Cold Storage Industry Outlook: A Snapshot
Demand for cold storage warehouse space is growing and facility owners are looking to improve efficiencies within their existing operations. Cold storage is a vital link in the global supply chain and plays an important role in dictating costs for manufacturers and consumers. Learn more about interesting cold storage industry trends and what factors will shape the future of refrigerated storage.
Industrial Storage Overview
In 2021, the global cold storage market size hit $119 billion. The North American cold storage market was a considerable driver of that market total, reaching a valuation of $42.4 billion. Experts predict an aggressive rate of growth for the industry, both in the US and beyond. Cold storage is forecasted to increase 13.4% CAGR by 2030.
Cold Storage and the Global Supply Chain
Pandemic-related issues highlighted just how lacking cold storage infrastructure is in the global supply chain. As the trade of perishable goods has grown beyond localized commerce to national and international markets, cold storage facilities, transportation, and port infrastructure has proven unreliable, especially in ports and shipping hubs.
What Is Industrial Cold Storage?
Industrial cold storage includes more than just warehouse-style refrigerated storage. It encompasses all elements of the supply chain, including temperature-controlled environments at every point of a product’s journey from production to end-use. The cold storage industry is typically broken down into three parts:
Public warehousing – Public cold storage warehousing accounts for roughly 67% of global cold storage revenue. More specifically, public warehousing is actually a combination of public (state-owned), semi-private, and private warehouses. Public warehousing is duty-based, while most private facilities are leased. In most cases, only the very largest companies can afford to build and operate their own cold storage facilities; most organizations lease space in private or public warehouses.
Production Stores – Production cold storage facilities are on-side facilities designed to house products before distribution. Some companies outsource their production stores, but most include some aspects of short-term cold storage as a part of their business’s campus.
Port Storage – Refrigerated storage facilities are crucial to ensuring a safe and reliable product for consumers. Port cold storage, and distribution cold storage in general, have been under the microscope during the supply chain challenges which have hampered companies during the COVID-19 pandemic.
Cold Storage Industry Leaders
The refrigerated storage industry has seen a period of rapid mergers and acquisitions with a focus on regional expansion. The aim is twofold; first, the expansion allows facility operators to serve customers wherever their operations are located. This improves customer retention and opens up closer partnerships between suppliers, distributors, and end-user. Second, operators are looking to enter new and emerging markets, including the Midwest and mid-sized metro markets.
The largest cold storage companies in North America include:
Cloverleaf Cold Storage (see our case study)
Agro Merchants Group
Burris Logistics
Americold Logistics
Wabash National Corporation
What’s Next: Cold Storage Industry Trends
In addition to substantial growth and a flurry of M&A activity, energy efficiency in cold storage continues to drive growth and introduce automated building systems to refrigerated environments. Single-envelope construction, a design-build strategy that lowers costs and improves energy efficiency, also allows for more flexibility in future use. Expect to see frozen food storage and deep cold storage invest aggressively to improve energy efficiency and introduce on-site renewable energy production to reduce the impact of rising energy costs.
See What Keen Technical Solutions Can Do
From single-envelope construction, budling automation, and innovative energy efficiency upgrades, we can help. Learn more about our energy consulting services and start-to-finish energy efficiency upgrades. Meet your sustainability goals and improve your bottom line; contact Keen Technical Solutions today.