Cold Storage Market Report By Type (Refrigerated Warehouse, Refrigerated Transport By Temperature Type (Frozen, Chilled), By Application (Food & Beverages, Pharmaceuticals, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: Feb 2024
- Report ID: 39475
- Number of Pages: 386
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Report Overview
The Global Cold Storage Market size is expected to be worth around USD 548.8 Billion by 2033, from USD 144.2 Billion in 2023, growing at a CAGR of 14.3% during the forecast period from 2024 to 2033.
The Cold Storage Market refers to a specialized segment within the logistics and supply chain industry, focusing on the storage and preservation of perishable goods, such as food, pharmaceuticals, and chemicals, under controlled temperature conditions.
This market plays a crucial role in ensuring the integrity and longevity of products, facilitating global trade in temperature-sensitive commodities. As the demand for fresh foods and the need for efficient pharmaceutical distribution rise, the Cold Storage Market is experiencing significant growth.
The Cold Storage Market has experienced significant growth, driven by the expanding global demand for perishable goods and the imperative for efficient food distribution systems.
According to data from the United States Department of Agriculture (USDA), the capacity of public warehouse refrigerated storage reached a considerable volume of 2.67 billion gross cubic feet in 2021. This accounts for a substantial 72% of the total storage capacity, underscoring the critical role of cold storage facilities in the logistics and supply chain ecosystem for perishable products.
The predominance of public warehouse refrigerated storage capacity highlights the market’s shift towards outsourced cold chain solutions, as businesses seek to optimize supply chain efficiency and reduce operational costs. This trend is further bolstered by technological advancements in refrigeration and warehouse management systems, which enhance the efficiency and sustainability of cold storage operations.
Key Takeaways
- Market Size and Growth: The Global Cold Storage Market is anticipated to reach approximately USD 548.8 Billion by 2033, exhibiting a steady growth trajectory from USD 144.2 Billion in 2023, at a CAGR of 14.3% during the forecast period spanning from 2024 to 2033.
- Type Analysis: Refrigerated Warehouse segment holds a significant share of 63.5%, primarily driven by increasing demand for long-term storage of perishable goods across sectors such as food & beverages and pharmaceuticals.
- Temperature Type Analysis: Frozen segment dominates with a share of 74.6%, owing to the rising preference for frozen products due to their extended shelf life and convenience.
- Application Analysis: Food & Beverages segment holds a commanding share of 75.6% in the Cold Storage Market, attributed to the increasing food consumption driven by the growing global population.
- Regional Insights: North America leads the Cold Storage Market with a substantial 35.1% market share. This dominance is fueled by robust demand for frozen and chilled foods, supported by organized retail and food service industries, as well as advancements in cold storage technologies.
- Key Players: Prominent players in the Cold Storage Market include Americold Logistics, Lineage Logistics Holdings, Nichirei Corporation, Burris Logistics, Agro Merchants Group, and others.
Driving Factors
Increasing Demand for Frozen and Chilled Foods Drives Market Growth
The surge in consumption of frozen and chilled foods significantly propels the Cold Storage Market. Notably, the American Frozen Food Institute highlights a pivotal trend: 38% of frozen food consumers consumes of these products with notable frequency, either daily or every few days.
This shift is mirrored in the financial valuation of the Frozen Food Market, which stood at USD 269.1 billion, with projections pointing towards an CAGR of 5.1% from 2023 to 2032. Such growth is underpinned by rising incomes and evolving lifestyles, fueling a higher demand for processed, frozen, and chilled foods and beverages. The direct consequence of this shift is an escalated need for cold storage facilities, integral for preserving the quality and extending the shelf life of these products.
Expanding Organized Retail and QSR Sectors Fuel Cold Storage Expansion
The proliferation of organized retail outlets and Quick Service Restaurants (QSRs) serves as a catalyst for the expansion of the Cold Storage Market. The increasing prevalence of supermarkets, hypermarkets, convenience stores, and QSRs is a testament to this trend, further amplified by the growing penchant for purchasing perishable goods via online platforms.
This shift necessitates sophisticated cold storage solutions, including advanced temperature monitoring devices and innovative logistics for effective last-mile delivery. Highlighting this trend, the QSR market is poised for a robust annual growth rate exceeding 10% through 2025.
Investments in Supply Chain Infrastructure Catalyze Market Growth
Significant investments in cold chain infrastructure, encompassing refrigerated vehicles, cold storage units, and refrigerated transport, are pivotal in reducing food wastage and optimizing delivery frameworks.
A notable instance is A.P. Moller-Maersk’s (Maersk) announcement in December 2023 of a $530 million investment aimed at bolstering its supply chain infrastructure in Southeast Asia. Such investments are crucial for the Cold Storage Market, as they enhance the efficiency and reliability of food distribution networks, thereby ensuring the freshness and quality of perishable goods.
Restraining Factors
High Operating Costs Restrains Market Growth
The substantial financial burden associated with setting up and operating cold storage facilities markedly impedes the Cold Storage Market’s expansion. The requirement for sophisticated equipment, such as refrigerators, compressors, and diesel generators, underpins a significant portion of this investment.
In regions like India, electricity expenses alone constitute 35-40% of the operating costs, highlighting the intensity of the financial commitment needed. Moreover, the dependency on diesel generators during power outages further escalates these costs.
Limited Cold Chain Infrastructure Restrains Market Growth
The inadequacy of cold chain infrastructure, particularly in terms of first- and last-mile connectivity, serves as a significant bottleneck for the Cold Storage Market. The absence of a robust infrastructure limits the efficiency and reach of cold chain services, directly impacting the ability to maintain the quality and integrity of perishable goods throughout the supply chain.
This challenge is compounded by a lack of advanced cold chain technologies, which are essential for optimizing logistics and reducing wastage. As such, the limited cold chain infrastructure not only hampers the market’s ability to cater to growing demands but also undermines efforts to enhance food security and reduce spoilage, thereby restraining market growth.
Type Analysis
The Refrigerated Warehouse segment dominates the Cold Storage Market with a substantial share of 63.5%. This segment’s preeminence is driven by the escalating demand for the long-term storage of perishable goods across various sectors, including food & beverages and pharmaceuticals.
Refrigerated Warehouses are pivotal in maintaining the quality and longevity of products by providing controlled temperature environments crucial for preventing spoilage. This segment’s growth is further fueled by the globalization of food supply chains and the increasing regulatory standards for food safety, which demand sophisticated and reliable storage solutions.
Refrigerated Transport, the complementary sub-segment, plays a vital role in connecting the dots within the cold chain, facilitating the efficient movement of perishable goods from warehouses to retailers or final consumers. While it is not the dominant segment, its importance cannot be overstated, as it ensures the integrity of food and pharmaceuticals during transit, thereby preventing product loss and ensuring public health safety.
Temperature Type Analysis
The Frozen segment holds the largest share in the Cold Storage Market, accounting for 74.6%. The preference for frozen products is on the rise, attributed to their extended shelf life and convenience, which resonate well with the fast-paced lifestyle of modern consumers. The segment’s growth is bolstered by advancements in freezing technologies that maintain product quality and nutritional value, making frozen foods increasingly popular among consumers globally.
The Chilled segment, while smaller, remains crucial for the storage and distribution of products that require temperatures above freezing, such as fresh produce, dairy, and some pharmaceuticals. This segment caters to the needs of consumers looking for fresh food options and supports the distribution of temperature-sensitive pharmaceuticals, playing a significant role in the market’s overall growth.
Application Analysis
The Food & Beverages segment commands the Cold Storage Market, holding a dominant share of 75.6%. This segment’s dominance is a reflection of the growing global population’s increasing food consumption and the rising demand for a variety of perishable products, from fruits and vegetables to dairy, meat, seafood, and processed foods. The need to reduce food wastage and improve food safety standards worldwide also contributes to the segment’s growth, driving investments in cold storage facilities.
The Pharmaceuticals segment, including vaccines and blood banking, although not the dominant application, is of growing importance, especially in light of the global emphasis on healthcare and the need for storing biologics, vaccines, and other medical products at critical temperatures. This segment’s expansion is propelled by the healthcare sector’s growing reliance on biopharmaceuticals and the global vaccination drives, necessitating robust cold chain solutions to ensure the efficacy and safety of pharmaceutical products.
Key Market Segments
By Type
- Refrigerated Warehouse
- Refrigerated Transport
By Temperature Type
- Frozen
- Chilled
By Application
- Food & Beverages
- Fruits & Vegetables
- Fruit Pulp & Concentrates
- Dairy Products
- Fish, Meat, and Seafood
- Processed Food
- Bakery & Confectionary
- Others
- Pharmaceuticals
- Vaccines
- Blood Banking
- Others
Growth Opportunities
Advances in Cold Chain Logistics Offer Growth Opportunity
Technological advancements within cold chain logistics, such as automated storage and retrieval systems (ASRS), GPS tracking, and cloud-based temperature monitoring, are significantly enhancing the efficiency and transparency of the Cold Storage Market.
These innovations enable real-time tracking of perishable goods, ensuring optimal storage conditions and minimizing waste through the entire supply chain. Providers who adopt these cutting-edge technologies can offer more reliable and cost-effective services, thereby attracting a broader range of clients, from food producers to pharmaceutical companies, and fostering market growth.
Expanding Pharmaceutical Sector Offers Growth Opportunity
The pharmaceutical industry’s expansion presents significant opportunities for the Cold Storage Market, particularly due to the stringent temperature control requirements for drugs and vaccines. With the global pharmaceutical sector’s growth, the demand for specialized cold chain solutions that can maintain precise temperature conditions is surging.
For instance, Zuellig Pharma’s recent announcement in February 2024 about the introduction of the Volvo FE Electric truck for cold chain logistics in Taiwan shows the sector’s move towards innovative, environmentally friendly cold chain solutions.
Trending Factors
Shift Towards Sustainable Solutions Are Trending Factors
The increasing awareness and concern for environmental sustainability are driving the demand for green, energy-efficient cold storage solutions. This shift a response to global calls for reduced carbon footprints.
Along with that it also aligns with the cost-saving interests of businesses seeking to minimize energy consumption. Cold storage providers that introduce eco-friendly practices, such as solar-powered facilities, advanced insulation materials, and energy-efficient refrigeration systems, are gaining competitive advantages.
Multi-Temperature Facilities Are Trending Factors
The advent and growing popularity of multi-temperature facilities represent a significant trend within the Cold Storage Market. These versatile facilities, capable of accommodating a wide range of temperature requirements—from chilled to frozen—under one roof, are becoming increasingly common.
This trend is driven by the need for more flexible and consolidated supply chain solutions, allowing for the efficient storage and distribution of diverse product lines. Multi-temperature facilities support the streamlined operation of supply chains, reducing logistical complexities and costs.
Regional Analysis
North America Dominates with 35.1% Market Share
North America’s commanding 35.1% share in the Cold Storage Market is largely attributed to the robust demand for frozen and chilled foods, driven by consumer preferences for convenience and the significant presence of organized retail and food service industries. Additionally, technological advancements and the adoption of automated and energy-efficient cold storage systems have further strengthened this region’s market position.
The region benefits from a well-established logistics and supply chain infrastructure, facilitating efficient cold storage operations. High standards for food safety and pharmaceutical compliance also contribute to the demand for sophisticated cold storage solutions. Given the ongoing technological innovations and a growing emphasis on sustainability, North America is poised to maintain its dominance. Investments in eco-friendly and energy-efficient cold storage facilities are expected to drive future growth, aligning with global sustainability trends.
Europe’s Strategic Market Position
Europe’s cold storage market benefits from its stringent food safety regulations, high-quality standards, and a growing demand for frozen foods. The region’s focus on reducing food waste and increasing efficiency in the supply chain also plays a critical role. The presence of major pharmaceutical companies in Europe, requiring precise temperature-controlled logistics for vaccines and medications, significantly contributes to the market’s dynamics.Asia Pacific’s Rapid Market Expansion
The Asia Pacific region is experiencing rapid growth in the cold storage market due to its expanding middle class, urbanization, and increased awareness of food quality and safety. The rise in organized retail and e-commerce in food sales further fuels this growth. Asia Pacific’s diverse climate conditions necessitate robust cold storage solutions to prevent food spoilage, propelling the market’s expansion.Middle East & Africa’s Emerging Market Potential
The Middle East & Africa region is gradually increasing its share in the cold storage market, driven by growing food import needs, increasing urban population, and rising awareness of food wastage. The region’s challenging climatic conditions and the emphasis on diversifying economies beyond oil have led to investments in food security and cold chain logistics, promoting market growth.Latin America’s Growing Market Influence
Latin America’s cold storage market is expanding due to its significant agricultural output and export, rising consumer demand for high-quality perishable foods, and the growth of organized retail. The region’s focus on improving its cold chain logistics to reduce food loss and meet export quality standards is driving the demand for advanced cold storage solutions.
Key Regions and Countries
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
In the Cold Storage Market, key players such as Americold Logistics, Lineage Logistics Holdings, and Nichirei Corporation lead the industry, showcasing significant impact and strategic market positioning. These companies, along with others like Burris Logistics and Agro Merchants Group, have established a strong market presence through extensive service networks, technological innovation, and capacity expansions. Their strategic positioning is further enhanced by a focus on sustainability and energy efficiency, meeting the increasing demand for eco-friendly storage solutions.
Kloosterboer and United States Cold Storage are notable for their advanced logistics solutions and strategic locations that facilitate efficient distribution channels, particularly in regions with high demand for perishable goods. The Tippmann Group and VersaCold Logistics Services excel in offering customized cold storage solutions, leveraging technology to ensure product integrity and compliance with stringent regulatory standards.
Market Key Players
- Americold Logistics
- Lineage Logistics Holdings
- Nichirei Corporation
- Burris Logistics
- Agro Merchants Group
- Kloosterboer
- United States Cold Storage
- Tippmann Group
- VersaCold Logistics Services
- Henningsen Cold Storage Co
- Coldman
- Congebec Inc.
- Conestoga Cold Storage
Recent Developments
- On Februrary 2024, United States Cold Storage Inc. announced that they are planning a $75.7 million expansion of its Tulare North warehouse in Tulare, which is expected to be completed by February 2025. The project includes the construction of two new refrigerated rooms capable of storage down to -20F degrees.
- In Februrary 2024, Emergent Cold LatAm has acquired Red Polar, a cold storage firm in Colombia, marking its second acquisition in the country. Emergent Cold LatAm is a leading provider of temperature-controlled supply chain solutions in Latin America.
- In October 2023, Lineage Logistics, in collaboration with JBS USA, celebrated the grand opening of a next-generation automated cold storage facility in Windsor, Colorado. It is a fully automated, state-of-the-art facility designed to lower energy consumption, reduce food waste, and optimize loading, unloading, and storage tasks.
Report Scope
Report Features Description Market Value (2023) USD 144.2 Billion Forecast Revenue (2033) USD 548.8 Billion CAGR (2024-2033) 14.3% Base Year for Estimation 2023 Historic Period 2018-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Type ( Refrigerated Warehouse, Refrigerated Transport), By Temperature Type (Frozen, Chilled), By Application (Food & Beverages, Pharmaceuticals, Others) Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Americold Logistics, Lineage Logistics Holdings, Nichirei Corporation, Burris Logistics, Agro Merchants Group, Kloosterboer, United States Cold Storage, Tippmann Group, VersaCold Logistics Services, Henningsen Cold Storage Co, Coldman, Congebec Inc., Conestoga Cold Storage Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the projected growth rate of the Cold Storage Market?The market is expected to grow at a CAGR of 14.3%, reaching USD 548.8 Billion by 2033 from USD 144.2 Billion in 2023.
What does the Cold Storage Market include?It specializes in the storage and preservation of perishable goods like food, pharmaceuticals, and chemicals under controlled temperature conditions, crucial for global trade in temperature-sensitive commodities.
What factors are driving the growth of the Cold Storage Market?Factors include increasing demand for frozen and chilled foods, expanding organized retail and QSR sectors, and investments in supply chain infrastructure.
Which segment holds a significant share in the Cold Storage Market, and why?The Refrigerated Warehouse segment holds 63.5% due to the rising demand for long-term storage of perishable goods in sectors like food & beverages and pharmaceuticals.
Who are some major players in the Cold Storage Market?Prominent players include Americold Logistics, Lineage Logistics Holdings, Nichirei Corporation, Burris Logistics, and Agro Merchants Group.
- Americold Logistics
- Lineage Logistics Holdings
- Nichirei Corporation
- Burris Logistics
- Agro Merchants Group
- Kloosterboer
- United States Cold Storage
- Tippmann Group
- VersaCold Logistics Services
- Henningsen Cold Storage Co
- Coldman
- Congebec Inc.
- Conestoga Cold Storage
- Nestlé S.A Company Profile
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