Thailand Cold Chain Logistics Market to be Dominated by Meat Segment
Healthy demand for meat, dairy, and processed food
products in Thailand is driving the Cold
Chain Logistics Market.
According to
TechSci Research report, “Thailand Cold Chain Logistics Market - By Region, Competition, Forecast & Opportunities, 2028”, The Thailand cold chain
logistics market is likely to register a healthy CAGR in the upcoming years. The
main factors, driving the market are fruit exports to China expanding at an
increasing pace, seafood exports rebounding after the yellow card for IUU
fishing was lifted, and the number of convenience shops and restaurant chains
growing quickly. Furthermore, the disastrous repercussions of the Covid-19
pandemic have altered the logistics sector's propensity for cold storage. The
surge in demand for premium cold storage in the region is partly influenced by
shifting urban population and customer preferences in Thailand.
The country's geographic position
as well as its expanding economy, human capital that is competitive,
infrastructure, and solid backing from the government are its
strengths. This is suggested by increasing GDP and FDI growth rates, the
movement of skilled labor across the AEC, the building of global infrastructure
networks, and the development planning undertaken in accordance with the
20-year national strategy framework and Thailand 4.0 model. According to the
Sufficiency Economy ideology, which is driven by innovations, these qualities
seek to promote Thailand as a nation of stability, prosperity, and
sustainability as well as a developed country. They promote Thailand food
demand in the area, a location for investment, and a global food hub. The
nation's potential for a cold chain is supported by its strengths as well. Thailand
is a logistics-friendly nation, as shown by the Logistics Performance Index (LPI),
which has placed it 32nd out of 160 nations and second in ASEAN. This would
indicate an increase in the need for logistics. Additionally, 632 cold storage
workers and 338 certified temperature-controlled truck operators are meeting
local and worldwide demand.
It's an intriguing potential
because the increased demand for food goods is driving up cold chain logistics
demand. The export growth rate in the cold chain increased to 2.44% between
2013 and 2018, whereas the import growth rate was 4.78%. Cold chain product
imports totaled B331,261.48 million in 2018, while exports totaled B509,779.07
million. While canned and processed food items, including fruits, vegetables,
and seafood, had the largest value in exports, pharmaceutical products had the
highest value in imports. This opportunity has been beneficial to the chain's
stakeholders. Large-sized businesses are the key players in cold storage and
the main consumers of cold chain logistics, whereas small businesses, which
subcontract with the big players, are the main players in
temperature-controlled vehicles. Therefore, increased cold chain investment
offers several prospects for participants and users, particularly for the key
participants, which are SMEs.
Browse over xx market data Figures spread through xx Pages and an in-depth TOC on the "Thailand Cold Chain Logistics Market".
The weak point in Thailand's
cold chain is the high cost of logistics. The cost of logistics as a percentage
of nominal GDP was 13.9% in 2017, which was higher than the average for Asia
(12.7%) and the world (10.9%). Thailand's cost has, nevertheless, been
declining over time. This is so that stakeholders may lower it by discovering
suppliers and customers and making use of the naturally chilly temperature at
night and in the morning.
Stakeholders from the
interviews gave examples of risks or barriers to the cold chain in Thailand,
including inadequate and ineffective competent human resources, infrastructure,
institutional processes, customs, and investment. Expectations for supporting
policy in relation to such barriers included R&D for improving cold chain
items, assisting small and medium-sized businesses in attending trade shows,
and producing competent human resources. Others included lower investment
interest rates, contingency measures for unforeseen events, designated organizations
to assist the cold chain, more user-friendly custom procedures, and rest areas
for truck drivers. In addition, owing to rigorous inquiry and inspection,
uncertified standard businesses may produce low-quality goods. The government
now takes note of and emphasizes the majority of the expectations. The Q Cold
Chain Standard Project and the optional Warehouse, Silo, and Cold Storage
Policy are the two outstanding regulatory policies.
The development of the
refrigerated logistics industry has been aided by the modernization of
logistics. In Southeast region countries, there was an unanticipated increase
in demand for cold chain logistics between 2020 and 2021. The increasing urban
population and shifting consumer demands have increased the demand for cold
storage and transportation. Southeast Asia's frozen food business is expanding
considerably. The combined capacity of Thailand's public and private cold
storage facilities is 940,000 metric tonnes. As the number of refrigerated
warehouses rise and the pharmaceutical sector expands, there is an expectation
that the market for cold chain logistics will grow. Additionally, it is expected
that the expansion of the processed food sector would have a substantial impact
on market growth. The lack of uniformity of operating procedures, security,
temperature control, pest management, and high operational expenses, however,
are issues that prevent the industry from growing.
.
Based on application types,
there are various sub-segments. For instance, seafood, meat, fruit &
vegetable, dairy products, alternative protein, and others. The meat
application type is dominating with a healthy market share and is expected to
maintain it’s dominance in the upcoming years. One of Southeast Asia's top
emerging markets is Thailand. Despite the fact that fish and shellfish are the
most often consumed and produced meat sources, which are also partially to
blame for the increase in feedstuff need, meat consumption has increased
recently. Thailand is the fourth-largest exporter of poultry in Asia’s poultry
meat production with about 80% of its
chicken coming from vertically integrated farms. Its annual per capita
consumption was about 7.9 kilogram in 2020. Thailand is one of the few
countries that has not seen an epidemic of African Swine Fever, despite the fact that its exports of live pigs increased by
339% in value in 2020. Currently, the majority of the pork produced in Thailand
is used domestically.
Key market
players in the Thailand Cold Chain Logistics Market include:
- JWD Infologistics
- Thai Yokorei co Ltd.
- Sinchai Cold
Storage
- Konoike Cool
Logistics (Thailand) Co. Ltd.
- Bangkok Cold
Storage Service Ltd.
- Thai Max Cold
Storage Co. Ltd.
- SCG Nichirei
Logistics Co. Ltd.
- Lucky Star Cold
Storage
- MON Logistics Group
Co. Ltd.
- Kerry Logistics
Network Limited
- Chomthana Co. Ltd.
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“The
development of the refrigerated logistics industry has been aided by the
modernization of logistics. In Thailand, there was an unanticipated increase in
the need for cold chain logistics between 2020 and 2021. The increasing urban
population and shifting consumer demands have increased the demand for cold
storage and transportation. Southeast Asia's frozen food business is expanding
considerably. The combined capacity of Thailand's public and private cold
storage facilities is 940,000 metric tonnes. Though, they only represent the
capabilities of large companies.” Therefore, these factors are expected to fuel
the market growth of the Thailand
Cold Chain Logistics Market in the upcoming years, said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based global management
consulting firm.
“Thailand Cold Chain
Logistics Market, By Service Type (Refrigerated Warehouse, Refrigerated
Transportation), By Application (Seafood, Meat, Fruit & Vegetable, Dairy
Products, Alternative Protein, Others), By Temperature Type (Frozen, Chilled),
By Technology (Dry Ice, Gel Packs, Eutectic Plates, Liquid Nitrogen, Quilts), By Region,
Competition, Forecast & Opportunities, 2028”, has evaluated the future growth potential of Thailand Cold
Chain Logistics Market and provides statistics and information on market
structure, size, share, and future growth. The report is intended to provide
cutting-edge market intelligence and help decision-makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities present in the Thailand
Cold Chain Logistics Market.
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