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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 the 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.
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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.
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.
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.
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.
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
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
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.
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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.
Maintaining the quality of food products, especially in old storage industry setups. With infrastructure tailored to refrigeration and automation for efficient handling, this sector meets the preservation needs of various industries such as agriculture, food processing, and pharmaceuticals. As economies grow, the demand for cold storage facilities rises, driven by increased fish production and the need for reliable packaging and monitoring solutions. Cost-effective operations and scalable capacity are essential considerations in the refrigerated storage industry, where facility optimization ensures optimal resource utilization. Overall, the cold storage market continues to expand to meet the evolving needs of various sectors.
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.
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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