The cold chain market size in the Middle East and Africa was worth USD 11.47 billion in 2023. The MEA market is expected to grow at a CAGR of 6.82% from 2024 to 2032 and be worth USD 20.78 billion by 2032 from USD 12.26 billion in 2024.
The word cold chain refers to various measures and machines used to maintain materials in each range of low temperatures, from harvest/production to consumption. The cold chain is essentially a series of controlled temperature supply chain processes. Cold chain services are designed to provide ideal transport and storage conditions for temperature-sensitive products. The growing demand for perishable products and the rapid delivery requirements associated with the food and beverage delivery market based on electronic commerce have given a significant boost to cold chain operations. This is a paradigm shift from the previous trend for consumers who bought processed foods with a longer shelf life.
The growing penetration of connected devices and the automation of cold rooms around the MEA region is propelling the growth of the cold chain market in the Middle East and Africa. The increase in the number of retail stores organized in emerging economies of the MEA is driving greater demand for cold chain solutions. The cold chain market growth in the MEA is further driven by international trade resulting from liberalization, which has led to the need for an infrastructure to contain perishable products such as fruits and vegetables, seafood, and others. The Middle East and Africa cold chain market is also driven by the increase in the number of food products available and by the large companies that participate in these storage activities.
Moreover, the increasing consumption of processed and frozen foods in the MEA nations has augmented the production of such foods, which require an efficient transportation and logistics system. Thus, the cold chain market witnesses a remarkable demand for the safe and secure transport of several perishable food products. Also, the rise in disposable income and the availability of various options in the market are acting as indirect drivers for the expansion of the regional cold chain market.
The high cost of building infrastructure can be seen as an important limitation of the cold chain market in the Middle East and Africa.
Among these, the storage segment is the most important and the most dynamic segment, which in 2023 represented the major portion. The section is expected to increase at a considerable growth rate during the forecast period due to the increased demand for perishable products and the need to reduce the waste of these products. Many countries in the region are far from water sources, which makes seafood conservation inevitable, and this is the only factor that stimulates the demand for the refrigeration storage segment in the cold chain market in the Middle East and Africa.
Among these, the frozen segment held a considerable revenue portion because of the increasing consumption of frozen and ready-to-thaw foods in the region.
Among them, the seafood and meat segment held the majority of the market share in 2023, with a notable revenue share, which can be attributed to the fact that they are the primary food products of the region. Fish and meat are popular food products in the area, and the need for preservation is so high that these easily damaged foods are in constant demand.
Besides, the dairy products desserts segment is expected to experience the fastest growth with a moderate compound annual growth rate due to rapid urbanization, increased disposable income and frozen dessert products as they are the traditional dishes in this area.
Of these, Qatar and Turkey hold the largest share in the Middle East region, surpassing Saudi Arabia. In the African region, South Africa accounts for a prominent portion of the regional business, which is likely to expand in the coming years.
Companies playing a major role in the Middle East and Africa cold chain market include Americold Logistics, Burris Logistics, Nichirei Logistics Group Inc., Preferred Freezer Services, Lineage Logistics Holding LLC and AGRO Merchants. Many of these key players have focused on technological innovations and aggressive market expansion strategies to stay ahead of the competition in the Middle East and Africa region.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1600
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region