U.S. Cold Storage Market Growth & Trends
The U.S. cold storage market size is estimated to reach USD 96.90 billion by 2030, expanding at a CAGR of 13.6% over the forecast period, according to the new research conducted by Grand View Research, Inc. The U.S. is widely regarded as one of the leading markets in developing technologies responsible for the effective management of cold storage processes. The pharmaceutical industry is expected to offer growth opportunities to the market. Inventory management of pharmaceutical goods, such as vaccines and medicines, is an expensive process that necessitates adequate security measures to maintain product quality. Advanced cold storage technologies that offer beneficial features, such as advanced refrigeration technologies and monitoring and tracking systems of various products like fruits and vegetables, significantly mitigate the possibility of wastage of temperature-sensitive goods.
The market growth is profoundly influenced by the massive demand for perishable goods worldwide along with the availability of food and health supplies, and economic & political scenarios. For instance, trade conflicts between the U.S. and China are expected to impact the growth negatively. In March 2018, the U.S. imposed a 25% tariff on steel and 10% on aluminum imported from China. China, in turn, announced a 15–25% tariff on products imported from the U.S., including pork, fruits, wine, nuts, and vegetables. These high tariffs imposed on food and agriculture products are expected to hinder the market growth.
Furthermore, outsourcing cold and frozen storage operations offer manufacturers various cost benefits. This can help eliminate costs associated with warehouse space and management, technology, transportation, and labor. Operational costs such as employee salaries, heating and cooling expenses, insurance, and electric power cost can also be reduced by working with supply chain partners. As a result, manufacturers can increase their profit margins and focus on core business activities such as quality product manufacturing, expanding customer base, and customer needs satisfaction.
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U.S. Cold Storage Market Report
U.S. Cold Storage Market Report Highlights
- Rising demand for healthy food, import and export of refrigerated foods, and increasing private sector participation are expected to propel market growth
- The provision of cold storage facilities assists in extending the shelf life of perishable goods such as fresh agricultural produce and frozen foods
- Growing automation in warehouse management is anticipated to spur the growth over the forecast period
- Solar-powered refrigeration is gaining popularity in the storage and transportation of vaccines and various temperature-sensitive drugs
- Numerous initiatives undertaken to reduce wastage of post-harvest and processed foods are also expected to boost the market
