With the growth of China’s economy over the past decade, the residents’ food consumption structure has experienced constant adjustment, a situation that led to a rising demand for food cold chain, according to a report by Research and Markets.
Moreover, the government at all levels has poured more funds into the construction of cold-chain infrastructure in an attempt to spur the rapid development of cold chain logistics.
In 2005, the country’s cold chain logistics industry scale was RMB41.7 billion (US$6.44 billion).
By 2015, the figure surged to RMB158.3 billion, registering a compound annual growth rate (CAGR) of up to 14.3%.
Although China has built a certain foundation in cold chain logistics in the past decade, the cold chain logistics industry in the country is still in its infancy because of poor infrastructure, imperfect logistics system, and low degree of marketization.
In future, with the continuous advancement of urbanization, the cold chain policy environment tends to be clearer, and hence the rise of fresh food e-commerce and the ongoing financial innovation would further drive the development of cold chain logistics industry.
The report projects that by 2020 the cold chain logistics market size in China will reach RMB347.9 billion, with an estimated CAGR of 17.1% during 2015-2020.
In China, the cold chain logistics demand comes mainly from five kinds of agricultural products including meat, aquatic products, frozen food, fruits and vegetables, and dairy products.
In 2015, the cold chain circulation of these products reached 332.24 million tons, up 15.55% year on year, and it is anticipated that by 2020 the market size will hit 597.8 million tons, registering an estimated CAGR of 12.47%.