Analysts at Ken Research in their latest publication “Kuwait Warehousing Market Outlook to 2022 – b y Business Model (Industrial Freight/ Retail, Container Freight, Cold Storage, Agricultural Warehousing) by End Users (Food and Beverages, Chemicals, Electronics, Pharmaceuticals, E-Commerce, Consumer Durables and Others)” believe Kuwait Warehousing market is expected to register positive CAGR of around 10.1% during the period 2017-2022 with anticipated warehousing capacity expansion, tie ups with e-commerce players and mainstream application of innovative technologies in the industry.
Rising Demand of fresh fruits and vegetables in near future will increase the demand for warehousing services (cold storage) in Kuwait. Kuwait warehousing industry is anticipated to grow due to rising e-commerce market with the increase in demand of online shoppers and imported electronic goods in the country. Rising government investment in logistics sector will positively influence the warehousing market during the forecast period.
In Kuwait, demand for warehouses will be dominated by food and beverage industry as country is largely dependent on imports for dairy products, food items, fruits and vegetables. Since, country has a total arable land of 10,600 hectare which is 0.6% of the total area and the soil in Kuwait is low in nutrient and organic content along with it has poor moisture retaining capabilities. This has led to low production capacity which significantly increases the demand for importing vegetables and fruits in the country to meet the food requirement of people in the country.
E-Commerce industry in Kuwait will contribute a significant demand for warehouse as e-commerce market in Kuwait is expected to reach USD 1.1 billion in 2020 owing to the rise in online shoppers. However, e-commerce industry contributes a minimal share in revenue generation for the warehousing industry, but with the growth in online shoppers and increasing demand for imported items in future will contribute a major share in expansion of warehousing industry. Import of various electronic goods, fashion/apparels products, other grocery items and to store these imported goods, end users will require more number of warehouses in future.
To expand the warehousing industry further, government of Kuwait has planned to develop new warehouses in the upcoming years along with a couple of infrastructure projects which are already under construction such as construction for mega port for Bubiyan Island, rail and bridges for improvement of the logistics sector. To support this investment, Kuwait government has also approved USD 104.0 billion for the national development plan in the country. Kuwait is improving electronics customs systems and processes which will further make it easier to do business in the country.
Kuwait Logistics and Warehousing Market by Business Model (Industrial Freight/Retail, Container Freight, Cold storage, Agriculture and others) by End User (Food and Beverage, Chemicals, Electronics, Pharmaceutical, E-Commerce, Consumer Durables and Others)
Agility Kuwait, KGL Logistics, Dolphin Logistics and DHL Kuwait
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Ankur Gupta, Head Marketing & Communications