Burgeoning middle class, hectic lifestyles and increasing consumer choices are driving the cold-chain industry boom in Asia.
By Viraj Desai
With two of the fastest growing economies – India and China – and the increase of trade in Indonesia, Vietnam and Singapore turning them into thriving economic and social centres, the cold-chain industry is being seen as panacea for food wastage, a boost to the warehousing industry and a jobs growth accelerator.
Cold chain logistics is the process of storing and transporting perishables in specific temperatures. The global cold chain industry, which grew by 20 percent between 2012 and 2014, is expected to grow over 10 percent over the next few years. The growth can be attributed to trade of perishable foods, refrigerated storage technology, government support due to consumer demand among others.
Among many parts in the segment, products such as seafood, meat and ice cream were largest in terms of value in 2017, while desserts and frozen desserts are in high demand due to rapid urbanization.
For Asia, another factor driving this stupendous growth is the Pharmaceutical industry, which generated revenues of over USD 386 billion in Asia in 2017; largely in part due to an increased ageing population. Regional logistics hubs like Singapore and Hong Kong are already working hard to meet the demand.
The sensitivity attached to drugs makes it imperative for highly technological and temperature-controlled environment to adhere to regulations. Singapore, a hub for cold-chain logistics, is home to almost 90 percent of the world’s top 25 third-party logistics players.
Philippines, another Southeast Asian country is clocking growth of over 6 percent every year. The country has also witnessed a shift in consumer habits to buy fresh products. In addition, the growth of online grocery and e-commerce have bolstered growth of cold storage facilities and infrastructure support. The surge in exports by 40 percent to USD 1.03 billion, is considered a vital contributing factor to growth...
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