Cold Storage Market Growth & Trends
The global cold storage market size is expected to reach USD 427.6 billion by 2030, growing at a CAGR of 17.5% from 2023 to 2030, according to a new study conducted by Grand View Research, Inc. Growing automation in warehouses and the growing popularity of e-commerce for purchasing fresh food has driven market growth. The increasing usage of apps has enabled customers to order a meal as well as track its delivery time easily. Digital retailing has enabled consumers to shop and access products and services anywhere they want.
The rising trend of purchasing perishable products online has led to new opportunities and challenges, including the need for innovative solutions to provide the critical service of last-mile delivery, automated warehouse facilities to manage inventories and reduce per-item costs, and low-cost and advanced temperature monitoring devices that would maintain the safety of fresh food products. Furthermore, the growing popularity of online shopping has dented created barriers to the growth of brick-and-mortar stores. Food and beverage stores have employed different business strategies to overcome this barrier, which include click-and-collect and home delivery options.
Based on storage type, the market is divided into facilities/services and equipment segments. The wide availability and the increasing need for cold storage warehouse facilities drive the facilities/services segment growth. Based on temperature range, the market is divided into chilled (0°C to 15°C), frozen (-18°C to -25°C), and deep-frozen (below -25°C) segments. Changing consumer preferences and growing consumption of ready-to-cook meals are expected to drive the frozen (-18°C to -25°C) segment growth.
Key market players are looking to expand their presence and increase warehouse capacity to gain a competitive edge. For instance, in December 2022, Interstate Warehousing, a Tippmann Group company, announced the expansion of its facilities by holding a groundbreaking ceremony in Kingman, Arizona. The facility was built on a 92-acre site to address the cold storage needs on the West Coast.
The key market players are adopting different development strategies, such as mergers and acquisitions, to expand their presence and market share in the cold storage industry. In August 2022, LINEAGE LOGISTICS HOLDING, LLC announced the completion of its acquisition of VersaCold Logistics Services. The deal was announced on April 13, 2022. VersaCold Logistics Services is a Canadian chain solution provider with 24 temperature-controlled facilities with 114 million cubic feet of capacity spread over nine provinces.
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Cold Storage Market Report
Cold Storage Market Report Highlights
- Based on storage type, the facilities/services segment dominated the overall market, gaining a revenue share of 89.8% in 2022. It is expected to grow at a CAGR of 17.3% from 2023 to 2030. The construction of energy-efficient cold storage warehouses is expected to provide significant opportunities for market growth
- The equipment segment is projected to grow at the fastest CAGR of 19.3% over the forecast period from 2023 to 2030. Factors such as changing food preferences, changing lifestyles, and growing online food delivery services are driving the demand for frozen food globally
- In terms of temperature range, the frozen (-18°C to -25°C) segment dominated the market in 2022 with a revenue share of 61.6% and is projected to grow at a CAGR of 18.7% from 2023 to 2030. Rising consumption of frozen foods in emerging markets, such as China and India, is driving segment growth. Warehouses under this segment are used to store frozen fruits, vegetables, fish, meat, seafood, and other products
- In terms of application, the pharmaceuticals segment is projected to grow at the fastest CAGR of 19.4% from 2023 to 2030. Pharmaceutical products must be preserved in a specific temperature range to maintain efficacy and adhere to temperature regulations. Therefore, the demand for cold chain storage & equipment is rising in the pharmaceutical industry
