The North America cold storage market size was valued at USD 29.08 billion in 2016. It is expected to expand at a CAGR of 9.9% from 2017 to 2025. Increasing penetration of connected devices and presence of a large consumer base are the key trends bolstering market growth. Furthermore, growing automation of refrigerated warehouses is anticipated to enhance the demand for the product. Automation in warehouses is achieved with the use of cloud technology, conveyor belts, robots, energy management systems, and truck loading automation. Integration of workforce management solutions for picking optimization & workforce forecast has led to reduced labor costs.
Cold storage is temperature-controlled storage space. The method is used by industries such as fisheries, aquaculture, horticulture, agriculture, processed food, and dairy. Cold storage systems and refrigerated transportation facilities, which connect the farm-level storage facilities, distribution outlets, and processing units, are estimated to improve the efficiency of the supply chain and reduce wastage of agricultural products.
Bilateral free trade agreements such as the North America Free Trade Agreement (NAFTA) has created opportunities for exporters in the U.S. to increase the trading of perishable foods with no import duties. Such trade agreements are projected to work in favor of the market.
The market is likely to witness considerable growth over the forecast period, owing to a combination of factors such as technological advancements in processing, packaging, and storage of seafood products. Integrated refrigerated warehousing is poised to experience high growth over the forecast period.
Cold storage is an integral part of supply chain management and transportation & storage of temperature-sensitive products. Growing trade of perishable products is expected to drive the market. Industry players are increasingly adopting alternative energy solutions, such as wind and solar energy, to minimize the overall operating costs.
Based on warehouses, the market has been segmented into public and semi-private & private. The public segment held the maximum revenue share in the North America market in 2016. It is anticipated to continue its dominance throughout the forecast period. Public warehouses provide duty-paid facilities and can be owned by an individual or an agency. A public warehouse offers various services such as storage, handling, and transportation for a variable or fixed fee and is operated as an independent business.
Private warehouses offer several benefits such as the ability to make independent decisions about the overall activities and priorities of the warehouse and managing the cost and flexibility of business. However, given the high costs associated with construction and maintenance of these facilities, development of private warehouses is limited to only big companies, who can afford the operating costs associated with refrigerated warehouse facilities.
Based on construction, the market has been divided into bulk storage, production stores, and ports. The bulk storage segment is estimated to register healthy growth during the forecast period. The growth of the segment is attributed to its suitability and preference for storing fruits, vegetables, flour, cooking ingredients, and canned goods for a long time without any spoilage.
The number of warehouses constructed at ports is projected to increase significantly over the coming years. These warehouses can simplify the custom procedures related to import and export of temperature-controlled products.
From the construction perspective, the renovation of refrigerated warehouse facilities includes cleanable surfaces, maintenance-free floors, and solar energy for applications such as lighting. From the manufacturing standpoint, companies are looking to upgrade the existing refrigerated equipment or incorporating new ones that comply with the safety standards of the Global Food Safety Initiative (GFSI) and Food Safety Modernization Act (FSMA).
Based on temperature, the North America cold storage market has been categorized into frozen and chilled. Increasing awareness of hygiene and convenience, which is shifting consumer preferences toward ready-to-eat & cook meals, is supplementing the growth of the frozen product segment. Moreover, frozen food is highly preferred due to its convenience of microwave cooking and innovative packaging. These factors are likely to support the growth of the market over the forecast period.
With the evolution of consumer behavior, focus on sustainability & security, and rising labor costs, the market is witnessing various trends impacting the construction of cold storage. Rather than building new facilities, service providers operating in the region are renovating, upgrading, and replacing the existing cold storage buildings with new equipment and technology to keep up with the dynamic industry demands.
Based on applications, the market has been categorized into fruits & vegetables, fish, meat & seafood, dairy, processed food, and pharmaceuticals. The processed food segment is expected to exhibit the highest CAGR over the forecast period owing to continuous innovations in packaging materials. Advancements in packaging materials increase the shelf life of the food, which has increased the trading of processed foods over the past years.
Spiraling demand for cold storage systems from the pharmaceutical segment can be attributed to their importance in maintaining the efficacy and safety of pharmaceuticals. Storing life science products at controlled room temperature can be a complex and costly process. These products require proper transit conditions to ensure their quality.
Cold storage has become a lucrative investment opportunity for real estate and private equity firms as these firms understand the dynamics of leasing business. Moreover, refrigerated warehouse facilities benefit from less elastic demand as the demand for food and pharmaceutical products remains unchanged regardless of a country’s economic condition.
In terms of countries, the market has been divided into the U.S., Canada, and Mexico. Rising investments in automation of material handling equipment are anticipated to fuel the demand for the product in Canada. Material handling assists in storage, protection, and control of products in the supply chain. The application of cold storage in material handling has led to significant improvements and investments over the past few years in Canada.
The growth of the market in Mexico is supported by government initiatives for enhanced national infrastructure and rising exports, which are encouraging market players to expand their capacities in the country. The refrigerated capacity of the country has grown by 27% from 2008 to 2014. Additionally, key industry players such as Bajo Cero Frigorificos and Castelo Cold Storage Fruvemex Mexicali SA de CV have started expanding their cold storage capacity to fulfill the growing demand.
Cold storage operators are utilizing ammonia and CO2-based refrigeration systems to minimize the risk of contamination and personal safety. As a result, real-estate companies operating in the U.S., Canada, and Mexico are enhancing their performance by focusing on trends that have a high impact on the overall market.
Some of the key industry participants include Americold Logistics LLC; Burris Logistics, Inc.; Cloverleaf Cold Storage Company; Lineage Logistics; VersaCold Logistics Services; and Henningsen Cold Storage Company. Cold storage operators are constantly upgrading their technology to stay ahead in the competition and ensure efficiency, integrity, and safety. Despite high initial investments for automating warehouses, factors such as reduced labor and operational costs, improved productivity, fewer warehouses accidents, and improved order accuracy help in decreasing the overall cost.
Report Attribute |
Details |
Market size value in 2020 |
USD 43.69 billion |
Revenue forecast in 2025 |
USD 68.23 billion |
Growth Rate |
CAGR of 9.9% from 2017 to 2025 |
Base year for estimation |
2016 |
Historical data |
2014 – 2015 |
Forecast period |
2017 – 2025 |
Quantitative units |
Revenue in USD billion and CAGR from 2017 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type, component, fit, platform, and regions. |
Regional scope |
North America |
Country scope |
U.S.; Canada; Mexico. |
Key companies profiled |
Americold Logistics LLC; Burris Logistics, Inc.;Cloverleaf Cold Storage Company; Lineage Logistics; VersaCold Logistics Services; and Henningsen Cold Storage Company |
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 regional and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the North American cold storage market report based on warehouse, construction, temperature, application, and country.
Warehouse Outlook (Revenue, USD Million, 2014 - 2025)
Private & Semi-private
Public
Construction Outlook (Revenue, USD Million, 2014 - 2025)
Bulk Storage
Production Stores
Ports
Temperature Outlook (Revenue, USD Million, 2014 - 2025)
Chilled
Frozen
Application Outlook (Revenue, USD Million, 2014 - 2025)
Fruits & Vegetables
Dairy
Fish, Meat, and Seafood
Processed Food
Pharmaceuticals
Country Outlook (Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Mexico
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