SOUTH AFRICA COLD CHAIN MARKET

South Africa Cold Chain Market is projected to grow at a CAGR of 7.3% till 2031 owing to the rapid urbanization, rising exports, and the government-led initiatives to tackle food insecurity while stimulating economic growth.

South Africa Cold Chain Market Drivers

The emerging middle-income group and the growing urbanization have driven a higher demand for local food production and exports in the country with fruit exports reached USD 4.5 billion in 2021, which can further propel the growth of South Africa cold chain market. The other factor supporting the growth of the advanced South Africa cold chain market is the robust infrastructure that caters to local, regional, and global produce demand. Most cold chain infrastructures prioritize big farming operations which contribute 80 percent to South Africa’s food security and dominate export volumes, which the cold chain systems are managed either in-house or by third-party logistics service providers. In addition, there have also been initiatives targeting the adoption of off-grid solar-powered cold chain infrastructure among smallholder famers to mitigate challenges like post-harvest losses, fuel supply, and electricity challenges.

South Africa holds the largest share of cold storage facilities in the continent, offering various cold storage solutions for fresh produce and perishable items. A supply chain management and logistic company has constructed a warehouse spanning 25,500 SM with an investment of around USD 10 million making it one of the most extensive cold storage infrastructures in Africa. The facility accommodates 37,000 pallets and includes flexible compartments for frozen, chilled, and super-frozen items, following the initiatives by other companies establishing cold storage facilities in the Western Cape and KwaZulu Natal.

The country is recently undergoing significant load shedding, among the worst in its history, leading to prolonged disruptions in the agricultural industry’s cold chain affecting the availability of fresh produce. Certain retailers reportedly declined fresh produce because of delivery delays and cold chain interruptions which are expected to worsen during warmer months. Around 10 million metric tonnes of food are estimated to be wasted annually, which vegetables, fruits, and cereals make up 70% of this total. Half is lost after harvesting, 25% is lost during the packaging and processing stages, 20% during logistics and retail operations, while 5% at the end-user stage. The country has committed to achieving a 50% reduction in food waste by 2030, relying on innovative technological solutions in which cold chain infrastructure plays an important role.

However, extensive geographic distances, diverse product ranges, infrastructure disparities, and limited resources can become significant challenges in the development of South Africa cold chain market.

Segments covered in the Report:

The South Africa Cold Chain Market has been segmented on the basis of type, temperature type and application. Based on the type, the market is segmented into refrigerated storage, refrigerated transport. Based on the temperature type the market is segmented into chilled, frozen. Based on the application the market is segmented into dairy & frozen desserts, fish meat and seafood products, fruits & vegetables, bakery & confectionery products and others.

Market Segmentation

South Africa Cold Chain Market by Type

• • Refrigerated Storage
  • Refrigerated Transport

South Africa Cold Chain Market by Temperature Type

• • Chilled
  • Frozen

South Africa Cold Chain Market by Application

• • Dairy & Frozen Desserts
    
  • Fish, Meat and Seafood Products
    
  • Fruits & Vegetables
    
  • Bakery & Confectionery Products
    
  • Others