Cold Storage Market to Grow by USD 145.71 Billion from 2024-2028, Driven by Rising Awareness of Food Waste Reduction, Report with AI-Powered Market Evolution - Technavio

NEW YORK, Nov. 11, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global cold storage market size is estimated to grow by USD 145.71 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  13.83%  during the forecast period. Rising awareness about reducing wastage of food is driving market growth, with a trend towards use of fuel cell-based forklifts in refrigerated warehousing. However, seasonal demand for refrigerated products  poses a challenge.Key market players include Americold Realty Trust Inc., Beijing Howcool Refrigeration Technology Co. Ltd., Burris Logistics Co., Changzhou Yuyan Refrigeration Equipment Co. Ltd., Coldman Logistics Pvt. Ltd., Commercial Cold Storage Group Ltd., Congebec Logistics Inc., Falcon Refrigeration Industry, Holt Logistics Corp., Indicold Pvt Ltd., Interstate Cold Storage Inc., John Swire and Sons Ltd., Lineage Logistics Holdings LLC, NewCold Cooperatief UA, Nor AM Cold Storage, RSA Global DWC LLC, Snowman Logistics Ltd., Stellar, VersaCold Logistics Services, and Nichirei Corp..

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Market Driver

Cold storage market is witnessing trends such as stricter regulations, organized retail sectors, and advancements in technology. Cloud technology, conveyor belts, and robots are being used for efficient energy management and truck-loading automation. The perishable product trade is a significant market driver, with a focus on low-carbon designs and environmental auditing. Initial investment in a cold storage facility can be high, but leading players like RSA Logistics and Nova Cold Logistics are expanding their infrastructure. The regulatory environment impacts the dairy segment, with pharmaceutical items requiring specific refrigerant usage and hybrid cooling systems. End-user concentration is high in the food and beverages sector, including frozen foods like eggs, dairy products, dry fruits, and dehydrated foods. Temperature range varies from chilled to frozen and deep-frozen, with warehouses catering to fruits and vegetables, medications, and meat production. Connected devices and AI models are preferred for monitoring and managing temperature and data assets. Preferred Freeze, Bitpanda, and Bitpanda Wealth are exploring opportunities in the private segment, while public segments cater to a wider range of perishables. The Chinese government's focus on reducing food waste and population expansion is driving the demand for more storage facilities. Warehouse managers must address food spoilage and maintain temperature ranges for various products. 

Fuel cell technology is revolutionizing the cold storage market by powering forklifts with hydrogen-generated energy. This clean energy source produces electricity, heat, and water through an electrochemical reaction, making it ideal for refrigerated warehouses where battery-powered forklifts struggle. In cold temperatures, battery-operated forklifts can only function for 30-40% of their normal operating hours. However, fuel cell-based forklifts can operate optimally even in sub-zero temperatures, offering significant advantages in terms of productivity and efficiency for cold storage businesses. 

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Market Challenges

• The cold storage market faces several challenges. Strict regulations require adherence to specific standards for food safety and energy efficiency. Organized retail sectors demand efficient inventory management through technologies like conveyor belts, robots, and energy management systems. Initial investment in infrastructure, including cold storage facilities and refrigeration systems, can be high. Perishable product trade, particularly in food and pharmaceuticals, requires low-carbon designs, environmental auditing, and temperature control. Leading players like RSA Logistics and Nova Cold Logistics face competition from both public and private segments. Temperature range varies from chilled to deep-frozen for products like dairy, eggs, dry fruits, and dehydrated foods. Energy management, refrigerant usage, and hybrid cooling systems are crucial for reducing food waste and spoilage. The Chinese government's focus on population expansion and reducing excessive food waste increases demand for cold storage facilities. Warehouse managers must navigate the regulatory environment while optimizing operations for perishables like fruits and vegetables, medications, and meat production. Emerging technologies like AI models, data assets, and data infrastructures offer opportunities for improving efficiency and reducing costs. Companies like Bitpanda and Bitpanda Wealth, family offices, and corporate treasuries invest in refrigerated warehouses and transport for food and beverages. Greenfield facilities and truck-loading automation are also key trends.
• The cold storage market experiences seasonal fluctuations due to the demand for refrigerated products. During warmer seasons, the need for cold storage solutions increases for storing ice creams and other perishable items. However, during the winter or cold season, the demand for these products decreases, resulting in lower revenue for cold storage solution providers. Additionally, the harvest season, typically around October-November, brings a high volume of fresh produce requiring refrigerated storage. Balancing supply and demand during these seasonal shifts is a key challenge for cold storage vendors.

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Segment Overview 

This cold storage market report extensively covers market segmentation by  

1. Application 
• 1.1 Meat and seafood
• 1.2 Fruits and vegetables
• 1.3 Bakery and confectionery
• 1.4 Dairy and frozen products
• 1.5 Others
2. Type 
• 2.1 Private
• 2.2 semi-private
• 2.3 Public
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Meat and seafood-  The meat and seafood segment is the largest in the global cold storage market due to the requirement for temperature-controlled storage to preserve their nutritional value and extend their shelf life. Meat and seafood have distinct temperature requirements: fresh seafood needs to be stored at 32 degrees F (0 degrees C), while frozen seafood requires 0.40 degree F (-18 degree C) or less. Cold storage facilitates these conditions, ensuring the quality and freshness of these perishable goods. The increasing consumption of meat, projected to rise by 4 kg (8.8 pounds) per capita from 2015 to 2030, necessitates cold storage to maintain freshness and prevent spoilage. Frozen meat is preferred for its convenience, health benefits, and longer shelf life. Major players like JBS SA and Tyson Foods Inc. Cater to this demand, increasing the need for cold storage infrastructure. New entrants, such as Planterra Foods, are launching frozen food lines to meet consumer preferences. Cold storage plays a crucial role in food safety by preventing pathogenic microorganisms and spoilage, making it an essential component of the food industry's growth.

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Research Analysis

The cold storage market is experiencing significant growth due to the increasing demand for preserving perishable products, particularly in the organized retail sector and convenience stores. Strict regulations imposed by governments, including the Chinese government due to population expansion, are driving the need for advanced cold storage solutions. Cloud technology, conveyor belts, and robots are being integrated into these facilities for efficient energy management and reduced food waste. Low-carbon designs are also gaining popularity to minimize the carbon footprint. The market caters to various sectors, including fish, meat, and food products, with a focus on minimizing food spoilage and extending shelf life. Warehouse managers rely on battery charging stations and forklift battery replacement to ensure uninterrupted operations.

Market Research Overview

The cold storage market is witnessing significant growth due to stricter regulations in the organized retail sector and the increasing trade of perishable products. Cloud technology, conveyor belts, robots, and energy management systems are being adopted for efficient operations. Infrastructure development, including insulation and refrigeration systems, is crucial for cold storage facilities. The market encompasses various storage types such as cold rooms, public warehouses, and refrigerated facilities. Temperature ranges vary from chilled to deep-frozen, catering to a wide range of products including fruits and vegetables, dairy items, frozen foods, and pharmaceutical products. Energy management and low-carbon designs are key considerations to reduce initial investment and environmental impact. Hybrid cooling systems and connected devices are also gaining popularity. The market is segmented into private and public segments, with the dairy industry being a significant contributor. Regulatory environment, refrigerant usage, and temperature control are key challenges. China, with its population expansion and excessive food waste, presents a significant opportunity for growth. Warehouse managers must balance food preservation and spoilage while adhering to environmental auditing standards. Innovations in AI models, data assets, and data infrastructures are transforming the industry. Emerging players like RSA Logistics, Nova Cold Logistics, and Bitpanda are making their mark in the market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Meat And Seafood
• Fruits And Vegetables
• Bakery And Confectionery
• Dairy And Frozen Products
• Others
• Type
• Private
• Semi-private
• Public
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio