Cold Storage Market Size to Hit Around USD 392.16 Bn by 2032

The cold storage market size was valued at USD 148.94 billion in 2023 and is expected to reach USD 392.16 billion by 2032, growing at a CAGR of 11.36% from 2023 to 2032.

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Key Takeaways

North America contributed more than 36% of revenue share in 2022.
Asia Pacific is estimated to expand the fastest CAGR between 2023 and 2032.
By Warehouse Type, the private segment has held the largest market share of 64% in 2022.
By Warehouse Type, the public segment is anticipated to grow at a remarkable CAGR of 12.04% between 2023 and 2032.
By Temperature Type, the frozen segment generated over 76% of revenue share in 2022.
By Application, the fish, meat, and seafood segment had the largest market share of 32% in 2022.
By Application, the dairy segment is expected to expand at the fastest CAGR of 12.35% over the projected period.

The globalization has resulted in the increased trade of goods across the globe owing to the liberalization. This resulted in the international trade of various food items such as fish, meat, eggs, and dairy products. The rising demand for the food products particularly animal based protein such as milk, cheese, meat, and eggs is driving the demand for the cold storage across the globe. The cold storage facilitates in the distribution and storage of perishable products by extending its life and preventing the food from bacteria spoilage.

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Furthermore, the growing penetration of the organized retail sectors is expected to boost the demand for the cold storages significantly during the forecast period. The giant retailers like Walmart, D Mart, Tesco, and 7 Eleven deals in huge volume of food products. The cold storages are an essential part of these food retailers. Moreover, these huge retailers are expanding their operations and are demanding cold storages to deliver their food products to the end consumers. Therefore, the global cold storage market is estimated to grow rapidly during the forecast period. The rising initiatives by the government to develop a good infrastructure for the smooth functioning of the transport system that spurs the growth of the supply chain management industry is another growth driver for the cold storage market.

North America was the market leader in 2020. North America is characterized by huge demand for the frozen food. The increased disposable income, busy and hectic schedules, increased demand for the convenient foods, rising demand for the animal based proteins, and increased penetration of the organized retail sector are the various factors that fostered the cold storage market in North America.

Asia Pacific is estimated to be the most opportunistic market during the forecast period. The Asia Pacific region is characterized by the huge and rising population, rising employment, growing demand for ready-to-cook and ready-to-eat food products, and huge demand for the dairy products like milk. All these factors are expected to drive the demand for the cold storages in the region. The rising investments by the giant retailers like supermarkets and hypermarkets in the region to expand in this region is further expected to fuel the demand for the cold storages.

However, the increased costs of the cold storages and lack of adequate infrastructure in the underdeveloped regions may hamper the growth of the cold storage market during the forecast period. Further the under-penetration of organized retail sector in the underdeveloped market is a major reason behind the insignificant growth of the market.

The rapidly growing foodservice industry and the constant launches of new food products is significantly spurring the growth of the market. The various foodservice units like restaurants and cafes require cold storages to keep the supply of food products like fruits, meats, and vegetables undisturbed.

Report Scope of the Cold Storage Market

Report Highlights	Details
Market Size in 2023	USD 148.94 Billion
Market Size by 2032	USD 392.16 Billion
Growth Rate from 2023 to 2032	CAGR of 11.36%
Largest Market	North America
Fastest Growing Market	Asia Pacific
Base Year	2022
Forecast Period	2023 to 2032
Segments Covered	Warehouse, Temperature, Construction, Application, Region

Based on the warehouse type, the private segment is expected to be the fastest-growing segment during the forecast period. This can be attributed to the rising investments by the retail giants like Walmart to build a warehouse facility in order to expand its stores at various locations. The growing number of stores of various retailers is ramping up the investments in building new private warehouses, which in turn is significantly boosting the demand for the cold storage systems.

Based on the temperature type, the frozen segment dominated the cold storage market in 2020. The huge demand for the frozen food is the primary reason behind it. The busy and hectic schedule of the consumers resulted in the increased demand for the frozen food. The growing demand for ready-to-cook and other convenience foods is driving the growth of this segment. The Asia Pacific is the most lucrative market for the frozen foods and the demand for the cold storages is expected to grow rapidly in this developing region.

Based on the application, the dairy segment dominated the global cold storage market in 2020. The huge demand for the various dairy products such as milk, cheese, and butter had augmented the growth of this segment across the globe. The rising consumption with the growing population is estimated to drive the segment growth during the forecast period. Moreover, the increasing health consciousness among the population is fueling the demand for the dairy products for its nutritional benefits is expected to drive the segment growth.

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.