Skip to content 
20 December 2022 – Ken research shows that due to modernization, urban lifestyle and change in consumption patterns, the food industry will grow by 7.9% during 2021-2026F, driving the demand for cold chain market in South Africa.
Change in Lifestyle and Urbanization led to Rising Domestic Consumption of Processed food and Change in consumption pattern post Covid-19, people have become more health conscious. Ultimately helping the market grow.
Major cities like Gauteng, Cape Town, and Durban are emerging as a hotbed for the Cold chain market since most of the industrial regions are also located nearby.
Growing Demand from End Users: The cold chain market is expected to be fueled by increasing demand for temperature-controlled products in the country, the entry of several new players, and government initiatives and programs. The Government has initiated the National Transport Master Plan 2050 to guide the development of a multimodal transportation system to meet South Africa’s long-term transport needs.
3PL to Dominate the Cold Chain Market: Many manufacturers will choose to outsource their cold storage from third-party logistics companies because cold storage requires large investments. Also, as the demand for transporting refrigerated products is increasing, so will the demand for value-added services such as repackaging and consolidation, which increases the demand for 3PLs in the country. The end users like Pharma and processed foods choose 3PL over storage/transportation, therefore a 3PL can offer customized warehouses based on customer needs.
Adopting Automation and Modern Technologies: Technological advancement is expected to play a major role and new facilities are being built to improve the efficiency of food supply storage and distribution. The adoption of new and advanced technologies like WMS, automation, the Internet of Things, etc. will take the cold storage business to new heights. South Africa meat and seafood market is expected to generate more than $50 Bn by 2026 and grow at a CAGR of more than 6%.
Analysts at Ken Research in their latest publication “South Africa Cold Chain Market Outlook to 2026F: Driven by Rising Meat and Seafood & Fruits and Vegetable Consumption, Owing to Growing Population and Infrastructural Development” By Ken Research observed that the Cold Chain market is an emergent market in South Africa at a rebounding stage from the economic crisis after the pandemic. The rising government policies and demand for Cold Chain, rising domestic consumption of meat and seafood, fruits and vegetables along with government initiatives are expected to contribute to the market growth over the forecast period. The market is expected to grow at an 11.5% CAGR during 2021-2026F owing to the rise in the economy of the country and growing population as well as infrastructural development by the government with investments in the sector. Source: Yahoo.Finance