Asia cold chains recorded quick increase


According to the research report, the ASEAN cold chain logistics market is expected to grow by more than 12% during the forecast period 2022-2027.

Covid-19 has left the cold chain logistics industry impacted by major changes in operations, supply chains, regulations and workforce requirements. Foreign investors can now own 100% of the partnership, up from 75% in the past. It has also transformed the market with a lasting impact on the future.

Rising income levels in ASEAN countries and changing lifestyles are the main factors driving the growth of meat consumption and production in these regions, especially Indonesia and Vietnam. The Halal food industry is boosting the growth of the market. In recent years, global brands have begun to focus on the Islamic economy to capitalize on growing purchasing power and shift consumer spending preferences.

About 260 million Muslims live in the ASEAN region, with the majority in Indonesia, Malaysia, Thailand, the Philippines, Singapore, Myanmar and Brunei. The number of halal lifestyle events and campaigns held throughout the region over the past decade stimulated interest in Islamic tourism, food, fashion and cosmetics. Amid the economic crisis caused by the pandemic, Indonesia, the world's most populous Muslim country, has focused on developing the halal industry to meet domestic and global demand. Despite the pressure on economies around the world caused by the Covid-19 pandemic, the halal industry can still achieve positive results.

Before the pandemic, the industry grew at 3.2% in 2019, higher than the 2.3% rate of the global economy. Malaysia's halal industry is growing rapidly and by 2020, it contributes around 8.1% to the country's GDP. According to the Halal Industrial Development Corporation (HIDC), Malaysia's Halal industry market value is expected to reach 147.4 billion USD by the end of 2025. In 2020, the country exports about 38 billion MYR (9 billion USD) halal products.

Singapore's halal food market has thrived in recent years, with more food and beverage (F&B) outlets opening and more halal certifications issued. In 2019, the halal dining market in Singapore was worth $1 billion, with local Muslim spending at $700 million.

Since most Halal foods are meat products, they need to be stored in cold chain warehouses that are certified Halal by the respective Governments. Several policies aimed at developing the halal industry have been demonstrated by the government in recent times, including the establishment of a Special Economic Zone (KEK) for the industry.

In addition, the cooperation between the National Committee for Sharia Economy and Finance (KNEKS) and companies like Unilever Indonesia is expected to boost the country's halal industry. The Malaysian government is also making progress towards becoming a global market leader in the halal market. The master plan of the halal industry and halal park is a recent advancement. All these Halal Initiatives are promoting Cold Chain Logistics in ASEAN countries.

Southeast Asia's population and income growth, urbanization and retail sectors are contributing to increased meat consumption and increased animal feed imports. The five key emerging markets in the region are Indonesia, Malaysia, the Philippines, Thailand and Vietnam. In recent years, meat consumption has also increased, although fish and seafood are the largest sources of meat consumed and produced - and partly responsible for demand for animal feed. Each Southeast Asian country has different meat preferences, reflected in their level of consumption and production.

Malaysia's poultry industry is the most successful in the livestock segment and has the highest output value. The country is largely self-sufficient in poultry meat, and the annual per capita consumption is close to 50 kg. Thailand is the world's fourth largest poultry exporter, with about 80% of poultry produced by vertically integrated farms, the annual per capita consumption in 2020 is about 7, 9 kg.


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