable items rises globally.
According to SPER market research, ‘UAE Cold Chain Market Size - By Temperature, By Ownership, By Mode of Freight, By Type of Freight, By End User - Regional Outlook, Competitive Strategies and Segment Forecast to 2032’ state that the UAE Cold Chain Market is predicted to reach USD XX billion by 2032 with a CAGR of XX %.
This market is being driven by a number of factors; customers want products with a longer shelf life and the best possible quality, which makes logistics management more crucial than ever. With more people seeking convenience in their everyday shopping, there will likely be a growing need for refrigerated goods and services. The market has grown as a result of rising trade in perishable goods, government infrastructure projects to boost pharmaceutical exports, and ongoing investments in cutting-edge logistics to maintain the temperature of goods like manufactured foods and fresh agricultural items. Furthermore, the international pharmaceutical companies have been encouraged to establish their manufacturing facilities in the nation by the government's rising desire to support domestic production resulting in the augmentation of the market even further.
The cold chain business has a number of obstacles that prevent it from growing and operating at its best. One significant barrier is the lack of infrastructure, which is particularly apparent in rural places where there is a greater need for cold storage facilities than there are available. This scarcity affects the quality and shelf life of temperature-sensitive items by making it more difficult to store and transport them efficiently. Additionally, the industry's capacity to improve productivity and maximize resource use is constrained by the sluggish adoption of cutting-edge technology like automated storage systems and real-time temperature monitoring. Additionally, the lack of qualified personnel with cold chain management experience makes operations more difficult to handle because logistics and temperature control are intricate processes that call for specific training.
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Strict lockdowns and other government measures implemented in the wake of the COVID-19 pandemic caused industry closures and interfered with supply chain activities in multiple end-use verticals. Sales of perishable commodities were significantly impacted, which had a negative effect on market revenues, due to the increasing panic purchasing and stockpiling. However, the pandemic in the United Arab Emirates was advantageous for its cold chain industry. The market's growth has been fuelled by the rise in demand for cold chain services such as transportation and storage, especially for pharmaceutical items. The need for cold chain services had increased nationwide during the pandemic as a result of the delivery of vaccinations, which is a temperature-sensitive commodity that includes pharmaceuticals and vaccines. As a result, companies worked together to distribute vaccinations both domestically and internationally, which called for the utilization of cold transportation.
The cities and regions of Dubai, Sharjah, Abu Dhabi, and Jebel Ali Free Zone have witnessed significant growth. Additionally, some of the key market players are Agility, Al Futtaim, Bhatia Brothers, DB Schenker, GAC, Khalida Shipping, RSA Cold Chain, Sharjah Cold Stores, and others.
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UAE Cold Chain Market Future Outlook
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