Market Trends of Latin America Cold Chain Logistics Industry
Increasing Consumer Demand for Perishable Goods the warehousing space is growing in the region
The warehousing & storage industry in Latin America has been driven by the development and growth of e-commerce, increasing trade volume, and the increasing need of enterprises for effective warehousing & inventory management. Furthermore, increased investment and adoption of the Internet of Things (IoT) and automation combined with infrastructure development also contribute to the growth of the industry.
Cold warehousing & storage is in high demand in Latin America due to the high perishable food demand. In addition, cold storage & warehousing is also in high demand in the pharmaceutical industry due to the high-temperature requirements of various drugs.
Currently, Brazil is the largest market for warehousing with about 50% of the overall industrial market share. Other major markets include Mexico, Columbia, Chile & Argentina.
Fresh and frozen food growth outpaces those of other product categories.
As consumer demand increased, large food retailers benefited from expanding sales over the past few years. According to recent industry data, fresh produce and frozen food goods, which require cold chain logistics, are growing faster than other food products.
Food products that are fresh or frozen can continue to be substantially more significant than other product categories. Therefore, cold chain operations that can stop food from rotting in transportation may become considerably more critical. Food in cans and packages might be less significant to manufacturers. It can compel businesses to spend money on 3PL companies that can handle their cold chain logistics and systems.
