Summary
The Australia Cold Chain market is segmented into cold storage market, cold transport market and by end user (meat & sea food, fruit & vegetables, confectionery, pharmaceuticals, and others). Factors such as increasing demand for perishable goods, evolving consumer behavior and e-commerce, globalization of food supply chains and technological advancements are leading the growth of Australia Cold Chain Market
Market Overview
Australia Cold Chain Market Definitions
Australia Cold Chain Market: The market size has been calculated from revenue generated by non-captive cold storage logistics companies in Australia offering a temperature range of +10C to -18C in all the accredited cold storage warehouses owned and operated by them. The revenue stream considered in cold storage includes leasing revenues, packaging, labeling, loading and unloading charges, temperature monitoring services and other support services offered by cold storage companies.
Australia Cold Transport Market: Australia cold transport market has been defined as the summation of revenues earned by non-captive cold transport companies offering a temperature range of +10C to -18C for products such as meat and seafood, fruits and vegetables, vaccines and pharmaceuticals, dairy, bakery and confectionary and several others to domestic and international market by land, sea and air cold transport. The revenue streams considered include freight forwarding, loading and unloading, distribution and last mile delivery services.
Ambient Storage: This includes cold storage facilities that offer a temperature range of above +10C
Frozen Storage: This includes cold storage facilities that offer a temperature range of -18C or colder. It also included chillers which can be converted to freezers
Chiller Storage: This includes cold storage facilities that offer a temperature range of 1C to -10C only and are non-convertible to any other temperature range. These are not prevalent in Australia.
Captive/Owned Warehouses: These cold storage warehouses are owned and controlled by individual companies or conglomerates for their own use of storing products. The owned market has been defined as those transactions under which cold chain demand with cold chain logistic company is generated through direct end users (for instance meat and sea food processing co. approaching cold storage company). These transactions are not captured as a part of our market definition.
Non-Captive Warehouses: These cold storage warehouses are owned and controlled by logistics companies. They use them for renting out to customers requiring cold storage solutions. Cold storage companies get business from two prominent sources: intermediaries, which can be trading companies or consultants/contractors/3PL companies like DHL following an asset light model, and direct end users, which include meat and seafood processing companies. Transactions done with the former are termed as 3PL Transactions and with the latter are termed as Non-captive Transactions.
Taxonomy
Australia Cold Chain Market Ecosystem
Australia Cold Chain Market Size, 2017-2022
The Australia cold chain market grew from AUD 4,231.1 million in 2017 to AUD 6,547.8 million in 2022. The market saw continuous growth and expanded at a CAGR of 9.1% during 2017–2022. In 2019, the market witnessed the highest annual growth rate of 10.4% due to a sudden change in consumer preferences and dietary habits. The Australia cold chain market is driven by the increasing demand for temperature-sensitive goods, including perishable food products and other items. Consumer preferences for fresh and high-quality products, along with changing dietary habits, contribute to the growth of the market.
Australia Cold Chain Market Industry Analysis
Australia Cold Chain Market Segmentation
Australia Cold Chain Market Revenue by End Users, 2022
Out of all the major end-users in the Australia cold chain market, meat and seafood has contributed the highest revenue share of 43.8%, i.e., AUD 2,867.1 Mn. On the other hand, fruit and vegetables reported a revenue share of 23.0%, i.e., AUD 1,506.7 Mn. The pharmaceutical sector has witnessed revenue of AUD 1,112.4 Mn in 2022 and contributed a revenue share of 17.0% in the Australia cold chain market. The confectionary sector reported a revenue of AUD 641.5 Mn and contributed a revenue share of 9.85% to the Australia cold chain market. The leading meat products consumed in the country are beef and pork based. In 2021–22, the pork consumption per capita in Australia was about 28.1 kilograms per person, while 89.6 kilograms of meat per capita were consumed per person. The government, through the Pharmaceutical Benefits Scheme (PBS), is subsidizing the cost of prescription medicines, making them more affordable for patients. This commitment to healthcare spending supports the growth of the pharmaceutical market.
Australia Cold Chain Market Segmentation by Cold Storage, and Cold Transport
The cold transport segment accounted for the greater share in the overall cold chain market during 2022, amounting to AUD 3,900.0 Mn in 2022. The cold transport segment saw a substantial increase in revenue with AUD 3,900 Mn in 2022 as compared to AUD 2,563.1 Mn in 2017. On the other hand, the cold storage segment also reported a revenue of AUD 2,647.8 Mn in 2022 as compared to AUD 1,668.0 Mn in 2017. The numbers show quite an amazing growth in revenues for both segments altogether. There has been an increase in the share of the cold transport market due to the growing demand for cold storage requirements, especially by fast food restaurants for products such as meat and seafood, which has also greatly contributed to the high market share. Factors such as changing consumer preferences, increasing perishable product volumes, and the expansion of e-commerce are driving the need for efficient cold transport services.
Future Outlook of Australia Cold Chain Market, 2022-2027
The Australian cold chain market is expected to grow from AUD 6,947 Mn in 2022 to AUD 10,705.0 Mn in 2027, at a compound annual growth rate (CAGR) of 10.9%. The market is driven by a number of factors, including growing demand for perishable goods, rising disposable incomes, and increasing urbanization. The market is expected to continue to grow in the coming years, driven by factors such as the growing e-commerce market, as the e-commerce market in Australia is growing rapidly and driving demand for cold chain services to deliver fresh and frozen products to consumers. Increasing government investment in cold chain infrastructure is also contributing, as the Australian government is investing heavily in cold chain infrastructure to support the growth of the agricultural sector and improve food security. Technological advancements in the cold chain industry are making cold chain services more efficient and cost-effective, and this is expected to boost the growth of the market in the coming years.
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The Australia cold transport market is expected to reach a market size of AUD 6,099.9 Mn in 2027 from a market size of AUD 3,900 Mn in 2022. The market is expected to witness a CAGR of 9.4% during the forecast period 2022–2027. The year 2027 is expected to witness a major annual growth of 10.1%, which is the highest among other years during the forecast period. The agricultural industry is a major user of cold transport, and the growth of the agricultural industry is driving the demand for cold transport solutions to store and deliver fresh produce. In 2020–21, the agricultural sector contributed $68.9 billion to Australia’s GDP, or 3.2% of total GDP. One of the leading companies is investing $50 million in the development of a new cold chain transportation network. The network will use refrigerated trucks to transport fresh produce and other temperature-sensitive products.
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Company Profile for Australia Cold Chain Market
| Company Name | Establishment year | Description |
|---|---|---|
AMERICOLD | 1968 | Americold is the largest cold storage company in the world, with over 1,700 facilities in North America, Europe, Asia, and South America. It has grown to become a leader in the cold chain industry. |
NEWCOLD | 1986 | Newcold is a leading provider of cold chain solutions, with over 200 facilities in 20 countries, and it has a strong focus on innovation. |
KARRAS COLD LOGISTICS | 1989 | Karras Cold Logistics is a leading provider of cold storage and distribution services in Australia. The company has a strong track record of customer service. |
AUSCOLD | 1994 | Auscold Logistics has a strong network of facilities across the country, and it is able to offer its customers a wide range of services. |
CHILLFREEZE LOGISTICS | 1997 | ChillFreeze Logistics & Storage has a strong focus on food safety, and it is committed to providing its customers with the highest quality of service. |
Australia Cold Chain Market Macroeconomic Indicators
The GDP of Australia grew from USD 1,428.5 Bn to USD 1,450.0 Bn in 2022. The country saw the highest GDP USD 1,553.0 Bn and inflation rate of 2.9% in the year 2021.
The above figure showcases the population of Australia in 2022 which was 25.9 Mn.
The value of imports in Australia have increased from AUD 387.0 Bn in 2018 to AUD 513.2 Bn in 2022 at a CAGR of 5.8%. China, United States of America, Japan, Thailand, and Germany make up 50% of Australia’s total international trade in imports. China continued to be Australia's largest import partner and accounted for 19.4% of services imports in FY22. China is a major supplier of Australian refined petroleum, cars, and delivery trucks.
China continued to be the major exporter and importer of Australia with Iron Ore as the major commodity of export with 29% of total exports in 2022. The value of Export in Australia reached AUD 513.2 Bn in 2022 from AUD 312.4 Bn in 2018. China, Japan, Korea, India and United States of America make up 64% of Australia’s total international trade in exports. China remained Australia's largest export partner and accounted for 14% of services exports (down from 17% in 2020-21). Total service exports to China decreased in 2021-22, driven by Education-related travel.