Press Release

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.


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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.

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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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