Market research, 28 August 2024
The cold storage market is estimated to grow at a CAGR of 13.47% between 2022 and 2027. The size of the market is forecast to increase by USD 118.3 billion. The growth of the market depends on serval factors, including the rising awareness about reducing wastage of food, the growing consumption of frozen food, and compliance with regulations.
This report extensively covers market segmentation by end-user (meat and seafood, fruits and vegetables, bakery and confectionery, dairy and frozen products, and others), type (private, semi-private, and public), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The rising awareness about reducing the wastage of food is the key factor driving the global chilled storage market. Food waste is a major problem worldwide. Most of the food waste is due to the lack of proper storage facilities. In addition, more than 700 million people worldwide do not have enough food to eat. Typically, perishable foods move through the supply chain at different temperatures, which sometimes leads to food spoilage and waste. To solve this problem, the Chinese government is focusing on solutions to reduce food waste and extend the shelf life of perishable foods.
The global population is expected to grow rapidly, which is expected to increase the demand for food and increase the focus on reducing food wastage. There is a need for better storage worldwide, owing to global population growth and high food wastage; the storage will aid in tackling the problem of food insecurity as it offers a stable environment for food products throughout the supply chain. Thus, the growing awareness of reducing food wastage will increase the demand for storage facilities, which in turn will propel the growth of the market in focus during the forecast period.
The use of fuel cell-based forklifts in refrigerated warehousing to increase productivity and save space is the primary trend in the global chilled storage market. Fuel cell-based forklifts use hydrogen in an electrochemical reaction to produce non-burning energy, with electricity, heat, and water as by-products. This fuel cell-based technology is finding its way into various applications such as strollers. One of the great advantages of using fuel cell-based forklifts is that they work optimally even at low temperatures of storage.
In addition, the use of fuel cell-based technology can help warehouse operators save high-value space in warehouses, which is generally occupied by battery charging stations and batteries. For instance, when compared with conventional fuel-based and battery-powered infrastructure, fuel cell-based infrastructure occupies over 60% less space. Changing the battery in a forklift requires around 10-20 minutes, whereas hydrogen refueling in a fuel cell-based forklift takes around five minutes. Thus, such trends will positively impact the growth of the global storage market during the forecast period.
Seasonal demand for refrigerated products leads to capacity-related issues is a major challenge to the global chilled storage market. Seasonal demand for cold products such as ice cream, which are typically consumed during summer or hot seasons, increases the need for cold chain solutions such as storage to store products during those times. However, if the demand for these products decreases in the winter or cold season, the need for cold solutions also decreases. Therefore, the income of suppliers of cold solutions varies from season to season, which is a challenge for the seller.
The refrigerated storage of fresh produce is dependent on the harvest season. During the harvest season, which usually is around October-November every year, the harvest of fresh agricultural products such as corn is high. After the harvest season is over, the amount of corn that requires storage falls, thus lowering the occupancy rates and revenues for operators of refrigerated warehouses and market vendors. such issues will hamper the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market share growth by the meat and seafood segment will be significant during the forecast period. The meat and seafood segment is the largest segment of the market in 2022 and will continue to remain the largest segment during the forecast period. Meat and seafood are highly nutritious food when their quality is preserved. However, the shelf life of such foods is limited, and hence, they require refrigeration to retain their quality. The use of cold chains helps retain the quality and nutrition of such foods. Meat and seafood have different temperature requirements for storage in a cold chain process. Such factors will increase segment growth during the forecast period.
The meat and seafood segment was valued at USD 14.39 billion in 2017 and continue to grow by 2021. The growing focus on health and nutrition in the food and beverage industry has contributed to the rise in demand for frozen meat in recent years. Many urban consumers prefer frozen processed meat, as it is easy to prepare and saves time compared with freshly cut meat. Popular frozen meats include beef, pork, and mutton. Major processors and marketers of meats, such as JBS SA and Tyson Foods Inc., offer frozen meats, mainly for export purposes. This will also encourage various enterprises to launch new ranges of frozen food. Hence, the growth in demand for frozen meat and seafood is expected to increase the adoption of the storage, which is likely to boost the growth of the market through the meat and seafood segment during the forecast period.
As APACs healthcare systems mature, the demand for the latest biopharmaceutical medicines is soaring. However, as most of the drugs, such as the COVID-19 vaccines, are temperature-sensitive, reliable storage services are critical to effectively distributing biopharmaceutical medicines across the region. While biopharmaceutical treatment rates in Asia are still relatively lower than in the US and Europe, the gap may narrow over time. The increased demand for medicines and PPE generated by the COVID-19 outbreak is a key factor driving the growth of the storage market for pharmaceuticals in the region during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
