Cold Storage Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, India, Japan, UK - Size and Forecast 2024-2028

Cold Storage Market Forecast 2024-2028 

The cold storage market size is forecast to increase by USD 145.71 billion at a CAGR of 13.83% between 2023 and 2028. The market growth analysis depends on several factors, such as the rising awareness about reducing wastage of food, the growing consumption of frozen food, and compliance with regulations regarding storage and transportation of goods. Cold storage facilities help to extend the shelf life of perishable items, such as fruits, vegetables, meat, and dairy products. Technological advancements in refrigeration systems and warehouse management software have improved the efficiency and effectiveness of cold storage operations. This market report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

What will be the size of the Market During the Forecast Period?

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The market is witnessing significant growth driven by various factors. Transportation corporations and technology organizations are investing in advanced refrigeration solutions to meet the increasing demand for these facilities. Additionally, regulatory environments like the EU F-Gas Regulation are shaping industry standards and driving the adoption of eco-friendly refrigeration technologies. Alternatives such as hybrid cooling systems and thermal energy storage are gaining traction, offering sustainable and efficient solutions. With the rising need for temperature-controlled storage across various sectors, the market for refrigerated warehouses and cold rooms is poised for continued expansion. Although cold storage facilities require significant initial investment, the benefits of improved product quality, extended shelf life, and enhanced supply chain efficiency outweigh the upfront costs. Overall, the application of advanced technologies and sustainable practices in this sector continues to drive innovation and growth, meeting the evolving needs of industries worldwide.

Market Dynamics and Customer Landscape

The market is propelled by the surge in organized retail sectors, especially in developing economies. With the integration of cloud technology, conveyor belts, and robots, energy management, and truck-loading automation have become pivotal in optimizing supply chains. Addressing concerns over perishable product trade, low-carbon designs, and environmental auditing drive innovative construction methods. Despite the initial investment, these facilities are evolving with advanced infrastructure, refrigeration systems, and insulation. Leading players collaborate with logistics suppliers and transportation corporations to meet stringent regulatory environments like the EU F-Gas Regulation. Hybrid cooling systems, thermal energy storage, and insulated containers offer sustainable solutions for storing perishable goods in refrigerated warehouses and cold rooms. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Rising awareness about reducing the wastage of food is the key factor driving market growth. Food waste is a major problem worldwide. Most food wastage is attributed to the lack of proper freezing storage facilities. Also, perishable food products generally travel through varying temperatures across the supply chain, which sometimes leads to food spoilage and wastage. The global population is expected to rise steadily, which is anticipated to increase the demand for food and increase the focus on reducing food wastage. 

Moreover, there is a need for better storage across the globe due to global population growth and high food wastage; cold warehouses will aid in tackling the problem of food insecurity as they offer a stable environment for food products throughout the supply chain. Therefore, the rising awareness of reducing food wastage will increase the demand for cold warehouse facilities, which, in turn, will fuel the growth of the market during the forecast period.

Significant Market Trends 

The use of fuel cell-based forklifts in refrigerated warehousing is the primary trend shaping market growth. Fuel cell-based forklifts harness hydrogen in an electrochemical process to produce combustion-free energy, yielding electricity, heat, and water. This technology is gaining traction, especially in applications like forklifts. Aligning with market trends and analysis, an advantageous feature is their ability to operate efficiently in low-temperature settings, such as refrigerated warehouses. Furthermore, employing fuel cell-based technology aids warehouse operators in saving valuable space that would typically be occupied by battery charging stations and batteries.

Additionally, the quick refueling time of around five minutes for hydrogen in fuel cell-based forklifts contrasts with the 10-20 minutes needed for battery replacement. This results in substantial productivity savings of over 120 hours per forklift, assuming a standard three-shift operation of 8-10-hour shifts. Thus, such factors will drive the growth of the market during the forecast period.

Major Market Challenge

Seasonal demand for refrigerated products is a challenge that affects market growth. Seasonal demand for cold products such as ice cream, which are typically consumed during summer or hot seasons, increases the need for cold chain solutions such as storage to store products during those times. However, if the demand for these products decreases in the winter or cold season, the need for cold solutions also decreases. Thus, the income of suppliers of cold solutions varies from season to season, which is a challenge for the seller.

Additionally, the refrigerated storage of fresh produce is dependent on the harvest season. During the harvest season, which usually is around October-November every year, the harvest of fresh agricultural products such as corn is high. After the harvest season is over, the amount of corn that requires storage falls, thus lowering the occupancy rates and revenues for operators of refrigerated warehouses and market players. Thus, such issues will hamper the growth of the market during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global  Market Customer Landscape

Market Segmentation

In the application segment of the market, various industries utilize advanced technologies and innovative methods to optimize storage and distribution processes. Organized retail sectors leverage these facilities to preserve perishable products and meet consumer demands for fresh goods. Developing economies are increasingly adopting these solutions to support the expansion of their food distribution networks and reduce post-harvest losses. Cloud technology plays a pivotal role in managing cold storage operations efficiently, enabling real-time monitoring and inventory management. Conveyor belts and robots streamline material handling processes within cold storage facilities, enhancing operational efficiency and reducing labor costs. Energy management systems are implemented to minimize energy consumption and maintain optimal storage conditions while ensuring sustainability. Truck-loading automation further improves supply chain logistics, expediting loading and unloading processes while reducing turnaround times. These facilities play a crucial role in facilitating the global trade of perishable products, ensuring product integrity and compliance with quality standards. Low-carbon designs and environmental auditing initiatives promote eco-friendly practices in cold storage construction and operation, minimizing carbon footprint and environmental impact. Innovative construction methods enhance facility durability and insulation, prolonging the shelf life of stored goods while reducing operational costs.

By Application

The meat and seafood segment is estimated to witness significant growth during the forecast period. Meat and seafood are highly nutritious food when their quality is preserved. Nevertheless, the shelf life of such foods is limited, and thus, they require refrigeration to retain their quality. The use of cold chains enables to retention of the quality and nutrition of such foods. Meat and seafood have different temperature requirements for storage in a cold chain process. The rising meat consumption will also lead to a rise in demand for cold chains. Furthermore, consumers prefer frozen meat, as it is considered convenient, healthy, and fresh for consumption.

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The meat and seafood segment was the largest segment and was valued at USD 19.11 billion in 2018. The growing focus on health and nutrition in the food and beverage industry has contributed to the rise in demand for frozen meat in the past few years. Further, popular frozen meats include beef, pork, and mutton. Major processors and marketers of meats, such as JBS SA and Tyson Foods Inc., offer frozen meats, mainly for export purposes. This will also encourage various enterprises to launch new ranges of frozen foods. Thus, the growth in demand for frozen meat and seafood is expected to increase the adoption of cold storehouse, which is anticipated to drive the growth of the global cold storehouse market through the meat and seafood segment during the forecast period.

Key Regions

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APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.  APAC is the largest geographical segment of the market and will continue to remain the largest segment during the forecast period. The market in APAC is expected to grow due to the extensive presence of both food and healthcare product suppliers and consumers. With the rise in disposable income and the geriatric population in countries such as Japan and China, the expenditure on healthcare in this region is experiencing strong growth. This increases the demand for temperature-controlled healthcare products such as biopharmaceuticals, vaccines, and clinical trial materials. Hence, such factors are expected to drive market growth in this region during the forecast period.  

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Americold Realty Trust Inc.: The company offers cold warehouse services such as temperature-controlled storage and distribution networks for producers, retailers, and food service providers.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Beijing Howcool Refrigeration Technology Co. Ltd.
• Burris Logistics Co.
• Changzhou Yuyan Refrigeration Equipment Co. Ltd.
• Coldman Logistics Pvt. Ltd.
• Commercial  Group Ltd.
• Congebec Logistics Inc.
• Falcon Refrigeration Industry
• Holt Logistics Corp.
• Indicold Pvt Ltd.
• Interstate  Inc.
• John Swire and Sons Ltd.
• Lineage Logistics Holdings LLC
• NewCold Cooperatief UA
• Nor AM Cold-Storage
• RSA Global DWC LLC
• Snowman Logistics Ltd.
• Stellar
• VersaCold Logistics Services
• Nichirei Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

In the global market, the demand is driven by various factors, including the expansion of organized retail sectors and the economic growth of developing economies. Leveraging cloud technology and innovative automation such as conveyor belts and robots, cold storage facilities enhance energy management and streamline truck-loading automation within supply chains. These Facilities/services play a crucial role in the trade of perishable products, facilitating low-carbon designs and undergoing environmental auditing for sustainability. Incorporating innovative construction methods, they require significant initial investment but provide essential cold storage facilities for preserving temperature-sensitive goods. As demand rises, the global market continues to evolve to meet the needs of diverse industries.

The market thrives on the demand for preserving perishable product trade with efficient cold storage facilities. Key components like infrastructure and insulation are vital for maintaining optimal storage conditions. Leading players in the market, alongside logistics suppliers and transportation corporations, ensure seamless operations. Technology organizations drive innovation to meet evolving needs while adhering to the regulatory environment, including the EU F-Gas Regulation. Embracing sustainability, alternatives like hybrid cooling systems and thermal energy storage gain traction, leveraging phase change materials for enhanced efficiency. Insulated containers and cold rooms offer essential facilities and services, underscoring the importance of the global market in preserving perishable goods.

In the market, adherence to strict regulations governing temperature control is paramount for every cold storage facility. Companies explore alternatives and substitutes to traditional refrigeration methods, incorporating innovations like specialized pallets and advanced cold storage equipment. Factors such as end-user concentration and pricing strategies influence business stability and profitability. Public warehouses play a crucial role in handling and storing goods within the specified temperature range, catering to varied needs from chilled to deep-frozen products. As emerging markets witness rapid industrialization, demand surges from sectors like organized retail chains, supermarkets, hypermarkets, and industries like pharmaceuticals and food & beverages.

Segment Overview

The market analysis and report forecast market growth and forecasting by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018 to 2028. 

• Application Outlook
  • Meat and seafood
  • Fruits and vegetables
  • Bakery and confectionery
  • Dairy and frozen products
  • Others

• Type Outlook
  • Private
  • Semi-private
  • Public

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Cold Storage Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 13.83%
Market Growth 2024-2028	USD 145.71 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	15.11
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 52%
Key countries	US, China, India, Japan, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Americold Realty Trust Inc., Beijing Howcool Refrigeration Technology Co. Ltd., Burris Logistics Co., Changzhou Yuyan Refrigeration Equipment Co. Ltd., Coldman Logistics Pvt. Ltd., Commercial Group Ltd., Congebec Logistics Inc., Falcon Refrigeration Industry, Holt Logistics Corp., Indicold Pvt Ltd., Interstate Inc., John Swire and Sons Ltd., Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nor AM Cold-Storage, RSA Global DWC LLC, Snowman Logistics Ltd., Stellar, VersaCold Logistics Services, and Nichirei Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this  Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market forecast between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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