The growing demand for perishable goods makes the Philippines an attractive market for the cold storage industry, according to a global infrastructure investor.
“The Philippines is an emerging and attractive market for the cold storage industry due to the increasing demand for perishable goods,” I Squared Capital said. businessworld,
According to the company, the demand is due to rapid urbanization and increasing population.
It added, “With more than half of the approximately 120 million population living in urban areas, there is a large and concentrated consumer base for fresh and frozen products that continues to grow.”
Meanwhile, increase in purchasing power, growth in food processing sector and expansion of e-commerce were also among the drivers.
The company expects demand to be driven by quick-service restaurants and the protein-based food sector over the next few years, “as consumer preferences evolve with rising incomes.”
“(This is expected to lead to import and consumption of more meat, seafood and other products requiring cold storage),” it said.
Furthermore, it said that as agriculture continues to develop and modernize, there will be increased demand for more cold storage for fruits, vegetables and grains, especially for quality-focused export markets.
The company also expects demand to come from the expansion of online grocery shopping and food delivery services, the expansion of high-value non-food products such as vaccines and pharmaceuticals, as well as stricter food safety regulations.
Last week, I Squared Capital broke ground for the expansion of Royale Cold Storage facility in Plaridel, Bulacan, which will add 1.5 hectares to the existing five-hectare site.
Royal Cold Storage is one of the portfolio companies of I Squared Capital.
In the Philippines, the company has committed to invest $2 billion in the energy, digital, logistics and food sectors. , Justin Irish D. Tabile
