Competition Heats Up for China’s Cold Chain

China’s cold chain logistics industry has entered a stage of rapid development, with growth predicted at 25% p.a. until 2017.1 Increased consumer spending and the growing number of pharmaceuticals made in China which have gained certification from health authorities in Europe and North America are just two of the driving factors underpinning this growth. However, the short-comings of China’s existing cold chain infrastructure are becoming increasingly apparent as it struggles to meet demand.
Whilst tier 1 cities like Shanghai and Beijing are hubs for China’s cold chain, the rest of China’s cold chain system is highly disjointed, with a patchwork of logistics providers who are incentivised to cut corners in order to win business. This is combined with a lack of internationally recognised best practices in cold chain operations, meaning that reliably transporting temperature sensitive products across the rest of the country is extremely challenging and costly. As a result, several of the global players have begun pouring investment into the country to meet demand and modernise China’s cold chain.
Source: Cold Chain IQ