India's Warehousing and Cold Chain Revolution: Trends, Insights, and Future Projections

The Indian warehousing and cold chain sectors are currently undergoing significant transformations, fueled by economic expansion, changing consumer preferences, and technological advancements. In this comprehensive blog, we will delve into the latest market insights, industry dynamics, and major developments, providing a nuanced understanding of the warehousing landscape in India. Drawing on a recent in-depth report from Makreo Research and Consulting, we'll explore the key players, growth trajectories, and emerging trends shaping the industry.

The Asian Warehousing Boom
The demand for warehousing in Asia has experienced consistent growth, driven by factors like the surge in e-commerce, supply chain diversification, and urbanization. Countries like China, India, Japan, Singapore, Vietnam, and Malaysia have witnessed substantial increases in demand. In Southeast Asia, Manila leads with impressive YoY rental growth, fueled by the expansion of e-commerce. Diversification strategies from China contribute to expansions in Southeast Asia, while Australia and New Zealand overcome land scarcity to observe rental growth.

Unveiling Layers in the Indian Warehousing Landscape

Investment Influx: Transforming India's Warehousing Landscape:
India's warehousing sector is experiencing a surge in investments, aiming to meet the demand for 223 million square feet of Grade-A warehousing space in the next three years.

Expansion Catalysts: Upcoming MMLPs and Revenue Boost in Key Locations:
The upcoming Multi-Modal Logistics Parks (MMLPs) in Chennai, Indore, Bengaluru, and Nagpur promise to enhance warehouse revenue and infrastructure.

Pre-Pandemic Presence: Generalized Warehousing and Investor Interest Trends:
Generalized Warehousing Services had a notable presence in India before the pandemic, and current investor interest is predominantly focused on Tier 1 cities.

Beyond Tier 1: Grade A Warehouses Emerge in Tier 2 and Tier 3 Cities:
The escalating demand for expansion, driven by e-commerce and third-party logistics (3PL) companies, leads to the emergence of Grade A warehouses in Tier 2 and Tier 3 cities.

Cold Storage Surge: Post-Pandemic Investments in Pharma, FMCG, and FMCD:
Cold storage capacity in India witnesses a post-pandemic surge, fueled by significant investments in pharmaceuticals, Fast-Moving Consumer Goods (FMCG), and Fast-Moving Consumer Durables (FMCD).

Analyzing the Indian Warehousing Market in 2023
According to Makreo Research, the Indian warehousing market in 2023 is predominantly influenced by generalized services, with the manufacturing sector holding a leading position, closely followed by the retail sector. The services market experiences an uptick in pharmaceuticals and chemicals. Private entities play a crucial role, contributing significantly to the current Indian warehouse market, which exhibits considerable fragmentation. Major metropolitan areas contribute significantly to the country's warehousing capabilities.

Cold Storage Capacity Growth and Future Projections
The cold storage capacity in India is anticipated to witness a substantial growth trajectory, reaching a significant figure by 2023, with a projected CAGR of 3% in three years. Farm products and agricultural products contribute significantly to the current utilization of cold storage facilities in the country.

Looking Ahead to Southeast Asia
The blog also projects Southeast Asia as a significant player in the coming decade, with the digitally savvy millennial and Generation Z population expected to constitute a significant portion of the GDP by 2030. Accelerated digital transformation is set to propel the e-commerce sector, with substantial revenue increases expected by 2025.

Major Developments by Industry Players
The blog highlights recent developments by industry players, such as Maersk's 'One Country, One Price' fulfillment solution for eCommerce logistics in India and the emergence of organized clusters in various industrial areas. Snowman Logistics achieves a milestone by becoming the first cold chain logistics company to offer 5PL services in India.

Scope of the Study
Makreo Research's study on the "India Warehousing and Cold Chain Market Size and Forecast (2018-2030)" is a comprehensive analysis blending qualitative and quantitative factors. Beyond numerical data, the report delves into consumer behavior, industry trends, and market dynamics. The inclusive approach makes it a valuable resource for individuals or organizations seeking detailed market dynamics.

How the Report Benefits Industry Stakeholders
The blog emphasizes how the analysis offers insights into consumer behavior, industry trends, and market dynamics, enabling strategic decision-making. Identification of key players and a thorough competitive landscape analysis empower businesses to understand their market position and formulate competitive strategies. Historical and current market performance serves as a guide for identifying potential investment opportunities, allowing investors and businesses to strategically allocate resources.

Demand for Grade A and Grade B Warehouses in India
The blog explores the demand for Grade A and Grade B warehouses, highlighting the cost-efficiency of Grade A warehouses compared to their counterparts. The trend in 2021 shows a Y-O-Y surge in the total stock of Grade A and B warehousing space across metropolitan areas, with the trend now moving to non-metropolitan cities due to low rental rates.

Hold of Generalized Services
Makreo Research notes that generalized services contribute to controlling the market share, while specialized services account for the least contribution. Cold storage, however, has experienced significant growth and development in past years and is further expected to expand with growing demand and investments in retail.

Mergers and Acquisitions (M&A) and Funding Timeline
The blog covers the recent M&A activities and funding events in the industry, emphasizing the surge during 2018–2019, the impact of the COVID-19 pandemic in 2020, and the continued investments in technology and infrastructure in 2021–2022. The projected timeline for (2023–2024) anticipates further growth in funding and potential M&A activities driven by market evolution and expansion plans.

Conclusion
In conclusion, this comprehensive blog provides a detailed exploration of India's warehousing and cold chain markets, covering recent developments, growth trajectories, and industry dynamics. Makreo Research's in-depth report serves as a valuable resource for industry stakeholders, offering insights into market trends, competitive landscapes, and potential investment opportunities. As the industry evolves, strategic decision-making and adaptability to consumer needs will be crucial for businesses aiming to thrive in this dynamic and promising sector.

To know more about the research study:
India Warehousing and Cold Chain Market Size and Forecast (2018-2030)
 

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