Cold Storage Market Size, Share & Trends Analysis Report By Storage Type (Facilities/Services, Equipment), By Temperature Range (Chilled, Frozen), By Application, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global cold storage market size was exhibited at USD 119.90 billion in 2023 and is projected to hit around USD 606.59 billion by 2033, growing at a CAGR of 17.6% during the forecast period of 2024 to 2033.

Key Takeaways:

• The North America region led the market with a 35.0% revenue share globally in 2023.
• The facilities and services segment dominated the overall market, gaining a revenue share of 89.8% in 2023.
• The frozen (-18°C to -25°C) segment dominated the overall market, gaining a revenue share of more than 61% in 2023.
• The food & beverage segment dominated the overall cold storage industry, gaining a revenue share of more than 78% in 2023.

Cold Storage Market: Overview

The cold storage market has witnessed significant growth in recent years, driven by evolving consumer preferences, the globalization of the food supply chain, and advancements in refrigeration technologies. This overview delves into the key aspects shaping the cold storage industry, exploring trends, growth factors, and future prospects.

Cold Storage Market Growth

The cold storage market is experiencing robust growth, driven by several key factors. One prominent catalyst is the escalating demand for frozen and chilled food products, fueled by changing consumer lifestyles and a heightened awareness of food safety. This trend is further amplified by the expanding variety of convenience-oriented, temperature-sensitive food options. Additionally, the globalization of the food supply chain has propelled the need for cold storage solutions to maintain the quality and freshness of perishable goods during transportation and storage. The surge in e-commerce and last-mile delivery services is another significant growth factor, prompting the strategic placement of cold storage warehouses to ensure the timely and safe delivery of temperature-sensitive goods. Moreover, the emphasis on sustainability within the industry, marked by investments in eco-friendly packaging and energy-efficient technologies, contributes to the overall expansion of the cold storage market.

Cold Storage Market Report Scope

Cold Storage Market Dynamics

• Technological Advancements Driving Efficiency:

The cold storage market dynamics are strongly influenced by ongoing technological advancements. Innovations in refrigeration technologies, such as precision cooling and the integration of IoT and sensor technologies, are enhancing the efficiency of cold storage facilities. Real-time monitoring and control capabilities contribute to the optimization of temperature conditions, ensuring the preservation of perishable goods. 

• Globalization and E-commerce Reshaping Supply Chains:

The globalization of the food supply chain, coupled with the rise of e-commerce, significantly impacts the dynamics of the cold storage market. As consumer preferences shift towards diverse and seasonal food products, the demand for cold storage solutions has surged to facilitate the seamless distribution of temperature-sensitive goods across borders. E-commerce platforms, with their increasing focus on last-mile delivery, have further intensified the need for strategically located cold storage warehouses. 

Cold Storage Market Restraint

• High Initial Investment and Operating Costs:

A prominent restraint in the cold storage market is the high initial investment and ongoing operating costs associated with establishing and maintaining temperature-controlled facilities. The need for specialized infrastructure, advanced refrigeration systems, and energy-efficient technologies significantly elevates the upfront capital required for entering the cold storage business. Additionally, the continuous energy consumption to maintain precise temperature conditions imposes ongoing operational expenses. 

• Regulatory Compliance Challenges:

Regulatory compliance poses a considerable restraint in the cold storage market, particularly due to the stringent standards and guidelines governing the storage and transportation of perishable goods. Meeting and adhering to these regulations require significant investments in monitoring systems, documentation processes, and staff training to ensure that products are stored and transported within specified temperature ranges. Non-compliance not only risks product integrity but also subjects companies to potential legal consequences. 

Cold Storage Market Opportunity

• Rising Demand for Pharmaceutical Cold Chain Logistics:

A significant opportunity within the cold storage market lies in the expanding demand for pharmaceutical cold chain logistics. The pharmaceutical industry, with its increasing emphasis on biopharmaceuticals and specialty drugs, relies heavily on temperature-sensitive storage and transportation. As the global pharmaceutical supply chain becomes more intricate, the need for reliable cold storage facilities to maintain the integrity of vaccines, biologics, and other temperature-sensitive medications presents a substantial growth avenue. 

• Growing Popularity of E-Commerce and Online Grocery Shopping:

The growing popularity of e-commerce and online grocery shopping represents a significant opportunity in the cold storage market. As consumers increasingly turn to online platforms for their food and grocery needs, the demand for efficient and reliable cold storage solutions has surged. Cold storage warehouses strategically located to support last-mile delivery services for perishable goods have become integral to the success of e-commerce ventures.

Cold Storage Market Challenges

• Energy Consumption and Environmental Impact:

An inherent challenge in the cold storage market revolves around the substantial energy consumption required to maintain precise temperature conditions. The constant need for refrigeration and environmental control contributes to elevated operational costs and a significant carbon footprint. As sustainability becomes a key focus across industries, finding eco-friendly refrigeration solutions and implementing energy-efficient practices poses a considerable challenge. 

• Complexity in Regulatory Compliance:

The cold storage market faces a complex challenge in navigating and adhering to the stringent regulatory requirements governing the storage and transportation of perishable goods. Regulations vary across regions and are subject to frequent updates, adding a layer of complexity to compliance efforts. Ensuring that facilities meet and maintain compliance standards demands continuous investments in monitoring systems, staff training, and documentation processes. 

Segments Insights:

Storage Type Insights

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

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 78% in 2023. 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 Insight

The North America region led the market with a 35.0% revenue share globally in 2023. 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.

The 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.

Recent Developments

• 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 2023, 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 2023, 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 2023, 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 2023, 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 2023, 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 2023, 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.

Some of the prominent players in the cold storage market include:

• Americold Logistics, Inc.
• Al Rai Logistica K.S.C
• Agro Merchants Group
• Burris Logistics
• Barloworld Limited
• Cloverleaf Cold Storage
• Gulf Drug LLC
• Henningsen Cold Storage Company
• Kloosterboer
• LINEAGE LOGISTICS HOLDING, LLC
• Nordic Logistics
• Oxford Logistics Group
• Oceana Group Limited
• Preferred Freezer
• RSA Logistics
• Swire Group
• VersaCold Logistics Services
• United States Cold Storage
• Wared Logistics
• Wabash National Corporation

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global cold storage market.

Storage Type

• Facilities/Services

• • Refrigerated Warehouse

• • • Private & Semi-Private
    • Public

• • Cold Room

• Equipment

• • Blast freezer
  • Walk-in Cooler and Freezer
  • Deep Freezer
  • Others

Temperature Range

• Chilled (0°C to 15°C)
• Frozen (-18°C to -25°C)
• Deep-frozen (Below -25°C)

Application

• 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

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)