The global Cold Storage Market size is expected to reach USD 291.30 billion by 2028, according to a new study conducted by Grand View Research, Inc. It is projected to expand at a CAGR of 13.5% from 2021 to 2028. The retail sector in emerging economies, such as India and China, is getting more organized and this trend is expected to augment the demand for cold storage over the forecast period. Government policies to deregulate the entry of foreign companies have increased the Foreign Direct Investment (FDI) in the retail sectors of such regions.
Organized retail stores use better refrigeration and improved storage technology than traditional stores. Thus, consumers are increasingly purchasing frozen foods from these retail stores. With the increased demand for chilled and frozen foods and the rapidly expanding of the organized retail sector, the demand for cold storage solutions is expected to grow over the projected period. The organized retail supports different outlet formats depending on spending power and proximity from major residential and consumption clusters.
The offline mode of organized retailing is categorized into convenience stores, supermarkets, and hypermarkets based on the product range and surface coverage. On the other hand, the lack of power hook-ups for reefer trailers at transportation hubs and ports coupled with the lack of reliable power supply for cold warehouses further increases the operating costs.
However, this also offers opportunities for companies to develop unique solutions or leverage alternative energy sources that can overcome these issues in emerging markets. Furthermore, new transportation means, such as versatile refrigerated containers, are being developed to overcome the lack of adequate transportation facilities. These solutions can provide access to international markets and offer opportunities for farmers and small-scale businesses in these regions.
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Cold Storage Market Report Highlights
- Low carbon design, environmental auditing, and construction of energy-efficient cold storage warehouses are the factors anticipated to fuel the demand for cold storage
- Growing supermarket shopping culture and rising consumer preference towards private labels are the key factors for the expansion of food retail chains across the globe
- The frozen segment is anticipated to expand at a CAGR of 12.5%. The growth is attributed to the significant changes in living standards and food consumption behavior of consumers
- The processed food application is anticipated to witness a high CAGR of 16.7% over the projected period
- Having realized that the market for cold storage in Japan is increasingly being saturated, the cold storage operators in the country would be looking for opportunities to increase the international trade
- The key market players include Barloworld Limited (South Africa), VersaCold Logistics Services (Canada), Cloverleaf Cold Storage (U.S.), and Henningsen Cold Storage (U.S.)