Malaysia Cold Chain Market Revenue, Scope, Demand and Forecast by 2026

May 2022|Malaysia News

Key Findings

The cold storage market contributed ~70% share to the revenue of the cold chain industry in 2021P, while the cold transport market had accounted the remaining share. However, in near future it is anticipated that the cold transportation market will grow owing to the rising demand for temperature-sensitive products in the country.
The growth of the cold chain logistics market in the country is driven by high demand for perishable food products such meat and seafood and vegetables/fruits. The pandemic has also led to positive growth in the pharmaceutical sector. The overall cold chain market is, hence, anticipating a positive growth rate in the coming years.
Land has the highest share for the transportation of cold chain products, since land transportation is used not only for domestically transporting goods internally within the country but also used for transporting goods to the neighboring countries of Malaysia such as Singapore, Thailand, Lao PDR, Cambodia, and Vietnam.

Malaysia Shipping Master Plan: The Government plans to transform logistics services by centralizing the planning and development of logistics hubs, accelerating digital adoption and encouraging mergers and acquisitions among industry players. A national regulatory framework for warehousing is being formulated. The Malaysia Shipping Master Plan will realize the aspirations of the Malaysian shipping sector to be a business service sector. This is planned to be achieved through the introduction of sustainable measures aimed at removing competitive disparities and improving capabilities of Malaysian ship-owners, maritime human resources, and maritime ancillary services to meet domestic and regional shipping needs.

3PL Cold Storages Malaysia Growth of Malaysia Cold Chain Market Demand: Cold Chain usage in Malaysia has increased due to the importance of maintaining optimal temperatures, especially for the postharvest or post-production temperatures sensitive goods. It is also a derived demand from the Halal logistics sectors. To maintain the Halal assurance for Halal products, utilizing a controlled temperature is one of the characteristics of a Halal supply chain foundation. The temperature-controlled warehouse is a value-added service to the Halal logistics industry in Malaysia since temperature breakdowns during halal meat handling is a significant problem being faced by the industry.

Growth of Integrated Logistics: TASCO has acquired two major cold storage companies Gold Cold & MILS and Hyper cold since 2016. These mergers are leading to the establishment of a bigger player thus eliminating the need of outsourcing (4PL). Moreover, given the trend, more number of small cold companies are expected to merge with bigger players contributing to the expansion of integrated logistics.

Analysts at Ken Research in their latest publication “Malaysia Cold Chain Market Outlook To 2026 – Driven by Increase in Demand for Perishable Food Items and its Establishment as the Halal Industry Hub, Malaysia Cold Chain Market Experiencing Growth“ believe that the Cold Chain market in Malaysia is expected to experience positive growth owing to the increase in e-commerce and government’s initiatives to improve the logistics infrastructure in the country as part of Malaysia’s ‘National Transport Policy’. The market is expected to register a positive CAGR of 7.6% in terms of revenue during the forecasted period 2021P – 2026F.

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