Turkey cold chain industry is in its nascent stages and hence lacks proper infrastructure. The condition of roads is poor in rural parts of the country and the vehicle fleet is gradually becoming obsolete, as newer products in the market require a transportation fleet with the latest technology. Furthermore, the availability of cold storage space in the country does not meet the demand for it, which poses a great challenge to the cold chain industry. The entire logistical process needs to be optimized as at many instances there are delays in unloading, lack of refrigeration and improper coordination along the supply chain.
The cold chain market in Turkey is witnessing a gradual increase in the number of value added service providers because of a heightened demand in the local and international market. This has led to cold chain companies in realizing the benefits of providing end-to-end services to its customers. Companies such as Polar Express have already started providing a range of value added services to its customers and has plan to expand its spectrum of service
Traditionally, fresh produce was used for preparing food, but due to the rapid urbanization and convenience there has been a shift in the preference of Turkish consumer towards frozen food. Economic factors such as rise in prices of fresh produce are also playing a big role in changing consumption patterns. There is also demand for foreign foods and imported or luxury food brands by the consumer class with higher income levels. The aforementioned reasons collectively have led to the growth in demand for frozen food in Turkey. The ice-cream and frozen desserts industry in Turkey in 2017 was around USD 959.5 million and is expected to reach USD 1,100.4 million by 2022.
The companies have started forming strategic alliances with e-commerce, especially with companies dealing in delivering of fresh food, fish, sea food and meat products. The development and integration of e-commerce with cold chain has provided greater level of opportunity to the new players to enter into the market. The E-Commerce market for 2017 in Turkey is estimated to be USD 5,738 million. The increased penetration of digital systems in the country has bolstered the sales through ecommerce portals.
The report titled “Turkey Cold Chain Market by Cold Storage and Transport, by Product Type (Bakery, Confectionary, Dairy, Meat & Sea Food, Vaccines & Pharmaceutical, Fruits & Vegetables, Chemicals) - Outlook to 2022” by Ken Research suggested a positive CAGR of 7.3% in terms of total revenue in the next 5 years till 2022. The Turkish cold chain industry is expected to grow due to high growth in consumption of frozen food products, continuing shift in consumption and buying patterns that is observing more customers buying frozen products in supermarkets than in wet markets, growing number of supermarkets throughout the country, governments support through various incentive programs and increasing trading activities.
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