Market Size of Saudi Arabia Chain Logistics Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 1.51 Billion |
Market Size (2029) | USD 2.60 Billion |
CAGR (2024 - 2029) | 11.39 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Chain Logistics Market Analysis
The Saudi Arabia Chain Logistics Market size is estimated at USD 1.51 billion in 2024, and is expected to reach USD 2.60 billion by 2029, growing at a CAGR of 11.39% during the forecast period (2024-2029).
- The growing urban population and changing consumer perceptions have boosted the demand for refrigerated storage and transport. The market for refrigerated/frozen products is rapidly growing in Saudi Arabia. However, implementing the cold chain in Saudi Arabia involves several challenges. One of the major challenges is the lack of integrated supply chains or limited integrated supply chains from farm to fork, coupled with the lack of standardization.
- The COVID-19 pandemic has overturned the cold chain logistics sector through massive changes in operations, supply chains, regulations, and workforce requirements. It has also transformed the market with a lasting impact on the future. The Saudi Arabian halal food market has grown due to increased demand for packaged halal foods among non-Muslims, strong import and export regulations and policies regarding halal food and products, and an increasing Muslim population in the country.
- Another key sector that requires cold chain logistics is the pharmaceutical industry, which is growing rapidly in Saudi Arabia. Different government-sponsored incentive schemes enabled several domestic players to form joint ventures and collaborations with global and regional pharma corporations, intending to grow domestic manufacture and supply to various sections of the country.