Owing to benefits reduction in loss of agricultural and other perishables, preservation and extension of shelf life, optimum maintenance of nutrient quality, improvement in domestic food supply, improvement in nutritional and food safety quality, and new employment along the cold chain, cold storage is experiencing rapid adoption thus fostering progress in global cold storage market.
Covid-19 Impact & Market Status
The covid-19 pandemic has had a great impact on demand and supply chain sinking the global cold storage market. Due to social distancing and mobility protocols there were delays in supply chain and slowdown in the transportation of goods across the world affecting the global cold storage market. However, there was increase in buying food products online and positively impacted the global cold storage market. Most importantly, the cold-storage is in spotlight due to the coronavirus (COVID-19) vaccines, which require strict refrigeration boosting the global cold storage market.
This global cold storage market report study investigates the current state and financial performance of global cold storage market. The objective is to identify the problems and suggest solutions for market fortification. The report studies the market in detail such as financial dynamics, risk, opportunities, and issues that need to be addressed. In summary, this research report on global cold storage market will be beneficial to market players and aspirants.
Freon Refrigerant Type to Emerge as the Most Lucrative Segment
The global cold storage market is classified into ammonia, carbon-dioxide, propane, glycol, propane, and Freon based on Refrigerant Type. Among these, Ammonia refrigerant type is poised for considerable market growth. Freon is a naturally occurring substance and is eco-friendly in nature . Cold stores using Freon are highly preferred as their investment costs are low, suitable for all sectors, and have extensive range of use which are the key factor increasing its demand in global cold storage market.
Processed Food Sector to Remain Atop
The global cold storage market is classified into fruit & vegetables, processed foods, meat, fish, dairy products, and others based on application. Among these, the processed foods segment held the largest market share of global cold storage market may grow substantially in forecasted years. The key factors like exponential growth in E-commerce and food tech industry, changing lifestyles and demand in processed foods are boosting processed foods segment in global cold storage market.
Bulk Storage to Ensure Revenue Maximization
Based on construction global cold storage market is classified into production stores and bulk storage. Among these, the bulk storage segment experienced rapid growth due to higher productions of agricultural produce requiring cold storage for maintaining safety and quality of foods, seasonal foods, and increase trading have driven the cold storage segment in global cold storage market.
Frozen to Ensure Revenue Maximization
By temperature global cold storage market is diversified into frozen and chilled. Among these, the frozen segment ensured maximum revenue growth due to E-commerce and food tech industry, changing lifestyles and demand in processed foods requiring deep frozen environment are boosting processed foods segment in global cold storage market.
North American Region to Render Ample Investment Avenues
Based on regional performance and segmentation, the North American region is likely to garner the lion's share of revenues in the forecast years. This is evident because North America is one of the largest producers of agricultural produce, consumption of processed, and frozen foods. Moreover, modern supply chain management, strong cold storage and cold transport facilities, initiatives and support being given by the federal governments, E-commerce and food tech industry, changing lifestyles and demand in processed foods requiring deep frozen environment are boosting processed foods segment in global cold storage market. Also, Tech innovations like smart sensors, data loggers, etc and strong collaboration between e-tailers and food tech supply chain industry have boosted North America’s market share in global cold storage market.
Following suit the APAC market is also emerging as a lucrative region backed by intense agricultural developments across emerging countries such as China and India.
In pandemic times. need for high volumes of various perishable items has increased which require freezing temperatures to improve longevity
The producers of fruits and vegetables globally face harvest and post-harvest losses including losses during storage. Food service industry is the most dominant end-user of cold storage facilities as food items such as vegetables and fruits need freezing temperatures for flawless storage.
The loss during storage is within 5% to 16% of the range leading to huge financial losses. Thus the need for the establishment of cold chain units or temperature-controlled facilities to maintain quality and safety has accentuated the reliance on cold storage resulting in the remarkable progress of the global cold storage market.
Rapid end-use applications like fruit & vegetables, processed foods, meat, fish, dairy products, others are fostering the growth of the global cold storage market.
Advantages such as prolonging shelf-life of fruits and vegetables, temperature control, cost-savings, portable options like cold-storage trucks enabling better transportation, better management wholesale perishable products, and efficient supply chain encourage further adoption of cold storage. These factors collectively influence thumping growth in global cold storage market, ensuring an overall market size of USD 292.56 Bn by 2028 with an annual growth rate of 13.546% from 2022 to 2028.
Cold storage is a huge space that handles products like fruit & vegetables, processed foods, meat, fish, dairy products, and other perishables between the period of production and marketing of the same. Cold storage helps preserve the products at fresh state by controlling various gaseous elements, maintaining temperature and humidity of the cold storage facility. The cold storage technology is profitable in production, marketing, and distribution of crops and agricultural business.
Factors such as superlative rising automation in refrigerated warehouses, growing trade of perishable products, rising awareness about formal Corporate Social Responsibility (CSR) policies, government regulations to develop a robust cold storage sector are boosting the global cold storage market.
However, the cold storage market is facing numerous hurdles hampering growth such as huge investment, shortage of power supply, technology availability, high operating expenses, significant real estate costs, dearth of standards and protocols, unskilled human resources. These are the key reasons the global cold storage is not booming.
Conversely, the macro-economic factors, incorporation of skilled resources leading of optimized supply chain operations, government support, Tech innovations like smart sensors, data loggers connected to GPS enabling real time tracking, and exponential growth of food service and e-commerce industry the global cold storage market is expected to record staggering revenue growth in forecasted years.
The major players in global cold storage market are Lineage Logistics, Wabash National Corporation, Swire Group Henningsen Cold Storage, Cloverleaf Cold Storage, Barloworld Limited, Burris Logistics, Koolsterboer, Hanson Logistics, and Amricold Logistics among others. The companies have evolved one of the largest and trusted brands in the world offering best solutions and leading in supply chain management. These companies serve all the categories including confectionary, food processing, pharmaceutical, meat, etc. The companies have global presence due their comprehensive portfolio making them top ranked in the global cold storage market.
Latest Innovations in the Global Cold Storage Market: a Snapshot
- Platform Ventures' Vertical Cold Storage which develops temperature-based distribution facilities has taken over West Liberty Foods' Liberty Cold Storage.
- A new 340,000sq+ cold storage facility worth $60 million has been launched in Dallas. The facility is aimed to offer high-end solutions such as refrigeration and customized solutions for industrial applications.
- In February 2021, an announcement by JLL Capital Markets was released to affirm funding worth USD 34 M to support the development of a state-of-the-art cold storage facility in New Jersey.
Cold Storage Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 292.56 Bn|
|Growth Rate||CAGR of 13.546% during 2021-2028|
|Segment Covered||Refrigerant Type, Application, Construction Type, Temperature, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||Lineage Logistics, Wabash National Corporation, Swire Group Henningsen Cold Storage, Cloverleaf Cold Storage, Barloworld Limited, Burris Logistics, Koolsterboer, Hanson Logistics, and Amricold Logistics among others.|
Key Segments of the Global Cold Storage Market
Refrigerant Type Overview, 2018-2028 (USD Billion)
Application Overview, 2018-2028 (USD Billion)
- Fruit & vegetables
- Processed foods
- Dairy products
Construction Type Overview, 2018-2028 (USD Billion)
- Bulk storage
- Production stores
Temperature Overview, 2018-2028 (USD Billion)
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa