Kuwait Warehousing Market is Driven by Rise in Imports for Food and Beverage Sector Coupled with Expansion of Warehouse Capacity: Ken Research


The report titledKuwait Warehousing Market Outlook to 2022 – By Business Model (Industrial Freight/ Retail, Container Freight, Cold Storage, Agricultural Warehousing); By End Users (Food and Beverages, Chemicals, Electronics, Pharmaceuticals, E-Commerce, Consumer Durables and Others)by Ken Research suggested a positive CAGR of 10.1% in terms of total revenue of the warehousing market in the next 5 years till the year ending 2022.

The warehousing market of Kuwait has witnessed surge in imports and exports activity majorly due to increase in demand of food and beverage industry, chemical, electronics, pharmaceuticals and other industries. Since Kuwait is highly dependent on imports for frozen food, dairy products, consumer staples, pharmaceuticals and polymers, which has increased the need of warehouses among end users. The companies owning warehouses have also attributed to the growth of the industry such as DHL with 1 warehouse, Dolphin with 2 warehouses and UAGSCO with 4 warehouses in Kuwait.

Over the past few years, rapid retail market developments have been evident in Kuwait with a continuous increase in organized retail or modern shopping across the country. Additionally, the growing trend of online shopping in Kuwait has led to establishment of new fulfilment centers for E-commerce companies to store their goods.

In Kuwait, majority of the cold storage warehouses are located near to sea ports such as Shuwaikh Port, Shuaiba Port and Doha Port. However, with the expansion of companies operating in warehousing market, growth is observed in construction of setting up of new warehouses regionally. Major regions where new warehouses have been set up are Ardia, Mina Abdullah, Ahamadi, Amghara, which are generally used for keeping industrial goods as these regions are close to industrial area.

Majority of the international logistic companies operating in Kuwait does not have their personal warehouse and they generally operate on the basis of asset light model in which they rent a warehouse for few number of days and perform their logistic services rather than setting up their personal warehouse in various countries, this has positively inclined the demand for warehouses in the country. Warehousing players should focus on increased cargo handling or industrial freight warehousing along with the development in other towns apart from Al Jahra Governorate.

Products Covered:

Kuwait Logistics and Warehousing Market by Business Model (Industrial Freight/Retail, Container Freight, Cold storage, Agriculture and others) by End User (Food and Beverage, Chemicals, Electronics, Pharmaceutical, E-Commerce, Consumer Durables and Others)

Companies Covered:

Agility Kuwait, KGL Logistics, Dolphin Logistics and DHL Kuwait

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Ken Research
Ankur Gupta, Head Marketing & Communications