Saudi Arabia Cold Chain Market Outlook to 2029

The report titled "Saudi Arabia Cold Chain Market Outlook to 2029 – By Market Structure, By Type of Services (Cold Storage and Cold Transportation), By End-Users (Fruits & Vegetables, Dairy Products, Pharmaceuticals, Meat & Seafood), and By Region." provides a comprehensive analysis of the cold chain market in Saudi Arabia. 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 level 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 Market. The report concludes with future market projections based on revenue, service type, end-user industries, region, cause and effect relationship, and success case studies highlighting the major opportunities and cautions.

Saudi Arabia Cold Chain Market Overview and Size

The Saudi Arabia cold chain market reached a valuation of SAR 11.5 Billion in 2023, driven by rising demand for perishable goods, growth in the pharmaceutical sector, and increasing investments in food security initiatives. The market is characterized by major players such as Agility Logistics, Al Salem Johnson Controls, United Warehouse Company, Gulf Cold Storage, and Al Raya Logistics. These companies are recognized for their extensive warehousing facilities, advanced refrigeration technology, and integrated cold transportation solutions.

In 2023, Agility Logistics expanded its cold storage capacity in Riyadh to cater to the growing needs of the pharmaceutical and food sectors. This move aligns with Saudi Arabia’s Vision 2030 initiative to enhance the logistics infrastructure and food security across the kingdom. Riyadh, Jeddah, and Dammam are key markets due to their strategic locations, dense population clusters, and proximity to major seaports and airports.

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

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

• Food Security Initiatives: Saudi Arabia’s emphasis on enhancing food security through investments in agricultural imports and storage infrastructure is driving demand for cold chain services. In 2023, the country allocated more than SAR 3 Billion towards agricultural and cold storage infrastructure development.

• Growth of Pharmaceuticals: Rising healthcare awareness and expansion of pharmaceutical imports, including vaccines and biologics that require controlled temperature storage, have significantly boosted the need for reliable cold chain logistics. The pharmaceutical cold chain segment grew by approximately 9% in 2023 alone.

• Increasing Demand for Processed Food: The growing consumption of frozen and processed food products, fueled by changing lifestyles and increased disposable incomes, has augmented the demand for cold storage and refrigerated transport services. In 2023, frozen foods accounted for nearly 32% of the total cold chain volume in Saudi Arabia.

Which Industry Challenges Have Impacted the Growth for Saudi Arabia Cold Chain Market

• High Operational Costs: Maintaining temperature-controlled environments requires significant investment in infrastructure, energy, and technology. In 2023, it was estimated that operational expenses, including electricity costs for cold storages, accounted for nearly 30% of total logistics expenditures in Saudi Arabia. This high cost has made it difficult for smaller players to sustain profitability, limiting market competitiveness.

• Limited Skilled Workforce: The shortage of trained personnel specializing in cold chain logistics management, including handling temperature-sensitive goods and managing sophisticated cold storage systems, has hampered industry efficiency. According to a sector survey, around 40% of companies reported challenges in finding adequately skilled labor for cold chain operations.

• Infrastructure Gaps in Remote Regions: While major cities like Riyadh and Jeddah boast advanced cold storage facilities, remote areas face significant cold chain infrastructure shortages. As of 2023, only 18% of rural distribution centers had access to modern cold storage solutions, leading to high spoilage rates for perishable goods in outlying regions.

What are the Regulations and Initiatives which have Governed the Market:

• Food Safety Regulations: The Saudi Food and Drug Authority (SFDA) mandates stringent storage and transportation conditions for food products, pharmaceuticals, and biological goods. Regulations require that perishable products maintain specific temperature ranges throughout the supply chain. Compliance checks in 2023 revealed that 82% of major cold chain operators met SFDA standards on their first inspection.

• Vision 2030 Logistics Development Initiative: Under the Vision 2030 strategy, the Saudi government is heavily investing in logistics infrastructure, including cold chain facilities. The National Industrial Development and Logistics Program (NIDLP) has earmarked over SAR 5 Billion for cold chain-related infrastructure by 2026, aiming to position Saudi Arabia as a regional logistics hub.

• Pharmaceutical Distribution Licensing: To enhance the quality of pharmaceutical cold storage and distribution, the Ministry of Health (MoH) requires special licenses for companies involved in temperature-sensitive pharmaceutical logistics. In 2023, over 150 new licenses were issued for cold chain companies, a 12% increase compared to 2022, signaling regulatory support for industry expansion.

Saudi Arabia Cold Chain Market Segmentation

• By Market Structure: The organized sector dominates the Saudi Arabia cold chain market, driven by increasing demand from large-scale food retailers, pharmaceutical companies, and multinational corporations. Organized players offer integrated cold chain solutions with high-quality infrastructure, compliance with strict regulations, and advanced technology adoption such as IoT-based monitoring. The unorganized sector, although present, mainly caters to local agricultural producers and small traders, often lacking standardized facilities and operating with minimal technological support.

• By Type of Service: Cold Storage services contribute the larger share of the Saudi Arabia cold chain market, primarily due to the increasing need for long-term storage of food products, pharmaceuticals, and other temperature-sensitive goods. Cold Transportation services are rapidly growing as well, driven by expanding e-commerce in food delivery, pharmaceutical logistics, and fresh produce supply chains, particularly in metropolitan regions like Riyadh and Jeddah.

• By End-User Industry: The food sector, particularly fruits & vegetables and dairy products, constitutes the largest share of the cold chain market, followed by pharmaceuticals and seafood. Rising health awareness and demand for fresh foods have expanded the need for cold storage. The pharmaceutical sector has witnessed the fastest growth, especially after 2020, due to increased vaccine imports, specialty drugs, and stringent temperature maintenance requirements during distribution.

Competitive Landscape in Saudi Arabia Cold Chain Market

The Saudi Arabia cold chain market is moderately concentrated, with a few dominant players supported by emerging specialized service providers. The market is driven by leading logistics companies, cold storage operators, and specialized cold transportation firms such as Agility Logistics, Gulf Cold Storage, Al Raya Logistics, United Warehouse Company, Al Salem Johnson Controls, Almajdouie Logistics, and Al Khowatir Cold Stores, among others.

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

• Agility Logistics: A market leader in end-to-end cold chain solutions, Agility expanded its cold storage capacity by 20% in 2023 through the launch of a new state-of-the-art refrigerated warehouse facility in Riyadh, aimed at catering to food and pharmaceutical sectors.

• Gulf Cold Storage: Specializing in multi-temperature storage solutions, Gulf Cold Storage reported a 15% increase in operational capacity in 2023. Their focus on HACCP-certified facilities and flexible storage plans has positioned them as a preferred partner for exporters and importers.

• Al Raya Logistics: Known for its comprehensive cold transportation network, Al Raya Logistics introduced a fleet of eco-friendly refrigerated trucks in 2023, reducing carbon emissions by 18% while maintaining temperature integrity during transit.

• United Warehouse Company: Focusing on pharmaceutical and healthcare logistics, United Warehouse Company expanded its specialized storage units for biologics and vaccines, achieving ISO 9001:2015 certification for quality management systems in 2023.

• Al Salem Johnson Controls: Leveraging its expertise in HVAC and refrigeration systems, Al Salem Johnson Controls entered strategic partnerships with food retailers in 2023 to supply customized cold chain solutions, leading to a 25% growth in their cold chain business segment.

Market Share of Major Players in Saudi Arabia Cold Chain Market Basis Revenues/Pallets in Percentage, 2024

What Lies Ahead for Saudi Arabia Cold Chain Market?

The Saudi Arabia 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 rising demand for perishable goods, healthcare logistics expansion, technological upgrades, and government initiatives to enhance food security and supply chain resilience.

• Expansion of Pharmaceutical Cold Chain: With the growing demand for vaccines, biologics, and specialty pharmaceuticals, the pharmaceutical cold chain segment is expected to witness significant growth. Increased healthcare investments and regulatory support will drive the need for specialized temperature-controlled logistics solutions, especially in urban and remote regions.

• Adoption of Advanced Cold Chain Technologies: The integration of IoT sensors, real-time tracking, automated warehousing, and predictive analytics is expected to transform the cold chain landscape. These technologies will enhance temperature monitoring, reduce spoilage rates, optimize delivery routes, and improve compliance with regulatory standards.

• Development of Regional Cold Chain Hubs: As part of Vision 2030, Saudi Arabia is set to establish dedicated logistics hubs with integrated cold chain facilities in key cities such as Riyadh, Jeddah, and Dammam. These hubs will not only cater to domestic needs but also position Saudi Arabia as a regional re-export center for perishable goods.

• Focus on Sustainability and Energy Efficiency: The cold chain industry is expected to increasingly adopt sustainable practices, including energy-efficient refrigeration systems, solar-powered cold storage units, and eco-friendly transportation solutions. These initiatives align with Saudi Arabia’s broader green energy and sustainability goals and are likely to become critical competitive differentiators.

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

Saudi Arabia Cold Chain Market Segmentation

• By Market Structure:

  • Organized Sector

  • Unorganized Sector

  • Integrated Cold Chain Providers

  • Standalone Cold Storage Operators

  • Standalone Cold Transportation Providers

• By Type of Service:

  • Cold Storage

  • Cold Transportation

• By End-User Industry:

  • Fruits & Vegetables

  • Dairy Products

  • Pharmaceuticals

  • Meat & Seafood

  • Bakery and Confectionery

  • Chemicals and Industrial Products

• By Temperature Type:

  • Chilled

  • Frozen

  • Ambient Controlled

• By Region:

  • Riyadh

  • Jeddah

  • Dammam

  • Mecca

  • Medina

  • Others (Including Tabuk, Al Khobar)

Players Mentioned in the Report:

Agility Logistics

Mosanada Logistics

Takhzeen Logistics

Wared Logistics

United Warehouse Company

Almajdouie Logistics

AL Jelaidan

Cold Chain Packing & Logistics

Four Winds Cold Chain

Global Star Cold Storage & Logistics

Maersk (Cold Chain Services)

DHL Global Forwarding (Cold Chain division)

Key Target Audience:

• Cold Storage Companies

• Cold Transportation Service Providers

• Food and Beverage Companies

• Pharmaceutical Companies

• Government and Regulatory Bodies (e.g., Saudi Food and Drug Authority - SFDA)

• Logistics and Supply Chain Associations

• Technology Providers for Cold Chain Solutions

• Research and Development Institutions

Time Period:

• Historical Period: 2018-2023

• Base Year: 2024

• Forecast Period: 2024-2029