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Refrigerated warehousing market

12 September 20227 min reading

The global refrigerated warehousing market is witnessing growth, due to increasing demand for perishable goods, and increase in refrigerated warehouse. However, high operational cost is the factor hampering the growth of the market. Furthermore, adoption of technologies by refrigerated warehousing industry is the factor expected to offer growth opportunities during the forecast period.

Allied Market Research recently published a report, titled, "Refrigerated Warehousing Market by Ownership (Public, Private and Semi-private), by Temperature (Chilled, Frozen), by Application (Fruits & Vegetables, Bakery & Confectionary, Dairy & Frozen Desserts, Meat & Sea Food, Drugs & Pharmaceuticals, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031". As per the report, the global refrigerated warehousing industry was accounted for $129.80 billion in 2021, and is expected to reach $412.90 billion by 2031, growing at a CAGR of 12.5% from 2022 to 2031.

Refrigerated warehousing also referred as cold storage, refers to a system which is utilized to store goods which need to be in optimal temperature to retain their freshness. A refrigerated warehouse works on a refrigeration system which aids in maintaining an adequate temperature and environment as per the specifications of each item being stored. In addition, main components of a cold storage room or refrigerated warehouse comprises compressor, condenser receiver, expansion valve, evaporator, and blowers. 


The COVID-19 pandemic has affected the refrigerated warehousing market in a negative manner. Owing to pandemic, government enforced lockdowns which resulted in closure of restaurants, supermarket, and others, which in turn affected the demand for refrigerated warehouse. COVID-19 also led to a drastic shift in consumer demand away from restaurants, food, service, and other types of “food away from home” toward food consumed at home. Pandemic resulted in decline in demand of packaged food or food consumed in hotel, restaurants and cafes. To maintain proper health throughout the pandemic, consumers started to search for fresh food rather than packaged or canned food. Fruits and vegetables have seen significant rise in demand during pandemic as these provides several health benefits. In addition, food and beverage industry also faced many challenges owing to the implementation of lockdown and transportation. However, post-pandemic, demand for refrigerated or cold storage warehousing has been rising globally owing to surge in online grocery shopping. The pandemic has accelerated this trend as consumers place increased emphasis on ready-made meal and online grocery ordering. Moreover, government assistance and the start of vaccination campaigns across the globe are expected to boost the growth of the refrigerated warehousing industry during the forecast period.

The global refrigerated warehousing market is witnessing growth, due to increasing demand for perishable goods, and increase in refrigerated warehouse. However, high operational cost is the factor hampering the growth of the market. Furthermore, adoption of technologies by refrigerated warehousing industry is the factor expected to offer growth opportunities during the forecast period.


The refrigerated warehousing market is segmented on the basis of ownership, temperature, application, and region. By ownership, it is segmented into public, and private & semi-private. By temperature, it is classified into chilled, and frozen. By application, it is fragmented into fruits & vegetables, bakery & confectionery, dairy & frozen desserts, meat & sea food, drugs & pharmaceuticals, and others. 

Some leading companies profiled in the refrigerated warehousing market report comprises AGRO Merchants Group, LLC, AmeriCold Logistics LLC, Burris Logistics, China Vanke Co. Ltd (VX Logistics), Confederation Freezers, Congebec Logistics Inc., Frialsa Frigoríficos, S.A. de C.V., Lineage Logistics Holding, LLC, NewCold Advanced Cold Logistics, Nichirei Corporation, Nor-Am Cold Storage, Inc., Tippmann Group, Trenton Cold Storage Inc., United States Cold Storage, and XPO Logistics Inc.

INCREASE IN DEMAND FOR PERISHABLE GOODS

Refrigerated warehouses are designed to protect perishable products from external temperature variation. Consumers are becoming aware of the importance of health and wellness. They are also aware about the impact that food components, especially protein, have on the growth and development of the human body. This has resulted in shift in perishable food consumption patterns such as fruits, vegetables, and other protein-based products.


In addition, emerging economies are witnessing a high demand for perishable products owing to rapid urbanization, changing taste & preferences of consumers in these countries. The market potential for processed and frozen food products is also high in these countries owing to their lower adoption rates. The consumption of ready-to-eat meals such as frozen pizzas, and snacks is surge in steadily in these countries, which in turn is increasing the demand for perishable goods. Thus, increase in demand for perishable goods is driving the growth of the refrigerated warehousing industry during the forecast period.

INCREASE IN REFRIGERATED WAREHOUSE

A lot of warehouses comprising refrigerated systems are designed to ensure the ideal storage and transportation conditions for temperature-sensitive products. Multiple export industries are dependent on the vital links that the refrigerated solution systems provide. Businesses invest billions of dollars in their cold chain operations to create effective, efficient, and reliable processes because end-to-end cold chain security is the weak link in the system. Single breakdown in the cold chain logistics chain can lead to catastrophic losses of products and capital. For instance, in September 2021, Pasarnow e-commerce company raised funding worth $3.3 billion for the up-gradation of its fragmented and inefficient supply chain, which includes temperature controlled warehouses and others that increase the productivity of the company. Thus, an increase in refrigerated warehouses is expected to fuel the growth of the refrigerated warehousing market during the forecast period.

THE PUBLIC SEGMENT DOMINATED THE MARKET

By ownership, the public segment held the largest share in 2021, accounting for around two-thirds of the global refrigerated warehousing market, and is projected to continue its dominance during the forecast period. This is due to increase in use of refrigerated warehousing by major companies such as Nestle, Good Humor, and Tyson. However, the private and semi-private segment is estimated to register the highest CAGR of 13.8% during the forecast period, as it is used for storage of cold food products, raw foods such as meat or vegetable, and others.

THE CHILLED SEGMENT TO PORTRAY THE HIGHEST CAGR THROUGH 2031

By temperature, the chilled segment is projected to manifest the highest CAGR of 14.3% from 2022 to 2031, as it maintains an optimal temperature for its consumption and prevent products from spoiling in the short time. However, the frozen segment held the largest share in 2021, contributing to nearly three-fourths of the global refrigerated warehousing market, and is expected to maintain its leading position throughout the forecast period. Several companies operating in refrigerated warehousing industry are expanding their operation to fulfill increasing demand for frozen food products, fueling the growth of the market.

THE MEAT & SEA FOOD SEGMENT DOMINATED THE MARKET

By application, the meat & sea food segment held the largest share in 2021, accounting for more than one-third of the global refrigerated warehousing market, and is expected to continue its dominance throughout the forecast period. This is due to increase in demand for meat & meat products, salmon, sardine, and shrimp and surge in consumer awareness and inclination toward organic food that are natural and do not have artificial preservatives. However, the drugs & pharmaceuticals segment is projected to manifest the highest CAGR of 15.4% during the forecast period, as different storage conditions and stringent temperature control are essential aspects of the storage of drugs and pharmaceuticals goods.


ASIA-PACIFIC HELD THE LION'S SHARE

By region, the global refrigerated warehousing market across Asia-Pacific dominated the market in terms of revenue in 2021, accounting for around two-fifths of the market, and is projected to dominate the market during the forecast period. Factors such as rapid frozen food production and need of refrigerated storage in pharmaceutical industry is anticipated to boost the growth of the refrigerated warehousing market in this region. In addition, rapid development of refrigerated warehouse for temperature-sensitive goods fuels the growth of the market in Asia-Pacific. However, the market across Europe is expected to register the highest CAGR of 14.1% during the forecast period, due to rise in demand for frozen food and online retail market and surge in imports of perishable commodities such as vegetables and fruits in the region.

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