France Cold Chain Logistics Market - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS ((2022 - 2027)

France Cold Chain Logistics Market - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS ((2022 - 2027)

The French cold chain logistics market is expected to witness a CAGR of 3.9% during the forecast period of 2021-2026. The COVID-19 pandemic had a significant impact on the cold chain logistics business, and many participants in the French cold chain logistics are facing many challenges and uncertainties. France leads Europe with the largest number of industrial and logistics projects. The 'Logistics Plan for 2025' aims to improve the infrastructure to enhance the intramodality of the transportation network while simplifying the administrative management of the supply chain.

The logistics market has proven itself to be highly resilient in 2020 and has proven its importance to the economy. The accelerated growth of e-commerce, the key role in consumer retail during the first lockdown period and later in the vaccination campaign (storage, vaccine delivery, etc.) may explain the robust performance of the cold chain logistics industry.

The location of warehouses close to consumption and employment distribution areas is still critical to optimizing the entire supply chain. It is expected that increased automation in cold storage warehouses may further increase demand. Warehouse automation includes cloud technology, robotics, conveyor belts, truck loading automation, and energy management. When transporting and storing temperature-sensitive products, refrigerated storage has become an integral part of supply chain management (SCM). Additionally, the growth of trade in perishable products is expected to help increase the demand for cold storage solutions in the next few years.

Key Market TrendsBoost in Ecommerce Sales Providing Growth to the Logistics Sector

The country has a population of 65.1 million, 68% of which are internet users, and the country currently ranks the fifth-largest country in the world for online sales. There are more than 120,000 active e-commerce sites in France. The most visited online store in the country is Amazon, with more than 15 million unique visitors every month. Other large online companies include Cdiscount, eBay, Fnac, and Priceminister. Fashion is the most popular product category, while retailers La Redoute and 3 Suisses are among the largest fashion companies in French e-commerce. The growth of the e-commerce market is pushing the cold chain logistics industry to reach a new level of growth. The country’s logistics and express companies are implementing major expansion plans at major airports to expand cargo handling capacity. The main capacity expansion plans include the construction of logistics and warehouse infrastructure around key airports, such as Charles de Gaulle International Airport in Roissy on the outskirts of Paris. Over the years, with the continuous development to ease the delivery process and transportation process at the airport, the price of air transportation has been reduced, making air transportation more conducive to the import and export of logistics companies.

The Impact of COVID-19 is Expected to Accelerate the Pace of E-commerce

In Europe, online retail penetration peaked during the lockdown period in April 2020. Despite the usual Black Friday, Single's Day, and pre-Christmas online sales boom, online penetration was on par with the levels seen in the first wave. According to the Retail Research Center’s forecast, the impact of COVID-19 is expected to accelerate the transition to e-commerce by about 12 months, although the adverse effects of the second wave may amplify this impact. However, this is the amount of online retail, not just the proportion, which may boost the logistics user market. If overall consumer spending drops significantly, absolute online retail sales may fall. Government policies and vaccine distribution may affect the speed of changes in consumer behavior.

Competitive Landscape

The cold chain logistics industry is quite fragmented, with many players existing in the freight and logistics market. With the increasing E-commerce market and developing infrastructure plans, the French economy has potential for growth and opportunities for fresh players to penetrate the market. Major players are Sofrilog, IRIS Logistics, XPO Logistics, Mutual Logistics, and Kuehne + Nagel.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Sofrilog
IRIS Logistics
XPO Logistics
Mutual Logistics
Kuehne + Nagel
Stef Logistique
Olano Logistique
Socopal
Kloosterboer Harnes
Seafrigo

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