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

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

The Spanish cold chain logistics market is expected to witness a CAGR of 4.8% during the forecast period of 2021-2026. The main growth drivers of the market are the growth of warehousing facilities across the country, the growth of B2C e-commerce, and the increase in investment by public and private enterprises in infrastructure development. With the significant transformation in the frozen food industry, cold chain logistics has become more important due to increased investment by large enterprises in the industry. The Spanish cold chain logistics market is mainly driven by increased government investment, changes in customer preferences, and the growth of the country's pharmaceutical industry. To accelerate the improvement of logistics and transportation, the Spanish government has carried out structural reforms to promote trade and foreign investment in the country.

COVID-19 had a positive impact on the Spanish cold chain logistics market. During the lockdown, high demand for frozen food and pharmaceutical products helped in the growth of the cold chain logistics market. Because of the rapid growth of the e-commerce sector and the increasing expectations of customers for same-day delivery and same-hour delivery, Spain’s demand for logistics space may continue to grow in the next few years. The increase in market penetration, the increase in security and privacy of online shopping, the shortening of delivery time, and the decrease in logistics costs in the next few years may further promote the development of the logistics industry in Spain. Large service providers are expected to adopt warehouse management systems, big data analysis, and transportation management systems to maintain market competitiveness. Companies are likely to further invest in technologies, such as artificial intelligence, RFID, GPS tracking, and automation, which will contribute to the overall development of the Spanish cold chain logistics industry.

The growth of Spanish goods imports and exports, the growth of air cargo, the increase in the number of companies in the transportation industry, and the transportation and infrastructure expenditures of container ports are some of the other key factors that may have a positive impact on the Spanish cold chain market.

Key Market TrendsE-commerce is Driving Logistics in Spain

By the end of 2020, the COVID-19 pandemic had restricted movements and the capacity of commercial institutions. It had accelerated the growth of e-commerce, and this trend has been noted in the following years. The volume of e-commerce in Q2 2020 (Q1 2020 was marked by a pandemic and strict lockdown) increased compared with Q2 2019. Although this percentage is small, the types of products purchased online have undergone a fundamental change. Before COVID-19, the leisure industry accounted for approximately 40% of e-commerce. Comparing the data for Q2 2020 and Q2 2019, a decline of 85% of leisure consumption compared with the substantial growth of furniture and household products (+191%), household appliances (+183%), sporting goods and toys (+137%), clothing and footwear (+68%) can be observed. As the COVID-19 vaccine spreads among the population and businesses resume normal business hours, some shopping may return to the physical store, although the other part may still be out of reach because of consumers’ habits and experience acquired during the pandemic.

Take-Up Area of Warehouses is at All Time High in Spain

In the context of the accelerated development of e-commerce, the use of the logistics area reached the highest level in history, during which the transaction volume reached 830,000 square meters in 2020. Compared with 2019, this is an increase of 46%. The two main logistics channels accounted for 96% of the absorption: 55% of which came from The Henares Corridor (A-2 highway) and 41% of the Southern Corridor (A-42 and A-4 passages). A total of 57 transactions were concluded, 10 leasing transactions for large units (20,000 sq. m), of which 8 are in the third logistics circle. Both pure e-commerce operators and 3PL focus their needs on high-spec products in 70% to 80% logistics occupation. The building area in the past 3 years is equivalent to a Grade A unit. Throughout 2020, the construction industry remained highly active and delivered approximately 675,000 sq. m of new logistics floor area to the market. It is estimated that 940,000 sq. m will be delivered by 2021, of which about 42% have been pre-leased. As of the end of December 2020, the vacancy rate was hovering around 10.6%, and there were approximately 1,000,000 sq. m of available logistics warehouse space (585,000 sq. m is Class A). Since the demand is concentrated on quality, the power of the market means that it may be able to absorb the sum of vacancies. It is expected that the A-level floor area and new floor area will be delivered in 2021, and the rent is not expected to drop.

Competitive Landscape

The Spanish cold chain logistics market is fragmented, with several domestic and international companies present in Spain's cold chain logistics market. The cold chain service providers are still working on developing the ability to provide standardization in the processes. The competition in the market pertains in terms of costs, storage fees, and space, along with the rising prices of packing and packaging materials. Major players are Frigorifics Gelada SL, Interlogistica Del Frio SA, Ferro-Montajes Albacete SCL De Balazote, Eurocruz, and Frillemena SA.

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Companies Mentioned
 
Frigorifics Gelada SL
Interlogistica Del Frio SA
Ferro
Montajes Albacete SCL De Balazote
Eurocruz
Frillemena SA
Frigorificos De Toedo SA
Frigel SL
Frigorificos SOLY
Frigorificos Sanchidrian
Asgasa Servicios Frigorificos*

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