DUBLIN–(BUSINESS WIRE)–The “Asia-Pacific Cold Chain Logistics Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The market for cold chain logistics in the Asia-Pacific region is anticipated to grow at a CAGR of more than 10% during the forecast period (2022-2027).
Factors, such as the increase in the number of refrigerated warehouses and the development of the pharmaceutical sector, are expected to drive the growth of the Asia-Pacific cold chain logistics market.
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 in the Asia-Pacific region.
The availability of Radio-frequency identification (RFID) technologies for cold chain applications and the adoption of automated software for cold chain logistics is projected to offer lucrative growth opportunities for the market players.
Recent years have seen robust demand for high-quality industrial and logistics assets in the Asia-Pacific on the back of strong domestic consumption, eCommerce industry expansion, and the development of modern logistics facilities.
Asia-Pacific region, given the rising disposable income and aging population, gives a huge consumer base for healthcare supplies. There are also increasing concerns over food safety, and a continuous shift in consumer habits to buy fresh and frozen food products from organized retail channels such as supermarkets compared to the traditional wet markets.
The shift in dietary patterns is increasing the demand for premium produce including meat, dairy, seafood, etc that are temperature sensitive and need to be stored and transported at controlled temperatures.
Despite robust leasing demand for cold storage facilities in the Asia-Pacific, cold storage capacity in the region is limited compared to that in developed western markets. The cold storage facilities command higher rental premiums than dry warehouses. However, factors, such as lack of standardization pertaining to operating procedures, security, temperature, pest control, and high operational cost, restrain the market growth.
Key Market Trends
Decrease in Volume of domestic water freight transport in Japan
Japan handles more than 4.7 billion tons of domestic freight every year. Every mode of transport – whether it is via water, rail, air, or road – fulfills a crucial role in the economy. While cargo transport relies primarily on the demand created by manufacturing industries and consumption, transportation itself creates demand for trucks and other transport vehicles of any kind, even drones.
For Japan, developments in automation cannot come soon enough. The Japanese logistics industry suffers labor shortages, and today’s drivers are rapidly aging, thereby threatening to increase the fraction of transport costs in the sale of goods.
Trucking and coastal shipping are the Japanese logistics industry’s dominant modes of transport, in terms of yearly payload distance. Railway and air transport are also used for transporting goods, however, despite the railway network being highly efficient for the transport of people, most logistics facilities, warehouses, and factories are better connected to roads.
In 2020, the area of warehouses in Japan reached a decade-high of approximately 58.94 million square meters. In the year 2020, around 306.08 million tons of cargo were transported via coastwise shipping in Japan, decreasing by 10.4 percent compared to the previous fiscal year. Commercial shipping accounted for slightly more than 304 million tons of domestic maritime freight.
Increase in Number of Refrigerated Warehouses
The COVID-19 pandemic has resulted in a significant change in the supply chain outlook, enabling the growing usage of digital high-end technologies to attain operational efficiency along with health concerns. The changing logistics industry outlook, requirement for substantial cost optimization, and optimum inventory management are anticipated to support the growth of the Asia-Pacific cold chain logistics market.
Several warehouses comprising cold chain systems are designed to ensure the ideal storage and transportation conditions for temperature-sensitive products. Multiple export industries are now dependent on the vital links that cold chain solutions provide. Businesses are investing millions of dollars in their cold chain operations to create effective, efficient, and reliable processes as end-to-end cold chain security is the weak link in the system.
Moreover, the number of refrigerated warehouses is increasing, owing to a surge in demand for food and pharmaceuticals products in the Asia-Pacific region. Therefore, an increase in refrigerated warehouses is anticipated to boost the growth of the Asia-Pacific Cold Chain Logistics Market.
Companies Mentioned
- United Parcel Service of America
- OOCL Logistics Ltd.
- JWD Infologistics Public Company Ltd
- Nichirei Logistics Group Inc.
- SCG Logistics Management Company Limited
- X2 Logistics Network ( X2 GROUP)
- AIT Worldwide Logistics Inc.
- CWT PTE. LIMITED (CWT International Ltd.)
- SF Express
- CJ Rokin Logistics*
For more information about this report visit https://www.researchandmarkets.com/r/ljljlp
