The market size of Italy's cold chain logistics is expected to grow with a compound annual growth rate of 4.9% from 2021 to 2026. Italy's freight and cold chain logistics market ranks high globally. Italy has the second-largest European domestic rail combined transport market in Europe after Germany. In Italy, there are about 1.6 million twenty-foot equivalent units (TEU) and 12.3 million tons of combined transportation each year through a combination of rail and road transportation. COVID-19 has had a positive impact on Italy's cold chain logistics. During the lockdown, high demand for frozen food and pharmaceutical products helped in the growth of the cold chain logistics market.
After years of stagnation, the cold chain logistics industry is undergoing a reversal trend because of the country’s positive rebound in exports and is showing signs of growth again. The country has a highly developed and efficient transport and logistics network, especially in the northern and central regions, and has a huge domestic and international market due to its strategic position in central Europe. The cold chain market has huge potential during the forecast period.
Major industries in Italy include textiles and clothing, food and beverages, metals and metal products, chemicals, shipbuilding, pharmaceuticals, and medical equipment. The growing demand for organized retail and the growing awareness of consumers to reduce food waste have driven the demand for cold chain logistics. With the advancement of new technologies, the use of cold chains in the food and beverage sector can help prevent the deterioration of food quality.
Key Market Trends
The Growing Need for Goods and Services Online Increased the Demand for Warehouse Space
The second half of 2020 confirmed the extraordinary year for the logistics sector, from both an occupiers and investors perspective. Logistic take-up during the second half of 2020 reached 1.3 million sqm bringing the end of year figures to 2.1 million sqm, a 16% increase compared to 2019, slightly below the record level of 2017. The strong growth in online shopping, which strengthened during the second part of the year with the tightening of restrictions, drove e-commerce take-up to more than double the figures reached during the first half of 2020, standing at 650,000 sqm for the whole year. Overall, e-commerce, large-scale distribution retailers, and 3PLs are confirmed as the most active players, looking for modern, efficient, and strategically located warehouses. Northern regions and mainly Lombardy, Emilia Romagna, and Piedmont attracted 90% of the total take-up. The current crisis has highlighted how many retailers have yet to develop online sales platforms; as the development of these platforms began, additional pressure was put on logistic demand. Prime rents increased in locations such as Piacenza and Novara and other markets in the northeast of Italy - which are proving a good alternative to Milan, the hottest market. In general, although with different performance according to the specific sector, the logistics market remains one of the most resilient: investors continue to look positively at Italy, especially at grade A properties, and demand was strong until the end of the year 2020, supported by the positive fundamentals. Major players specialized in logistics, on both development and investment sides, proved particularly active, taking advantage of their expertise and consolidated clients.
The outlook is positive for cold chain logistics sector thanks to its robust fundamentals. The pandemic accelerated some trends, such as e-commerce, which is starting to reshape the supply chain thus putting pressure on the supply side. Demand for logistic spaces continues to increase, but prime headline rents are likely to remain stable in the next quarters, avoiding cyclical excursion through incentives.
E-commerce is Driving Cold Chain Logistics in Italy
The COVID-19 pandemic hit the nation particularly hard, driving Italians online in unprecedented numbers. Necessity also sparked innovation, with Italians now able to access more sophisticated e-commerce methods such as subscription models and same-day delivery to meet their everyday needs. attitudes are changing in line with rising smartphone penetration, and global events pushing Italians online. The COVID-19 pandemic drove confined citizens online to seek essential supplies such as food. Supermarket chain Carrefour reported its online customer numbers doubled in Italy during March 2020. The effects of the crisis have already shaped Italian delivery habits and expectations. Logistics start-up Glovo, which delivers products to consumers in European cities in 30 minutes or less, experienced 10-fold growth in Italy during the pandemic. Growth is being driven by necessity. Cold chain logistics Infrastructure is improving to support delivery of items sent long distance.
The pandemic has and will continue to affect both stationery and online trading. As a result of the unexpected increase in interest in online shopping, cold chain logistics has undergone a significant test. Big players on the market who continued their online activity cut the shipping costs or even reduced them to zero. Increased customer interest and demand put cold chain logistics ahead of an even greater challenge.
Italy's cold chain logistics market is fragmented with several domestic and international companies present in Italy's cold chain logistics market. The market is experiencing collaborations and new entries of companies to set up their firm foot in the market. The demand for cold chain facilities has led to a large number of small players in the market with a low degree of specialization, leading to problems like high operating costs and unbalanced and insufficient development. Some of the existing major players in the market include Safim Logistics, Frigocaserta SRL, Eurofrigo Vernate SRL, Frigoscandia SPA, and D.R.S. Depositi Regionali Surgelati SRL.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
2.2 Research Phases
4.2 Market Dynamics
4.3 Technological Trends and Automation
4.4 Government Regulations and Initiatives
4.5 Industry Value Chain/Supply Chain Analysis
4.6 Spotlight on Ambient/Temperature-controlled Storage
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.8 Impact of Emission Standards and Regulations on Cold Chain Industry
4.9 Impact of COVID-19 on the Market
5.1.3 Value-added Services (Blast Freezing, Labeling, Inventory Management, etc.)
5.2 By Temperature Type
5.3 By Application
5.3.1 Horticulture (Fresh Fruits & Vegetables)
5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)
5.3.3 Meats & Fish
5.3.4 Processed Food Products
5.3.5 Pharma, Life Sciences, and Chemicals
5.3.6 Other Applications
6.2 Company Profiles
6.2.1 Safim Logistics
6.2.2 Frigocaserta SRL
6.2.3 Eurofrigo Vernate SRL
6.2.4 Frigoscandia SPA
6.2.5 D.R.S. Depositi Regionali Surgelati SRL
6.2.6 Frigogel SRL
6.2.7 Soluzioni Logistiche Freddo SRL In Breve S.L. Freddo SRL
6.2.8 Sodele Magazzini Generali Frigoriferi SRL
6.2.9 Horigel SRL
6.2.10 Fridocks General Warehouses and Frigoriferi SRL*
8.2 External Trade Statistics - Exports and Imports, by Product
A selection of companies mentioned in this report includes:
- Safim Logistics
- Frigocaserta SRL
- Eurofrigo Vernate SRL
- Frigoscandia SPA
- D.R.S. Depositi Regionali Surgelati SRL
- Frigogel SRL
- Soluzioni Logistiche Freddo SRL In Breve S.L. Freddo SRL
- Sodele Magazzini Generali Frigoriferi SRL
- Horigel SRL
- Fridocks General Warehouses and Frigoriferi SRL*