Cold Storage Market Analysis

Global Cold Storage Market Overview

Cold Storage Market Size was valued at USD 143.50 Billion in 2023. The Cold Storage industry is projected to grow from USD 163.59 Billion in 2024 to USD 409.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.15% during the forecast period (2024 - 2032). Increasing consumer demand for perishable goods and international food trade expansion as a result of trade economic liberalisation are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review                                                            

Cold Storage Market Trends

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  Rising consumer awareness about decreasing food waste propels market growth.

  
  

Market CAGR for cold storage is being driven by the increasing consumer awareness about decreasing food waste. Food waste is a serious issue all around the world. The majority of food waste is caused by a lack of suitable storage facilities. Furthermore, about 700 million people ly do not have enough food to consume. Perishable goods typically transit through the supply chain at varying temperatures, which can result in food spoilage and waste. The Chinese government is focused on measures to reduce food waste and increase the shelf life of perishable foods to address this issue. The  population is predicted to rise fast, increasing demand for food and increasing emphasis on decreasing food waste. Because of  population expansion and excessive food waste, there is a need for better storage worldwide; storage will contribute in addressing the problem of food insecurity by providing a stable environment for food goods across the supply chain. Thus, rising awareness of the importance of decreasing food waste would increase demand for storage facilities, propelling the growth of the market under consideration over the forecast period.

In addition, the utilisation of fuel cell-based technology can assist warehouse managers in saving valuable space in warehouses that is often occupied by battery charging stations and batteries. For example, when compared to traditional fuel-based and battery-powered infrastructure, fuel cell-based infrastructure takes up more than 60% less space. A forklift battery replacement takes approximately 10-20 minutes, but hydrogen refuelling in a fuel cell-based forklift takes approximately five minutes. As a result, such trends will have a positive impact on the storage market's growth over the forecast period.

Rising perishables are projected to drive the expansion of the cold storage industry in the future. Perishable products are those that decay quickly and have a short shelf life, such as fruits and vegetables, dairy products, medications, and others. The expanding perishables trade forces the cold storage business to supply higher quality items to their clients. For instance, According to a report issued in 2021 by the Food and Agricultural Organisation of the United Nations, worldwide milk production reached 906 million tonnes in 2020, up 0.2% from 2019. Another article published by the Food and Agriculture Organisation of the United Nations and the Organisation for Economic Cooperation and Development, an intergovernmental organisation with 38 member countries, stated that total meat production in 2020 is expected to be around 134 megatons, 1.2% higher than in 2019. As a result, an increase in perishables trade will raise demand for cold storage.

In February 2024, Bitpanda had updated its blog post saying cold storage would also be included among its business-to-customer products by default. Bitpanda, the Austrian fintech unicorn, will introduce an institutional-grade cryptocurrency trading platform due to the increasing demand of Europe’s institutional crypto services. Bitpanda Wealth is now available for high-net-worth individuals (HNIs), family offices (FOs), external asset managers and corporate treasuries through this new service. The company released this information on Thursday 30th January 2020 saying that it used the same infrastructure trusted by various authentic European banks with other financial services. Bitpanda Wealth provides a range of services to enable crypto investment, management and reporting which can be done through leverage products, exchange-traded funds (ETFs), commodities etc.

Cold Storage Market Segment Insights

Cold Storage Type Insights

The  Cold Storage Market segmentation, based on type includes refrigerated warehouse and refrigerated transport. In 2022, the refrigerated warehouse segment dominated the market. A refrigerated warehouse is used to store commodities that can only be held at specified temperatures to keep them fresh. Refrigerated storage reduces sprouting, rotting, and insect damage.

Figure1:  Cold Storage Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cold Storage Temperature Type Insights

The  Cold Storage Market segmentation, based on temperature type, includes frozen and chilled. In 2022, the frozen segment led the market, accounting for around 77.3% of total worldwide sales. Rising consumption of frozen foods in emerging nations such as India and China is particularly propelling the frozen food segment. This segment's warehouses keep their storage temperatures between -10 and -20°F. They are used to preserve frozen vegetables, fruit, fish, meat, seafood, and other things.

Cold Storage Application Insights

The  Cold Storage Market segmentation, based on application, includes dairy and frozen desserts, fish, meat and seafood products, bakery and confectionery products, fruit & vegetables and others. The fish, meat and seafood segment held largest market share in 2022 and will continue to expand. The rising emphasis on health and nutrition in the food and beverage business has led to the recent increase in demand for frozen beef. When compared to freshly cut meat, many urban consumers prefer frozen processed meat since it is easier to prepare and saves time. Beef, hog, and mutton are all popular frozen meats. As a result, rising demand for frozen meat and seafood is predicted to enhance storage adoption, boosting market growth through the meat and seafood segment throughout the projection period.

In October 2023, two cold storage trains carrying fresh vegetables and fruits set off from Yuxi in Southwest China's Yunnan Province for Vientiane in Laos as well as Lao Cai in Vietnam marking the official start of operation for international cold storage express services on the China-Laos railway and China-Vietnam railway respectively. These services will connect Yunnanto all mainland regions as well as the China-Indochina Peninsula Economic Corridor (CIPEC). In this regard, cross-border flow has been promoted by this decision which harmonizes Yunnan’s joint construction with BRI initiative under high-quality common prosperity along railroads and increased high-level opening-up bringing new energy into it. To mitigate such issues that could obstruct the implementation of these services successfully, Huawei has released an array of new storage products designed to enable telecom operators create a leading-tiered n/w architecture through facilitating service innovation

Cold Storage Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Cold Storage Market area will dominate this market, owing to the strengthening of the network of warehouses and increased investments in the development of the logistics infrastructure. These would also be important elements in driving demand for the cold chain.

Figure2:  COLD STORAGE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Cold Storage Market accounts for the second-largest market share due to the rising investments in the development of the logistics infrastructure.  Further, the German Cold Storage Market held the largest market share, and the UK Cold Storage Market was the fastest growing market in the European region

The Asia-Pacific Cold Storage Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the extensive presence of both food and healthcare product suppliers and consumers.  Moreover, China’s Cold Storage Market held the largest market share, and the Indian Cold Storage Market was the fastest growing market in the Asia-Pacific region.

Cold Storage Key Market Players & Competitive Insights

Leading cold storage reit are investing heavily in research and development in order to expand their product lines, which will help the Cold Storage Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cold Storageindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Cold Storage industry to benefit clients and increase the market sector. In recent years, the Cold Storage industry has offered some of the most significant advantages to medicine. Major players in the Cold Storage Market, including VersaCold Logistics Services (Canada), Congebac Inc. (Canada), NewCold (Netherlands), Snowman Logistics Pvt Ltd (India), Wabash National Corporation (US), Cloverleaf Cold Storage (US) and others, are attempting to increase market demand by investing in research and development operations.

Americold Realty Trust, Inc. is a temperature-controlled warehouse and transportation corporation headquartered in Atlanta, Georgia. It is in the business of modern commercialised temperature-controlled warehousing for perishable commodities storage, which is one type of food preservation. The history of Americold began in the early twentieth century, around the time of the first ice and coal enterprises. Atlanta Ice and Coal Company, Atlanta City Brewing Company (later known as Atlanta Brewing and Ice Company,) Versacold, Munford, Jackson Atlantic, United Refrigerated Services, Atlas Cold Storage, and others merged to form Americold. In January 2020, Americold Logistics finalised the acquisition of Nova Cold Logistics in order to develop and enhance its position in Canada.

Bay Grove, LLC owns Lineage Logistics, an international warehousing and logistics management company, as well as an industrial real estate investment trust (REIT). When it first entered foreign markets in 2017, it quickly grew to become the world's largest refrigerated warehousing company, acquiring 72 additional cold-chain storage companies by 2021 and handling more than 8% of the  food supply. Lineage employs about 17,000 people in 15 countries, including North America, South America, Europe, Asia, Australia, and New Zealand. In September 2022,  Lineage Logistics LLC purchased Grupo Fuentes, a major transport and cold storage facility operator in Spain. Grupo Fuentes is a market leader, with a fleet of 500 vehicles and trailers, six logistics centres, a cold storage warehouse, and value-added services to support those facilities.

The Huawei Product and Solution Launch 2024 that was scheduled at MWC Barcelona 2024 in February 2024 was a success. Dr. Peter Zhou, President of Huawei Data Storage Product Line, unveiled three innovative solutions to help global carriers build leading data infrastructure in the AI era: AI data lake solution, all-scenario data protection solution and DCS full-stack data center solution. The rapid development of large AI models is unlocking the value of data assets, opening up an era of “data awakening”. There are two main challenges to building data infrastructures in the age of artificial intelligence. First, independent and unconnected sources of data must be consolidated into “AI factories” where they can produce knowledge from the information they contain. This places high demands on transportability. Secondly, there is a fast-growing trend towards assetization of information.

Key Companies in the Cold Storage market include

• Lineage Logistics Holdings (US)


• Americold Logistics LILC (US)


• Nichirei Corporation (Japan)


• Kloosterboer (Netherlands)


• Tippmann Group (US)


• The United States Cold Storage. (US)


• Henningsen Cold Storage Co. (US)


• VersaCold Logistics Services (Canada)


• Congebac Inc. (Canada)


• NewCold (Netherlands)


• Snowman Logistics Pt Ltd (India)


• Wabash National Corporation (US)


• Cloverleaf Cold Storage (US)

Cold Storage Industry Developments

In March 2023, Americold announced that it had made a strategic investment in RSA Cold Chain, which has established itself as a regional cold storage operator. This will allow Americold to pursue more localized expansionist desires, take up strategic growth opportunities within the Middle East and neighboring markets as well and link RSA Cold Chain to the global network of the company.

During the Berlin Fruit Logistica trade show in February 2023, Lineage Logistics introduced its ‘Lineage Fresh’ service throughout Europe, which provides grocers, producers and importers of fresh fruits and vegetables with storage solutions. Less risk & spoilage and fewer obstacles may be faced by products with short shelf-life owing to Lineage´s cold storage technology and robust logistics network for perishable goods launched in November 2022 in the US.

In November 2022, Lineage Logistics opened Cool Port II at the Port of Rotterdam in the Netherlands, which is a fully automated facility freezing foods. Such services are delivered through sixty thousand pallet locations offered within deep-freeze high bay warehouses. The complete range of storing food items safely and providing them includes three truck unloading systems automated completely alongside this freezing high-bay store with 60,000 pallet positions; they are also linked to full-service warehousing cycles for perishables such as fruit or other produce from sally farms like those found at South Africa. It joins other major European ports where Lineage already operates some advanced facilities for refrigeration purposes worldwide.

Cold Storage Market Segmentation

Cold Storage Market By Type Outlook

• Refrigerated Warehouse


• Refrigerated Transport

Cold Storage Market By Temperature Type Outlook

• Frozen


• Chilled

Cold Storage Market By Application Outlook

• Dairy and Frozen Desserts


• Fish, Meat and Seafood Products


• Bakery and Confectionery Products


• Fruit & Vegetables


• Others

Cold Storage Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America