USD 38.02 billion
Report ID:
SQMIC30I2397 |
Region:
Country |
Published Date: April, 2024
Pages:
198
|Tables:
60
|Figures:
75
U.S. Cold Storage Market size was valued at USD 38.02 billion in 2022 and is poised to grow from USD 43.15 billion in 2023 to USD 118.84 billion by 2031, at a CAGR of 13.5% during the forecast period (2024-2031).
The U.S. Cold Storage Market is a highly dynamic industry that deals with the storage and distribution of temperature-sensitive products such as food, pharmaceuticals, and chemicals. The purpose of this market is to ensure that these products are preserved and delivered to customers in the best possible condition. However, the market is not without its restraints. One of the major challenges faced by this industry is the high capital investment required to establish cold storage facilities. Additionally, the high operating costs and stringent regulations related to food safety and hygiene are also hindering the growth of the market. Despite these challenges, the U.S. Cold Storage Market is witnessing several key trends that are driving its growth. One such trend is the increasing adoption of automation and technology in the industry. This includes the use of robotics and artificial intelligence (AI) to optimize warehouse operations and improve efficiency. Another trend is the growing popularity of e-commerce and the resulting demand for faster delivery times. As a result, companies in the cold storage industry are investing in last-mile delivery solutions and expanding their reach to remote areas. The U.S. Cold Storage Market presents a plethora of opportunities for growth and expansion. With the increasing demand for temperature-controlled logistics, companies can capitalize on this trend and expand their operations to new geographies. Additionally, the rise of food delivery services and online grocery platforms is creating new avenues for growth in the industry.
U.S. Cold Storage Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 38.02 billion
Largest Segment
Frozen
Fastest Growth
Chilled
Growth Rate
13.5% CAGR
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U.S. Cold Storage Market is segmented on the basis of warehouse type, temperature type, and region. By warehouse type, the market is segmented into private & semi-private, and public. By temperature type, the market is segmented into chilled and frozen. By region, the market is segmented into the West, Midwest, Northeast, Southeast, and Southwest.
U.S. Cold Storage Market Analysis By Warehouse Type
In 2021, the public segment dominated the U.S. cold storage market. This is mainly due to its popularity among consumers who prefer to lease or use short-term cold storage solutions at affordable prices. Public warehouses, also known as duty-paid warehouses, are operated by third-party providers who offer services such as warehousing, handling, and transportation for a fixed or variable fee.
The private and semi-private segment is expected to grow at a notable CAGR of 11.1% from 2023 to 2030, reflecting the growing demand for private cold storage solutions in the U.S. market. The cost of constructing and maintaining warehouses is significant, making it difficult for smaller companies to own and maintain private warehouses. However, more and more companies are investing in private warehouses as they offer benefits such as greater flexibility, cost control, and the ability to make decisions regarding facility activities and priorities. With increased international trade and consumer spending, cold storage operating profits have risen significantly in the past five years. Additionally, low-interest rates have made it possible for operators to finance new constructions.
U.S. Cold Storage Market Analysis By Temperature Type
In 2021, the frozen segment dominated the US cold storage market, accounting for more than 81%. The growing awareness and demand for convenience foods have resulted in an increased preference for ready-to-cook meals. Additionally, frozen foods are preferred due to their microwave cooking support and ease of packing techniques. These factors have contributed significantly to the rise in the adoption of frozen foods, leading to the growth of this market segment.
The chilled segment is expected to witness a significant shift in growth in the coming years. The chilled segment maintains storage temperatures above -5°C and is used to store fresh fruits and vegetables, eggs, milk, dry fruits, and dehydrated foods, among others. In contrast, the frozen segment maintains temperatures in the range of -10 to -20°F and is used to store frozen vegetables, fish, meat, seafood, and other products.
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The U.S. cold storage market is divided into several regions, each with its own unique characteristics and market drivers. California, with its significant share of cold storage facilities, dominated the market, holding the largest share in terms of revenue in 2021. The state's large population and the high demand for cold storage facilities are significant factors that contribute to California's dominance in the market. In 2021, California had 400 million cubic feet of cold storage space, catering to a vast user base. Moreover, all facilities in the state are regulated by the California Department of Public Health, Food, and Drug Branch, which ensures the maintenance of high-quality standards.
In terms of the fastest-growing region, North Carolina and South Carolina are expected to witness a CAGR of over 15.2% and 14.7%, respectively, from 2022 to 2030. These regions are experiencing rapid growth due to the development of transportation facilities, technological advancements, and increased adoption of frozen foods. The high growth rate can also be attributed to the favorable business environment in these regions, such as low taxes and relaxed regulations. As a result, many cold storage companies are finding lucrative opportunities in North Carolina and South Carolina, leading to market growth in these regions.
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U.S. Cold Storage Market Drivers
Growth in E-Commerce and Home Delivery
Increase in Demand for Frozen and Chilled Foods
U.S. Cold Storage Market Restraints
High Capital Investment
Energy Consumption
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The U.S. Cold Storage Market is a mature and highly competitive market, driven by the increasing demand for frozen and refrigerated food products, including meat, dairy, seafood, and fruits and vegetables. The market is characterized by the presence of several large players, as well as small and medium-sized companies operating in the market. Some of the key players in the U.S. cold storage market are focusing on expanding their geographic presence, enhancing their service offerings, and investing in new technologies and automation to remain competitive in the market. They are also adopting strategies such as mergers and acquisitions, partnerships, and collaborations to strengthen their market position and gain a competitive advantage. Moreover, sustainability and environmental concerns have become a major focus for players in the cold storage market, with many companies implementing green initiatives, such as using renewable energy sources, reducing greenhouse gas emissions, and implementing recycling programs.
U.S. Cold Storage Market Top Player’s Company Profiles
U.S. Cold Storage Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our U.S. Cold Storage Market analysis, the market is expected to grow significantly in the coming years, driven by the increasing demand for temperature-controlled storage and logistics services in various industries, including food and beverage, pharmaceuticals, and chemicals. Factors such as the growing population, changing consumer preferences, and the rise of e-commerce are also contributing to the market's growth. Additionally, technological advancements such as the development of automated storage and retrieval systems, real-time monitoring and tracking, and data analytics are helping to improve efficiency and reduce costs for cold storage providers. However, the market is also facing challenges such as rising energy costs, strict regulatory requirements, and the shortage of skilled workers, which could impact its growth in the future. Overall, the U.S. cold storage market is expected to remain highly competitive, with leading companies investing in expansion, innovation, and strategic partnerships to maintain their market position and meet the evolving needs of customers.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 38.02 billion |
Market size value in 2031 | USD 118.84 billion |
Growth Rate | 13.5% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the U.S. Cold Storage Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the U.S. Cold Storage Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the U.S. Cold Storage Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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Report ID: SQMIC30I2397