Investment in Integrated Cold Chain infrastructure is Aggressive among Chinese Food Industry Players

• The Chinese food industry is reportedly suffering losses as the vegetables and fruits in transitperish faster because of lack of proper cold chain infrastructure.

• Additionally, the demand for online availability of fresh food is increasing in China, therebyforcing the suppliers to develop integrated cold chain logistics structure.

• Ken Research announced its latest publication on, “Research Report on China Cold ChainLogistics Industry, 2016-2020”, which offers detailed insights into the trends of the Chinesecold chain logistics industry. The publication includes an overview of the cold chain logisticsindustry in China, explaining various related concepts such as its structure, characteristics andexisting problems. In addition, the research traces the development of the cold chain logisticsindustry in China. The research also throws light on the economic and policy environment ofthe Cold chain logistics industry along with the market forces driving supply and demand.

The cold chain industry in China is still at its nascent stage. However, it is projected to report fastgrowth as the food industry in the country is under the pressure of increasing demand.Currently, fruits and vegetables in China are wasted in large amounts as they perish while intransit. This becomes an unwanted overheard expense for the fresh food retailers suchhypermarkets and supermarkets. Not only wastage of food and losses for retailers, anotherside effect of an underdeveloped cold chain logistics industry is the spread of diseases causedfrom bad or decayed food. In fact, food decaying is the primary reason for food safety risksand also waste of resources.

Over the past few years, residents of China have become increasingly aware about the risk ofconsuming bad food and thus have started paying close attention to the food they pick. Thishas further added to the burden of retailers. Thus, there is an urgent need for developing awell-managed and integrated cold chain logistics industry so that shelf-life and marketabletime could be lengthened or even doubled. Research reveals that f the shelf life of perishableproducts like vegetables and fruits was extended from one day to three days, fresh foodretailers' loss would decrease 30%-50%.

The need for investments in the cold chain logistics industry is also propelled by the quantity of food being sold and produced in China. In 2015, meat production in China exceeded 80.0 million tons, vegetable 700.0 million tons, fruit 260.0 million tons, dairy products 27.0 million tons and seafood 60.0 million tons. Besides, large amount of meat and frozen food are produced every year in China too. Temperature fluctuation in cold storage and transport is one of the main reasons for food quality decline. To ensure those perishable foods' freshness and quality, cold chain logistics is needed.

Food E-business is also fast growing in China. While the e-retailers of food rarely investthemselves in the cold chain logistics, they force the distributors to upgrade so that the foodthey are selling online is fresh and of the best quality. As of now, Tmall and JD, two of thepopular e-food businesses are lagging far behind in their cold chain logistics system such aswarehouse, logistics delivery system and door to door delivery system. As such, the coldchain industry in China is divided into two categories: cold chain artery and the cold chainhome delivery

And cold chain logistics is the sub-industry of logistics with the largest potential market despite itscomplex operation and high barrier to entry. Cold chain logistics will be one of the fastestgrowing sub-industries of logistics in China in the next few years if the demand for cold chainand its development space in China were taken into account.

• Global Cold Chain Logistics Industry

Cold chain is an uninterrupted series of harvest, processing, packaging, storage, transport andsale activities which maintain a given temperature range. It is used to help extend and ensurethe shelf life of perishable products.

• Some forces driving the fast growth of the global cold chain industry include:

• Food trade transcending national and international borders

• Large number of food e-businesses

• Stricter safety standards for food that can be sold

• Increases awareness amongst the people regarding side effects of decayed food

• Increased possibilities of IT-integration

• Key Topics Covered in the Report:

• Development environment facing cold chain logistics in China

• Supply and demand status of cold chain logistics in China

• Industrial chain of cold chain logistics in China

• Major cold chain logistics equipment manufacturers in China

• Cold chain e-business enterprises in China

• Prospects of cold chain logistics in China

• Investment opportunity in cold chain logistics industry in China

• To know more on coverage, click on the link below:

• https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/china-cold-chain-logistics-industry/8495-100.html

• Related Reports:

• https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/uae-logistics-market-report/4634-100.html

• https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/philippines-logistics-report-2020-version/7988-100.html

• Contact:Ken Research Ankur Gupta, Head Marketing & Communicationsquery@kenresearch.com+91-124-4230204

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