Originally published on Technavio:Analysis of the Cold Storage Market in APAC, North America, Europe, Middle East, and Africa, South America - Covering US, China, India, Japan, and UK - Projected Size and Forecast for 2024-2028

The forecasted growth of the cold storage market indicates an increase of USD 145.71 billion, with a Compound Annual Growth Rate (CAGR) of 13.83% between 2023 and 2028. The market's expansion relies on factors such as heightened awareness about food waste reduction, increased consumption of frozen food, and compliance with storage and transportation regulations. Cold storage facilities play a crucial role in extending the shelf life of perishable items like fruits, vegetables, meat, and dairy products. Advancements in refrigeration systems and warehouse management software have further enhanced the efficiency and effectiveness of cold storage operations.

This market report furnishes data on market size, historical records from 2018 to 2022, and future projections, all expressed in terms of value in USD billion for the specified segments.

Anticipated Market Size During the Forecast Period
Cold Storage Market Size

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Key Drivers, Trends, and Challenges
The data analysis, with 2023 as the base year, delves into key drivers, trends, and challenges. A comprehensive analysis of drivers assists companies in refining their marketing strategies for a competitive advantage.

Key Driver
A significant factor propelling market growth is the increasing awareness of food waste reduction. Globally, food waste is a major issue, primarily attributed to the absence of proper freezing storage facilities. Perishable food products often traverse varying temperatures across the supply chain, leading to spoilage and waste. The expected steady rise in the global population is anticipated to amplify the demand for food, intensifying the focus on reducing food wastage. As a result, there is a growing need for improved storage facilities worldwide. Cold warehouses play a crucial role in addressing food insecurity, providing a stable environment for food products throughout the supply chain. The heightened awareness of reducing food wastage is expected to drive the demand for cold warehouse facilities, consequently fueling market growth during the forecast period.

Market Trends and Analysis
The adoption of fuel cell-based forklifts in refrigerated warehousing emerges as a primary trend shaping market growth. These forklifts utilize hydrogen in an electrochemical process, generating combustion-free energy that yields electricity, heat, and water. Notably, this technology is gaining traction in applications such as forklifts, particularly for its efficiency in low-temperature settings like refrigerated warehouses. The use of fuel cell-based technology enables warehouse operators to save valuable space that would otherwise be occupied by battery charging stations and batteries.

Moreover, the quick refueling time of around five minutes for hydrogen in fuel cell-based forklifts, in contrast to the 10-20 minutes needed for battery replacement, leads to substantial productivity savings. Assuming a standard three-shift operation of 8-10-hour shifts, this translates to over 120 hours per forklift. Such factors are expected to drive market growth during the forecast period.

Major Challenge
A challenge affecting market growth is the seasonal demand for refrigerated products. Products like ice cream, primarily consumed during summer or hot seasons, lead to increased demand for cold chain solutions, including storage. However, if demand for such products decreases in colder seasons, the need for cold solutions also diminishes. Consequently, suppliers of cold solutions experience varying incomes from season to season, posing a challenge for sellers.

Additionally, refrigerated storage for fresh produce is tied to the harvest season. During the harvest season, typically around October-November each year, the quantity of fresh agricultural products like corn is high. Post-harvest, the need for corn storage decreases, leading to lower occupancy rates and revenues for refrigerated warehouse operators. Such issues are expected to impede market growth during the forecast period.

Customer Landscape
The market research report encompasses the adoption lifecycle of the market, spanning from innovator to laggard stages. It focuses on adoption rates across different regions based on penetration. The report also includes key purchase criteria and drivers of price sensitivity to assist companies in evaluating and developing growth strategies.

Major Companies in the Cold Storage Market

Qualitative and quantitative analyses of companies are conducted to help clients understand the broader business environment and assess the strengths and weaknesses of key market players. Companies are categorized as pure play, category-focused, industry-focused, and diversified through qualitative analysis, while quantitative analysis categorizes them as dominant, leading, strong, tentative, or weak.

Market Segmentation
The meat and seafood segment are projected to witness substantial growth during the forecast period. Meat and seafood, being highly nutritious, require refrigeration to preserve their quality. The utilization of cold chains facilitates the retention of quality and nutrition in these foods. With different temperature requirements for storage in the cold chain process, the rising consumption of meat is expected to drive demand for cold chains. Furthermore, consumer preferences for convenient, healthy, and fresh frozen meat contribute to the growing demand.

Cold Storage Market Size

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The meat and seafood segment was the largest segment, valued at USD 19.11 billion in 2018. The increasing focus on health and nutrition in the food and beverage industry has led to a rise in demand for frozen meat. Popular frozen meats include beef, pork, and mutton, with major processors and marketers such as JBS SA and Tyson Foods Inc. offering frozen meats, primarily for export. This trend is expected to boost the adoption of cold storage, driving market growth through the meat and seafood segment during the forecast period.

Key Regions
Cold Storage Market Share by Geography

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APAC is estimated to contribute 52% to the global market's growth during the forecast period. Technavio’s analysts have provided detailed explanations of regional trends and drivers shaping the market in the forecast period. APAC remains the largest geographical segment, driven by the extensive presence of food and healthcare product suppliers and consumers. The rise in disposable income and the geriatric population in countries like Japan and China contribute to strong growth in healthcare expenditures. This, in turn, increases the demand for temperature-controlled healthcare products, including biopharmaceuticals, vaccines, and clinical trial materials. Such factors are expected to drive market growth in the region.

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Maintaining the quality of food products, especially in old storage industry setups, is crucial. With infrastructure tailored to refrigeration and automation for efficient handling, this sector meets the preservation needs of various industries, including agriculture, food processing, and pharmaceuticals. As economies grow, the demand for cold storage facilities rises, driven by increased fish production and the need for reliable packaging and monitoring solutions. Cost-effective operations and scalable capacity are vital considerations in the refrigerated storage industry, where facility optimization ensures optimal resource utilization. Overall, the cold storage market continues to expand to meet the evolving needs of various sectors.

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