The global cold storage market size was valued at USD 119.98 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.4% from 2022 to 2030. The market has benefitted significantly from the stringent regulations governing the production and supply of temperature-sensitive products. The industry is poised for unprecedented growth over the forecast period on account of growing organized retail sectors in the emerging economies. Moreover, rising automation in refrigerated warehouses is projected to boost the demand further.
Warehouse automation includes cloud technology, robots, conveyor belts, truck loading automation, and energy management. Refrigerated storage has become an integral part of Supply Chain Management (SCM) when it comes to transporting and storing temperature-sensitive products.
In addition, the growing trade of perishable products is also anticipated to help boost the demand for refrigerated storage solutions over the next few years. Users and suppliers of temperature-controlled packaging systems are striving to reduce the environmental impact of cold chain shipping. At the same time, raising awareness about formal Corporate Social Responsibility (CSR) policies, stringent government regulations, and changing customer expectations also pose major challenges to the development of a suitable packaging system.
The lack of infrastructure required to sustain the cold chain is likely to pose a major challenge for the companies to expand their businesses in emerging markets. In addition, the lack of power hook-ups for reefer trailers at transportation hubs and ports will hinder the market growth in such regions. However, this also opens growth avenues for industry participants to innovate unique solutions or leverage alternative energy sources that can overcome such issues.
The COVID-19 pandemic that originated in China became a severe issue worldwide in a brief time. The coronavirus's epicenter was shifted from China to Europe and then to the U.S., making the country the worst-hit region globally. COVID-19 led to lockdown and travel restrictions in many parts of the world, impacting various businesses' supply chains. The market has been affected to a significant extent due to the effects of COVID-19. The market between 2019 and 2020 witnessed a fall in year-on-year growth compared to that between 2018 and 2019.
The public warehouse segment led the market and accounted for more than 67.30% share of the global revenue in 2021. Based on the warehouse-type, the cold storage market has been segmented into private & semi-private, and public. According to the Global Cold Chain Alliance, the public warehouse capacity accounts for around 75% of the gross refrigerated storage capacity in the U.S. A public warehouse is operated as an independent business that offers various services, such as handling, storage, and transportation for a fixed or variable fee.
Public warehouses are also known as duty-paid warehouses that can be owned by an individual or agency. Private warehouses can also be called proprietary warehouses. They are constructed and owned by the same enterprise that owns the merchandise stored and handled at the facility. They can be operated as a separate division within an enterprise. They offer greater control over cost, flexibility, and the ability to make decisions regarding the overall activities and priorities of the facility.
However, given the massive costs associated with the construction and maintenance of warehouses, only big companies can afford to own and maintain their warehouses. Private warehousing can be done either on an off-site basis or on-site basis. An on-site warehouse is located either at a centralized location or at different manufacturing facilities. On the other hand, an off-site warehouse is located close to the marketing areas and is used to store on-site inventory.
The production stores segment led the market and accounted for more than 51.71% share of the global revenue in 2021. Single-envelope construction technology, which is a recent development in composite panel construction, is expected to replace the existing methods of constructing warehouses. The new technology can help reduce overall construction time and costs of building material, operation, and maintenance while also ensuring enough flexibility for changing the use in the future. A warehouse built using single-envelope technology boasts a smaller footprint and lesser height without compromising the internal volume.
The technology also offers flexibility in placing the Heating, Ventilation, and Air Conditioning (HVAC) equipment. The technology is gaining traction in the U.K. refrigerated warehouse market. ISD Solutions, a U.K.-based refrigerated storage design, and construction company have adopted this technology to improve its frozen food warehouses. Based on the construction type, the market has been segmented into bulk storage, production stores, and ports.
The bulk storage segment is anticipated to expand at a CAGR of 14.8% over the forecast period. This type of warehouse is suitable for storing fruits and vegetables in bulk and can be used to extend the availability of the other bulk materials, such as flour, cooking ingredients, and canned goods, protecting them from spoilage and keeping them away from direct sunlight.
The ports segment is also likely to witness significant growth. Constructing refrigerated warehouses near ports can help simplify the customs procedures required for the import and export of temperature-sensitive products. Government initiatives to develop infrastructure for intermodal transportation in emerging economies, such as India and China, are likely to drive the segment growth.
Based on the temperature type, the market has been segmented into chilled and frozen. The frozen segment led the market and accounted for about 77.91% share of the global revenue in 2021. Rising consumption of frozen foods in emerging markets, such as India and China, is particularly driving the frozen food segment. Warehouses falling under this segment maintain their storage temperature in the range from -10 to -20°F. They are used to store frozen vegetables, fruit, fish, meat, seafood, and other products.
Warehouses falling under the chilled segment are used to store fresh fruits & vegetables, eggs, dry fruits, milk, and dehydrated foods, among others. Changing consumer preferences toward ready-to-cook meals due to the rising awareness about convenience and hygiene will boost the frozen segment growth. Moreover, consumers prefer frozen food owing to the ease of use, terms of packing technique, and support for microwave cooking. This is also likely to play a key role in segment development.
The proliferation of organized retail chains, including hypermarkets and supermarkets, is also triggering the demand for such products in emerging economies. However, the lack of refrigeration facilities in retail stores, the presence of several unorganized industry incumbents, and inadequate distribution facilities to serve the rural areas pose major challenges to the frozen food market in these economies.
The seafood segment led the market and accounted for about 34.54% share of the global revenue in 2021. Based on the application, the industry has been segmented into processed food, dairy, fruits & vegetables, fish, meat, & seafood, and pharmaceuticals. Continued advancements in the packaging of seafood are expected to influence the meat, fish, & seafood segment.
Refrigerated warehouses remain vital for safeguarding food items, such as milk and dairy products, against spoilage. Hence, principles governing the deterioration of food substances due to bacterial growth need to be adhered to while storing dairy products in refrigerated warehouses. The pharmaceutical segment is also projected to witness significant growth over the forecast period.
The North America regional segment led the market and accounted for more than 35% share of the global revenue in 2021. The proliferation of connected devices coupled with the presence of a large consumer base is a major factor propelling the region’s growth. Mexico, in particular, is expected to witness exponential growth in North America owing to the strengthening of the network of warehouses and rising investments in the development of the logistics infrastructure. These would also serve as the key factors stimulating the demand for the cold chain.
Furthermore, economic growth and changes in government regulations in Mexico aimed at streamlining the customs program are expected to accelerate the demand over the coming years. Countries, such as China, are transitioning to a consumer-driven economy. Thus, they are expected to witness considerable growth in the years to come. Advances in warehouse management and refrigerated transportation, coupled with government subsidies to develop the cold chain industry, are allowing service providers to tap these emerging markets, leveraging innovative solutions that can overcome complexities associated with transportation.
Companies are focusing on expanding their business across different regions to cater to consumer demand. The companies are targeting emerging markets to expand their customer base through acquisitions. Applying this expansion strategy, companies like Americold Logistics LLC acquired Hall’s Warehouse Corp to expand its warehouse facilities in New Jersey. This acquisition resulted in the addition of 58 million cubic feet of storage space and 2,00,000 pallet positions capable of serving 220 customers.
Furthermore, with the acquisition of Agro Merchants Group, the fourth largest cold storage operator globally and third-largest in Europe, Americold Logistics LLC envisages expanding its operations in Europe, South America, the U.S., and Australia with 46 warehouses serving 2,900 customers. Some of the major companies in the global cold storage market include:
Cloverleaf Cold Storage (U.S.)
Agro Merchants Group (U.S.)
Burris Logistics (U.S.)
Americold Logistics LLC (U.S.)
Wabash National Corporation (U.S.).
Report Attribute |
Details |
Market size value in 2022 |
USD 135.81 billion |
Revenue forecast in 2030 |
USD 372.29 billion |
Growth Rate |
CAGR of 13.4% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2017 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Revenue in USD billion and CAGR from 2022 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments Covered |
Warehouse type, construction type, temperature type, application, region |
Regional scope |
North America; Europe; Asia Pacific; South America; MEA |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; France; Spain; Netherlands; Japan; China; India; Australia; Singapore; Brazil; Saudi Arabia; UAE |
Key companies profiled |
Americold Logistics, LLC; Burris Logistics; Barloworld Limited; Cloverleaf Cold Storage; Henningsen Cold Storage; Swire Group; Wabash National Corporation |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cold storage market report based on warehouse type, temperature type, construction type, application, and region:
Warehouse Type Outlook (Revenue, USD Billion, 2017 - 2030)
Private & Semi-private
Public
Construction Type Outlook (Revenue, USD Billion, 2017 - 2030)
Bulk Storage
Production Stores
Ports
Temperature Type Outlook (Revenue, USD Billion, 2017 - 2030)
Chilled
Frozen
Application Outlook (Revenue, USD Billion, 2017 - 2030)
Fruits & Vegetables
Dairy
Fish, Meat & Seafood
Processed Food
Pharmaceuticals
Regional Outlook (Revenue, USD Billion, 2017 - 2030)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Spain
Netherlands
Asia Pacific
China
India
Japan
Singapore
Australia
South America
Brazil
Middle East & Africa (MEA)
Saudi Arabia
UAE
b. The global cold storage market size was estimated at USD 119.98 billion in 2021 and is expected to reach USD 135.81 billion in 2022.
b. The global cold storage market is expected to grow at a compound annual growth rate of 13.4% from 2022 to 2030 to reach USD 372.29 billion by 2030.
b. North America dominated the cold storage market with a share of 36.35% in 2021. This is attributable to the strengthening network of warehouses and rising investments in the development of the logistics infrastructure in the region.
b. Some key players operating in the cold storage market include Cloverleaf Cold Storage (U.S.), Agro Merchants Group (U.S.), Burris Logistics (U.S.), Americold Logistics LLC (U.S.), and Wabash National Corporation (U.S.).
b. Key factors that are driving the cold storage market growth include low-carbon design, environmental auditing, and crafty construction of cold storage warehouses.
b. The public warehouse segment led the global cold storage market and accounted for more than 67% share of the global revenue in 2021.
b. The production stores segment led the global cold storage market and accounted for more than 51% share of the global revenue in 2021.
b. The frozen segment led the global cold storage market and accounted for more than 77% share of the global revenue in 2021.
b. The seafood segment led the global cold storage market and accounted for more than 34% share of the global revenue in 2021.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.
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