Analysts at Ken Research in their latest publication “Oman Cold Chain Market Outlook To 2022 – By Type (Cold Storage and Cold Transport); By End user Industries (Meat and Seafood, Poultry and Eggs, Confectionaries and Others); By Entity (Logistics Owned and 3PL)” believe that capacity expansion, tie ups with e-commerce players and using innovative warehousing and cognitive/ smart temperature technologies in the industry will aid Oman cold chain market to develop.
Oman Cold Chain market is expected to register a healthy five year CAGR of around 11.4% during the period 2017-2022. Rising e-commerce and commercialization of warehouse management systems are expected to have positive impact on the demand for cold storage and cold transport.
- The government initiatives to diversify the economy and reduce the dependence of Oman’s economy on oil have led to huge investment in the development of infrastructure to promote Logistics industry and ultimately establish Oman as Logistics hub in GCC. This will increase the demand for cold storage services.
- The rise in the demand for processed meat and seafood is expected to increase in the country which will support the requirement of the cold storage and transport services.
- The express logistics market is expected to drive the cold chain logistics market owing to the shipments consisting of perishable items
Growth in Demand for Reefer Trucks and Cold Storage
There has been a steady growth in the demand for refrigerated trucks in Oman. The increasing demand for frozen food and ready to eat meals triggered the growth in cold transport market in the country. There has been rise in the consumption of frozen foods and ready to eat meals largely due to surge in the business of hyper marts and convenience stores across Oman. The import and export of fruits and vegetables, sea food, meat, confectionary products have driven the temperature controlled logistics industry.
Oman is a large consumer of fish at 28 kgs per person per year and there has been an increased focus from the government to increase the fish production of the country. This will also calls for huge investment in cold storage facilities. The E-commerce market in MENA region is expected to grow substantially in the future which will increase the demand for Cold Storage facilities as a large part of the E-commerce growth are expected to come from online grocery delivery.
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications