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South Korea Cold Chain Market Future Outlook: Ken Research
November 2019

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How Is The Cold Chain Market Positioned In South Korea?

South Korea is Asia’s fourth-largest economy has the potential to offer significant growth opportunities in the South Korea Cold Chain Industry. The cold chain business in the country has been significantly growing owing to the growth of international trade of perishable foods, technological advancements in refrigerated storage & transport, government support for infrastructure development of the cold chain industry and increasing need for medicines owing to the aging population of South Korea. Over the last few years, the seafood and pharmaceutical industry in the country has seen a significant boom and has necessitated the development of cold chain facilities in the country. The revenue of the industry has grown from USD ~ Billion in 2013 to USD ~Billion in the year 2018 with a CAGR of ~%.

The growth of the industry can be attributed to factors such as the rise of third party logistics, the emergence of new players, and shift from an owned warehouse to leased warehouses along with growth in end-user industries and increasing infrastructure investment by the government. Other factors such as an increase in the number of modern grocery retail stores and a rise in consumer retail spending have also augmented the growth of the market over the period 2013-2018.

Cold chain facilities in the country are becoming increasingly sophisticated along with the provision of advanced IT solutions for warehouse and transportation management. To ensure optimally utilization, companies have started using automation technologies and focus on on-demand warehousing.

South Korea Cold Chain Market Segmentation

By Type of Market

In 2018, the cold storage market and cold transport market contributed an equal amount of revenue in the cold chain industry owing to the rising consumption of refrigerated products such as meat, seafood, dairy among others in the country which require cold transport facilities in order to be transported to the storage warehouses and then finally, the end-users have contributed to the growth of the industry. Moreover, the increase in retail spending in the country along with the increase in imports of temperature-sensitive products such as meat and related products, tropical fruits, and others have augmented the growth of the industry over the review period.

By End-User Application

The increased consumption of meat and seafood in-country propelled the growth of the cold chain market in South Korea as these frozen foods need to be stored and transported in temperature-sensitive environments. The segment accounted for the largest contribution of ~% in the overall revenue of the cold chain market in 2018 followed by pharmaceuticals and fruits and vegetables contributing an equal revenue share of ~%. The remaining share was contributed by dairy products, bakery, and confectionary and other products such as processed foods and ready-to-eat meals which are usually imported into the country.

By Ownership

In 2018, Third-Party Logistics (3PL) cold chain facilities were evaluated to be USD ~ Billion in 2018 and accounted for the majority share of ~% in the revenue of the cold chain industry. The 3PL operators have the expertise and offer a wide range of integrated services to the clients. A large number of cold chain operators are resorting to renting or leasing out facilities from Third Party Logistic Cold Chain providers due to the increasing costs of establishing and maintaining their own warehouses and fleet. On the other hand, the owned cold chain segment acquired a share of ~% in 2018.

South Korea Cold Storage Market Segmentation

By Temperature Range

The chilled storage segment was observed to be the leading segment and contributed the maximum share to the revenue of the cold storage industry due to huge demand for meat and seafood, pharmaceuticals and other processed foods in the country. The remaining revenue was contributed by ambient and frozen storages.

By Region

The northern region comprising of cities such as Seoul and Incheon have a network of well-developed and connected highways and are one of the most populated states of the country. Owing to this, the northern region of South Korea has accounted for ~% share in the cold storage market, generating revenue of USD ~ Billion in 2018. The central region contributed the second-highest share which was followed by the Southern region including cities such as Busan and more due to the proximity to the sea and the presence of well developed port infrastructure.

South Korea Cold Transport Market Segmentation

By Mode of Transport

Land transport was analyzed to be the dominating mode of transport due to excellent road infrastructure and connectivity in the country. Sea has been the most popular model for handling export and import of various food products and chemicals and contributed a revenue share of ~% in cold transport market followed by air transportation which handles imports of vaccines and expensive seafood in the country.

By Mode of Land Transport

Among the land transport facilities available in the country, the 40 footer reefers are the most commonly used ones because the cold transport business except the last mile delivery is usually done in bulk and the capacity of the truck in metric tons is much higher as compared to other reefers. The remaining share was captured by 20 Footer Reefers and others including 4 wheelers, 6 wheelers, and 8 wheelers

By Location

The larger revenue share of ~% in cold transportation market of South Korea has been garnered by domestic cold transport. South Korea is an import oriented country imports bulk of temperature-sensitive items such as fruits and vegetables, pharmaceutical items and others are then distributed through cold transport within the country. On the other hand, international cold transport has captured a lower revenues share of ~% in the cold transport market of South Korea in 2018

By Vicinity

Due to the well-connected transport infrastructure in the country, it takes less than 6 hours to travel from any one region to the other which has augmented the growth in inter-city business resulting in higher share of domestic revenue in the South Korea cold transport market.

Key Segments Covered:-

By Type of Market

Cold Storage

By Temperature

Frozen

Chilled

Ambient

By Region

North

Central

South

Cold Transport

By Mode of Transport

Land

Sea

Air

By Location

Domestic

International

By Mode of Land Transport

40 Footer reefers

20 Footer reefers

Others (6, 8, 10 wheelers and more)

By Vicinity

Inter-city

Intra-city

By End-User Application

Meat and Seafood

Fruits and Vegetables

Pharmaceuticals/Healthcare

Dairy Products

Bakery and Confectionary

Others

By Ownership

Owned/Integrated

Third Party Logistics (3PL)

Key Target Audience

Cold Chain Companies

Logistics Companies

Private Equity Investors

Government Associations

Construction Companies

Dairy Companies

Meat and Seafood Companies

Fruits and Vegetables Companies

Pharmaceutical Companies

Ice-Cream Companies

Time Period Captured in the Report:-

Historical Period: 2013-2018

Forecast Period: 2018-2023E

Companies Covered:-

Lotte Logistics

CJ Logistics

Dongwon Industrial

Borim Logistics

Dongbu Express

Hansol Logistics

DB Schenker

Daelim Corporation

GS Global

DHL

Ottogi Logistics Service Co., Ltd.

Pantos Logistics

Key Topics Covered in the Report:-

Cold Chain Businesses South Korea

South Korea Refrigerated Truck Market

South Korea Reefer Truck Market Size

South Korea Food and Drink Storage Industry

South Korea Lotte Logistics Market Revenue

South Korea CJ Logistics Market Analysis

Cold Storage Seoul Market Growth

South Korea DHL Logistics Competitors

Number of warehouses in South Korea

Dairy Industry Market Size in South Korea in KRW Billion

South Korea Processed Meat and Seafood Market

Confectionery Market Size in South Korea

For More Information, Refer To Below Link:-

South Korea Cold Chain Market

Related Reports by Ken Research:-

Philippines Cold Chain Market Outlook To 2023 - By Service Mix (Cold Storage Market And Cold Transportation)

Indonesia Cold Chain (Cold Transport And Storage) Market Outlook To 2021 - By End Users (Meat And Seafood, Vaccines And Other Pharma Products, Bakery And Confectionary, Fruits And Vegetables And Others)

Contact Us:-

Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249



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