Cold Storage Market by Warehouse Type (Private & Semi-private and Public) Construction Type (Bulk Storage, Production Stores, and Ports) Temperature Type (Chilled and Frozen), Application (Fruits & Vegetables, Dairy, Fish, Meat & Seafood, Processed Food, and Pharmaceuticals), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Cold Storage Overview

Cold storage is critical in preserving the quality, safety, and freshness of temperature-sensitive commodities such as food, medicines, chemicals, and other perishables.

Cold storage facilities are outfitted with sophisticated cooling and refrigeration systems to establish and maintain the needed temperature settings, which can range from freezing to cold or regulated environments. These facilities are intended to prevent product spoiling, bacterial development, and degradation by managing elements such as temperature, humidity, and ventilation. The expansion of the pharmaceutical and healthcare sectors is another factor driving the growth of the cold storage market. Many drugs, vaccines, and medical supplies require certain temperature settings to be effective, making cold storage facilities crucial for keeping and distributing these items. Furthermore, the advent of e-commerce and online grocery shopping has heightened the demand for effective cold storage solutions. Perishable products’ delivery companies must guarantee that the commodities remain fresh and secure during travel and storage until they arrive at the customer's door.

Global Cold Storage Market Analysis

The global cold storage market size was $141.1 billion in 2022 and is predicted to grow with a CAGR of 17.3%, by generating a revenue of $668.4 billion by 2032.

COVID-19 Impact on Global Cold Storage Market

The COVID-19 pandemic had a significant impact on the cold storage market. Increased processed food and medicine demand in the pandemic led to a surge in demand for cold storage facilities due to the need for proper storage of perishable goods, including food and medical supplies. The lockdowns and disruptions in supply chains created a need for increased storage capacity to prevent shortages and maintain product quality. With the urgent development and distribution of COVID-19 vaccines, the demand for cold storage facilities suitable for storing vaccines at ultra-low temperatures (like the Pfizer-BioNTech vaccine) increased. This demand led to a specific focus on expanding cold storage capacities for pharmaceutical products. The pandemic disrupted global supply chains, leading to delays and interruptions in the transportation of goods. This caused a strain on cold storage facilities as they had to accommodate excess inventory and manage logistical challenges, including maintaining the cold chain during extended transit times.

Post-COVID-19, the demand for cold storage facilities is expected to remain high even as the importance of maintaining a resilient and efficient supply chain is emphasized. The focus on food safety, pharmaceutical storage, and vaccine distribution will likely continue to drive the need for cold storage solutions.

Growth of E-Commerce and Online Grocery Shopping to Drive Market Growth

As the food sector has become more globalized, the supply chain has gotten more complicated and expanded across greater distances. Cold storage facilities are essential for keeping the quality and prolonging the shelf life of food goods during transit, allowing for greater distribution and decreasing food waste. Changing consumer habits, the growth of e-commerce and online grocery shopping has boosted the need for cold storage facilities. Consumers increasingly expect to be able to purchase a wide range of perishable goods with easy home delivery alternatives. Cold storage contributes to meeting this need by allowing the storage and delivery of temperature-sensitive commodities. Governments and regulatory agencies enforce severe rules and food safety standards on food handling and storage, particularly for perishable foods. Cold storage facilities offer the infrastructure required to comply with these rules and preserve food safety and quality throughout the supply chain. Pharmaceutical and medical device industries, vaccines, medicines, and other temperature-sensitive healthcare goods require cold storage. As the pharmaceutical business expands and new vaccines and medications are created, there is a greater need for cold storage facilities to ensure the integrity and efficacy of these goods. These factors all contribute to the expansion of the cold storage sector, as businesses and industries understand the value of preserving the quality, safety, and shelf life of perishable goods and services.

High Energy Requirement to Restrain the Market Growth

The cold storage market is facing several restraints that are impacting its growth and development. Setting up and maintaining cold storage facilities requires substantial capital investment. The cost of refrigeration equipment, insulation, backup power supply, and other necessary infrastructure can be quite significant. This high initial investment acts as a barrier for new entrants and limits the expansion of the cold storage market. Cold storage facilities consume a significant amount of energy to maintain low temperatures consistently. This leads to high operational costs, including electricity bills and maintenance expenses. As energy prices continue to rise, these costs can become a major challenge for cold storage operators, impacting their profitability. Cold storage facilities need to be strategically located near production centres, distribution networks, and transportation hubs to ensure efficient logistics. However, finding suitable locations with adequate space, accessibility, and proximity to target markets can be challenging. This limitation hampers the expansion of the cold storage market in certain regions. The demand for cold storage services is often influenced by seasonal factors. Industries such as agriculture, fisheries, and pharmaceuticals may experience significant fluctuations in demand throughout the year. These seasonal variations can create challenges for cold storage operators in terms of capacity utilization and revenue generation.

Advancements in Cold Storage to Drive Excellent Opportunities for Future

There are various possible prospects in the realm of cold storage in the future. These opportunities occur when the demand for safe and effective storage of perishable items such as food, medicines, and biological samples grows. Cold storage facilities can profit from the implementation of sophisticated technology. This involves inventory management, temperature control, and monitoring using automated technologies. Robotics and artificial intelligence can also be used to increase efficiency and lower labor expenses. With increased environmental concerns, there is a growing demand for sustainable cold storage solutions. There is business potential in the development of eco-friendly refrigeration systems that use ecologically benign refrigerants while consuming less energy. Due to the increasing expansion of e-commerce, possibilities for cold storage facilities have arisen. As more people purchase perishable items online, there is a greater demand for effective cold storage and last-mile delivery options. Cold storage providers may benefit from this trend by providing customized storage and delivery services targeted to the demands of e-commerce enterprises. Vaccines, drugs, and biological samples must be stored at exact temperatures in the biotechnology and pharmaceutical sectors. As medical research progresses and the demand for tailored medication grows, so will the demand for specialized cold storage facilities that can fulfil demanding temperature and security standards. The delivery of temperature-sensitive commodities gives chances for innovation in the cold chain logistics industry. Future transportation technology improvements, including autonomous cars and drones, have the potential to increase the efficiency and reliability of cold chain logistics, offering opportunities for enterprises in this field.

Global Cold Storage Market, by Warehouse Type, 2022

The public sub-segment accounted for the highest market share in 2022. Several reasons contribute to the market dominance of public warehouses. For starters, public warehouses provide a great degree of flexibility and scalability. They enable firms to alter their storage space requirements in response to changing demands without the long-term commitment that comes with owning or leasing a private warehouse. Second, public warehouses provide cost-effective options to businesses of all sizes. Public warehouses can achieve economies of scale by sharing facilities and resources across several clients, resulting in cheaper operational costs. Because of their low cost, they are an appealing choice, particularly for small and medium-sized organizations with limited resources. Another reason for the dominance of public warehouses is their geographical distribution. Public warehouses are often strategically located near major transportation hubs, such as ports, airports, and highways. This advantageous placement ensures efficient and convenient access to transportation networks, reducing shipping time and costs.

Global Cold Storage Market, by Construction Type, 2022

The production stores sub-segment, accounted for the highest market share in 2022. Production stores dominate the cold storage industry for a variety of reasons. For starters, manufacturing shops are often equipped with infrastructure and facilities intended expressly to handle and store perishable commodities such as food and pharmaceuticals. They have specialized equipment such as refrigerated units and temperature-controlled facilities to ensure the quality and freshness of these items. Second, producing outlets frequently have established supply chains and distribution networks that allow them to transport and distribute items too numerous locations effectively. They have the logistics and knowledge required to handle the complicated needs of cold chain management, which is critical for maintaining the integrity of temperature-sensitive commodities. Third, manufacturing outlets often have tremendous purchasing power and purchasing capacity. They can strike advantageous partnerships with suppliers and manufacturers, enabling them to source items at reasonable pricing. This offers businesses a competitive advantage in the market and allows them to offer their clients favourable prices. Furthermore, manufacturing stores frequently stock a diverse selection of items. This variety enables them to meet the diverse needs of many consumers, including both people and corporations. Production shops can provide a wide range of cold storage commodities, including fresh vegetables, frozen meals, and medical supplies.

Global Cold Storage Market, by Temperature Type, 2022

The frozen sub-segment accounted for the highest market share in 2022. The dominant temperature in cold storage is frozen temperature because it helps to retain the quality and safety of numerous perishable commodities for prolonged periods of time. When things are frozen at temperatures below 0 degrees Celsius (32 degrees Fahrenheit), biological and chemical processes that cause deterioration are considerably delayed or stopped entirely. Bacteria, yeasts, and molds are successfully suppressed by dropping the temperature to freezing levels. Because these germs require greater temperatures to proliferate and thrive, freezing their activity and lowering the risk of foodborne disease. Freezing also stops enzymatic activities that might contribute to deterioration, such as fat and protein degradation. Thus, the frozen sub-segment witnesses high demand.

Global Cold Storage Market, by Application, 2022

The fish, meat & seafood sub-segment accounted for the highest market share in 2022. For numerous reasons, fish and meat industries are heavy consumers of cold storage. For starters, fish and meat are perishable foods that require certain temperature settings to retain freshness and quality. Refrigerators and freezers, for example, create a controlled environment with low temperatures, which aids in the sluggish growth of bacteria and other germs that cause food spoiling. Second, before reaching the customer, fish and meat are frequently transported across large distances. It is critical to retain them at low temperatures throughout transit to avoid bacterial development and ensure their safety. Cold storage facilities are critical in keeping fish and meat fresh and secure throughout shipping and storage.

Global Cold Storage Share, by Region, 2022

The North America cold storage market generated the highest revenue in 2022. North America includes the United States, Canada, and Mexico, forming a big market with a large population and various industries. Agriculture, medicines, food & drinks, healthcare, and many more industries are included. Cold storage facilities are required in these businesses to retain perishable items and maintain their quality. Perishable items, such as fresh produce, meat, dairy products, and frozen meals, are widely consumed in North America. This is because of variables such as lifestyle preferences, eating habits, and the availability of a diverse range of perishable goods. Extensive cold storage infrastructure is necessary across the supply chain to accommodate the demand for these items. To maintain the quality and safety of perishable commodities, North America has severe regulatory requirements and food safety standards. Cold storage facilities contribute to meeting these criteria by ensuring correct temperature control, preventing spoiling, and lowering the risk of contamination. The need for cold storage infrastructure is driven by compliance with these rules.

Competitive Scenario in the Global Cold Storage Market

Some of the companies in the market include Americold Logistics, Lineage Logistics Holdings, Nichirei Corporation, Burris Logistics, Agro Merchants Group, Kloosterboer, United States Cold Storage, Tippmann Group, VersaCold Logistics Services, Henningsen Cold Storage Co, and Coldman.