Cold Storage Market Size, Share & Trends Analysis Report By Storage Type (Facilities/Services, Equipment), By Temperature Range (Chilled, Frozen), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global cold storage market size was estimated at USD 119.8 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 17.5% from 2023 to 2030. The market has benefitted significantly from the strict regulations governing the supply and production of temperature-sensitive products. The industry is expected to grow significantly over the forecast period owing to growing organized retail sectors in developing economies. Moreover, rising automation in refrigerated warehouses is projected to boost demand further. Warehouse automation includes cloud technology, conveyor belts, robots, energy management, and truck-loading automation. Refrigerated storage has become integral to supply chains when storing and transporting temperature-sensitive products. In addition, the growing perishable product trade is also expected to boost the demand for refrigerated storage solutions over the next few years.

Players in the cold storage market are adopting low-carbon designs and investing in environmental auditing and innovative construction methods. A low-carbon design that minimizes energy consumption can lead to more sustainable and environment-friendly warehouses. Using energy-efficient technologies, such as intelligent automation and control systems, can reduce energy costs and lower the carbon footprint of these facilities.

The need for a high initial investment to establish a cold storage facility is among the key factors hampering the growth of the cold storage industry. Cold storage facilities require significant investment to construct the unit, install the necessary equipment, and maintain and repair the infrastructure. This cost can be especially high for companies just starting in the market, as they need to invest in high-quality infrastructure, refrigeration systems, and insulation to ensure proper temperature control and energy efficiency.

COVID-19 Impact Analysis

The insufficient strategies to address the coronavirus spread globally have increased the pandemic's impact on several industries, and cold storage is no exception. With the government-imposed lockdowns, online buying channels saw a sudden boost in demand. The combined effect of lockdowns and the fear of getting infected urged people to change their purchasing patterns and shift to online purchasing channels for purchasing products, including medicines, groceries, and other food items.

The U.S. Department of Homeland Security, in March 2020, classified cold storage facilities under the essential infrastructure category, enabling continuous operations through the ongoing Covid-19 spread. As such, the demand for e-commerce services rose, especially from the retail sector. Although the economy is returning to normalcy, people are still inclined towards online purchasing. Increased online purchasing for food items will require more cold storage space, boosting the cold storage industry.

The e-commerce companies are also increasing their efforts to develop strategies for capturing the market demand by leveraging upon the increased online purchasing habits of the people. These market players are focusing on reducing order fulfillment time, especially for groceries. For instance, in April 2023, Amazon.com, Inc., a U.S.-based e-commerce company, announced a reorganization of its U.S. fulfillment network from a national to a regional model to reduce delivery times. Evolving consumer behavior and increased preference for online channels will boost market growth over the forecast period.

Further, the pharmaceutical industry is also highly impacted by the spread of the novel coronavirus. Though medical supplies fall under the essential category and were largely immune from the impact of the lockdown, the government guidelines to ensure sufficient supplies across the nation have also escalated the requirement for robust temperature-controlled facilities to ensure timely and effective supply. The increasing trend toward consuming processed food products is also a key factor driving the market for cold storage globally.

Storage Type Insights

Based on storage type, the market is segmented into facilities/services and equipment. The facilities/services segment dominated the overall market, gaining a revenue share of 89.8% in 2022. It is expected to grow at a CAGR of 17.3% from 2023 to 2030 throughout the forecast period.Based on facilities/services, the cold storage industry has been segmented into refrigerated warehouses and cold rooms.

According to the United States Department of Agriculture, in October 2021, the public warehouse capacity held approximately 71% 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 transportation, storage, and handling for a variable or fixed fee. The growing availability and automation of refrigerated warehouse facilities by numerous market players drive the segment's growth.

The equipment segment is anticipated to grow at the fastest CAGR of 19.3% from 2023 to 2030. Factors such as changing food preferences, changing lifestyles, and growing online food delivery services are driving the demand for frozen food globally. Cold storage equipment stores various perishable food items within the specified temperature ranges to avoid spoilage and increase shelf life. The use of such equipment aids in reducing food wastage as the equipment can store food for a longer duration, driving segment growth.

Temperature Range Insights

Based on temperature range, the market has been segmented into chilled (0°C to 15°C), frozen (-18°C to -25°C), and deep-frozen (below -25°C). The frozen (-18°C to -25°C) segment dominated the overall market, gaining a revenue share of more than 61% in 2022. It is expected to grow at a CAGR of 18.7% throughout the forecast period. Rising consumption of frozen foods in emerging markets, such as China and India, is driving segment growth.

Warehouses under this segment are used to store frozen fruits, vegetables, fish, meat, seafood, and other products. Changing consumer preferences as well as the growing consumption of ready-to-cook meals due to convenience will boost the frozen (-18°C to -25°C) segment growth. The proliferation of organized retail chains, including supermarkets and hypermarkets, is also triggering the demand for such products in emerging economies.

The chilled (0°C to 15°C) segment is anticipated to grow at a considerable CAGR of 15.7% throughout the forecast period. Warehouses under the chilled segment store fresh fruits & vegetables, eggs, dairy products, dry fruits, and dehydrated foods, among others. The chilled temperature range is that of a standard refrigerator and prevents the growth of harmful bacteria on perishable food products, preventing decomposition. The need to store and extend the shelf life of temperature-sensitive products is driving segment growth.

Application Insights

Based on application, the market is segmented into pharmaceuticals, food & beverages, and others. The food & beverages segment dominated the overall cold storage industry, gaining a revenue share of more than 77% in 2022. It is expected to grow at a CAGR of 17.3% throughout the forecast period. Refrigerated storage solutions 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 need to maintain food quality and simultaneously prevent deterioration is driving the growth of the food & beverages segment.

The pharmaceuticals segment is expected to grow at the fastest CAGR of 19.4% over the forecast period. Strict government regulations regarding the manufacturing and distribution of pharmaceutical products are driving the adoption of cold storage solutions. Pharmaceutical products must be preserved in a specific temperature range to maintain efficacy and adhere to temperature regulations. Therefore, the demand for cold chain storage & equipment is rising in the pharmaceutical industry. The optimum temperature range to store and transport vaccines is 2°C to 8°C. Equipment facilitating this optimum temperature range includes cold boxes, ice packs, and refrigerators.

Regional Insights

The North America region led the market with a 34.1% revenue share globally in 2022. The proliferation of connected devices and the presence of a large consumer base are the major factors propelling the region’s growth. The presence of prominent market players, including U.S.-based LINEAGE LOGISTICS HOLDING, LLC; Americold Logistics, Inc.; United States Cold Storage; Canada-based CONESTOGA COLD STORAGE; is aiding the market growth in the region. According to the United States Department of Agriculture, in October 2021, the gross refrigerated warehouse capacity was 3.73 billion cubic feet in the U.S.

Asia Pacific region is expected to grow at the fastest CAGR of 20.0% over the forecast period. Advances in warehouse management and refrigerated transportation coupled with government subsidies to develop the cold chain industry has enabled service providers to tap these emerging markets by leveraging innovative solutions that can overcome complexities associated with transportation. Developing technological infrastructure and the presence of market players such as India-based Blue Star Limited and Japan-based NICHIREI CORPORATION is driving the segment growth. According to Global Cold Chain Alliance (GCCA), in March 2023, NICHIREI CORPORATION was ranked fifth in temperature-controlled space operated among GCCA members.

Key Companies & Market Share Insights

The cold storage market is fragmented and highly competitive, and companies are adopting mergers & acquisitions, expansion, and product development strategies to gain a competitive edge. For instance, in September 2022, LINEAGE LOGISTICS HOLDING, LLC announced the acquisition of Grupo Fuentes, a significant transport and cold-storage facility operator based in Spain. With this acquisition, LINEAGE LOGISTICS HOLDING, LLC aimed to expand its European presence. Some of the key players in the global cold storage market include:

• Americold Logistics, Inc.

• LINEAGE LOGISTICS HOLDING, LLC

• United States Cold Storage

• Burris Logistics

• NewCold

• NICHIREI CORPORATION

• Tippmann Group

• CONESTOGA COLD STORAGE

• FreezPak Logistics

• Confederation Freezers

Recent Development

• In March 2023, Americold announced a strategic investment in the Dubai-based RSA Cold Chain, an established regional cold storage operator which begun operating in 2017. Americold’s minority ownership will help realize the company’s plans to expand locally, pursue strategic development avenues in the Middle East and neighboring markets, and connect RSA Cold Chain to its global network

• In February 2023, Lineage Logistics introduced its ‘Lineage Fresh’ service in Europe, which offers storage solutions for leading grocers, producers, and importers of fresh fruit and produce, at the Fruit Logistica trade show in Berlin. The service, which launched in the U.S. in November 2022, will allow products with a short shelf-life to face fewer obstacles and less risk & spoilage with Lineage’s cold storage technology and strong logistics network

• In January 2023, GulfDrug inaugurated an advanced supply chain management and training facility in Abu Dhabi for making its medical and pharmaceutical management and distribution more robust and well-connected across the country. The facility has a significantly large cold chain service for storage and distribution, accredited by DAC and certified by Dickson, along with a smart delivery fleet for safe and timely product delivery

• In November 2022, Lineage Logistics announced the official opening of its fully-automated Cool Port II cold storage facility in the Port of Rotterdam, Netherlands. This deep-freeze high bay warehouse features 60,000 pallet locations, three automated truck unloading systems, as well as a complete range of services for the safe storage and distribution of food products. The facility adds a major European port location to Lineage’s global network of advanced cold storage facilities

• In October 2022, Oceana Group announced that it was selling its Commercial Cold Storage (CCS) business for 760 million South African rand, as part of a deal to allow the company to invest in and expand its core fishing business. At the time of the agreement, CCS had six cold stores, with five being in South Africa and one in Namibia; of these, three were long-term leases and three were owned. The total storage capacity was around 100,000 pallet spaces

• In July 2022, RSA Global announced that Seafood Souq (SFS) had selected it as the company’s exclusive global digital freight and supply chain partner. SFS has developed a digital ecosystem to enable procurement of traceable seafood products directly from the source, in support of the UN’s Sustainable Development Goals. RSA Global will be responsible for handling local storage requirements, B2B distribution, and SFS’s global sea and air freight operations

• In June 2022, Americold announced the opening of its newest facility in Dunkirk, New York. The facility is LEED-certified, has 181,000 square feet of cold storage and operational space, and features 25,000 pallet positions for supporting the cold storage demands in western New York. This made it the company’s first facility in this region and added it to Americold’s portfolio of 250 locations globally at the time

• In April 2022, United States Cold Storage (USCS) announced the sale of three public refrigerated warehouses in Medley, Florida; Marshville, North Carolina; and La Vista, Nebraska, to Vertical Cold Storage based in South Dakota. The sale enabled USCS to reinvest the proceeds and focus on the further expansion of its Tulare, California facility, as well as the purchase of an additional 39 acres in Turlock for future expansion

Cold Storage Market Report Scope

Global Cold Storage Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of the latest trends 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 storage type, temperature range, application, and region:

• Storage Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Facilities/Services

    • Refrigerated Warehouse

      • Private & Semi-Private

      • Public

    • Cold Room

  • Equipment

    • Blast freezer

    • Walk-in Cooler and Freezer

    • Deep Freezer

    • Others

• Temperature Range Outlook (Revenue, USD Billion, 2017 - 2030)

  • Chilled (0°C to 15°C)

  • Frozen (-18°C to -25°C)

  • Deep-frozen(Below -25°C)

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Food & Beverages

    • Fruits & Vegetables

    • Fruit Pulp & Concentrates

    • Dairy Products

      • Milk

      • Butter

      • Cheese

      • Ice cream

      • Others

    • Fish, Meat, and Seafood

    • Processed Food

    • Bakery & Confectionary

    • Others

  • Pharmaceuticals

    • Vaccines

    • Blood Banking

    • Others

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

    • Norway

    • Netherlands

    • Switzerland

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Singapore

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa