Cold Chain Market in China 2017-2021
About Cold Chain
A cold chain is an uninterrupted supply chain that includes a network of facilities and distribution options. Various stages and processes in this supply chain operate under controlled temperature and humidity. China’s cold chain system is growing exponentially, resulting in various enterprises integrating such systems for the preservation of their products. The government of China is also integrating laws related to food safety and investing in cold chain projects. This is further driving the growth of the cold chain market in China.
Technavio’s analysts forecast the cold chain market in China to grow at a CAGR of 17.13% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the cold chain market in China for 2017-2021. The report considers the revenue generated by cold chain service providers to calculate the market size.Technavio's report, Cold Chain Market in China 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Cold Chain Market in China 2017-2021
Technavio recognizes the following companies as the key players in the cold chain market in China: Swire Cold Chain Logistics, China Merchants Americold, SinoTrans PFS, Shanghai Jiaoyun, and Itochu Logistics.
Other Prominent Vendors in the market are: Shanghai Zheng Ming modern logistics, Shanghai Hengfu Logistics, and S.F. Express.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is rising consumption of healthy food. It is found that increasing number of individuals in China are regularly consuming nutritious and healthy food. The most important factors that influence the decision-making of Chinese consumers while purchasing health food products are effectiveness, safety, brand name, convenience, and price.”
According to the report, one driver in market is rising focus on reduction of food wastage. The rate at which food is wasted in China is on the higher side because of inadequate and inefficient cold chain infrastructure. The Food and Agriculture Organization (FAO) has estimated that more than one-third of the annual food production in the world (more than 1.3 billion tons) does not reach consumers. In addition, it is estimated that about 15%–20% of fruits and vegetable are wasted in China owing to improper storage facilities. The loss of perishable food in developing countries, including China, is estimated to be between 20% and 50% because of the lack of cold storage facilities. To overcome this daunting challenge the Chinese government is focusing on developing and implementing solutions to maintain the freshness of food items for a longer duration.
Further, the report states that one challenges in market is rise in labor cost. Labor costs in China are expected to increase by more than 9% during the forecast period. This has been prompting foreign investors to move manufacturing units from the country to cheaper locations in Southeast Asia such as Vietnam. Consequently, there is pressure building up on local companies that are already struggling with expansion. Many factory owners are moving their production toward the west of China where there are low-skilled labor and lower production costs. China's labor costs are only 4%–5% cheaper than that in the U.S. Regulations implemented by China's government are contributing to the increase in labor costs. The Ministry of Labour and Social Security implemented the minimum wage regulation, which requires for each region to set its minimum wage between 40% and 60% of the local average wage. However, only a few cities have reached this target, and in most of the cities the minimum wage is still around 30% of the average wage. In the capital, Beijing, it is as low as 24%. This puts tremendous pressure on manufacturers. As a result, there is further increase on the product price, becoming a key challenge for the cold chain market in China.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors. For further information on this report, please visit- https://www.technavio.com/report/cold-chain-market-in-china-2017-2021
Swire Cold Chain Logistics, China Merchants Americold, SinoTrans PFS, Shanghai Jiaoyun, Itochu Logistics, Shanghai Zheng Ming modern logistics, Shanghai Hengfu Logistics, and S.F. Express.