U.S. Cold Storage Market: Frozen Segment Accounted For The Largest Share
U.S. Cold Storage Industry Overview
The U.S. cold storage market size is estimated to reach USD 66.74 billion by 2030, expanding at a CAGR of 9.2% over the forecast period, according to the new research conducted by Grand View Research, Inc. The U.S. is widely regarded as one of the leading markets in developing technologies responsible for the effective management of cold storage processes. The pharmaceutical industry is expected to offer growth opportunities to the market. Inventory management of pharmaceutical goods, such as vaccines and medicines, is an expensive process that necessitates adequate security measures to maintain product quality. Advanced cold storage technologies that offer beneficial features, such as advanced refrigeration technologies and monitoring and tracking systems of various products like fruits and vegetables, significantly mitigate the possibility of wastage of temperature-sensitive goods.
The market growth is profoundly influenced by the massive demand for perishable goods worldwide along with the availability of food and health supplies, and economic & political scenarios. For instance, trade conflicts between the U.S. and China are expected to impact the growth negatively. In March 2018, the U.S. imposed a 25% tariff on steel and 10% on aluminum imported from China. China, in turn, announced a 15-25% tariff on products imported from the U.S., including pork, fruits, wine, nuts, and vegetables. These high tariffs imposed on food and agriculture products are expected to hinder the market growth.
U.S. Cold Storage Market Segmentation
Grand View Research has segmented the U.S. cold storage market based on warehouse type, construction type, temperature type, application, and state:
Based on the Warehouse Type Insights, the market is segmented into Private & Semi-private, and Public.
- The public segment dominated the market with a share of 77.46% in 2021, owing to its significant adoption among consumers for leased or short terms purposes at affordable costs. Based on the warehouse type, the market has been categorized into two segments, namely private & semi-private and public.
- Given the massive costs associated with the construction and maintenance of warehouses, only big companies can afford to own and maintain their private warehouses. However, the companies are increasingly constructing private warehouses as they offer significant benefits, such as flexibility, greater control over cost, and the ability to make decisions regarding the overall activities and priorities of the facility.
Based on the Construction Type Insights, the market is segmented into Bulk Storage, Production Stores, and Ports.
- The production stores segment held the largest revenue share in 2021 and is estimated to register the highest CAGR exceeding 11.1% from 2022 to 2030. This growth is attributed to the growing emphasis on the protection of goods, which include raw materials as well as finished food products throughout the production process in a plant.
- Constructing refrigerated warehouses near ports can help simplify the customs procedures associated with the import and export of temperature-sensitive products. Improvements in efficiency and automation have widened the gap in operating performance between older and newer cold storage facilities.
Based on the Temperature Type Insights, the market is segmented into Chilled, and Frozen.
- The frozen segment accounted for the largest share exceeding 82.27% in 2021. Increasing awareness about convenience food among individuals has led to a shift in their preference for ready-to-cook meals. Moreover, consumers are increasingly opting for frozen food owing to its support for microwave cooking and ease of use in terms of packing techniques. These trends have significantly contributed to the rise in the adoption of frozen foods, thereby leading to segment growth.
- The warehouses falling under the chilled segment maintain their storage temperature in the ranges of above -5°C. They are used to store fresh fruits & vegetables, eggs, dry fruits, milk, and dehydrated foods, among others. Meanwhile, the warehouses falling under this segment maintain their temperature in the range from -10 to -20°F. They are used to store frozen vegetables, fish, meat, seafood, and other products.
Based on the Application Insights, the market is segmented into Fruits & Vegetables, Dairy, Fish, Meat & Seafood, Processed Food, and Pharmaceuticals.
- The pharmaceutical segment is projected to witness significant growth from 2022 to 2030. Pharmaceutical and biotechnology supply chains are prone to risks associated with product adulteration during transport. Therefore, the need for storing such medicines has notably boosted the growth of the segment. Stringent federal regulations, standards, and guidelines which are favorable for the safe storage and transport of pharmaceuticals have also resulted in segment growth.
- The processed food segment is expected to witness the highest CAGR over the forecast period owing to the continued improvements in food packaging materials. However, the growing incidence of food and pharmaceutical counterfeiting has resulted in the introduction of stringent government regulations regarding production and supply chains.
Key Companies Profile & Market Share Insights
The key industry players engage in implementing several recent developments, such as setting up new facilities to offer avenues for increased profitability through improved customer relationships. Along with this, the companies are actively focused on expansion through mergers and acquisitions. For instance, Americold acquired Cloverleaf Cold Storage, Lanier Cold Storage, Portfresh Logistics, Zero Mountain Cold Storage Warehousing, and Zero Mountain Transportation Logistics in the past few years. As such, the companies are staying ahead of the competition through acquisitions and geographic expansions. Some prominent players in the U.S. cold storage market include:
- Americold
- AGRO Merchants Group North America
- Burris Logistics
- Henningsen Cold Storage Co.
- Lineage Logistics Holdings, LLC
- Nordic Logistics
- Preferred Freezer Services
- VersaCold Logistics Services
- United States Cold Storage
- Wabash National Corporation
Order a free sample PDF of the U.S. 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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Grand View Research, Inc.
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