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Asia-Pacific Cold Chain Logistics: Robust Growth Fueled by Trends and Innovations

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Asia-Pacific Cold Chain Logistics: Robust Growth Fueled by Trends and Innovations

The Logistic News by The Logistic News
January 30, 2024
in Business, Logistic
Reading Time: 1 min read
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Asia-Pacific Cold Chain Logistics: Robust Growth Fueled by Trends and Innovations
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The cold chain logistics sector in the Asia-Pacific region is poised for remarkable growth, projected to surge from USD 142.71 billion in 2023 to an impressive USD 215.43 billion by 2028, indicating a robust Compound Annual Growth Rate (CAGR) of 8.58% during the forecast period. This substantial expansion is driven by several factors, including the increasing prevalence of refrigerated warehouses and notable technological advancements in the industry. Key drivers of this growth include rising consumer demand for premium products, the rapid expansion of the pharmaceutical sector, and a surge in e-commerce activities across the Asia-Pacific cold chain logistics landscape.

The prevalence of cold chain logistics in this region is particularly prominent, given a consumer base that represents a significant proportion of the global population, influenced by escalating disposable incomes and evolving dietary preferences. The impact of the pandemic has triggered a notable shift in food safety concerns, redirecting consumers towards organized retail channels. This shift in consumer behavior has resulted in a heightened demand for cold chain storage facilities, prompting substantial investments in infrastructure upgrades and transportation optimization.

Japan emerges as a standout player in this flourishing market, positioning itself as a mature segment with influential market players like Nichirei Logistics Group Inc. These companies are offering comprehensive services catering to a diverse range of industries. The forthcoming implementation of Japan’s ‘upper limit on overtime hours in automobile driving operations’ is anticipated to bring about a revolution in the transportation and logistics sector by enhancing efficiency and implementing robust safety measures.

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