Israel Cold Chain Market Outlook to 2029

The report titled “Israel Cold Chain Market Outlook to 2029 – By Market Segments (Cold Storage and Cold Transportation), By End-User Industries (Food & Beverage, Pharmaceuticals, Retail, and Others), By Temperature Type (Chilled and Frozen), and By Region” provides a comprehensive analysis of the cold chain sector in Israel. The report covers the overview and genesis of the industry, overall market size in terms of revenue, segmentation by verticals and applications, trends and developments, regulatory landscape, customer profiling, issues and challenges, comparative landscape with competition analysis, cross-comparison of players, key opportunities and bottlenecks, and company profiling of major players in the Israel cold chain market. The report concludes with future projections based on industry revenues, by segment, region, temperature type, and includes success case studies highlighting opportunities and risk factors.

Israel Cold Chain Market Overview and Size

The Israel cold chain market was valued at USD 1.2 Billion in 2023, driven by increasing demand for temperature-sensitive food and pharmaceutical products, digital traceability regulations, and the modernization of storage and logistics infrastructure. Major players such as Amot Investments, FreezTech Logistics, Fridenson Logistics, DHL Israel, and Cargo Amerford have established robust cold chain networks across the country, catering to both domestic and export-oriented businesses.

In 2023, FreezTech Logistics added a new state-of-the-art frozen storage facility in Ashdod to support the rising demand from food exporters and pharma companies. Cities like Tel Aviv, Haifa, and Ashdod are key hotspots due to their proximity to ports, airports, and consumption centers.

What Factors are Leading to the Growth of Israel Cold Chain Market

• Export-Focused Agriculture and Pharmaceuticals: Israel’s growing exports of citrus fruits, avocados, and pharmaceuticals necessitate highly reliable cold chains to preserve product integrity during long transits. In 2023, agricultural cold exports rose by 14% YoY.

• Strict Regulatory Compliance: Stringent temperature monitoring regulations by the Israeli Ministry of Health and international standards (GDP for pharma, HACCP for food) are pushing investments into advanced refrigerated storage and IoT-enabled transport.

• Technology Integration and Real-Time Monitoring: Adoption of smart sensors, RFID, and telematics for real-time temperature and location tracking is gaining traction. Major cold chain providers are investing in digital platforms to ensure visibility, traceability, and predictive maintenance.

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

• High Energy Costs and Operational Expenses: The cold chain sector in Israel faces elevated electricity and fuel costs, which significantly affect profit margins. In 2023, energy accounted for nearly 35% of operating expenses in cold storage facilities. With fluctuating utility tariffs and limited subsidies for cold infrastructure, cost pressures continue to deter small-scale operators from scaling their capacities.

• Limited Cold Chain Penetration in Rural and Peripheral Regions: While central regions like Tel Aviv and Haifa are well-equipped, the northern and southern peripheries such as the Negev Desert and Upper Galilee face limited cold chain access. As of 2023, less than 30% of agri-exports from peripheral regions had direct access to cold storage or pre-cooling facilities, leading to high post-harvest losses.

• Technology Adoption Gap Among SMEs: Although Israel is known for its innovation, small and mid-sized cold chain operators still lag in adopting advanced cold monitoring and fleet optimization tools. A 2023 industry survey revealed that over 40% of cold transporters still used manual temperature logs without GPS-enabled systems, increasing the risk of spoilage and compliance failures.

What are the Regulations and Initiatives which have Governed the Market

• Ministry of Health Cold Chain Compliance Mandate: Israel’s Ministry of Health enforces strict temperature compliance for pharmaceutical logistics, in line with WHO-GDP standards. In 2023, updated guidelines mandated real-time digital monitoring for all pharma shipments, leading to a 60% increase in IoT sensor adoption by key logistics firms.

• National Food Security and Cold Chain Modernization Program (2022–2026): Under this initiative, the Israeli government has earmarked over ILS 400 Million to upgrade rural storage units, introduce solar-powered cold rooms, and expand cold chain access for agri-cooperatives. By end-2023, 18 new micro-cold hubs had been commissioned across underserved farming belts.

• Green Cold Chain Tax Incentives: To promote sustainable logistics, Israel offers tax rebates of up to 20% on investments in energy-efficient refrigeration units, hybrid reefer trucks, and thermal insulation panels. Major cold logistics firms like Amot and Fridenson benefited from these policies to modernize their fleets and reduce emissions.

Israel Cold Chain Market Segmentation

• By Market Structure: The cold chain market in Israel is primarily led by local and regional service providers that have built strong capabilities around urban and agricultural zones. These SMEs specialize in temperature-controlled warehousing and short-haul deliveries, offering flexibility and cost efficiency. Their presence is critical in the food and agriculture sector. However, large-scale and organized players such as Fridenson, FreezTech Logistics, and DHL Israel are gaining market share, particularly in pharmaceuticals and high-value exports, owing to their investment in digital monitoring, GDP-compliant systems, and multi-temperature storage facilities. These organized players are preferred by global clients seeking regulatory assurance and scalability.

• By Mode of Transport: Road transport forms the backbone of cold logistics in Israel, enabling fast movement of perishables and pharma products across major cities. Urban consolidation and same-day delivery requirements have intensified the need for refrigerated vans and trucks. Air freight plays a significant role in Israel’s pharmaceutical and fresh produce exports to Europe and North America, where time and compliance are critical. Maritime logistics through Haifa and Ashdod Ports supports the international movement of frozen and chilled goods via reefer containers. Rail transport plays a negligible role in cold chain activities due to limited temperature-controlled infrastructure.

• By End-User Industry: The food & beverage sector leads cold chain consumption, owing to Israel’s extensive dairy, poultry, and fruit supply chains. Urban supermarkets and quick-commerce platforms also drive refrigerated warehousing demand. The pharmaceutical and biotech sector is a strong second, supported by export of high-value drugs, vaccines, and biologics requiring GDP-compliant logistics. Retail and online grocery players like Shufersal, Wolt, and Rami Levy have rapidly scaled cold storage and delivery partnerships to meet changing consumer habits. Other emerging sectors include floriculture, chemicals, and nutraceuticals which depend on reliable cold storage for export purposes.

Competitive Landscape in Israel Cold Chain Market

The Israel cold chain market is moderately consolidated, with a mix of specialized local players and global logistics firms operating across storage and transportation services. While local companies dominate intra-country refrigerated logistics, multinational players are gaining ground in pharmaceutical and high-value perishable exports through investment in temperature monitoring and compliance infrastructure. The surge in e-commerce, healthcare logistics, and agro-exports is attracting tech-enabled entrants, intensifying competition and innovation across the sector.

Major Companies Operating in Israel Cold Chain Market

Some of the Recent Competitor Trends and Key Information Include:

• FreezTech Logistics: A major local player, FreezTech expanded its frozen storage capacity by 25% in 2023 with a new facility in Ashdod to support exports of frozen meat and seafood. The company also introduced a GPS-enabled cold fleet with real-time temperature alerts to ensure zero spoilage in transit.

• Fridenson Logistics: Fridenson upgraded its pharma distribution network in 2023 by launching GDP-certified vehicles and digital inventory control systems. It also partnered with several biotech exporters to handle temperature-sensitive shipments to Europe.

• Cargo Amerford: Focused on food logistics, the company opened a cross-dock center in Holon to consolidate and redistribute fresh produce more efficiently. In 2023, it processed over 50,000 tons of perishables, including citrus and dairy products.

• DHL Israel: DHL continued to enhance its cold chain presence with a new multi-zone refrigerated warehouse near Ben Gurion Airport to cater to pharma and life sciences clients. The facility supports cross-border compliance and real-time visibility.

• FedEx Israel: Expanded its temperature-controlled cargo handling at key air hubs, focusing on biomedical shipments and high-value temperature-sensitive goods. It also launched a pilot cold locker system in Tel Aviv for scheduled last-mile deliveries.

• Unilog Israel: A growing logistics tech firm that integrated IoT-based cold monitoring sensors across its fleet in 2023. The company caters to online grocers and quick-commerce brands, offering sub-24-hour frozen delivery in the Tel Aviv–Haifa corridor.

• Isfrost Ltd.: Specialized in cold storage for meat and seafood, Isfrost increased its automated racking systems and invested in solar-powered refrigeration units to cut energy costs by 18% in 2023.

• Amot Investments: Through its industrial real estate arm, Amot manages over 400,000 sq. ft. of refrigerated space. In 2023, it initiated construction of a new cold storage logistics park in Be’er Sheva, targeting clients in agriculture and pharma.

What Lies Ahead for Israel Cold Chain Market?

The Israel cold chain market is projected to experience steady growth through 2029, supported by increasing demand for perishable exports, rising pharma logistics, digital integration, and government-backed cold infrastructure investments. The market is expected to register a healthy CAGR over the forecast period, driven by innovation, food security goals, and export-oriented strategies.

• Growth in Pharmaceutical and Biotech Logistics: With Israel emerging as a global hub for biotech and pharmaceutical innovation, cold chain logistics will play a critical role in facilitating exports of high-value biologics, vaccines, and clinical trial materials. By 2029, the pharma cold chain segment is expected to grow by over 40%, supported by stricter GDP compliance and digital monitoring solutions.

• Cold Chain Penetration in Agricultural Export Zones: Investments in micro cold storage hubs and farm-gate pre-cooling facilities in Northern and Southern Israel will enhance agri-export competitiveness. Regions like Galilee and the Negev are expected to benefit from solar-powered cold units and government-backed storage subsidies, reducing post-harvest losses and improving rural supply chains.

• Integration of IoT and Predictive Analytics: Israel’s tech ecosystem is set to revolutionize cold logistics through adoption of smart sensors, blockchain-based traceability, and predictive analytics for spoilage prevention and inventory optimization. By 2029, it is projected that more than 60% of cold transport fleets will be equipped with real-time monitoring and route optimization systems.

• Expansion of Urban Cold Fulfillment and Quick-Commerce: The growing demand for same-day and next-day delivery of frozen and chilled groceries is expected to accelerate the rise of urban cold micro-fulfillment centers. Companies like Wolt and Shufersal are likely to scale cold delivery infrastructure across Tel Aviv, Haifa, and Jerusalem to meet changing consumer behavior.

Israel Cold Chain Market Segmentation

• By Market Structure:

• Cold Storage Providers

• Refrigerated Transportation Operators

• Temperature-Controlled 3PL Providers

• Temperature-Controlled 4PL Coordinators

• Express Cold Delivery Services

• Contract Cold Chain Logistics Firms

• Organized Cold Chain Sector

• Unorganized/Traditional Cold Storage Operators

• By Mode of Transport:

• Road-Based Refrigerated Transport

• Air Freight (Pharma & Fresh Produce)

• Sea Freight (Reefer Containers)

• Multimodal Cold Chain Integration (Sea-Air/Road-Air)

• By End-User Industry:

• Food & Beverage (Meat, Dairy, Frozen Foods)

• Pharmaceuticals and Biotech

• Online Grocery and Quick-Commerce

• Agriculture and Perishables (Fruits, Vegetables)

• Specialty Chemicals and Laboratory Samples

• Floriculture and Horticulture Exports

• By Type of Cold Chain Storage:

• Frozen Storage Facilities (< -18°C)

• Chilled Storage Warehouses (0–8°C)

• Multi-Temperature Warehouses

• Last-Mile Cold Fulfillment Centers

• Built-to-Spec Pharma-Compliant Facilities

• Solar/Green Cold Chain Units (Rural/Agri)

• By Region:

• Central Israel (Tel Aviv, Petah Tikva, Rishon LeZion)

• Northern Israel (Haifa, Galilee, Jezreel Valley)

• Southern Israel (Ashdod, Be’er Sheva, Eilat)

• Jerusalem District

• Coastal Logistics Belt (Ashdod–Haifa Corridor)

Players Mentioned in the Report

Cold Storage and Logistics Providers

• FreezTech Logistics

• Fridenson Logistics

• Cargo Amerford

• Isfrost Ltd.

• Maman Cargo Division

• Amot Investments (Industrial Cold Facilities)

• Flying Cargo Group

Cold Transport and Express Delivery Firms

• DHL Israel

• FedEx Israel

• Unilog Israel

• UPS Israel

• Wolt Cold Chain (Grocery Fulfillment)

• Shufersal Logistics

• Transclima Logistics

Key Target Audience

• Cold Chain Logistics and Warehousing Companies

• Food Processing and Export Companies

• Biotech and Pharmaceutical Manufacturers

• Grocery Retail and E-Commerce Platforms

• Agriculture Cooperatives and Exporters

• Technology and Telematics Providers

• Regulatory Authorities (e.g., Ministry of Health, Ministry of Agriculture)

• Private Equity and Infra Fund Investors

• Market Research and Consulting Firms

Time Period

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029