Cold Storage Market Growth & Trends
The global cold storage market size is expected to reach USD 485.32 billion by 2030, registering a CAGR of 17.2%, according to a new study conducted by Grand View Research, Inc. The retail sector in emerging economies, such as India and China, is getting more organized and this trend is expected to augment the demand for cold storage over the forecast period. Government policies to deregulate the entry of foreign companies have increased the Foreign Direct Investment (FDI) in the retail sectors of such regions.
Cold Storage Market Segmentation
Grand View Research has segmented the global cold storage market based on warehouse type, construction type, temperature type, application, and region:
Based on the Warehouse Type Insights, the market is segmented into Private & Semi-private and Public.
- The public warehouse segment led the market and accounted for more than 63% share of the global revenue in 2022. According to the Global Cold Chain Alliance, the public warehouse capacity accounts for around 75% 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 handling, storage, 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 agency. Private warehouses can also be called proprietary warehouses. They are constructed and owned by the same enterprise that owns the merchandise stored and handled at the facility. They can be operated as a separate division within an enterprise. They offer greater control over cost, flexibility, and the ability to make decisions regarding the overall activities and priorities of the facility.
- However, given the massive costs associated with the construction and maintenance of warehouses, only big companies can afford to own and maintain their warehouses. Private warehousing can be done either on an off-site basis or on-site basis. An on-site warehouse is located either at a centralized location or at different manufacturing facilities. On the other hand, an off-site warehouse is located close to the marketing areas and is used to store on-site inventory.
Based on the Construction Type Insights, the market is segmented into Bulk Storage, Production Stores, Ports.
- The production stores segment led the market and accounted for more than 52% share of the global revenue in 2022. Single-envelope construction technology, which is a recent development in composite panel construction, is expected to replace the existing methods of constructing warehouses. The new technology can help reduce overall construction time and costs of building material, operation, and maintenance while also ensuring enough flexibility for changing the use in the future. A warehouse built using single-envelope technology boasts a smaller footprint and lesser height without compromising the internal volume.
- The production stores segment led the market, in terms of revenue in 2022 and is expected to witness highest growth of 18.6% in the forecasted period. This type of warehouse is suitable for storing fruits and vegetables in bulk and can be used to extend the availability of the other bulk materials, such as flour, cooking ingredients, and canned goods, protecting them from spoilage and keeping them away from direct sunlight.
- The ports segment is also likely to witness significant growth. Constructing refrigerated warehouses near ports can help simplify the customs procedures required for the import and export of temperature-sensitive products. Government initiatives to develop infrastructure for intermodal transportation in emerging economies, such as India and China, are likely to drive the segment growth.
Based on the Temperature Type Insights, the market is segmented into Chilled and Frozen.
- The frozen segment led the market and accounted for about 77.3% share of the global revenue in 2022. Rising consumption offrozen foods in emerging markets, such as India and China, is particularly driving the frozen food segment. Warehouses falling under this segment maintain their storage temperature in the range from -10 to -20°F. They are used to store frozen vegetables, fruit, fish, meat, seafood, and other products.
- Warehouses falling under the chilled segment are used to store fresh fruits & vegetables, eggs, dry fruits, milk, and dehydrated foods, among others. Changing consumer preferences toward ready-to-cook meals due to the rising awareness about convenience and hygiene will boost the frozen segment growth. Moreover, consumers prefer frozen food owing to the ease of use, terms of packing technique, and support for microwave cooking. This is also likely to play a key role in segment development.
Based on the Application Insights, the market is segmented into Fruits & Vegetables, Dairy, Fish, Meat & Seafood, Processed Food, Pharmaceuticals.
- The seafood segment led the market and accounted for about 36.6% share of the global revenue in 2022. Continued advancements in the packaging of seafood are expected to influence the meat, fish, & seafood segment.
- Refrigerated warehouses 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 pharmaceutical segment is also projected to witness significant growth over the forecast period.
Cold Storages Regional Outlook
- North America
- Asia Pacific
- South America
- Middle East & Africa
Key Companies Profile & Market Share Insights
Companies are focusing on expanding their business across different regions to cater to consumer demand. The companies are targeting emerging markets to expand their customer base through acquisitions.
Some of the prominent players operating in the global cold storages market include,
- Americold Logistics, LLC
- Burris Logistics
- Barloworld Limited
- Cloverleaf Cold Storage
- Henningsen Cold Storage
- Swire Group
- Wabash National Corporation
Order a free sample PDF of the Cold Storages Market Intelligence Study, published by Grand View Research.