DUBLIN--(BUSINESS WIRE)--The "ASEAN Cold Chain Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The ASEAN cold chain logistics market is expected to grow by more than 12% during the forecast period 2022-2027.
The COVID-19 pandemic challenging the economy has upended the cold chain logistics sector with massive changes in operations,
supply chains, regulations, and workforce requirements. Foreign investors are now able to own 100% of partnerships, a figure that was previously 75%. It has also transformed the market with a lasting impact on the future.
Modernization in the logistics sector has supported the growth of the refrigerated logistics market. During 2020-21 there was an unexpected demand rise for cold chain logistics in ASEAN Countries.
The growing urban population and changing consumer perception have boosted the demand for refrigerated storage and transport. The market for refrigerated/frozen products is rapidly growing in Southeast Asia.
With rising income levels in ASEAN Countries and lifestyle changes are key factors for the growth of meat consumption and production in these regions, Particularly Indonesia and Vietnam are driving the growth.
ASEAN Pharmaceutical Industry has a market cap of USD 148.3 bn over the projected years. As most of the drugs are temperature sensitive and the need to be transported to the last mile, especially the transportation of Covid Vaccination. Cold chain Logistics are effective in delivering last mile.
Key Market Trends
The Halal Food Industry is Driving the Growth of the Market
In recent years, global brands have begun to focus on the Muslim economy to capitalize on rising purchasing power and shifting consumer spending priorities. Around 260 million Muslims live in the ASEAN region, the majority of whom live in Indonesia, Malaysia, Thailand, the Philippines, Singapore, Myanmar, and Brunei.
The number of halal lifestyle events and campaigns held across the region in the last decade stimulates interest in Islamic travel, foods, fashion, and cosmetics.
Amid the economic crises due to the pandemic, Indonesia, the world's most populous Muslim-majority country, is focusing on developing its halal industry to meet domestic and global demand. Despite the pressure on economies around the world caused by the COVID-19 pandemic, the halal industry has been able to post positive results.
Before the pandemic, the industry grew at a rate of 3.2% in 2019, which was higher than the global economy's 2.3% growth. The halal industry of Malaysia is growing rapidly, and, in 2020, this industry contributed around 8.1% to the country's GDP. According to Halal Industry Development Corporation (HIDC), Malaysia's halal industry market value is expected to reach USD 147.4 billion by the end of 2025. In 2020, the country exported about MYR 38 billion (USD 9 bn) worth of halal products.
Singapore's halal dining scene market has been thriving in recent years, with more food and beverage (F&B) outlets opening and more halal certifications issued. In 2019, the halal dining market in Singapore was worth USD 1 billion, with local Muslim spending of USD 700 million.
Since most of the Halal food is meat products, they needed to be stored in cold chain warehouses which are Halal certified by the respective Governments. Several policies aimed at developing the halal industry have been demonstrated by the government in recent times, including the establishment of a Special Economic Zone (KEK) for the industry.
In addition, the collaboration between the National Committee for Sharia Economics and Finance (KNEKS) and companies such as Unilever Indonesia is expected to boost the country's halal industry. The Malaysian government is also making many advancements to become a global market leader in the halal market. The halal industry's master plan and halal park are the recent advancements made by the government.? All these Halal Initiatives are driving the cold chain Logistics in ASEAN Countries.
Increase in Meat Consumption Propelling Cold Chain Logistics in ASEAN
Southeast Asia's expanding population and increasing incomes, urbanization, and retail sectors are contributing to rising meat consumption and growing imports of feedstuffs. The five key emerging markets within the region are Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
In recent years meat consumption also increased, although fish and seafood are the largest meat sources consumed and produced - and are partially responsible for feedstuffs demand. Every Southeast Asian country has different meat preferences, as reflected by their levels of consumption and production.
Malaysia's poultry industry is the most successful of its livestock segment and has the highest output value. The country is largely self-sufficient when it comes to poultry meat, and its annual per capita consumption is nearly 50 kg. Thailand is the world's fourth-largest poultry exporter, with around 80% of the poultry produced by vertically integrated farms, its annual per capita consumption in 2020 was around 7.9 kg.
Companies Mentioned
- Nippon Express
- United Parcel Service of America
- Deutsche Post DHL
- Yamato Transport Co. Ltd
- DSV Agility Logistics
- NYK (Yusen Logitics & TASCO)
- Tiong Nam Logistics
- Sinchai Cold Storage
- Jentec Storage Inc.
- JWD Logistics
- KOSPA
- PT. Pluit Cold Storage
- PT. Wahana Cold Storage
- Havi Logistics
- Royal Cargo
- Thai Max Co. Ltd
- MGM Bosco
For more information about this report visit https://www.researchandmarkets.com/r/r8kohn