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UAE Cold Chain Market Growth 2023- Industry Share, Trends Analysis, Revenue, Scope, Business Challenges and Future Investment Opportunities Report 2032: SPER Market Research

Cold chain refers to a system that ensures the safe storage, transportation, and distribution of perishable goods requiring specific temperature conditions. It involves refrigerated facilities, vehicles, and monitoring systems to maintain the desired temperature range. The goal is to preserve the quality, efficacy, and safety of products like fresh produce, pharmaceuticals, and seafood. By maintaining the necessary temperature conditions, the cold chain ensures that products remain fresh and safe from the point of origin to the end consumer.

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%.

The UAE Cold Chain Market is driven by factors such as increasing international trade, growing tourism and hospitality sector, government initiatives and investments, increasing consumer awareness, and technological advancements. The UAE’s position as a major hub for international trade necessitates a reliable cold chain infrastructure to maintain the quality of perishable goods. The booming tourism industry relies on efficient cold chain systems for food and beverage storage and transportation. Government initiatives, including investments and regulations, have stimulated the growth of the cold chain market. Consumer awareness regarding product quality and safety has increased demand for efficient cold chain systems.

The UAE Cold Chain Market faces challenges such as temperature extremes, energy consumption, regulatory compliance, cost and financial viability, skills and expertise shortage, and supply chain fragmentation. The extreme climate affects temperature control, specialized equipment is required. Cold chain operations consume a significant amount of energy, making energy efficiency a challenge. Compliance with food safety regulations and traceability is complex. Establishing and maintaining infrastructure is costly, and smaller players face financial challenges. There is a shortage of skilled professionals in cold chain management. The market is fragmented with multiple stakeholders, making coordination and integration difficult.

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The COVID-19 pandemic has had a significant impact on the UAE cold chain market. There has been a surge in demand for cold storage facilities due to the need for proper storage and transportation of temperature-sensitive goods like vaccines, medicines, and perishable food items. The distribution of vaccines has necessitated a robust cold chain infrastructure, leading to the expansion and optimization of the cold chain network in the country. Stringent health and safety measures have been implemented to ensure the quality and safety of cold chain products, including regular temperature monitoring, enhanced sanitation protocols, and increased training for operators. Additionally, the growth of e-commerce in the UAE has further increased the demand for last-mile cold chain services to deliver perishable goods directly to consumers’ homes.

Geographically, Dubai emerged as the dominant region in the UAE Cold Chain Market. With its strategic location, well-established infrastructure, and extensive logistics capabilities, Dubai serves as a major trade and logistics hub not only for the UAE but also for the wider Middle East region. It boasts state-of-the-art facilities, including advanced cold storage warehouses, transportation networks, and temperature-controlled logistics services. Additionally, some of the market key players are CEVA logistics, Global Shipping And Logistics (GSL) LLC, Mohebi Logistics, GAC Dubai, RHS Logistics, Others.

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UAE Cold Chain Market Future Outlook

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UAE Cold Chain Market Share, Growth Drivers, Emerging Trends, Scope, Business Opportunity and Forecast to 2032: SPER Market Research

According to SPER Market Research, In order to maintain the required low-temperature range at all times, a cold chain is a temperature-controlled supply chain that includes facilities for manufacture, cold storage, and cold chain transportation via air, across rivers, and rail lines. The market for cold chains is anticipated to grow strongly in the upcoming years due to the rise in food consumption, expanding tourist industry, and the growing demand for frozen & ready-to-eat food. A few of the 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 in emerging nations.

UAE Cold Chain Market Overview:

Forecast CAGR (2022-2032): XX%
Forecast Market Size (2032): XX billion

In terms of revenue, the Cold Chain market in the UAE is anticipated to grow at a medium pace with a single digit CAGR. 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 positive growth. The industry is anticipated to see the introduction of new companies as well as new player mergers and acquisitions. Additionally, over the forecast period, rising adoption of warehouse automation technologies like EDI, RFID, AS/AR, and others are anticipated to boost operational efficiency in the UAE cold chain market.

The COVID-19 epidemic in the UAE had a positive effect on the cold chain industry. The market’s growth has been fuelled by the rise in demand for cold chain facilities including storage and transportation, especially for pharmaceutical products. The need for cold chain services has increased across the nation during the pandemic for the transportation of temperature-sensitive goods including vaccines and pharmaceutical medications for the distribution of vaccines. In order to distribute vaccinations both locally and internationally, firms have formed a cooperation that calls for the use of cold transportation. For example, in order to streamline the distribution of Covid-19 vaccination shots around the world, Dubai established its Vaccine Logistics Alliance with Emirates Airlines, Dubai Ports, Dubai Airports, and the International Humanitarian City. To improve the capacity for transporting vaccines, Emirates SkyCargo enhanced the pharmaceutical cold chain infrastructure in Dubai. The business wants to improve its ability to handle vaccines and pharmaceuticals that are temperature-sensitive in the nation.

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UAE Cold Chain Market Key Market Players:

The study provides market data by the competitive landscape, revenue analysis, market segments, and detailed analysis of key market players such as; Agility, Al Futtaim, Bhatia Brothers, CEVA, DB Schenker, DSV Panalpina, GAC, GSL, Hellmann, Khalidia Shipping, Kuehne and Nagel, Mohebi, RHS, RSA Cold Chain, Sharjah Cold Stores, Tameem Logistics, Triburg.

UAE Cold Chain Market Segmentation:

By Temperature: Based on the Temperature, UAE Cold Chain Market is segmented as; Ambient, Chilled, and Frozen.

By Ownership: Based on the Ownership, UAE Cold Chain Market is segmented as; Contract, Integrated.

By Mode of Freight: Based on the Mode of Freight, UAE Cold Chain Market is segmented as; Air, Land, and Sea.

By Type of Freight: Based on the Type of Freight, UAE Cold Chain Market is segmented as; Domestic, International.

By End User: Based on the End User, UAE Cold Chain Market is segmented as; Dairy Products, Meat, and Seafood, Pharmaceuticals, Vegetables, Fruits, and Others.

By Region: Due to its role as a hub for the distribution of goods to other regions, Dubai has the largest revenue share in the cold storage sector. Jebel Ali Free Zone accounts for the largest portion of the cold storage market’s revenue. It is considered as the world’s largest free zone. This report also provides the data for key regional segments of Abu Dhabi, Al Aweer, DIC (Dubai Internet City), DIP (Dubai Investments Park), Dubai, JAFZA (Jebel Ali Free Zone), Sharjah, and Others.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

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UAE Cold Chain Market Trends

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