North America Cold Storage Industry Overview
The North America cold storage market size is expected to reach USD 86.48 Billion by 2028, according to a new study by Grand View Research, Inc. It is expected to expand at a CAGR of 10.7% from 2021 to 2028. Technological advancements in cold storage warehouses are stimulating the growth of the market. Increasing automation is changing the conventional warehouse operations, enabling companies to maximize their output. Growing penetration of robotics applications, automated material handling equipment, and high-speed conveyor systems help in achieving the order accuracy.
Rising awareness concerning the low ozone depletion potential (ODP) and low global warming potential (GWP) refrigerants to tackle environmental and social facets along with increasing demand for energy-efficient natural refrigerants are the key factors driving the market. Inorganic refrigerants such as ammonia, CO2, and hydrocarbon-based refrigerants are the most popular natural refrigerants that are being increasingly preferred by end users for their energy efficiency, low cost, and low GDP & ODP.
High running costs, capital investment, and scalability of different picking methods are the key factors restraining the market over the projected period. Additionally, advanced automation, software system, and high-tech advancements in tracking systems and warehousing have led to high requirements for skilled labor. Dearth of skilled labor can restrict the market from realizing its utmost potential.
Compared to other revenue-generation streams for real-estate firms, the North America cold storage construction market is smaller in size. From the owner's perspective, potential developers and real-estate firms may want to consider investing in cold storage facilities owing to their growing population in the region. Furthermore, there will be a bidding war among investors to acquire Class A (high-quality or newly-constructed building located in central business areas and draws the highest rent) traditional warehouse space in the U.S. and Canada. To avoid such situation, real-estate firms can invest in developing a class B (older than class A buildings and draws less rent compared to class A) warehouse as the cold storage facility.
Key companies operating in the market are Lineage Logistics; Americold Logistics LLC; Burris Logistics, Inc.; Cloverleaf Cold Storage Company; and VersaCold Logistics Services. In addition to cold storage services, market players are providing value-added activities such as food processing and harvesting to increase the product life of fresh foods.
North America Cold Storage Market Segmentation
Grand View Research has segmented the North America Cold Storage Market on the basis of warehouse type, temperature type, construction type, application, and region
Based on the Warehouse Type Insights, the market is segmented into Private & semi-private, and Public.
- The public warehouse segment led the market and accounted for more than 76% share of the regional revenue in 2020. It is anticipated to continue its dominance throughout the forecast period. Public warehouses provide duty-paid facilities and can be owned by an individual or an agency.
- Private warehouses offer several benefits such as the ability to make independent decisions about the overall activities and priorities of the warehouse and managing the cost and flexibility of business. However, given the high costs associated with construction and maintenance of these facilities, development of private warehouses is limited to only big companies, who can afford the operating costs associated with refrigerated warehouse facilities.
Based on the Construction Type Insights, the market is segmented into Bulk storage, Production stores, and Ports.
- The production stores segment led the market and accounted for more than 49% share of the regional revenue in 2020. The bulk storage segment is estimated to register healthy growth during the forecast period. The growth of the segment is attributed to its suitability and preference for storing fruits, vegetables, flour, cooking ingredients, and canned goods for a long time without any spoilage.
- The number of warehouses constructed at ports is projected to increase significantly over the coming years. These warehouses can simplify the custom procedures related to import and export of temperature-controlled products.
Based on the Temperature Type Insights, the market is segmented into Chilled, and Frozen.
- The frozen segment led the market and accounted for more than 81% share of the regional revenue in 2020. Increasing awareness of hygiene and convenience, which is shifting consumer preferences toward ready-to-eat and cook meals, is supplementing the growth of the frozen product segment. Moreover, frozen food is highly preferred due to its convenience of microwave cooking and innovative packaging. These factors are likely to support the growth of the market over the forecast period.
- With the evolution of consumer behavior, focus on sustainability and security, and rising labor costs, the market is witnessing various trends impacting the construction of cold storage. Rather than building new facilities, service providers operating in the region are renovating, upgrading, and replacing the existing cold storage buildings with new equipment and technology to keep up with the dynamic industry demands.
Based on the Application Insights, the market is segmented into Fruits & vegetables, Dairy, Fish, meat & seafood, Processed food, and Pharmaceuticals.
- The fish, meat and seafood segment led the market and accounted for more than 36% share of the regional revenue in 2020. The processed food segment is expected to exhibit the highest CAGR over the forecast period owing to continuous innovations in packaging materials. Advancements in packaging materials increase the shelf life of the food, which has increased the trading of processed foods over the past years.
- Cold storage has become a lucrative investment opportunity for real estate and private equity firms as these firms understand the dynamics of leasing business. Moreover, refrigerated warehouse facilities benefit from less elastic demand as the demand for food and pharmaceutical products remains unchanged regardless of a country's economic condition.
Key Companies & Market Share Insights
Cold storage operators are constantly upgrading their technology to stay ahead in the competition and ensure efficiency, integrity, and safety. Despite high initial investments for automating warehouses, factors such as reduced labor and operational costs, improved productivity, fewer warehouses' accidents, and improved order accuracy help in decreasing the overall cost. Some of the key players operating in the North America cold storage market are:
- Americold Logistics LLC
- Burris Logistics, Inc.
- Cloverleaf Cold Storage Company
- Lineage Logistics
- VersaCold Logistics Services
- Henningsen Cold Storage Company
Order a free sample PDF of the North America Cold Storage Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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