Dublin, Dec. 10, 2024 (GLOBE NEWSWIRE) -- The "Africa Cold Chain Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024-2029)" report has been added to ResearchAndMarkets.com's offering.
The Africa Cold Chain Logistics Market size is estimated at USD 10.88 billion in 2024, and is expected to reach USD 14.85 billion by 2029, growing at a CAGR of 8.28% during the forecast period (2024-2029).
The demand for efficient cold chain packaging solutions in Africa has increased significantly. This increase in interest is due to the continent's growing economy, as well as increasing demand for quality and security of temperature-sensitive products. The cold chain industry is expected to be boosted by the increasing demand for temperature-controlled goods in the continent, the entry of many new businesses, and the government's efforts and programs. To meet the country's long-term transport needs, South Africa has an ongoing plan, namely the National Transport Master Plan 2050, to oversee the construction of multimodal transport systems.
With growing exporters, importers, and logistics operators, South Africa is experiencing an emerging economy. Maintaining an efficient cold chain is essential to facilitate these sectors' growth and maintain their longevity.
A.P. Moller Capital announced that it would acquire Vector Logistics at the beginning of March 2023. According to A.P. Moller Capital, the acquisition provides Vector Logistics a great opportunity to accelerate its mission of going independent in supply chain expertise and logistics services. In this context, it will also expand its coverage to meet growing demand in Africa and broaden its activities to serve the wider geographic area.
Africa Cold Chain Logistics Market Trends
Demand for Packaged and Frozen Food is Rising
In Africa, the demand for packaged, cold-stored foods is increasing. Urbanization, changes in lifestyles, and the growth of a higher class are some of the factors that contribute to this development. The growth in demand for these products is being driven by several factors, including economic development, the proliferation of modern retail outlets, and improvements to cold chain infrastructure.
In February 2024, the strengthened logistics corridor between the Ligurian port of La Spezia in Italy and North Africa was unveiled at the end of Fruit Logistica 2024 in Berlin. The collaboration involves the Harbour System Authority and the Tarros Group, with a focus on enhancing the transportation of agricultural goods between the ports of Marina di Carrara and La Spezia in Italy and several African coastal destinations. The initiative aims to bolster logistical ties, particularly in the agri-food sector.
The African Union prioritizes food security in the region and promotes policy, funding, and multistakeholder interventions in the agricultural value chain. To increase food security and agricultural efficiency, the intervention focuses on direct farm action and support systems facilitating the movement of food from one place to another.
Egyptian Export of Seafood is on the Rise
Egypt's fishing industry is experiencing growth, with a significant connection to cold chain logistics. The sector is expanding as advancements in cold chain technology and logistics contribute to its development. Efficient cold chain systems ensure the preservation of fresh seafood from catch to market. This enhancement in logistics plays a crucial role in extending the shelf life of products, reducing waste, and meeting international quality standards. The integration of cold chain logistics in Egypt's fishing industry is a key factor driving its upward trajectory.
The Ministry of Agriculture and Land Reclamation in Egypt reported that Egyptian fish production hit 2 million tons, marking a rate of 85% self-sufficiency, in July 2023. According to the report, Egypt has the highest fish production in Africa, sixth in the world, and third in tilapia production, and is expected to increase export rates with national projects operating at full capacity.
The Ministry also founded the Lake Protection and Fish Wealth Development Authority to regulate and facilitate the fishing industry to support the fishing sector. For EGP 30,000 (USD 970) per vessel, the government is also equipping fishing vessels with tracking devices. Therefore, with massive production, there is an opportunity for cold chain logistics in the area.
Africa Cold Chain Logistics Industry Overview
Specialized infrastructure, including temperature-controlled storage facilities and transport, is required for the establishment of an African cold chain logistics operation. Existing companies have established relationships with key suppliers and customers, which could create obstacles to entry into the market. However, new entrants can be attracted by the evolving nature of this sector and potential government initiatives. The presence of established companies, both local and international, in the African cold chain logistics market exerts a competitive influence. The quality of the service, reliability, geographic coverage, and technical capabilities of the companies are important factors for competition. The sector is evolving, and companies are constantly innovative to stay ahead of the competition. The leaders in the market are Nippon Express, UPS, and DHL.
Key Topics Covered
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Industry Value Chain Analysis
4.4 Government Regulations and Initiatives
5 MARKET DYNAMICS
5.1 Drivers
5.1.1 Rising Demand for Perishable Goods
5.1.2 Increasing Health Awareness
5.2 Restraints
5.2.1 High Cost Associated
5.2.2 Lack of adequate infrastructure
5.3 Opportunities
5.3.1 Government Initiatives and Investments
5.4 Industry Attractiveness - Porter's Five Forces Analysis
6 MARKET SEGMENTATION
6.1 By Service
6.1.1 Storage
6.1.2 Transportation
6.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
6.2 By Temperature
6.2.1 Ambient
6.2.2 Chilled
6.2.3 Frozen
6.3 By Application
6.3.1 Horticulture (Fresh Fruits and Vegetables)
6.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
6.3.3 Meats and Fish
6.3.4 Processed Food Products
6.3.5 Pharma, Life Sciences, and Chemicals
6.3.6 Other Applications
6.4 By Country
6.4.1 Egypt
6.4.2 Morocco
6.4.3 Nigeria
6.4.4 South Africa
6.4.5 Rest of Africa
7 COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Nippon Express
7.2.2 UPS
7.2.3 DHL
7.2.4 Kuehne + Nagel
7.2.5 Bidvest Panalpina Logistics
7.2.6 Yamato Transport Co. Ltd.
7.2.7 Imperial Logistics
7.2.8 CCS Logistics
7.2.9 AfriAg
7.2.10 Coolworld Rentals
7.3 Other Companies
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
9 APPENDIX
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