North America Cold Storage Market (By Type: Storage, Transportation, Packaging, Monitoring Components; By Temperature Range; By Application; By Country) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

North America Cold Storage Market Size and Trends

The North America cold storage market size was estimated at around USD 46.55 billion in 2023 and it is projected to hit around USD 211.27 billion by 2033, growing at a CAGR of 16.33% from 2024 to 2033.

Key Pointers

• By Type, the facilities/services segment held the largest revenue share of 93% in 2023.
• By Type, the equipment segment is forecasted to experience the highest CAGR of 18.12% from 2024 to 2033.
• By Temperature Range, the frozen segment (-18°C to -25°C) generated the maximum market share of 65% in 2023.
• By Temperature Range, the chilled segment (0°C to 15°C) is expected to grow at a CAGR of 14.54% from 2024 to 2033.
• By Application, the food & beverages segment captured the maximum market share of 79% in 2023.

North America Cold Storage Market Overview

The North America cold storage market has witnessed significant growth in recent years, driven by various factors such as the increasing demand for frozen and chilled food products, advancements in refrigeration technology, and the expansion of the food retail sector.

North America Cold Storage Market Growth Factors

The growth of the North America cold storage market is propelled by various factors contributing to its expansion. One significant driver is the escalating demand for frozen and chilled food products across the region. This surge is primarily fueled by shifting consumer preferences towards convenience foods and the increasing popularity of perishable items. Moreover, continuous advancements in refrigeration technology play a pivotal role in enhancing the efficiency and reliability of cold storage facilities. Additionally, the expansion of the food retail sector, including supermarkets, hypermarkets, and online grocery platforms, further boosts the need for temperature-controlled storage infrastructure to maintain the quality and safety of perishable goods throughout the supply chain. These combined factors create a conducive environment for the sustained growth of the North America cold storage market.

North America Cold Storage Market Trends:

• Increasing Demand for Temperature-Controlled Logistics: The North America cold storage market is witnessing a surge in demand for temperature-controlled logistics solutions. This trend is driven by the growing need to maintain the quality and safety of perishable goods throughout the supply chain, particularly in the food and pharmaceutical sectors.
• Adoption of Automation and Robotics: There is a notable trend towards the adoption of automation and robotics in cold storage facilities across North America. This includes the use of automated storage and retrieval systems (AS/RS), robotic palletizing, and automated guided vehicles (AGVs) to streamline operations, improve efficiency, and reduce labor costs.
• Focus on Energy Efficiency and Sustainability: Cold storage operators in North America are increasingly prioritizing energy efficiency and sustainability initiatives. This includes investing in energy-efficient refrigeration systems, implementing renewable energy solutions, and adopting sustainable practices such as waste reduction and recycling to minimize their environmental footprint.
• Expansion of Multi-Temperature Facilities: Multi-temperature cold storage facilities, capable of storing a wide range of products at different temperature zones, are becoming increasingly prevalent in North America. This allows operators to cater to diverse customer needs and optimize storage space utilization, driving operational efficiency and flexibility.
• Rise of Cold Chain Logistics Solutions: With the growth of e-commerce and online grocery platforms, there is a rising demand for integrated cold chain logistics solutions in North America. This includes temperature-controlled transportation, last-mile delivery, and cold storage warehousing services to ensure the seamless and timely delivery of perishable goods to consumers.
• Integration of Data Analytics and IoT: The integration of data analytics and Internet of Things (IoT) technology is becoming more prevalent in cold storage operations. This enables real-time monitoring of temperature and humidity levels, predictive maintenance, and inventory optimization, leading to improved product quality, operational efficiency, and cost savings.

North America Cold Storage Market Restraints:

• High Initial Investment Costs: One of the primary restraints facing the North America cold storage market is the significant upfront investment required to establish cold storage facilities. This includes expenses related to infrastructure development, specialized equipment procurement, and installation of energy-efficient refrigeration systems, which can pose financial challenges for market entrants and small-scale operators.
• Stringent Regulatory Compliance: Compliance with stringent regulatory requirements and food safety standards presents a major challenge for cold storage operators in North America. This includes adherence to strict temperature control, sanitation, and hygiene regulations imposed by government agencies such as the Food and Drug Administration (FDA) and the Department of Agriculture (USDA), adding complexity and operational costs to cold storage operations.
• Seasonal Demand Fluctuations: The North America cold storage market experiences fluctuations in demand due to seasonal variations in consumer preferences and product availability. Peaks in demand during certain seasons, such as summer for frozen treats and holiday periods for perishable goods, can strain cold storage capacity and require operators to effectively manage inventory and resource allocation to meet customer requirements while minimizing costs during off-peak periods.
• Limited Availability of Skilled Labor: Another restraint facing the cold storage market in North America is the limited availability of skilled labor with specialized knowledge and experience in operating and maintaining cold storage facilities. This shortage of qualified personnel can hinder operational efficiency, increase labor costs, and impact overall facility performance and customer satisfaction.
• Rapid Technological Obsolescence: The rapid pace of technological advancement in refrigeration systems and cold storage solutions poses a challenge for operators in North America, as they must continually invest in upgrading their equipment and infrastructure to remain competitive and meet evolving customer demands. This can result in additional capital expenditures and operational disruptions, particularly for smaller players with limited financial resources.

Type Insights

The market is divided by type into facilities/services and equipment. In 2023, the facilities/services segment held the largest market share, accounting for over 93% of total revenue. It is projected to grow at a CAGR of 16.22% from 2024 to 2033. Within facilities/services, the cold storage industry is segmented into refrigerated warehouses and cold rooms. The refrigerated warehouses sub-segment includes private & semi-private and public warehouses, which offer customizable storage solutions tailored to clients’ needs, such as storage capacities, racking systems, and segregated zones for different products. These warehouses cater to various sectors, including pharmaceuticals and food & beverage, with companies worldwide investing in advancements to enhance their position in the refrigerated warehouse market.

Meanwhile, the equipment segment is forecasted to experience the highest CAGR of 18.12% from 2024 to 2033. This growth is driven by factors like changing food preferences, evolving lifestyles, and the rise of online food delivery services, which boost the demand for frozen food products. Cold storage equipment maintains perishable food items within specific temperature ranges, preventing spoilage and extending shelf life. The adoption of such equipment helps reduce food wastage by enabling longer storage durations, thereby contributing to the segment's growth.

Temperature Range Insights

The market is categorized based on temperature range into chilled (0°C to 15°C), frozen (-18°C to -25°C), and deep-frozen (below -25°C) segments. In 2023, the frozen segment (-18°C to -25°C) dominated the market, capturing over 65% of total revenue. It is projected to grow at a CAGR of 17.5% throughout the forecast period. Frozen storage offers significant advantages in preserving perishable goods such as meat, poultry, seafood, and frozen vegetables by maintaining low temperatures, thus extending shelf life and reducing spoilage and food waste. The increasing demand for frozen convenience foods like frozen dinners, pizza, and fruits is driving the growth of this segment, as consumers appreciate the convenience and extended shelf life of these products. Additionally, frozen storage is essential in the pharmaceutical industry for storing vaccines, biologics, and temperature-sensitive medications to ensure product stability and effectiveness.

On the other hand, the chilled segment (0°C to 15°C) is expected to grow at a CAGR of 14.54% throughout the forecast period. Chilled warehouses store various items such as fresh fruits and vegetables, eggs, dairy products, dry fruits, and dehydrated foods at temperatures similar to standard refrigerators. This temperature range effectively inhibits the growth of harmful bacteria on perishable food items, thereby preventing decomposition and extending shelf life. The growth of this segment is primarily driven by the need to store and preserve the shelf life of products sensitive to temperature variations.

Application Insights

The North America cold storage industry is segmented based on application into pharmaceuticals, food & beverages, and others. In 2023, the food & beverages segment dominated the market, accounting for a market share of 79%. Expected advancements in technology related to the storage, packaging, and processing of seafood are forecasted to contribute to the sector's growth. However, substantial growth is also anticipated in the processed food segment in the coming years, primarily driven by ongoing innovations in packaging materials. These advancements play a crucial role in extending the shelf life of food products, resulting in increased sales of processed foods in recent times.

The pharmaceuticals segment is projected to grow at a significant CAGR of 18.13% over the forecast period. The robust demand for products in this segment stems from their critical role in preserving the effectiveness and safety of pharmaceuticals, particularly vaccines. Vaccines are vital biological preparations designed to protect humans from harmful viruses and bacteria. Due to their biological nature, exposure to temperatures that are too low or too high can degrade active ingredients and compromise vaccine effectiveness. Once vaccines lose their effectiveness, they cannot be restored. Therefore, temperature-controlled facilities and equipment play a crucial role in vaccine storage and transportation, with the optimal temperature range being 2°C - 8°C. Equipment such as cold boxes, ice packs, and refrigerators are utilized for this purpose. Various market players in the cold storage sector, such as Burris Logistics and National Cold Chain Inc., offer cold storage solutions and vaccine services to meet these critical needs.

Country Insights

In 2023, the U.S. cold storage market reached a value of USD 36.93 billion, with expectations of a compound annual growth rate (CAGR) of 16.12% from 2024 to 2033. This growth is driven by several critical factors, including technological advancements in the packaging, processing, and storage of perishable food products and temperature-sensitive items. Additionally, stringent government regulations governing the production and supply of temperature-sensitive products have significantly benefited the market.

Cold storage facilities in Canada play a vital role in accommodating a wide range of products, such as fruits, vegetables, dairy, meat, seafood, pharmaceuticals, and other temperature-sensitive items. These facilities contribute significantly to the distribution and logistics network, ensuring the efficient and safe transportation of temperature-sensitive goods across the country. Cold storage providers offer customized solutions tailored to the unique needs of various industries, including frozen storage, chilled storage, and specialized storage for pharmaceuticals or other sensitive products.

North America Cold Storage Market Key Companies

• Americold Logistics, Inc
• Burris Logistics
• LINEAGE LOGISTICS HOLDING, LLC
• Wabash National Corporation
• United States Cold Storage
• Tippmann Group
• NFI Industries
• Penske
• Seafrigo Group
• NewCold

Recent Developments

• In June 2023, Canadian Pacific Kansas City (CPKC) and Americold announced a strategic collaboration to co-locate Americold's warehouse facilities on the CPKC network. The main objective of this partnership is to enhance the efficiency of temperature-controlled logistics across North America. This involves establishing a facility in Kansas City, Missouri, where cold storage and value-added services will be integrated. The initiative aims to create seamless connectivity between key markets in the U.S. Midwest and Mexico.
• In December 2022, Interstate Warehousing, a company under the Tippmann Group, revealed plans for expanding its facilities with a groundbreaking ceremony held in Kingman, Arizona. The facility was constructed on a 92-acre site to address the cold storage needs on the West Coast.

North America Cold Storage Market Segmentation:

By Type

• Facilities/Services
  • Refrigerated Warehouse
    • Private & Semi-Private
    • Public
  • Cold Room
• Equipment
  • Blast freezer
  • Walk-in Cooler and Freezer
  • Deep Freezer
  • Others

By Temperature Range

• Chilled (0°C to 15°C)
• Frozen (-18°C to -25°C)
• Deep-frozen (Below -25°C)

By Application

• Food & Beverages
• Fruits & Vegetables
• Fruit Pulp & Concentrates
• Dairy Products
  • Milk
  • Butter
  • Cheese
  • Ice cream
  • Others
• Fish, Meat, and Seafood
• Processed Food
• Bakery & Confectionary
• Others
• Pharmaceuticals
  • Vaccines
  • Blood Banking
  • Others
• Others

By Country

• U.S.
• Canada