The global cold storage market was valued at USD 112 billion in 2021 and is expected to reach USD 330.2 billion by 2030 and poised to grow at a with a compound annual growth rate (CAGR) of 11.6% during the forecast period 2021 to 2030.
The global cold storage market is primarily driven by the increased trade of the perishable products. The increased health consciousness regarding the benefits of healthy food consumption such as consumption of fresh dairy products, fruits & vegetables, meat, eggs, and seafood owing to their protein content is boosting the growth of the cold storage market. Cold storage helps to preserve the essential nutrients like protein in the perishable food products for longer time period. The rising demand for the food products among the consumers is increasing the importance of cold storage. Moreover, the free trade of food products across the globe owing to the globalization played a crucial role in the development of the cold storage market. The rising demand for the enhanced supply chain and logistics is propelling the demand for the cold storage systems across the globe. The distribution system plays a crucial role for delivering products to the end users and hence the demand for the advanced cold storage system is on the rise to prevent the loss of food products owing to the passage of time.
The rapidly growing organized retail sector is expected to propel the demand for the cold storage systems during the forecast period. The rapid growth of the retails chains such as supermarkets, hypermarkets, convenience stores, and other retailers, especially in the developed markets of Europe and North America has significantly boosted the growth of the cold storage market in the past. The food retail giants such as Walmart, 7 Eleven, and Tesco requires large transport fleet for the distribution of the perishable goods. The growing penetration of these retail chains in the developing countries like India, Brazil, Argentina, UAE, and Saudi Arabia is expected to present a lucrative growth opportunities for the cold storage manufacturers in the forthcoming years. Moreover, rising population, developing infrastructure, rising demand for food, and rising disposable income in the developing countries is expected to boost the demand for the perishable food products exponentially, which in turn would drive the growth of the cold storage market.
Warehouse Type Insights
Based on warehouse type, the public stores segment accounted for over 65% of the market share in 2021. The public warehouse offers certain services such as goods handling, transportation, and storage at a cheap cost. The public warehouse capacity is around 75% of the refrigerated storage capacity in the US, as per the Global Cold Chain Alliance. Public warehouses helps the traders or the manufacturers to store the perishable products at a low cost and fosters the distribution network.
On the other hand, the private warehouse segment is expected to be the fastest-growing segment during the forecast period. This is attributable to the rising investments by the retail giants to construct their own warehouses to offer fast delivery at a minimal cost. The rapid growth of the online food and groceries is further expected to drive the segment growth. The growing participation of the retail giants in the online and home delivery business has necessitated to build their own warehouses to offer quick and convenient delivery to their customers. This factor is boosting the growth of this segment.
Temperature Type Insights
Based on temperature type, the frozen food segment dominated revenue share of over 80% in 2021 and is projected to witness remarkable CAGR over the forecast period. This segment accounted for over75% of the market share in 2020. The increased consumption of the frozen food products in the developed markets and rising demand for the frozen food in the developing markets are the significant contributors of the frozen segment growth. The major items stored in frozen temperature type segment includes fruits, vegetables, fish, meat, dry fruits, eggs, dairy products, and various others. This segment is expected to remain dominant throughout the forecast period owing to the rising demand for the perishable food products and the increasing awareness regarding the unaltered nutrients in the frozen food. Further, the busy and hectic lifestyle of the consumers have led to the increased demand for the ready-to-cook and ready-to-eat food products, which spurs the growth of this segment.
The chilled segment is expected to register a significant CAGR during the forecast period. Chilling is in demand as it prevents the spoilage of food by preventing harmful bacteria growth. To store the perishable products for longer time period, the segment is expected to foresee a significant growth rate.
Based on application, the dairy segment has accounted 36% revenue share in 2021 and is projected to sustain its dominance during the forecast period. The increased demand for the animal based protein such as cheese, milk, and butter has fostered the growth of this segment in the past. The milk and other dairy products are perishable and are associated with foodborne diseases. Hence the proper storage facilities for the dairy products has higher demand.
The fish, meat, & seafood segment is expected to be the fastest-growing segment during the forecast period. The increasing demand for the various meat such as fish, poultry, beef, lamb, and pork among the global consumers is boosting the demand for the advanced cold storage systems all over the globe.
Based on region, North America accounted 37% revenue share in 2021 and is projected to sustain its dominance over the forecast period. The increased adoption of cold storage in the organized retail sector has significantly boosted the growth of the cold storage market in the region. The increased awareness regarding the frozen food among the consumers, busy and hectic schedules of the consumers, and increased disposable income are the major factors that boosted the growth of the cold storage market in North America.
On the other hand, Asia Pacific is estimated to be the most opportunistic market. The rising urban population, rising disposable income, rising awareness regarding frozen food, rising penetration of organized retail sector, and increased demand for the convenience food among the consumers is fostering the demand for the cold storage systems in the region.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In January 2020, Americold Logistics completed the acquisition of Nova Cold Logistics to expand and strengthen its position in Canada.
The various developmental strategies like acquisition, partnerships, mergers, and government policies fosters market growth and offers lucrative growth opportunities to the market players.
Some of the prominent players in the global cold storage market include:
Report Scope of the Cold Storage Market
|Market Size||USD 330.2 Billion by 2030|
|Growth Rate||CAGR of 11.6% From 2021 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2030|
|Segments Covered||Warehouse, Temperature, Construction, Application, Region|
|Companies Mentioned||Burris Logistics, Americold Logistics, Lineage Logistics Holdings, Nichirei Corporation, Tippmann Group, Agro Merchants Group, Kloosterboer, United States Cold Storage, VersaCold Logistics Services|
Segments Covered in the Report
By Warehouse Type
By Temperature Type
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