The ASEAN cold chain logistics market is expected to grow by more than 12% during the forecast period 2022-2027, according to a new report by Mordor Intelligence. The COVID-19 pandemic challenging the economy has upended the cold chain logistics sector with massive changes in operations, supply chains, regulations, and workforce requirements. Foreign investors are now able to own 100% of partnerships, a figure that was previously 75%.
It has also transformed the market with a lasting impact on the future. Modernization in the logistics sector has supported the growth of the refrigerated logistics market. During 2020-21 there was an unexpected demand rise for cold chain logistics in ASEAN Countries.
The growing urban population and changing consumer perception have boosted the demand for refrigerated storage and transport. The market for refrigerated/frozen products is rapidly growing in Southeast Asia. With rising income levels in ASEAN Countries and lifestyle changes are key factors for the growth of meat consumption and production in these regions, Particularly Indonesia and Vietnam are driving the growth.
In addition, Southeast Asia’s expanding population and increasing incomes, urbanization, and retail sectors are contributing to rising meat consumption and growing imports of feedstuffs. The five key emerging markets within the region are Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. In recent years meat consumption also increased, although fish and seafood are the largest meat sources consumed and produced – and are partially responsible for feedstuffs demand. Every Southeast Asian country has different meat preferences, as reflected by their levels of consumption and production. Malaysia’s poultry industry is the most successful of its livestock segment and has the highest output value. The country is largely self-sufficient when it comes to poultry meat, and its annual per capita consumption is nearly 50 kg. Thailand is the world’s fourth-largest poultry exporter, with around 80% of the poultry produced by vertically integrated farms, its annual per capita consumption in 2020 was around 7.9 kg, according to the report.