News - 2024 China Cold Chain Logistics Industry Research Report

Chapter 1: Industry Overview

1.1 Introduction

Cold chain logistics is a specialized field that ensures products remain within a specified temperature range throughout the supply chain. This process spans various stages, including initial processing, storage, transportation, distribution processing, sales, and delivery. Its foundation lies in advancements in modern science, particularly refrigeration technology. Cold chain logistics requires specialized equipment such as cold storage facilities, refrigerated vehicles, and insulated containers to maintain the appropriate temperature environment.

The industry is characterized by high circulation costs due to the constant need to maintain specific temperature conditions. Integrating agriculture, industry, and services, cold chain logistics is a complex system crucial to supply chain management, especially for perishable goods like food and pharmaceuticals. With increasing global demand for food safety and quality, its importance continues to grow.

1.2 Categories

Cold chain logistics can be divided into four main categories based on the type of goods handled:

Primary Agricultural Products:
- Fruits and vegetables
- Meat products
- Aquatic products
Pharmaceutical Products:
- Medicines
- Vaccines
- Biological reagents
- Medical devices
Processed Foods:
- Frozen desserts
- Dairy products
- Frozen prepared foods
- Pre-cooked meals
Industrial Products:
- Chemical raw materials
- Electronics
- Paints and coatings
- Industrial rubber
- Precision instruments

1.3 Industry Status

China’s cold chain logistics sector has experienced rapid growth in recent years. Market concentration has increased, with top 100 companies capturing a growing share. In 2020, these companies accounted for over 18% of the market’s total revenue, reflecting a shift towards a more organized and efficient industry structure.

However, compared to mature markets like the U.S., China’s market concentration remains relatively low. Significant government support and rising consumer demand have driven advancements, pushing the market size to ¥418.4 billion in 2021, with projections to reach ¥937.1 billion by 2026.

Chapter 2: Industry Chain, Business Models, and Policy Regulations

2.1 Industry Chain

The cold chain logistics industry consists of three main segments:

Upstream: Infrastructure providers, including cold storage and refrigerated transport suppliers.
Midstream: Cold chain logistics service providers using advanced technologies for efficient supply chain operations.
Downstream: End-users such as supermarkets, hospitals, and factories requiring cold chain solutions.

2.2 Business Models

Cold chain logistics operates under various business models, including:

Warehouse-based: Providers like Swire Cold Chain focus on storage solutions.
Transport-based: Companies like Shuanghui Logistics specialize in cold transport.
Delivery-focused: Firms such as Beijing Kuaihang offer last-mile cold delivery.
Comprehensive: Providers like China Merchants Meilin Logistics integrate storage, transport, and delivery.
E-commerce-based: Platforms such as SF Cold Chain serve both direct and third-party clients.

2.3 Technology Development

Technological advancements are crucial for optimizing cold chain logistics. Key innovations include:

IoT for real-time temperature monitoring
AI for predictive maintenance and route optimization
Automated warehouses

2.4 Policy Support

Government policies play a pivotal role in shaping the industry. Key initiatives include:

Building national cold chain logistics hubs
Subsidizing cold chain infrastructure
Promoting green and sustainable logistics practices

Chapter 3: Financial, Risk, and Competitive Analysis

3.1 Financial Analysis

Cold chain logistics is capital-intensive, requiring substantial investment in infrastructure. Financial health can be assessed using metrics like gross profit margin, asset turnover, and cash flow analysis. Valuation methods such as DCF (Discounted Cash Flow) and P/E (Price-to-Earnings) ratios are commonly used.