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28 Feb 2022


B2C Cold-Chain Logistics Business, 2022: Growing 15-20% amid Increased Costs and Competition (Current Issue No.3308)


        We at, KResearch, expect that turnover in the cold-chain logistics business that penetrates the B2C segment will reach approximately THB2.9-3.0 billion in 2022, an increase of 15-20 percent (YoY), down from the 40-45 percent (YoY) growth projected for 2021. The decline is due partly to the high base of 2021 and expiration of short-term supporting factors. In spite of this, consumers have increasingly become aware of or accustomed to cold chain service, meaning that its demand is projected to grow steadily, especially for the transportation of fresh and ready-to-cook food products.    
        However, the B2C cold-chain business is set to experience numerous challenges ahead. These include risks of a new wave of COVID-19 that may hinder transportation in some areas, persistently volatile and high oil prices, and increased competition in terms of the projected rise in the number of players. Pricing competition will also intensify as many large logistics service providers have proactively penetrated the market.    
        KResearch is of the view that related operators should place emphasis on the development and enhancement of service efficiency such as reducing delivery lead-time or damage that may occur during transportation. Additionally, they may accelerate the building of networks by entering into a long-term contract with other operators that use the cold-chain service such as those in the restaurant business so that they can manage their costs more efficiently. They are also advised to develop and use green logistics technologies.