Cold Connection

European Market Snapshot: Consolidation

Consolidation is going on and intensifying in Europe as we see more and more acquisitions happening, the latest in Spain/Portugal and Netherlands. Demand from other regions for frozen European produce, including potato, bakery, meat, vegetables and fruits, keep on increasing, making Europe an attractive market for third-party temperature-controlled logistics.

As much as fresh has had its golden years in the past decades, frozen is now praised by consumers and frozen food business. Industry reports that the food production outlook continues to be on the rise in order to meet the ever-growing demand for export. This in turn creates more demand for storage capacity. This trend is also mirrored in the cold storage construction landscape with new build of high-bay facilities focusing mostly on fast-moving goods, either from production on to export or for distribution (3PL distribution centers for retail). At the same time, the expansion of fast-food chains across Europe overall generates opportunities for 3PL to handle both fresh and frozen supplies. International trade routes evolve - and change - at a fast pace due to tougher competition, causing disruption in the port sector: the historical traditional routes are now shifting to other port destinations across Europe.

August 29, 2019

Tagged:

Europe
Consolidation
third party logistics
Storage
capacity

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