The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global cold storage market size is anticipated to reach USD 212.54 billion by 2025 expanding at a CAGR of 12.2%, according to a new report by Grand View Research, Inc. The retail sector in emerging economies, such as India and China, is getting more organized and this trend is expected to augment the demand for cold storage over the forecast period. Government policies to deregulate the entry of foreign companies have increased the Foreign Direct Investment (FDI) in the retail sectors of such regions.
Organized retail stores use better refrigeration and improved storage technology than the traditional stores. Thus, consumers are increasingly purchasing frozen foods from these retail stores. With the increased demand for chilled and frozen foods and rapidly expanding of the organized retail sector, the demand for the cold storage solutions is expected to grow over the projected period. The organized retail supports different outlet formats depending on spending power and proximity from major residential and consumption clusters.
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The offline mode of the organized retailing is categorized into convenience stores, supermarkets, and hypermarkets based on the product range and surface coverage. On the other hand, lack of power hook-ups for reefer trailers at transportation hubs and ports coupled with the lack of reliable power supply for cold warehouses further increases the operation costs.
However, this also offers opportunities for companies to develop unique solutions or leverage alternative energy sources that can overcome these issues in emerging markets. Furthermore, new transportation means, such as versatile refrigerated containers, are being developed to overcome the lack of adequate transportation facility. These solutions can provide access to international markets and offer opportunities for farmers and small-scale businesses in these regions.
Further Key findings from the study suggest:
- Factors, such as environmental auditing and construction of low-carbon buildings and energy-efficient cold storage warehouses, are anticipated to drive the market in the years to come
- Rising consumer preference for private labels will contribute to the growth of food retail chains across the globe, thereby augmenting the demand for cold storage solutions
- The frozen temperature type segment is anticipated to register a CAGR of 11.2% from 2019 to 2025 due to significant changes in living standards and food consumption behaviour of consumers
- The processed food application segment is anticipated to witness the highest growth rate over the projected period
- The cold storage market in Japan is increasingly becoming saturated, thus, the operators in the country would be looking for opportunities to increase the international trade
- Key companies in the market include Barloworld Limited (South Africa); VersaCold Logistics Services (Canada), Cloverleaf Cold Storage (U.S.), and Henningsen Cold Storage (U.S.)