Colombia Cold Chain Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Colombia Cold Chain Logistics Market size is estimated at USD 224.5 million in 2024, and is expected to reach USD 394.83 million by 2029, growing at a CAGR of 11.95% during the forecast period (2024-2029).
Columbia witnessed trade growth in perishable products and favorable government support for developing cold chain infrastructure. In recent years, Colombia's logistics sector improved and is now 5th in Latin America and the Caribbean. The government is doing everything possible to improve the decentralized logistical infrastructure. The development of Columbia's challenging logistics market is expected to be driven by growth in the processed food sector, an increase in cold storage, and the pharmaceutical industry.
Key Highlights
Infrastructure development, such as investments in storage facilities, refrigerated transport, and technology integration, is taking place in Colombia's cold chain logistics market. Efforts are being made to improve the overall infrastructure to enhance the reliability of the cold chain.
In February 2024, Emergent Cold Latin America declared that it would rapidly expand the facilities of Colombian company Red Polar, which is based in Bogota. Emergent Cold will have a state-of-the-art facility in the short term, with a positioning capacity of 25,000 pallets. It will strengthen its presence in Colombia's capital and benefit both businesses' customers depending on their supply chain's objectives.
With the massive demand for the cold chain market, the pharmaceutical industry has accepted the potential advantages of using cryogenic storage facilities to store vaccines, blood samples, and other cell tests. In addition, there has been an increase in the need for frozen storage at online grocery stores. Demand for cold storage space in the next five years is projected to increase due to the growth in online grocery sales.
Colombia Cold Chain Logistics Market Trends
Rising Consumer Demand For Perishable Goods
According to the US Department of Commerce, as of November 2023, Colombia has become the largest destination for US agricultural exports in South America.
Colombia continues to import a wide range of farm products. The country may rely on something other than its domestic sources of raw materials or ingredients to meet the growing demand for processed foods and beverages.
Traditional retail outlets are Colombia's most common form of shopping, even though formal retailers account for 60% of food distribution. Responding to consumer trends has benefited hard discounters offering good quality products at reasonable prices. Thanks to Colombians' rapid adoption of digital technologies, e-commerce is also a significant activity in this area.
The Colombian food and beverage industry denotes 28% of the countrỷ‘s total manufacturing production by value. In addition, many food ingredients are imported into Colombia by the net. Demand for higher quality and healthier confectionery products is growing in the country. These factors create the need for cold chain storage and logistics.
Increasing Demand for Dairy Products and Frozen Food Driving Growth
Colombian dairy imports are mostly cream, whey protein, milk powder, and other product ingredients, such as casein.
Domestic consumption of dairy products has increased due to promotional efforts that appeal to changes in consumption patterns because of urbanization and income shifts. Consumers prefer fresh cheese, which is available in modern retail and mostly in wet markets and mom-and-pop stores due to its artisanal production. Even though hard cheese is seen as expensive and has a strong flavor, retailers like PriceSmart, D1, and Jumbo introduce different cheese varieties, which are vital for educating consumers about this product.
Colombian milk production reached 7,251 million liters (1915.51 million gallons) in 2022. The Colombian milk export between January and March 2023 grew 126% year-on-year, valued at USD 8.3 million. The dairy manufacturing sector in Colombia includes domestic and multinational companies, such as Nestle, Parmalat, and Danone, as well as domestic brands, such as Colanta, Alpina, and Alqueria.
The consumption of bread consumption per capita is still low at 22 kilograms (48 pounds) compared to other Latin American countries, such as Chile (98 kilograms/216 pounds), Argentina (82 kilograms/180 pounds), and Uruguay (55 kilograms/121 pounds).
Chilled meat and poultry products are in high demand in urban areas. Most of the Colombian chilled processed food market consists of processed meats or poultry. Chilled ready-to-eat meals hold a minor share as well. However, the preference for chilled processed food has always been higher than for frozen products.
Mexican, Italian, and Chinese preparations are preferred by consumers when buying ready-to-eat meals. Grupo Nutresa leads in this category with a 60% market share. For canned goods, Colombians are primarily consumers of canned tuna, but the market for other canned/preserved products, such as meat, beans, tomatoes, and soups, is also expanding.
Colombia Cold Chain Logistics Industry Overview
Given the presence of local and international players, the Colombian cold chain logistics market is fragmented. In e-commerce logistics, competition in the market is becoming increasingly intense. Many foreign players in the warehousing and storage field are expected to benefit from a growing export of farm products worldwide and at home. The major players in the market include Frigometro, Megafin Logistica Para Alimentos, Apix Logistica Especializada SAS, and Transportes Iceberg De Colombia.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Columbia witnessed trade growth in perishable products and favorable government support for developing cold chain infrastructure. In recent years, Colombia's logistics sector improved and is now 5th in Latin America and the Caribbean. The government is doing everything possible to improve the decentralized logistical infrastructure. The development of Columbia's challenging logistics market is expected to be driven by growth in the processed food sector, an increase in cold storage, and the pharmaceutical industry.
Key Highlights
Infrastructure development, such as investments in storage facilities, refrigerated transport, and technology integration, is taking place in Colombia's cold chain logistics market. Efforts are being made to improve the overall infrastructure to enhance the reliability of the cold chain.
In February 2024, Emergent Cold Latin America declared that it would rapidly expand the facilities of Colombian company Red Polar, which is based in Bogota. Emergent Cold will have a state-of-the-art facility in the short term, with a positioning capacity of 25,000 pallets. It will strengthen its presence in Colombia's capital and benefit both businesses' customers depending on their supply chain's objectives.
With the massive demand for the cold chain market, the pharmaceutical industry has accepted the potential advantages of using cryogenic storage facilities to store vaccines, blood samples, and other cell tests. In addition, there has been an increase in the need for frozen storage at online grocery stores. Demand for cold storage space in the next five years is projected to increase due to the growth in online grocery sales.
Colombia Cold Chain Logistics Market Trends
Rising Consumer Demand For Perishable Goods
According to the US Department of Commerce, as of November 2023, Colombia has become the largest destination for US agricultural exports in South America.
Colombia continues to import a wide range of farm products. The country may rely on something other than its domestic sources of raw materials or ingredients to meet the growing demand for processed foods and beverages.
Traditional retail outlets are Colombia's most common form of shopping, even though formal retailers account for 60% of food distribution. Responding to consumer trends has benefited hard discounters offering good quality products at reasonable prices. Thanks to Colombians' rapid adoption of digital technologies, e-commerce is also a significant activity in this area.
The Colombian food and beverage industry denotes 28% of the countrỷ‘s total manufacturing production by value. In addition, many food ingredients are imported into Colombia by the net. Demand for higher quality and healthier confectionery products is growing in the country. These factors create the need for cold chain storage and logistics.
Increasing Demand for Dairy Products and Frozen Food Driving Growth
Colombian dairy imports are mostly cream, whey protein, milk powder, and other product ingredients, such as casein.
Domestic consumption of dairy products has increased due to promotional efforts that appeal to changes in consumption patterns because of urbanization and income shifts. Consumers prefer fresh cheese, which is available in modern retail and mostly in wet markets and mom-and-pop stores due to its artisanal production. Even though hard cheese is seen as expensive and has a strong flavor, retailers like PriceSmart, D1, and Jumbo introduce different cheese varieties, which are vital for educating consumers about this product.
Colombian milk production reached 7,251 million liters (1915.51 million gallons) in 2022. The Colombian milk export between January and March 2023 grew 126% year-on-year, valued at USD 8.3 million. The dairy manufacturing sector in Colombia includes domestic and multinational companies, such as Nestle, Parmalat, and Danone, as well as domestic brands, such as Colanta, Alpina, and Alqueria.
The consumption of bread consumption per capita is still low at 22 kilograms (48 pounds) compared to other Latin American countries, such as Chile (98 kilograms/216 pounds), Argentina (82 kilograms/180 pounds), and Uruguay (55 kilograms/121 pounds).
Chilled meat and poultry products are in high demand in urban areas. Most of the Colombian chilled processed food market consists of processed meats or poultry. Chilled ready-to-eat meals hold a minor share as well. However, the preference for chilled processed food has always been higher than for frozen products.
Mexican, Italian, and Chinese preparations are preferred by consumers when buying ready-to-eat meals. Grupo Nutresa leads in this category with a 60% market share. For canned goods, Colombians are primarily consumers of canned tuna, but the market for other canned/preserved products, such as meat, beans, tomatoes, and soups, is also expanding.
Colombia Cold Chain Logistics Industry Overview
Given the presence of local and international players, the Colombian cold chain logistics market is fragmented. In e-commerce logistics, competition in the market is becoming increasingly intense. Many foreign players in the warehousing and storage field are expected to benefit from a growing export of farm products worldwide and at home. The major players in the market include Frigometro, Megafin Logistica Para Alimentos, Apix Logistica Especializada SAS, and Transportes Iceberg De Colombia.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Export of Fresh Produce
4.2.1.2 Pharmaceutical Industry Growth
4.2.2 Market Restraints
4.2.2.1 Infrastructure Challenges
4.2.2.2 Costs and Investment
4.2.3 Market Opportunities
4.2.3.1 Collaboration and Partnerships
4.3 Technological Trends and Automation
4.4 Government Regulations and Initiatives
4.5 Industry Value Chain/Supply Chain Analysis
4.6 Spotlight on Ambient/Temperature-controlled Storage
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.8 Impact of Emission Standards and Regulations on Cold Chain Industry
4.9 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Services
5.1.1 Storage
5.1.2 Transportation
5.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
5.2 By Temperature Type
5.2.1 Ambient
5.2.2 Chilled
5.2.3 Frozen
5.3 By Application
5.3.1 Horticulture (Fresh Fruits and Vegetables)
5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
5.3.3 Meats and Fish
5.3.4 Processed Food Products
5.3.5 Pharma, Life Sciences, and Chemicals
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Megafin Logistica Para Alimentos
6.2.2 Frigometro
6.2.3 Apix Logistica Especializada SAS
6.2.4 Transportes Iceberg De Colombia
6.2.5 Sefarcol SA
6.2.6 Rentafrio
6.2.7 Ransa Colombia Colfrigos
6.2.8 Frimac
6.2.9 Sabanagro Ltda
6.2.10 Transportes Camfri SA*
6.3 Other Companies
7 FUTURE OF COLD CHAIN LOGISTICS MARKET
8 APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of the Transport and Storage Sector to Economy)
8.2 External Trade Statistics - Exports and Imports, by Product
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Export of Fresh Produce
4.2.1.2 Pharmaceutical Industry Growth
4.2.2 Market Restraints
4.2.2.1 Infrastructure Challenges
4.2.2.2 Costs and Investment
4.2.3 Market Opportunities
4.2.3.1 Collaboration and Partnerships
4.3 Technological Trends and Automation
4.4 Government Regulations and Initiatives
4.5 Industry Value Chain/Supply Chain Analysis
4.6 Spotlight on Ambient/Temperature-controlled Storage
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.8 Impact of Emission Standards and Regulations on Cold Chain Industry
4.9 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Services
5.1.1 Storage
5.1.2 Transportation
5.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
5.2 By Temperature Type
5.2.1 Ambient
5.2.2 Chilled
5.2.3 Frozen
5.3 By Application
5.3.1 Horticulture (Fresh Fruits and Vegetables)
5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
5.3.3 Meats and Fish
5.3.4 Processed Food Products
5.3.5 Pharma, Life Sciences, and Chemicals
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Megafin Logistica Para Alimentos
6.2.2 Frigometro
6.2.3 Apix Logistica Especializada SAS
6.2.4 Transportes Iceberg De Colombia
6.2.5 Sefarcol SA
6.2.6 Rentafrio
6.2.7 Ransa Colombia Colfrigos
6.2.8 Frimac
6.2.9 Sabanagro Ltda
6.2.10 Transportes Camfri SA*
6.3 Other Companies
7 FUTURE OF COLD CHAIN LOGISTICS MARKET
8 APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of the Transport and Storage Sector to Economy)
8.2 External Trade Statistics - Exports and Imports, by Product
