Licensed retailers sell items in different categories in coordinated retailing. They use better cooling and improved storage technology compared to traditional stores. The demand for the cold storage market is expected to grow in the planned timeframe, due to the increasing demand for the hot and frozen food and the growth in the organized retail sector. Depending on the proximity of the residential and consumption and expenditure class, the organized retail supports different formats.
The market has greatly benefited from the strict regulations governing the production and provision of products that are sensitive to temperature. Due to growing organized retail industries in the emerging economies, the industry is ready for unprecedented growth over the forecast period.
Market value and expected growth –
Cold Storage Market is projected to grow at a CAGR of around 7.3% during the forecast period. The global Cold Storage market is expected to reach USD 25.5 billion by 2025, from USD 16.7 billion in 2019.
In addition, increasing automation would fuel demand in cooled warehouses. The processing automation involves cloud technology, robotics, transmission belts, automation of charging trucks and the control of fuel. Cold storage has become an integral part of SCM for the transport and storing of products sensitive to temperature. Also, rising trade in peregrinated goods is expected in the coming years to fuel demand for solutions for refrigerated processing.
Temperature-controlled systems users and manufacturers are working to reduce the effect of cold chain transport on the climate. At the same time, the design of a suitable packaging framework also presents significant challenges to increasing awareness of structured corporate social responsibility (CSR) policies, challenging government regulations and shifting consumer expectancies.
The lack of infrastructure to support the cold chain would probably be a big challenge for companies in emerging markets to expand their business. Therefore, the lack of power connections in transport hubs and ports for reefer-trailers is preventing the development of the market in such regions. This will, however, also open up opportunities for growth for industry participants to innovate unique solutions or exploit other energy sources that can overcome such problems.
The new development in composite panel construction is expected to replace existing cold warehouse construction methods with single-envelope construction technology. For new technologies, building materials, operations and maintenance expense and the versatility necessary to change the use in the future can be increasing overall. Without compromise on inner volume, a warehouse built using single hedge technology offers a smaller footprint and a lower height.
The cold storage market is segmented into private, semi-private and public based on the warehouse size. With regard to sales, the public segment led the market in 2018 and is expected to continue to dominate during the forecast period. According to the Global Cold Chain Alliance, approximately 75% of the US gross refrigerated storage capacity is provided by public warehouse space. A public warehouse is run as a standalone company offering different services, such as fixed or variable charge handling, storage and transport.
The market is divided into chilled and frozen, depending on the temperature level. In 2018, the frozen sector dominated the sales market and was worth USD 75.21 billion. The frozen food sector is primarily driven by higher frozen food consumption in emerging markets such as India and China. The storage temperature of warehouses below that segment is between -10°F and -20°F. They are used as a means of storing frozen vegetables, fruits, fish, meat, seafood, etc. Warehouses under the refrigerated category are used for storing fresh fruit and vegetables, eggs, dried fruit, milk, and other dehydrated foods.
The processed food, milk, fruit and vegetables, fish, meat & poultry and pharmaceuticals sector, has been based on application. The beef, fish and seafood segment is expected to witness further improvement with the rise in the packaging of seafood. Due to constant advances in food packaging materials, the highest CAGR is expected in the processed food segment from 2019 to 2025.
The largest market share in 2018 was in North America and is expected to continue to expand between 2019 and 2025. The growth of the region is driven by the proliferation of connected devices combined with the presence of a large consumer base. Mexico, in particular, as a result of the expansion of the distribution network and growing investment in the construction of the logistics system, is expected to experience exponential growth in North America. These would also serve as the main factor that boosts cold chain demand. In the coming years, economic growth and improvements in Mexico's government laws to streamline its customs program.
Countries like China are moving to a consumption-driven economy. In the years to come, they are therefore expected to see significant growth. The advances in warehouse management and cooled transportation, combined with state subsidies, enable service providers to tap into these emerging markets with innovative solutions to solve transport complexities.
Cloverleaf Cold Storage (U.S.), Agro Merchants Group (U.S.), Burris Logistics (U.S.), Americold Logistics LLC (U.S.), and Wabash National Corporation (U.S.) are some of the biggest companies in the sector.
Cold Storage Market Report Key Highlights:
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3.1 Executive Summary
3.2 Key Inferences
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Temperature Type
5.1.4 Y-o-Y Growth Analysis, By Temperature Type
5.1.5 Market Attractiveness Analysis, By Temperature Type
5.1.6 Market Share Analysis, By Temperature Type
5.2.2 Fruits & Vegetables
5.2.5 Meat & Seafood
5.2.7 Y-o-Y Growth Analysis, By Application
5.2.8 Market Attractiveness Analysis, By Application
5.2.9 Market Share Analysis, By Application
5.3 Warehouse Type
5.2.3 Y-o-Y Growth Analysis, By Warehouse Type
5.2.4 Market Attractiveness Analysis, By Warehouse Type
5.2.5 Market Share Analysis, By Warehouse Type
6. Geographical Analysis
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
126.96.36.199 By Geographical Area
188.8.131.52 By Temperature Type
184.108.40.206 By Application
220.127.116.11 By Warehouse Type
6.1.4 Market Attractiveness Analysis
18.104.22.168 By Geographical Area
22.214.171.124 By Temperature Type
126.96.36.199 By Application
188.8.131.52 By Warehouse Type
6.1.5 Market Share Analysis
184.108.40.206 By Geographical Area
220.127.116.11 By Temperature Type
18.104.22.168 By Application
22.214.171.124 By Warehouse Type
6.2 North America
6.1.2 United States
6.3.6 South Korea
6.5 Latin America
6.4.5 Rest of Latin America
6.6 Middle East & Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 Cloverleaf Cold Storage (U.S.)
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Agro Merchants Group (US)
8.3 Burris Logistics (US)
8.4 Americold Logistics LLC (US)
8.5 Wabash National Corporation (US)
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
a) List of Tables
b) List of Figures