Iraq Cold Chain Market Outlook to 2029

The report titled “Iraq Cold Chain Market Outlook to 2029 - By Market Structure, By Product Type (Perishables, Pharmaceuticals), By Transport Mode, By Temperature Type, By End-Use Industry, and By Region” provides a comprehensive analysis of the cold chain market in Iraq. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation, trends and developments, regulatory landscape, customer profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the cold chain logistics space. The report concludes with future market projections based on revenue, end-user demand, infrastructure developments, key drivers and restraints, and case studies highlighting major opportunities and risks.

Iraq Cold Chain Market Overview and Size

The Iraq cold chain market was valued at USD 630 Million in 2023, supported by increased demand for temperature-sensitive food products, pharmaceuticals, and vaccines. Iraq’s growing urbanization, improvements in infrastructure, and expansion of organized retail are accelerating the need for reliable cold chain logistics. Major players such as Agility Logistics, Al-Rashed International, DHL Iraq, and Al-Hilal Logistics are expanding operations to meet growing needs for cold storage and transportation in key cities like Baghdad, Basra, and Erbil.

In 2023, the Iraqi Ministry of Health launched a nationwide vaccine distribution drive, requiring end-to-end temperature-controlled logistics for COVID-19 and polio vaccines, which significantly drove cold chain development. International NGOs and private players invested in cold room facilities and refrigerated vehicles to support this national initiative.

Market Size for Iraq Cold Chain Industry on the Basis of Revenues in USD Million, 2018-2024

What Factors are Leading to the Growth of Iraq Cold Chain Market:

• Rising Healthcare Needs: With increasing demand for biologics, vaccines, and temperature-sensitive pharmaceuticals, Iraq’s cold chain infrastructure is becoming critical. The pharmaceutical sector grew by 8.5% in 2023, fueling investment in temperature-controlled logistics.

• Food & Perishables Industry Growth: The expansion of Iraq’s food retail and hospitality sector has increased demand for cold storage of dairy, meat, seafood, and fresh produce. Imports of perishable food grew by 12% in 2023, directly boosting cold chain requirements.

• Public and NGO Support: International development agencies and government support are improving Iraq’s logistics infrastructure. For instance, UNICEF and WHO projects have contributed cold storage units and capacity building in provinces with low infrastructure.

Which Industry Challenges Have Impacted the Growth for Iraq Cold Chain Market

• Power Supply and Infrastructure Limitations: Iraq faces chronic electricity shortages and infrastructure deficiencies that severely impact the efficiency of cold storage facilities. According to industry estimates, nearly 35% of cold storage operators face regular disruptions due to inconsistent power supply, leading to higher operating costs and product spoilage risks. This discourages smaller businesses from investing in cold chain operations.

• High Capital Investment Requirements: Cold chain logistics demand substantial upfront investment in specialized vehicles, temperature-controlled warehouses, and monitoring systems. For many Iraqi businesses, especially SMEs, the initial capital requirement is a key barrier, limiting market entry and expansion. Industry data indicates that over 40% of potential cold chain startups are unable to secure financing or investor interest.

• Lack of Skilled Workforce and Training: The cold chain industry in Iraq lacks adequately trained personnel to manage and operate temperature-controlled logistics. From facility technicians to fleet handlers, skill shortages affect operational efficiency and safety compliance. In a 2023 logistics sector survey, 46% of cold chain operators reported difficulty in finding qualified staff for technical roles.

What are the Regulations and Initiatives which have Governed the Market

• Ministry of Health and WHO Cold Chain Guidelines: The Iraqi Ministry of Health, in collaboration with WHO, has established mandatory cold chain protocols for vaccine storage and transportation. These include temperature validation, data logging, and insulation standards. As of 2023, over 60% of public sector cold storage units were upgraded to meet these guidelines, especially in the wake of the COVID-19 vaccination drive.

• Customs and Import Controls on Cold Chain Equipment: Import of refrigerated vehicles and cold room equipment requires pre-clearance from the General Authority of Customs and the Ministry of Planning. In 2022, delays in import approvals contributed to a 7% increase in lead time for cold chain projects, causing uncertainty for logistics providers and warehouse operators.

• Public-Private Partnership Initiatives: To overcome logistics infrastructure gaps, the Iraqi government has begun offering PPP models for building cold storage clusters near food processing zones and health distribution hubs. One such pilot project in Erbil, supported by the UNDP, added 3,000 metric tons of cold storage capacity in 2023 alone.

Iraq Cold Chain Market Segmentation

• By Market Structure: The unorganized sector currently dominates Iraq’s cold chain market due to the prevalence of small-scale, region-specific operators offering basic refrigerated transport and storage. These players often operate without modern tracking systems or regulatory compliance but fill essential gaps in underserved regions. The organized sector is gradually gaining traction, driven by foreign investment, multinational logistics providers, and large Iraqi conglomerates entering the market with standardized cold chain solutions, temperature monitoring systems, and international compliance protocols.

• By Product Type: The perishable food category holds the largest share, led by the increasing demand for meat, dairy, fruits, and vegetables that require temperature-controlled storage and transport. Iraq’s reliance on food imports, particularly from Turkey, Iran, and the UAE, has made cold chain logistics vital. The pharmaceutical segment is growing rapidly due to rising demand for vaccines, insulin, biologics, and temperature-sensitive medicines, with major emphasis on maintaining WHO-compliant cold chain standards.

• By Temperature Type: The chilled segment (0°C to 8°C) dominates the market due to the high volume of dairy, fresh produce, and ready-to-eat food transportation. The frozen segment (-18°C and below) is gaining momentum, primarily driven by imports of frozen meat, seafood, and processed foods. Recent investments in freezer-equipped vehicles and storage facilities are improving service levels in this category.

Competitive Landscape in Iraq Cold Chain Market

The Iraq cold chain market is moderately fragmented, with both local logistics providers and international companies operating in the space. While domestic players often rely on basic infrastructure and regional networks, global and regional firms are introducing advanced cold chain technologies, compliance protocols, and temperature-monitoring solutions. The presence of NGOs and development organizations has further facilitated partnerships to improve Iraq’s cold chain logistics ecosystem.

Some of the recent competitor trends and key information about players include:

• Agility Logistics: A regional leader in cold chain solutions, Agility expanded its Iraq operations in 2023 by opening a new temperature-controlled warehouse facility in Baghdad. The site supports food imports and pharmaceutical distribution, significantly enhancing Agility’s role in high-value logistics in Iraq.

• Al-Rashed International: One of Iraq’s oldest logistics providers, Al-Rashed has steadily modernized its fleet of refrigerated trucks. In 2023, the company added 40+ cold transport units to support perishable imports through Umm Qasr port and domestic distribution to major cities.

• DHL Express Iraq: DHL introduced a dedicated cold chain division for healthcare logistics in Iraq in late 2022, focusing on time-critical and temperature-sensitive shipments. In 2023, DHL saw a 17% YoY increase in pharmaceutical cold shipments due to vaccine delivery contracts.

• Al-Hilal Logistics: A rising local player, Al-Hilal operates refrigerated trucking and warehousing in southern Iraq. In 2023, it expanded its frozen storage capacity by 30% to cater to increased demand from seafood and meat importers in Basra and Nasiriyah.

• CEVA Logistics (via Joint Venture): CEVA entered Iraq through strategic partnerships with local operators to deliver end-to-end supply chain solutions, including pharmaceutical cold storage. Its focus in 2023 was on establishing compliance with GDP (Good Distribution Practice) protocols for healthcare logistics.

What Lies Ahead for Iraq Cold Chain Market?

The Iraq cold chain market is projected to grow steadily through 2029, registering a respectable CAGR driven by the expansion of organized retail, growing pharmaceutical needs, and increased focus on food safety and import efficiency. Strategic investments, government support, and public-private partnerships are expected to further accelerate the development of cold logistics infrastructure across Iraq’s key regions.

• Rising Role of Pharmaceuticals and Healthcare Logistics: With Iraq’s increasing demand for vaccines, biologics, and chronic disease treatments, the pharmaceutical cold chain segment is expected to see double-digit growth. New healthcare reforms and partnerships with global health organizations will contribute to the expansion of Good Distribution Practice (GDP)-compliant storage and transport systems.

• Expansion of Modern Food Retail and Quick Commerce: The growth of supermarkets, hypermarkets, and e-commerce grocery platforms in cities like Baghdad, Erbil, and Sulaymaniyah is expected to increase demand for cold storage of perishables such as dairy, fresh produce, and frozen foods. Quick-commerce players are also exploring temperature-controlled last-mile delivery solutions.

• Technology Integration and Real-Time Monitoring: Iraq’s cold chain is expected to adopt IoT sensors, GPS fleet tracking, and real-time temperature monitoring to improve supply chain integrity and minimize spoilage. Such technologies will become more common as Iraq aligns with international compliance norms for food and pharma logistics.

• Increased Investment in Cold Chain Infrastructure: With support from development agencies and foreign investors, Iraq is likely to witness significant infrastructure investments in cold rooms, refrigerated trucks, and cross-docking hubs over the next five years. The focus will be on strategic logistics corridors connecting ports (e.g., Umm Qasr) to inland demand centers.

Future Outlook and Projections for Iraq Cold Chain Market on the Basis of Revenues in USD Million, 2024-2029

Iraq Cold Chain Market Segmentation

• By Market Structure:

  • Local Logistics Operators

  • International Cold Chain Providers

  • Public-Private Partnership Facilities

  • NGO-supported Cold Chain Projects

  • Organized Sector

  • Unorganized Sector

  • Government-Supported Infrastructure

• By Product Type:

  • Perishable Food (Fruits, Vegetables, Dairy, Meat, Seafood)

  • Pharmaceuticals (Vaccines, Biologics, Medicines)

  • Processed & Frozen Foods

  • Chemicals & Industrial Goods

• By Temperature Type:

  • Chilled (0°C to 8°C)

  • Frozen (-18°C and below)

  • Ambient Controlled (15°C to 25°C)

  • Ultra Cold (< -70°C, mainly for vaccines)

• By Transport Mode:

  • Refrigerated Trucks (Large & Small)

  • Refrigerated Containers

  • Air Freight with Cold Chain Capabilities

  • Rail Logistics (Limited)

• By End-Use Industry:

  • Food & Beverage

  • Pharmaceuticals & Healthcare

  • Retail & Supermarkets

  • Quick-Commerce & E-Grocery

  • Government & Relief Organizations

• By Region:

  • Baghdad & Central Iraq

  • Northern Iraq (Erbil, Dohuk)

  • Southern Iraq (Basra, Nasiriyah)

  • Western Iraq (Anbar Region)

  • Kurdistan Region

Players Mentioned in the Report:

• Move One

• Maersk Cold Chain Services

• Americold [international network]

• Agility Logistics

• Almas Group Logistics

• DSV Iraq

• SEKO Logistics (through partners)

• Ruzave-listed cold storage providers

• Arch Star Global Logistics

• National Aviation Services (NAS) – cold storage services

Key Target Audience:

• Cold Chain Logistics Providers

• Food & Pharmaceutical Importers

• Retail Chains & Supermarkets

• Government Bodies (e.g., Ministry of Health, Ministry of Trade)

• NGOs and International Development Agencies

• Infrastructure Investors

• Technology Providers (IoT, Telematics)

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029