Why the Asia-Pacific is the next frontier for cold chain

WAREHOUSING & LOGISTICS

The year 2020 was undoubtedly a tough year for logistics. Although the sector was definitely marked as essential in a time when people increasingly opted to have goods shipped to their homes, the sudden increase in demand meant that many logistics businesses had to play catchup. Cold chain logistics specifically had to look for ways to increase efficiency in the shipping process, with the sudden spike in demand having to compete with considerations like climate change and various fruit and vegetable diseases.

Despite the challenges faced by cold chain logistics, however, there are some bright spots for the sector going into 2021. From 2020 to 2025, for example, the market for cold chain logistics in the Asia-Pacific region is anticipated to grow at a compound annual growth rate of more than 11%. Though this doesn’t necessarily mean a complete shift away from doing business in other regions, it’s clear now that the Asia-Pacific is the next frontier for cold chain.

Rising regional incomes

The Asia-Pacific spans a wide berth of countries including the likes of South Korea, China, India, and Indonesia—all of which are either developed countries or countries still marked for growth in the coming years despite the impact of COVID-19.

As incomes in the region steadily rise, so will the demand for higher quality, organic, or fresh products. This demand can already be seen in regions like the US and Europe, adding evidence that the trend could easily occur elsewhere. As a result, the Asia-Pacific is set to see a boom in cold chain-related opportunities and investments. Cold chain operators must also forge partnerships with manufacturers seeking to give their customers high-quality goods.