U.S. Cold Storage Market Size, Share & Trends Analysis Report By Warehouse Type, By Construction Type (Bulk Storage, Production Stores, Ports), By Temperature Type, By Application, By State, And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. cold storage market size was valued at USD 30.26 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.2% from 2022 to 2030. The growth can be attributed to several critical factors, such as technological advancements in packaging, processing, and storage of perishable food products and temperature-sensitive items. The market has also benefitted significantly from the stringent government regulation toward the production and supply of temperature-sensitive products. The industry is poised for unprecedented growth in the next seven years owing to growing organized retail sectors in the emerging economies which will create opportunities for the service providers over the forecast period.

Growing demand for connected trucks, high-cube refrigerated trailers, and vehicles that facilitate cross-product transportation is likely to drive demand for cold chain services. Ever-increasing health consciousness among consumers has inspired healthier eating habits and resulted in a rising demand for quality food packaging and storage solutions. Outsourcing services have been gaining popularity among businesses owing to factors such as increasing competition, a rapid rise in operational costs, and stringent quality standards. Numerous benefits of outsourcing these services, such as reduced operational costs, improved flexibility, higher efficiency, and expertise, have also encouraged its widespread adoption.

Service providers in the U.S. cold storage market 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 the adoption of monitoring components such as telematics and telemetry devices, sensors, data loggers, and networking devices. Such components significantly improve the performance and efficiency of refrigerated storage and transportation.

Industry players are relying on RFID and Automatic Identification and Data Capture (AIDC) for enhancing the efficiency of the order fulfillment process. The growing penetration of Bluetooth technology and RFID sensors, across the logistics industry, is expected to spur the adoption of AIDC technology. Furthermore, cold storage operators focus on maximizing their throughput and order accuracy by using robotics applications, high-speed conveyor systems, and automated materials handling equipment. These technological advancements are in turn expected to boost the growth of the market over the forecast period.

Warehouse Type Insights

In terms of revenue, the public segment dominated the market with a share of 77.46% in 2021, owing to its significant adoption among consumers for leased or short terms purposes at affordable costs. Based on the warehouse type, the market has been categorized into two segments, namely private & semi-private and public. A public warehouse is operated as an independent business or third-party provider that offers various services, such as handling, warehousing, 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 some agency.

Given the massive costs associated with the construction and maintenance of warehouses, only big companies can afford to own and maintain their private warehouses. However, the companies are increasingly constructing private warehouses as they offer significant benefits, such as flexibility, greater control over cost, and the ability to make decisions regarding the overall activities and priorities of the facility. Moreover, due to increased international trade and consumer spending, cold storage operating profits have risen dramatically in the last five years. Low-interest rates have also enabled operators to finance new constructions. The private and semi-private segment is expected to portray a significant CAGR from 2022 to 2030.

Construction Type Insights

The production stores segment held the largest revenue share in 2021 and is estimated to register the highest CAGR exceeding 11.1% from 2022 to 2030. This growth is attributed to the growing emphasis on the protection of goods, which include raw materials as well as finished food products throughout the production process in a plant. The bulk storage segment is also expected to proliferate over the forecast period. Bulk storage warehouses are suitable for storing fruits and vegetables in large volumes. They can also be used to extend the availability of other bulk materials such as flour, cooking ingredients, and canned goods while protecting them from spoilage and keeping them away from direct sunlight.

Constructing refrigerated warehouses near ports can help simplify the customs procedures associated with the import and export of temperature-sensitive products. 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 reduce operating costs. For instance, the adoption of automated cranes has enabled operators to pile goods at greater heights, leading to an increase in the average building height of newer facilities.

Temperature Type Insights

The frozen segment accounted for the largest share exceeding 82.27% in 2021. Increasing awareness about convenience food among individuals has led to a shift in their preference for 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 techniques. These trends have significantly contributed to the rise in the adoption of frozen foods, thereby leading to segment growth. However, the chilled segment is anticipated to witness a notable shift in growth over the forecast period.

Based on temperature type, the market is segmented into chilled and frozen cold storage The warehouses falling under the chilled segment maintain their storage temperature in the ranges of above -5°C. They are used to store fresh fruits & vegetables, eggs, dry fruits, milk, and dehydrated foods, among others. Meanwhile, the warehouses falling under this segment maintain their temperature in the range from -10 to -20°F. They are used to store frozen vegetables, fish, meat, seafood, and other products.

Application Insights

In terms of revenue and market share, the fish, meat & seafood segment captured the largest share of 36.43% in 2021. Based on application, the market is categorized into fish, meat & seafood; fruits & vegetables; dairy; processed food; and pharmaceuticals. The pharmaceutical segment is projected to witness significant growth from 2022 to 2030. Pharmaceutical and biotechnology supply chains are prone to risks associated with product adulteration during transport. Therefore, the need for storing such medicines has notably boosted the growth of the segment. Stringent federal regulations, standards, and guidelines which are favorable for the safe storage and transport of pharmaceuticals have also resulted in segment growth.

The increasing demand for perishable products and fast delivery requirements associated with the e-commerce-based food and beverage delivery market has led to a significant boost in cold chain operations. The processed food segment is expected to witness the highest CAGR over the forecast period owing to the continued improvements in food packaging materials. However, the growing incidence of food and pharmaceutical counterfeiting has resulted in the introduction of stringent government regulations regarding production and supply chains. These regulations are impelling industry incumbents to develop rigorous practices, and service providers are making investments in improving their infrastructure to obtain safety certifications.

States Insights

In 2021, The California state held the largest share of the market for cold storage in the U.S. in terms of revenue and is projected to maintain its dominance from 2022 to 2030. The significant share is attributed to the state’s 400 million cubic feet of cold storage space, which serves a large user base. California represents the highest number of facilities, which can be attributed to its large population and the significant need for these facilities. All the facilities in this state are regulated by the California Department of Public Health, Food and Drug Branch.

Florida, Washington, and Texas are some of the leading states and they held significant market shares in 2021. North Carolina and South Carolina are some of the highest growing markets which are expected to witness a CAGR of over 10.8% and 10.3%, respectively, from 2022 to 2030. The cold storage companies are also finding lucrative opportunities in North Dakota and Virginia among other states. 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

The key industry players engage in implementing several recent developments, such as setting up new facilities to offer avenues for increased profitability through improved customer relationships. Along with this, the companies are actively focused on expansion through mergers and acquisitions. For instance, Americold acquired Cloverleaf Cold Storage, Lanier Cold Storage, Portfresh Logistics, Zero Mountain Cold Storage Warehousing, and Zero Mountain Transportation Logistics in the past few years. As such, the companies are staying ahead of the competition through acquisitions and geographic expansions. Some prominent players in the U.S. cold storage market include:

• Americold

• AGRO Merchants Group North America

• Burris Logistics

• Henningsen Cold Storage Co.

• Lineage Logistics Holdings, LLC

• Nordic Logistics

• Preferred Freezer Services

• VersaCold Logistics Services

• United States Cold Storage

• Wabash National Corporation

U.S. Cold Storage Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country and state 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 U.S. cold storage market report based on warehouse type, construction type, temperature type, application, and states:

• Warehouse Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Private & Semi-private

  • Public

• Construction Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Bulk Storage

  • Production Stores

  • Ports

• Temperature Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Chilled

  • Frozen

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

  • Fruits & Vegetables

  • Dairy

  • Fish, Meat & Seafood

  • Processed Food

  • Pharmaceuticals

• State Outlook (Revenue, USD Million, 2017 - 2030)

  • 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

  • New Mexico

  • Utah

  • California

  • Oregon

  • Washington

  • Others