U.S. Cold Storage Market (By Warehouse Type, By Construction Type: Bulk Storage, Production Stores, Ports; By Temperature Type; By Application) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030.

U.S. Cold Storage Market Size and Trends

The U.S. cold storage market size was valued at USD 36.95 billion in 2023 and is predicted to hit around USD 129.25 billion by 2033 with a CAGR of 13.34% from 2024 to 2033. The U.S. cold storage market is experiencing significant growth, driven by rising demand for perishable goods, advancements in technology, and the expansion of the e-commerce sector.

Key Pointers

• California held the largest market share by revenue in 2023
• By Warehouse Type, the public warehouse segment dominated the market with the largest market share of 78% in 2023.
• By Construction Type, the production stores segment held the largest market share in 2023 and is expected to grow at a CAGR exceeding 15.63% from 2023 to 2033.
• By Temperature Type, the frozen segment captured the maximum market share of 82% in 2023.
• By Application, the fish, meat & seafood segment captured the largest market share at 36% in 2023.

U.S. Cold Storage Market Growth

The growth of the U.S. cold storage market is driven by the rising demand for perishable goods such as fresh produce, dairy products, and frozen foods necessitates efficient storage solutions to maintain product quality and safety. Secondly, the expansion of the e-commerce sector, particularly online grocery shopping, has significantly increased the need for advanced cold storage facilities to handle the distribution of temperature-sensitive products. Additionally, technological advancements in refrigeration systems and warehouse management are enhancing the efficiency and reliability of cold storage operations.

U.S. Cold Storage Market Trends:

• Automation and IoT Integration: The use of automated storage and retrieval systems (AS/RS) and Internet of Things (IoT) technologies is improving operational efficiency and inventory management in cold storage facilities.
• Sustainability Initiatives: There is an increasing focus on sustainable practices, such as energy-efficient refrigeration systems and the use of renewable energy, aimed at reducing the carbon footprint of cold storage operations.
• Expansion of Temperature-Sensitive Pharmaceuticals: The pharmaceutical industry's growing need for temperature-controlled storage, particularly for vaccines and biologics, is driving the demand for specialized cold storage solutions.
• Growth of E-commerce: The surge in online grocery shopping has heightened the need for advanced cold storage facilities to ensure the safe storage and distribution of perishable goods.
• Enhanced Food Safety Regulations: Stricter food safety regulations are prompting improvements in cold storage standards, leading to investments in better infrastructure and technology to comply with these regulations.

U.S. Cold Storage Market Restraints:

• High Initial Investment Costs: Establishing and maintaining cold storage facilities require substantial capital investment, which can be a significant barrier for new entrants and smaller companies.
• Energy Consumption: Cold storage facilities consume a large amount of energy, leading to high operational costs. The reliance on electricity also makes these facilities vulnerable to fluctuations in energy prices and supply disruptions.
• Complex Regulatory Compliance: The need to adhere to stringent food safety and pharmaceutical storage regulations can be challenging and costly, requiring ongoing investments in compliance and monitoring systems.
• Limited Skilled Workforce: There is a shortage of skilled labor proficient in managing and operating advanced cold storage systems, which can hinder the efficiency and effectiveness of these facilities.

Warehouse Type Insights

In 2023, the public warehouse segment dominated the U.S. cold storage market, capturing 78% of the revenue due to its widespread adoption for leased or short-term use at affordable costs. The market is divided into two segments based on warehouse type: private & semi-private, and public. Public warehouses, operated as independent businesses or third-party providers, offer various services such as handling, warehousing, and transportation for a fixed or variable fee. These facilities, also known as duty-paid warehouses, can be owned by individuals or agencies.

While the high costs associated with constructing and maintaining warehouses limit ownership to larger companies, the trend of building private warehouses is on the rise. Private warehouses offer significant benefits, including flexibility, greater control over costs, and the ability to manage facility activities and priorities. Increased international trade and consumer spending have boosted cold storage operating profits over the last five years, and low-interest rates have facilitated financing for new constructions. The private and semi-private segment is projected to grow at a notable CAGR of 11.13% from 2024 to 2033.

Construction Type Insights

The production stores segment held the largest market share in 2023 and is expected to grow at a CAGR exceeding 15.63% from 2024 to 2033. This growth is driven by the need to protect goods, including raw materials and finished food products, throughout the production process. The bulk storage segment is also set to proliferate during the forecast period, as these warehouses are ideal for storing large volumes of fruits, vegetables, and other bulk materials like flour, cooking ingredients, and canned goods, protecting them from spoilage and direct sunlight.

Constructing refrigerated warehouses near ports simplifies customs procedures for temperature-sensitive products. Recent advancements in efficiency and automation have widened the performance gap between older and newer cold storage facilities. Operators are increasingly adopting technologies such as high-speed doors, energy-efficient walls, automated cranes, and cascade refrigeration systems to boost efficiency and reduce costs. For example, automated cranes enable goods to be piled higher, increasing the average building height of new facilities.

Temperature Type Insights

In 2023, the frozen segment accounted for over 82% of the market share, driven by growing consumer awareness of convenience foods and a preference for ready-to-cook meals. Frozen foods support microwave cooking and offer easy packaging, contributing to their popularity and the segment's growth. However, the chilled segment is anticipated to experience significant growth over the forecast period.

The market is segmented into chilled and frozen storage based on temperature type. Chilled warehouses maintain temperatures above -5°C and store items like fresh fruits and vegetables, eggs, dry fruits, milk, and dehydrated foods. Frozen warehouses maintain temperatures between -10 to -20°F, storing products such as frozen vegetables, fish, meat, and seafood.

Application Insights

The fish, meat & seafood segment captured the largest market share at 36% in 2023. The market is categorized into fish, meat & seafood; fruits & vegetables; dairy; processed food; and pharmaceuticals. The processed food segment is projected to witness the highest growth, with a CAGR of 16.93% from 2024 to 2033, due to the high demand for processed food products. These products offer advantages such as immediate consumption, easy cooking, and storage, which are driving their adoption. Changing lifestyles, increased safety, and the need for convenience are also major factors contributing to this growth. Excellent marketing and innovative packaging further fuel the market expansion.

The increasing demand for perishable products and the need for fast delivery in the e-commerce food and beverage sector have significantly boosted cold chain operations. The processed food segment is expected to continue growing rapidly due to ongoing improvements in food packaging materials. However, rising incidences of food and pharmaceutical counterfeiting have led to stringent government regulations on production and supply chains. This has prompted industry players to develop rigorous practices and invest in infrastructure improvements to obtain safety certifications.

State Insights

California held the largest market share by revenue in 2023 and is expected to maintain its dominance through 2033. This significant share is attributed to California's 400 million cubic feet of cold storage space, which serves a large user base. The state boasts the highest number of facilities due to its large population and high demand for cold storage. All facilities are regulated by the California Department of Public Health, Food, and Drug Branch.

Other leading states in the market include Florida, Washington, and Texas, which held significant market shares in 2023. North Carolina and South Carolina are among the fastest-growing markets, with expected CAGR of over 15.2% and 14.7%, respectively, from 2024 to 2033. Cold storage companies are also finding lucrative opportunities in states like North Dakota and Virginia. Advancements in transportation, technology, and the increased adoption of frozen foods are driving demand for refrigeration and storage, contributing to market growth.

U.S. Cold Storage Market Key Companies

• AmericoldLogistics, Inc.
• 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

U.S. Cold Storage Market Segmentation:

By Warehouse Type

• Private & Semi-private
• Public

By Construction Type

• Bulk Storage
• Production Stores
• Ports

By Temperature Type

• Chilled
• Frozen

By Application

• Fruits & Vegetables
• Dairy
• Fish, Meat & Seafood
• Processed Food
• Pharmaceuticals

By State

• Maine
• Massachusetts
• Vermont
• New Jersey
• New York
• Pennsylvania
• Delaware
• Florida
• Georgia
• Maryland
• North Carolina
• South Carolina
• Virginia
• Illinois
• Indiana
• Michigan
• Ohio
• Wisconsin
• Alabama
• Kentucky
• Mississippi
• Tennessee
• Iowa
• Kansas
• Minnesota
• Missouri
• Nebraska
• North Dakota
• South Dakota
• Arkansas
• Louisiana
• Oklahoma
• Texas
• Arizona
• Idaho
• New Mexico
• Utah
• California
• Oregon
• Washington
• Others