North America Cold Storage Market Trends Report, 2022-2030 (2023)

The North America Cold Storage market size was valued atUS$ 38.99 billion in 2021and is expected tohit US$ 87.38 billion by 2030, growing at a compound annual growth rate(CAGR) of 11.7% from 2022 to 2030.

Growth Factors:

Increasing penetration of connected devices and presence of a large consumer base are the key trends bolstering market growth. Furthermore, growing automation of refrigerated warehouses is anticipated to enhance the demand for the product. Automation in warehouses is achieved with the use of cloud technology, conveyor belts, robots,energy management systems, and truck loading automation. Integration of workforce management solutions for picking optimization & workforce forecast has led to reduced labor costs.

Moreover, rising automation in refrigerated warehouses is projected to further boost the demand. Warehouse automation includes cloud technology, robots, conveyor belts, truck loading automation, and energy management. Refrigerated storage has become an integral part of the Supply Chain Management (SCM) when it comes to transporting and storing temperature-sensitive products.

Cold storageis temperature-controlled storage space. The method is used by industries such as fisheries,aquaculture, horticulture, agriculture, processed food, and dairy. Cold storage systems and refrigerated transportation facilities, which connect the farm-level storage facilities, distribution outlets, and processing units, are estimated to improve the efficiency of the supply chain and reduce wastage of agricultural products.

Bilateral free trade agreements such as the North America Free Trade Agreement (NAFTA) have created opportunities for exporters in the U.S. to increase the trading of perishable foods with no import duties. Such trade agreements are projected to work in favor of the market.

The market is likely to witness considerable growth over the forecast period, owing to a combination of factors such as technological advancements in processing, packaging, and storage of seafood products. Integrated refrigerated warehousing is poised to experience high growth over the forecast period.

Cold storage is an integral part of supply chain management and transportation and storage of temperature-sensitive products. Growing trade of perishable products is expected to drive the market growth. Industry players are increasingly adopting alternative energy solutions, such as wind and solar energy, to minimize the overall operating costs.

ReportScope of the North America Cold Storage Market

COVID-19 Impact Analysis

COVID-19 that originated in China soon shifted from China to Europe and then consequently to North America, making the U.S. one of the worst-hit countries globally. The outbreak of COVID-19 and its exponential rise across the borders forced the governments worldwide to impose stringent lockdown and travel restrictions, impacting the supply chains of businesses. Consequently, the North America cold storage market witnessed a decline in the first three quarters of 2020. Thereafter, imminent need to develop vaccines and preventive medicines helped cold storage market in North America to rebound in the concluding quarter of 2020.

Warehouse Type Insights

The public warehouse segment led the market and accounted for more than 77% share of the regional revenue in 2021. It is anticipated to continue its dominance throughout the forecast period. Public warehouses provide duty-paid facilities and can be owned by an individual or an agency. A public warehouse offers various services such as storage, handling, and transportation for a variable or fixed fee and is operated as an independent business.

Private warehouses offer several benefits such as the ability to make independent decisions about the overall activities and priorities of the warehouse and managing the cost and flexibility of business. However, given the high costs associated with construction and maintenance of these facilities, development of private warehouses is limited to only big companies, who can afford the operating costs associated with refrigerated warehouse facilities.

Construction Type Insights

The production stores segment led the market and accounted for more than 50% share of the regional revenue in 2021. The bulk storage segment is estimated to register healthy growth during the forecast period. The growth of the segment is attributed to its suitability and preference for storing fruits, vegetables, flour, cooking ingredients, and canned goods for a long time without any spoilage.

The number of warehouses constructed at ports is projected to increase significantly over the coming years. These warehouses can simplify the custom procedures related to import and export of temperature-controlled products.

From the construction perspective, the renovation of refrigerated warehouse facilities includes cleanable surfaces, maintenance-free floors, and solar energy for applications such as lighting. From the manufacturing standpoint, companies are looking to upgrade the existing refrigerated equipment or incorporating new ones that comply with the safety standards of the Global Food Safety Initiative (GFSI) and Food Safety Modernization Act (FSMA).

Temperature Type Insights

Based on the temperature type, the market has been segmented into chilled and frozen. The frozen segment led the market and accounted for more than 82% share of the regional revenue in 2021. Increasing awareness of hygiene and convenience, which is shifting consumer preferences toward ready-to-eat and cook meals, is supplementing the growth of the frozen product segment. Moreover, frozen food is highly preferred due to its convenience of microwave cooking and innovative packaging. These factors are likely to support the growth of the market over the forecast period.

With the evolution of consumer behavior, focus on sustainability and security, and rising labor costs, the market is witnessing various trends impacting the construction of cold storage. Rather than building new facilities, service providers operating in the region are renovating, upgrading, and replacing the existing cold storage buildings with new equipment and technology to keep up with the dynamic industry demands.

Application Insights

The fish, meat and seafood segment led the market and accounted for more than 37% share of the regional revenue in 2021. The processed food segment is expected to exhibit the highest CAGR over the forecast period owing to continuous innovations in packaging materials. Advancements in packaging materials increase the shelf life of the food, which has increased the trading of processed foods over the past years.

Spiraling demand for cold storage systems from the pharmaceutical segment can be attributed to their importance in maintaining the efficacy and safety of pharmaceuticals. Storing life science products at controlled room temperature can be a complex and costly process. These products require proper transit conditions to ensure their quality.

Cold storage has become a lucrative investment opportunity for real estate and private equity firms as these firms understand the dynamics of leasing business. Moreover, refrigerated warehouse facilities benefit from less elastic demand as the demand for food and pharmaceutical products remains unchanged regardless of a country’s economic condition.

Country Insights

The U.S. segment led the market and accounted for more than 73% share of the regional revenue in 2021. Rising investments in automation of material handling equipment are anticipated to fuel the demand for the product in the U.S. Material handling assists in storage, protection, and control of products in the supply chain. The application of cold storage in material handling has led to significant improvements and investments over the past few years in the U.S.

The growth of the market in Mexico is supported by government initiatives for enhanced national infrastructure and rising exports, which are encouraging market players to expand their capacities in the country. The refrigerated capacity of the country has grown by 27% from 2008 to 2014. Additionally, key industry players such as Bajo Cero Frigorificos and Castelo Cold Storage Fruvemex Mexicali SA de CV have started expanding their cold storage capacity to fulfill the growing demand.

Cold storage operators are utilizing ammonia and CO2-based refrigeration systems to minimize the risk of contamination and personal safety. As a result, real-estate companies operating in the U.S., Canada, and Mexico are enhancing their performance by focusing on trends that have a high impact on the overall market.

Key Companies & Market Share Insights

Cold storage operators are constantly upgrading their technology to stay ahead in the competition and ensure efficiency, integrity, and safety. Despite high initial investments for automating warehouses, factors such as reduced labor and operational costs, improved productivity, fewer warehouses’ accidents, and improved order accuracy help in decreasing the overall cost. Some of the key players operating in the North America cold storage market are:

• Americold Logistics LLC
• Burris Logistics, Inc.
• Cloverleaf Cold Storage Company
• Lineage Logistics
• VersaCold Logistics Services
• Henningsen Cold Storage Company

Some of the prominent players in the North America Cold Storage Market include:

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at North America for the period of 2017 to 2030

• By Warehouse Type

• Private & semi-private
• Public
• By Construction Type
• Bulk storage
• Production stores
• Ports
• By Temperature Type
• Chilled
• Frozen
• By Application
• Fruits & vegetables
• Dairy
• Fish, meat & seafood
• Processed food
• Pharmaceuticals
• By Regional
• North America

• U.S.
• Canada
• Mexico

Key Points Covered in North America Cold Storage Market Study:

• Growth of North America Cold Storage in 2022
• Market Estimates and Forecasts (2017-2030)
• Brand Share and Market Share Analysis
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise
• Competition Mapping and Benchmarking
• Recommendation on Key Winning Strategies
• COVID-19 Impact on Demand for North America Cold Storage and How to Navigate
• Key Product Innovations and Regulatory Climate
• North America Cold Storage Consumption Analysis
• North America Cold Storage Production Analysis
• North America Cold Storage and Management