U.S. Cold Storage Market Size, Share, & Trends Report

U.S. Cold Storage Market Size, Share, & Trends Analysis Report By Warehouse Type, By Construction Type (Bulk Storage, Production Stores), By Temperature Type (Chilled, Frozen), By Application, And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-451-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 75

Report Overview

The U.S. cold storage market size was valued at USD 15.26 billion in 2018 and is expected to expand at a CAGR of 3.7% from 2019 to 2025. The growth can be attributed to a number of key factors, such as technological advancements in packaging, processing, and storage of perishable food products and temperature-sensitive items.

U.S. cold storage market

Service providers have enhanced their efforts to protect temperature-controlled products from potential tampering or malicious actions. Securing the facility encompasses not only refrigerated warehouses but employees and visitors as well. This has resulted in increasing demand for implementation of monitoring components such as telematics and telemetry devices, RFID devices, sensors, and data loggers, and networking devices to improve refrigerated storage and transportation performance and efficiency.

Growing demand for connected trucks, high-cube refrigerated trailers, and vehicles that facilitate cross-product transportation is likely to drive demand for cold storage transportation services. Ever-increasing health consciousness among consumers has inspired healthier eating habits and resulted in rising demand for quality product manufacturing.

Outsourcing services have been gaining popularity among businesses owing to factors such as increasing competition, rapid rise in operational costs, and stringent quality standards. Additionally, numerous benefits of outsourcing these services, such as reduced operational costs, improved flexibility, greater efficiency, and expertise, have encouraged its widespread adoption.

Warehouse Type Insights

Based on warehouse type, the public segment generated the highest revenue in 2018 and is expected to witness a notable shift in its growth from 2019 to 2025. Automation is increasing as a result of several factors. One of the predominant factors is rising need of companies to improve productivity and efficiency of cold storage facilities, which can be addressed by automation.

Additionally, shortage of skilled labor is impacting the adoption of Automated Storage and Retrieval System (AS&RS) in refrigerated warehouses. Cost of talent is also largely affected by increase in healthcare costs, minimum wages, and pension costs.

The private and semi-private segment is expected to portray a significant CAGR over the forecast period. Enterprises that own merchandise stores own the private warehouses. They offer a significant benefit such as flexibility, greater control over cost, and ability to make decisions regarding the overall activities and priorities of the facility. Large enterprises can only afford to own and maintain private warehouses.

Construction Type Insights

Improvements in efficiency and automation have widened the gap in operating performance between older and newer cold storage facilities. In the past few years, operators in the industry have implemented new technologies, such as high-speed doors, energy-efficient walls, automated cranes, and cascade refrigeration systems, to increase efficiency and to reduce operating costs. For instance, adoption of automated cranes has enabled operators to pile goods at greater heights, leading to an increase in average building height of newer facilities.

Rising investments in larger facilities have led to an increase in capacity by more than 40.0% since 2000. Moreover, due to increased international trade and consumer spending, cold storage operating profits have significantly increased in the last five years. Low interest rates have also enabled operators to finance new constructions.

Temperature Type Insights

Based on temperature type, the U.S. cold storage market has been segmented into chilled and frozen. The frozen segment accounted for the largest share in 2018. Meanwhile, the chilled segment is anticipated to witness a notable shift in growth over the forecast period.

Increasing awareness about convenience food among individuals has led to a shift in their preference toward ready-to-cook meals. Moreover, consumers are increasingly opting for frozen food owing to its support for microwave cooking and ease of use in terms of packing technique. These trends have significantly contributed to the rise in adoption of frozen foods, thereby leading to segment growth.

Application Insights

Based on application, the market has been segmented into fruits and vegetables, dairy, fish, meat, and seafood, processed food, and pharmaceuticals. The pharmaceutical segment is projected to witness significant growth from 2019 to 2025. Pharmaceutical and biotechnology supply chains are prone to risks associated with product adulteration during transport. Moreover, stringent federal regulations, standards, and guidelines have resulted in segment growth.

U.S. cold storage market share

Growing incidence of food and pharmaceutical counterfeiting has resulted in the introduction of stringent government regulations pertaining to production and supply chain. These regulations are impelling industry incumbents to develop rigorous practices and service providers are making investments for improving their infrastructure to obtain safety certifications.

States Insights

California led the market in 2018 and is projected to remain the key state from 2019 to 2025 owing to the presence of a large user base in the state. The state represents the highest number of cold storage facilities, having 400 million facilities, which can be attributed to its large population base.

Some of the more lucrative states are North Carolina and South Carolina each of which is expected to witness a CAGR of over 5.3% and 4.8% respectively from 2019 to 2025. Developments in transportation facilities, technological advancements, and increased adoption of frozen foods have proliferated demand for refrigeration and storage, leading to market growth.

Key Companies & Market Share Insights

Key maker players include Americold Logistics, LLC; AGRO Merchants Group North America, Burris Logistics, Cloverleaf Cold Storage, Henningsen Cold Storage Co., Lineage Logistics Holdings, LLC; Nordic Logistics, LLC; Preferred Freezer Services, United States Cold Storage, and Wabash National Corporation.

Industry players engage in implementing several strategic initiatives such as setting up new facilities to offer avenues for increased profitability through improved customer relationships. For instance, in April 2016, Lineage Logistics Holdings, LLC opened a cold storage distribution center in South Carolina to provide users with a solution for expediting domestic access to imported products and for exporting products to foreign markets. The new distribution center has installed the latest technology for high-capacity blast freezing, product handling, and energy conservation.

U.S. Cold Storage Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 16.43 billion

Revenue forecast in 2025

USD 19.69 billion

Growth Rate

CAGR of 3.7% from 2019 to 2025

Base year for estimation

2018

Historical data

2014 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Warehouse type, construction type, temperature type, application, and states.

Country scope

U.S.

Key companies profiled

Americold Logistics, LLC; AGRO Merchants Group North America, Burris Logistics, Cloverleaf Cold Storage, Henningsen Cold Storage Co., and Lineage Logistics Holdings, LLC

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Segments Covered in the Report

This report forecasts revenue growth at country and state levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. cold storage market report based on warehouse type, construction type, temperature type, application, and states:

  • Warehouse Type Outlook (Revenue, USD Billion, 2014 - 2025)

    • Private & Semi-Private

    • Public

  • Construction Type Outlook (Revenue, USD Billion, 2014 - 2025)

    • Bulk Storage

    • Production Stores

    • Ports

  • Temperature Type Outlook (Revenue, USD Billion, 2014 - 2025)

    • Chilled

    • Frozen

  • Application Outlook (Revenue, USD Billion, 2014 - 2025)

    • Fruits & Vegetables

    • Dairy

    • Fish, Meat & Seafood

    • Processed Food

    • Pharmaceuticals

  • States Outlook (Revenue, USD Billion, 2014 - 2025)

    • Maine

    • Massachusetts

    • Vermont

    • New Jersey

    • New York

    • Pennsylvania

    • Delaware

    • Florida

    • Georgia

    • Maryland

    • North Carolina

    • South Carolina

    • Virginia

    • Illinois

    • Indiana

    • Michigan

    • Ohio

    • Wisconsin

    • Alabama

    • Kentucky

    • Mississippi

    • Tennessee

    • Iowa

    • Kansas

    • Minnesota

    • Missouri

    • Nebraska

    • North Dakota

    • South Dakota

    • Arkansas

    • Louisiana

    • Oklahoma

    • Texas

    • Arizona

    • Idaho

    • Mexico

    • Utah

    • California

    • Oregon

    • Washington

    • Others

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