Philippines Cold Chain Market Outlook to 2029

The report titled “Philippines Cold Chain Market Outlook to 2029 - By Market Structure, By Types of Storage, By Products, By Applications, and By Region.” provides a comprehensive analysis of the cold chain market in the Philippines. The report covers the 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 competitive landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the Cold Chain Market. The report concludes with future market projections based on sales revenue, by market, product types, region, cause and effect relationship, and success case studies highlighting major opportunities and cautions.

Philippines Cold Chain Market Overview and Size

The Philippines cold chain market reached a valuation of USD 1.2 Billion in 2023, driven by the increasing demand for perishable goods, growing population, and rising consumer preference for fresh and frozen products. The market is characterized by major players such as Jentec Storage, Royal Cargo, Glacier Megafridge, and Koldstor. These companies are recognized for their extensive distribution networks, diverse storage solutions, and customer-focused services.

In 2023, Jentec Storage expanded its warehouse capacity to cater to the growing demand for cold storage services in the Philippines. This initiative aims to enhance service offerings and provide a more efficient storage solution for perishable goods. Metro Manila and Cebu are key markets due to their high population density and robust infrastructure.

Market Size for Philippines Cold Chain Industry on the Basis of Revenues in USD Million, 2018-2023

Source: TraceData Research Analysis

What Factors are leading to the Growth of Philippines Cold Chain Market: 

Increasing Demand for Pharmaceuticals: - The demand for pharmaceuticals, especially vaccines and temperature-sensitive medications, has increased significantly.The pharmaceutical cold chain market grew by 30% annually from 2018 to 2023, driven by the need for specialized storage and transportation solutions for vaccines and other temperature-sensitive medications. The COVID-19 pandemic alone led to a 50% increase in cold storage demand for vaccines in 2020.

Technological Advancements: The integration of advanced technologies such as IoT, AI, and blockchain in cold storage management is providing operators with more accurate and real-time information. The adoption of IoT and AI in cold storage facilities increased by 35% annually from 2018 to 2023. These technologies have improved temperature control efficiency by 20% and reduced energy consumption by 15%.

Increasing Focus on Food Safety and Quality: There is a rising trend towards ensuring food safety and quality within the cold chain market. The implementation of advanced temperature monitoring systems grew by 25% annually from 2018 to 2023. The number of cold storage facilities complying with international food safety standards increased by 30% during the same period, boosting consumer confidence and demand for cold storage services.

Expansion of Retail and Foodservice Sectors: The growth of the retail and foodservice sectors in the Philippines has led to increased demand for cold chain logistics. The retail sector expanded by 10% annually from 2018 to 2023, while the foodservice industry grew by 12% annually. This expansion resulted in a 20% annual increase in demand for cold storage solutions to stock fresh produce, dairy, meat, and seafood.

Which Industry Challenges Have Impacted the Growth for Philippines Cold Chain Market:

Skilled Labor Shortage: There is a shortage of skilled labour in the cold chain industry, impacting the efficiency and reliability of cold storage operations. In 2023, the cold chain industry faced a 25% shortage of skilled workers, including technicians and warehouse managers, according to industry reports. This gap has affected the ability of operators to maintain optimal storage conditions and ensure the quality of perishable goods.

Financing and Credit Access: Limited access to financing and credit options is a critical barrier in the cold chain market, particularly affecting smaller businesses. Approximately 40% of potential cold storage operators faced difficulties in securing financing for facility upgrades and expansions in 2023. This limitation has restricted market access for many smaller businesses, constraining overall market growth and innovation.

High Energy Costs: Cold storage facilities require substantial energy consumption, leading to high operational costs. Energy costs accounted for approximately 30% of total operational expenses for cold storage facilities in the Philippines in 2023. The high cost of electricity has been a significant burden, particularly for facilities in remote areas with limited access to affordable energy sources.

Infrastructure Challenges: Inadequate infrastructure, such as poor road connectivity and lack of advanced logistics networks, hampers the efficiency of cold chain operations. In 2023, transportation times for perishable goods increased by 20% due to poor road conditions and traffic congestion, particularly in rural areas. This inefficiency has led to increased spoilage rates and reduced the overall effectiveness of the cold chain.

What are the Regulations and Initiatives which have governed the market:

• Food Safety Regulations: The Philippine government mandates regular inspections to ensure that cold storage facilities meet specific safety and environmental standards. These inspections are required annually and focus on critical aspects such as temperature control, hygiene, and handling practices. In 2022, approximately 75% of cold storage facilities passed the inspection on their first attempt, indicating a significant compliance level among operators in the market.

• Import Restrictions on Perishable Goods: The government enforces strict regulations on the importation of perishable goods, including quality and safety standards. Additionally, all imported goods must comply with the Philippines National Standards, which include safety and handling criteria. In 2023, imports of perishable goods increased by 12% due to improved compliance and enforcement of these regulations.

• Government Incentives for Cold Storage: To promote the development of the cold chain infrastructure, the Philippine government has introduced various incentives, including tax exemptions, subsidies, and grants. These incentives are particularly aimed at encouraging the entry of new cold storage operators and the expansion of existing facilities. In 2023, cold storage facilities represented about 10% of the total warehouse space, a number expected to grow as these incentives take effect.

Philippines Cold Chain Market Segmentation:

By Market Structure: Public cold storage facilities lead due to their critical role in supporting various industries such as food and beverages, pharmaceuticals, and retail. Continuous upgrades and expansions in cold storage infrastructure also drive this segment. Cold Storage accounts for 60% of the market, driven by the demand for refrigerated warehouses and storage facilities. Cold transport represents 40% of the market, propelled by the need for efficient logistics solutions for perishable goods.

By Products: Based on the Products, the Philippines Cold Chain Market is segmented as; Fruits and Vegetables, Dairy Products, Meat and Seafood, Pharmaceuticals and Others. Food and Beverages dominates with a 70% share, due to the high consumption of fresh and processed foods. Pharmaceutical on the other hand, holds 20% fueled by the necessity for temperature-controlled storage and transportation.

By Region: Luzon leads the market due to higher logistics activity, more businesses, and significant investments in cold storage infrastructure, particularly in Metro Manila and nearby areas.

Competitive Landscape in Philippines Cold Chain Market

The Philippines cold chain market is relatively fragmented, with several key players dominating the space. However, the entrance of new firms and the expansion of online platforms such as Koldstor, Polar Bear Freezing, and Subic Bay Freeport Cold Storage have diversified the market, offering consumers more choices and services.

Competitive Landscape in Philippines Cold Chain Market

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

• Jentec Storage: As one of the oldest cold storage providers in the country, Jentec Storage increased its capacity by 10% in 2023. The company has been expanding its service offerings to include more value-added services such as packaging and labeling.

• Royal Cargo: A leading logistics provider, Royal Cargo expanded its cold chain services by adding new refrigerated trucks to its fleet in 2023, marking a 20% increase in transportation capacity compared to the previous year. The company’s focus on providing integrated cold chain solutions has been well received by clients.

• Glacier Megafridge: Specializing in large-scale cold storage, Glacier Megafridge reported a 15% increase in the utilization of its facilities in 2023. The company’s focus on providing customized storage solutions has contributed to its strong market position.

• Koldstor: Known for its advanced temperature control systems, Koldstor saw a 12% growth in its cold storage services in urban centers like Manila and Cebu. The company's emphasis on providing reliable and efficient storage solutions has contributed to its robust market presence.

What Lies Ahead for Philippines Cold Chain Market?

The Philippines cold chain market is projected to grow steadily by 2029, exhibiting a respectable CAGR during the forecast period. This growth is expected to be fueled by economic factors, increasing urbanization, and rising consumer confidence in cold chain solutions.

• Shift Towards Sustainable Practices: As the Philippine government continues to promote sustainable practices, there is anticipated to be a gradual increase in both the availability and demand for eco-friendly cold storage solutions. This trend is supported by government incentives and a growing consumer awareness of environmental sustainability.

• Integration of Technology: The integration of advanced technologies such as AI and IoT in cold storage management is expected to provide operators with more accurate and real-time information. This technological advancement will enhance market transparency, boost consumer trust, and streamline the storage process, making it more efficient and user-friendly.

• Growth of Public-Private Partnerships: The market is seeing a growing trend towards public-private partnerships (PPPs), where the government collaborates with private operators to develop and manage cold storage infrastructure. This trend is particularly strong among regions with limited infrastructure, catering to the needs of local communities. The increasing availability of PPP projects is expected to attract more investments and expertise into the market.

• Focus on Food Safety: There is a rising trend towards ensuring food safety within the cold chain market. This includes initiatives such as implementing stricter hygiene practices, using advanced temperature monitoring systems, and providing training programs for staff. These practices are becoming more important to consumers and are expected to influence buying decisions.

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

Source: TraceData Research Analysis

Philippines Cold Chain Market Segmentation

By Market Structure:

• Public Cold Storage Facilities

• Private Cold Storage Facilities

• Refrigerated Transportation

By Types of Storage:

• Ambient

• Frozen Storage

• Chilled Storage

• 3PL

• Owned

By Ownership:

By Products:

• Fruits and Vegetables

• Dairy Products

• Meat and Seafood

• Pharmaceuticals

• Others

By Region:

• Luzon

• Visayas

• Mindanao

• Sea

• Air

• Road

By Cold Transport Mode:

By Cold Transport Products:

• Fruits and Vegetables

• Dairy Products

• Meat and Seafood

• Pharmaceuticals

• Others

Players Mentioned in the Report

• Jentec Cold Storage

• Glacier Megafridge

• Mets Logistics

• Royal Cargo

• Big Blue Logistics

• Royale Cold Storage

• ORCA Cold Chain

• Vifel Ice Plant & Cold Storage

• Koldstor Inc.

• Polar Bear Freezing Services

• Frabelle Cold Storage

• Arctic Cold Storage

• Igloo Supply Chain

• Antarctica Cold Storage

• VVS Cold Storage

• Crystal Cold Storage

• Benson Industrial Cold Storage

• JM Processing

• Cold Chain Warehouse Specialist

• San Simon Cold Storage

• Cebu Subzero Logistics

• Estrella Cold Storage

• WCL Cold Storage

• Technofreeze

• Aspen Cold Storage

Key Target Audience

• Cold Storage Companies

• Cold Chain Companies

• Cold Transport Companies

• Captive Cold Storage Companies

• Captive Cold Chain Companies

• Logistics Companies

• Non-captive Companies

• Cold Chain Associations

• Logistics Associations

• Private Equity Firms

• Venture Capitalists

Time Period

• Historical Period: 2018-2023

• Base Year: 2024

• Forecast Period: 2024-2029