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 - Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. cold storage market size was estimated at USD 41.46 billion in 2022 and is expected to surpass around USD 145.8 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 13.4% during the forecast period 2023 to 2032.

Key Takeaways:

• By warehouse Type, the U.S. Cold Storage market was valued at USD 38.6 billion in 2022 and expected to witness growth at a CAGR of 137% from 2023 to 2032.
• In terms of revenue, the public segment dominated the market with a share of 79% in 2022
• The private and semi-private segment is expected to portray a significant CAGR of 11.2% from 2023 to 2032.
• The production stores segment held the largest share in 2022 and is estimated to grow at the highest CAGR exceeding 15.7% from 2023 to 2032.
• The frozen segment accounted for the largest share exceeding 82% in 2022.
• In terms of revenue and market share, the fish, meat & seafood application segment captured the largest market share of 37.6% in 2022.
• The processed food segment is projected to witness highest growth of 16.9% from 2023 to 2032.
• North Carolina and South Carolina are some of the highest-growing markets which are expected to witness a CAGR of over 15.3% and 14.8%, respectively, from 2023 to 2032.

U.S. Cold Storage Market Report Scope

The U.S. is widely regarded as one of the leading markets in developing technologies responsible for the effective management of cold storage processes. The pharmaceutical industry is expected to offer growth opportunities to the market. Inventory management of pharmaceutical goods, such as vaccines and medicines, is an expensive process that necessitates adequate security measures to maintain product quality. Advanced cold storage technologies that offer beneficial features, such as advanced refrigeration technologies and monitoring and tracking systems of various products like fruits and vegetables, significantly mitigate the possibility of wastage of temperature-sensitive goods.

The market growth is profoundly influenced by the massive demand for perishable goods worldwide along with the availability of food and health supplies, and economic & political scenarios. For instance, trade conflicts between the U.S. and China are expected to impact the growth negatively. In March 2018, the U.S. imposed a 25% tariff on steel and 10% on aluminum imported from China. China, in turn, announced a 15-25% tariff on products imported from the U.S., including pork, fruits, wine, nuts, and vegetables. These high tariffs imposed on food and agriculture products are expected to hinder the market growth.

Furthermore, outsourcing cold and frozen storage operations offer manufacturers various cost benefits. This can help eliminate costs associated with warehouse space and management, technology, transportation, and labor. Operational costs such as employee salaries, heating and cooling expenses, insurance, and electric power cost can also be reduced by working with supply chain partners. As a result, manufacturers can increase their profit margins and focus on core business activities such as quality product manufacturing, expanding customer base, and customer needs satisfaction.

Warehouse Type Insights

In terms of revenue, the public segment dominated the market with a share of 79% in 2022, owing to its significant adoption among consumers on 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 of 11.2% from 2023 to 2032.

Construction Type Insights

The production stores segment held the largest share in 2022 and is estimated to grow at the highest CAGR exceeding 15.7% from 2023 to 2032. 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% in 2022. 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 application segment captured the largest market share of 37.6% in 2022. Based on application, the market is categorized into fish, meat & seafood; fruits & vegetables; dairy; processed food; and pharmaceuticals. The processed food segment is projected to witness highest growth of 16.9% from 2023 to 2032 owing to high demand of processed food products due to its several advantages such as immediate consumption, easy cooking, easy handling, and storage. Moreover, continuously changing lifestyle, increased safety, and growing need for easy convenience majorly drives the adoption of processed food. The adoption of processed food is also increased owing to excellent marketing and innovative packaging offered by the providers which further fuels the growth of the market.

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

California held the largest share in terms of revenue in 2022 and is projected to maintain its dominance in the market from 2023 to 2032. 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 in the market, which held a significant market share in 2022. North Carolina and South Carolina are some of the highest-growing markets which are expected to witness a CAGR of over 15.3% and 14.8%, respectively, from 2023 to 2032. 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.

Some of the 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

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Cold Storage market.

By Warehouse Type 

• Private & Semi-private
• Public

By Construction Type 

• Bulk Storage
• Production Stores
• Ports

By Temperature Type 

• Chilled
• Frozen

By Application 

• Fruits & Vegetables
• Dairy
• Fish, Meat & Seafood
• Processed Food
• Pharmaceuticals

By State 

• 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