With growing income, Chinese consumers have been demanding higher standards with regard to safety, health and quality of life. Benefiting from the rapid growth of such needs, the Chinese cold chain market has grown at over 20% p.a. over the past five years, increasing from RMB 80 billion in 2011 to RMB 160 billion in 2015. Persistently increasing demand for fresh food and drugs will continue to drive growth in the cold chain industry — L.E.K. Consulting forecasts that the cold chain industry will be valued at RMB 400 billion by 2020.

The cold chain logistics form the foundation to supply perishable products and medical products. The value chain can be broken down into the following segments: warehousing, ground transportation, air transportation, distribution, infrastructure providers and third-party logistics service providers.

In this Executive Insights, L.E.K. examines each stage along the value chain and identifies the “hot” spots for investing in China’s cold chain.

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