Change in lifestyle and urbanization, the growing fisheries sector, expansion of existing cold storages and rising domestic consumption of meat has led to the growth of the Cold Chain Market in Indonesia.
Indonesia Cold Chain Market Overview: The Cold Chain Market in Indonesia is currently at the growth stage and is highly fragmented and is home to 100+ cold transportation & storage players. The market has been driven by growing urbanization, augmenting the demand for consuming frozen fast food products along with increasing meat and seafood consumption. The increasing needs of consumers and growing urbanization has increased the prospects of market and the overall industry is growing substantially.
Indonesia Cold Chain Market Growth: The Indonesia Cold Chain Market took a leap from growth rate from 10% in 2017 to growth rate of 14.1% in 2021 due to the growing consumption needs of the people. Due to the increase in demand for perishables, the cold chain market in Indonesia has significantly grown. The e-commerce market in Indonesia has grown as a result of improved access to secure payment gateways and gradual improvements in the delivery system, on the other hand.
Challenges Faced by Indonesia Cold Chain Market: Due to the lack of supportive infrastructure available in Indonesia, Indonesia’s Cold Storage industry has only grown a little over the past three years. There can be several problems with shipments in cold chain logistics, from broken products or exposing products to improperly warm temperatures in the trailer. Prolonged exposure to warm outside temperatures during loading and unloading is a common problem that can degrade temperature-reliant foods, pharmaceuticals and other goods. The Indonesian Logistics Association predicted that the impacts of rising fuel prices would be high. The cost of moving goods would likely increase by around 30 percent.
Impact of Technological Advancements on Cold Chain Market in Indonesia: The cold storages in Indonesia are tapping technological advancements to move towards sustainable source of energy. Cold transport are also trying to move towards better use of technology to avoid any disruptions in the supply chain. The industry standard is to provide clients with a tracking unit to keep a check on temperature inside the vehicles. Due to variables including the size of the consignment, the company’s brand, the temperature range, and further technological advancements, cold storage companies charge their customers varying prices on a per pallet per day basis.
Analysts at Ken Research in their latest publication “Indonesia Cold Chain Market Outlook to 2026F– Driven by Rising Fisheries Industry & Convenience Food Consumption Owing to Growing Population and Infrastructural Development” by Ken Research observed that Indonesia Cold Chain Market is in the growing phase. Change in lifestyle and urbanization, the growing fisheries sector, expansion of existing cold storages and rising domestic consumption of meat are some of the factors that will contribute to the Indonesia Cold Chain Market growth over the period of 2021-2026F. It is expected that Indonesia Cold Chain Market will grow at a CAGR of 12.9% for the above forecasted period.