During the COVID-19 pandemic, the cold-chain logistics business, which originally focused on penetrating the B2B (Business to Business) market, showed substantial growth trend in the B2C (business to Customer) market, benefiting from the continued growth of the e-commerce industry that allows consumers to buy more fresh food and frozen and refrigerated food through online channels. At the same time, restaurant operators have also adjusted their operations by expanding their online sales channels and delivering to other provinces outside Bangkok. KResearch expects that the turnover of the cold-chain logistics business focused on the B2C segment will reach approximately THB2.9-3.0 billion in 2022, an increase of 15-20% YoY, down from the 40-45% YoY growth projected for 2021, partly due to the high base in 2021 and short-term support factors following the end of the lockdown measures. However, consumer demand is expected to continue to grow due to widespread awareness and greater familiarity with the use of cold chain logistics services. The KResearch survey shows that consumers’ preference for shopping for fresh, ready-to-cook, chilled and frozen food products through online channels is second only to fashion products.
Looking ahead, the B2C cold-chain business will still face numerous challenges. For example, the risk of a new COVID-19 outbreak that could hinder deliveries in some areas, pressure from continued oil price volatility and increases, and competition from market penetration by major logistics service providers, both in terms of the number of players tending to increase and competition in term of service prices tending to intensify. To this end, operators should closely keep track of various issues in order to adjust their strategies in a timely manner. KResearch is of the view that operators should place emphasis on the development and enhancement of service efficiency such as reducing delivery lead times or possible damage caused during transportation. Additionally, they may accelerate the building of networks by entering into long-term contracts with operators using the cold-chain service, such as those in the restaurant business, in order to manage costs more efficiently, as well as to develop and use green logistics technologies.
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