Globally, the cold storage market size is projected to hit USD330.2 billion by 2030 registering growth at a CAGR of 11.6% from 2021 to 2030, according to a new study by Precedence Research. In 2020, the market size reached USD110.2 billion and North America was the market leader. However, from 2021-2030, Asia is forecast to become the most opportunistic market.
Asia is characterized by a growing population, rising employment, and growing demand for meats and ready-to-cook and ready-to-eat products. The growth in chilled and frozen meats is the second driver. Thirdly, cold chain is important to maintaining shelf life and food safety of meats and processed products, as reinforced by the pandemic.
Cold storage facility and transport are just as crucial to slaughterhouses and further processing plants. The October 2021 issue of Asian Meat Magazine noted that 27 meat companies were building new processing facilities and/or expanding capacity of existing facilities, and investing in cold chain systems. Finally, rising investments by retailers like big supermarket chains and hypermarkets and e-commerce platforms dealing with meats and frozen foods in the region will continue to fuel demand for cold storage.
Huge market potential
The market potential for Asia’s cold chain industry is huge. In Vietnam, the demand for chilled and frozen meats is growing at 13% annually. Logistics companies like Lineage Logistics have increased their cold storage capacity from 8,000 to 20,000 pallets. The facility stores and distributes frozen and chilled foods. Last year, Hung Vuong Corporation inaugurated a new cold storage facility with a capacity of 70,000 tons in Ho Chi Minh City with a total investment of USD56 million.
Indonesia’s cold chain industry is estimated to grow by 10% in the next five years and the market will mainly be driven by frozen foods, meats, and seafood.
In Thailand, agri-food company Betagro and delivery company Kerry Express have embarked on a joint venture for a cold delivery platform for frozen and refrigerated foods, in line with the shift in Thai consumption preferences and purchasing habits, and increased demand for food hygiene, e-commerce, and food delivery acceleration.
The Philippine Department of Agriculture has also set aside a funding USD6 million to build four cold storage warehouses, complete with meat-cutting facilities
For the full report by Asian Agribiz, go to https://bit.ly/3JHkGH5