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A hot "cool business": China's cold chain logistics market size likely hit RMB 470 bln in 3 years
2018/07/18 05:44:37
cold chain logistics, Alibaba, Tencent,

Jul 18, 2018 (China Knowledge) - Market of cold chain logistics in China will probably reach RMB 470 billion in 3 years as Alibaba, Tencent, and other Internet giants have entered the market, according to experts.

With continuous expansion of China's fresh good e-commerce GMV, China’s cold chain logistics market has also entered a fast track in term of development phase.

Data shows that the trading volume of the fresh e-commerce market in 2017 was RMB 141.8 billion, and the transaction volume in 2018 is expected to reach RMB 215.8 billion. High growth of fresh goods e-commerce sector underlines extreme dependence on sophisticated cold chain logistics systems and cold chain logistics in turn promotes imports of fresh products from a variety of countries and regions, creating a positive feedback loop.

According to industry insiders, because fresh products have higher requirements in term of logistics and distribution, it is necessary to keep the food fresh and to ensure the speed of delivery on time, which directly leads to higher cost of cold chain logistics than typical logistics. Investment into the cold chain express delivery infrastructure is massive with a long recovery cycle, but ROE is low. This is why cost of fresh cold chain infrastructure keeps climbing.

In recent years, Ali, Tencent, among other e-commerce platforms have entered that hot sector with constant investment into cold chain logistics fresh supply chain, making the fresh e-commerce industry developing rapidly.

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