Cold Storage Construction Market

Cold Storage Construction Market Outlook (2023 to 2033)

The global cold storage construction market is valued at US$ 13.4 billion in 2023 and is projected to reach US$ 49.6 billion by 2033. Global demand for cold storage construction services is predicted to increase rapidly at a CAGR of 14% during the next 10 years.

Low temperatures are managed in cold storage buildings to prolong the freshness of perishable products and ensure consistent quality throughout their lifespan. They also play a significant role in the management of the supply chain while storing or shipping temperature-sensitive goods.

The danger of temperature-sensitive products being wasted is significantly reduced by cold storage technologies' features, including cutting-edge refrigeration systems and keeping and tracking technologies for various products such as fruits, vegetables, meat, medications, and more.

A cold storage facility is created by adequately sealing the area and maintaining a low temperature by eliminating heat with refrigeration equipment. Vegetables and fruits can significantly prevent spoiling by being stored at low temperatures. It needs facilities including a dock-to-stock system, humidity and moisture control systems, verified inventory count calculations, and catastrophe preparedness strategies.

To store goods before delivering them to end customers, a manufacturer needs a cold store construction. This is increasing the demand for advanced cold storage warehouses across the globe. A third-party logistic provider (3PL) is also hired to handle the cold storage of the products until they are ready to be transported to end users. It is crucial for several end-use industries, including those that process and store meat, fish, dairy products, fruits, and vegetables, as well as pharmaceuticals, processed foods, and packaged goods.

Production stores, bulk stores, and ports are some of the cold storage building types.

• The use of cold storage devices in production stores is expected to rise at 15% CAGR through 2033.

In addition to extending the availability of other bulk items such as flour, culinary supplies, fruits, vegetables, and canned goods by preventing them from spoiling and storing them away from direct sunlight, a production store is a perfect form of cold room construction.

Report Attributes	Details
Cold Storage Construction Market Size (2023E)	US$ 13.4 Billion
Forecasted Market Value (2033F)	US$ 49.6 Billion
Global Market Growth Rate (2023 to 2033)	14% CAGR
China Market Growth Rate (2023 to 2033)	17% CAGR
Japan Market Growth Rate (2023 to 2033)	12% CAGR
Germany Market Growth Rate (2023 to 2033)	13% CAGR
Canada Market Growth Rate (2023 to 2033)	13% CAGR
Key Companies Profiled	Americold Bally Refrigerated Boxes, Inc. Darwin Chambers Company A M King Burris Logistics Hansen Cold Storage Construction Astron Buildings S.A. American Barcode and RFID Incorporated Allied Steel Buildings, Inc. Cold Storage Manufacturing, Inc. E-Pack Polymers Pvt., Ltd. Graycor, Inc. Alston Construction DEEM, LLC Controlled Environment Systems LLC

Why is Demand for Cold Storage Construction Materials Gaining Traction?

“Increasing Global Trade of Perishable Goods”

Robots, truck loading automation, conveyor belts, energy management, and cloud technologies are all examples of warehouse automation. Transporting and storing temperature-sensitive goods has become a crucial component of supply chain management (SCM), which uses refrigerated storage.

The need for refrigerated storage technologies is also predicted to increase over the coming years as a result of the expanding trade of perishable goods. The environmental impact of cold chain shipping is being lessened by both users and manufacturers of temperature-controlled packing devices.

“Rapidly Developing Frozen Food Sector across Regions”

Food products stored at lower temperatures and preserved for an extended period are referred to as frozen food. Due to their ease and time-saving benefits when compared to cooking from scratch, frozen items are increasingly in demand as convenience preferences increase.

The simplicity that packed food products offer, which draws customers of all ages, is the primary driver of the processed food business. The preference of consumers for frozen meals and ready-to-eat foods has sped up market transformation internationally. The sales of frozen food products are mostly driven by the fact that this form of meal requires less effort and preparation time than cooked foods.

Vegetables, fruits, fish, and meat are some of the highly demanded food items in frozen form. Cold storage rooms are an essential part of the frozen food business. The rapidly developing frozen food industry is boosting demand for cold storage devices.

“High Cold Storage Construction Installations in Medical Institutions”

Temperature sensitivity makes several pharmaceutical medicines, therapies, and specialty treatments necessary for quick supply chains. A trustworthy technique to safeguard the quality of the drugs and their components is provided by cold chain storage and delivery.

The production of patient-centric models has been made possible by the field of personalized medicine's ongoing advancements, which have created multiple opportunities to treat a wide range of health issues. Smaller batches rather than larger ones are now used for the creation of sophisticated medications and autologous patient-centered therapies. As a result, manufacturers have been prompted to reorganise their supply chains to better suit the patient-centered healthcare system.

Pharmaceuticals that are transported in a cold chain, such as some forms of insulin, some biologic medications including cellular and gene therapies, monoclonal antibodies and vaccines, and some cancer therapies, need a solid infrastructure to maintain a specific temperature range.

Facilities for temperature-controlled packaging, distribution, and storage at ambient, cooled, freezing, vapour-phase liquid nitrogen, ultra-frozen, and liquid-phase liquid nitrogen conditions are included in cold chain services.

Cold room construction plays an important role in medical research institutes as well as hospitals to store and preserve drugs. Thus, the swiftly advancing medical sector is driving the growth of the market for cold storage construction solutions.

Which Obstacles Should Cold Storage Construction Companies Focus On?

“High Infrastructure & Maintenance Costs”

The absence of facilities needed to maintain the cold chain will probably make it difficult for corporations to grow their operations in developing economies. Also, the unavailability of power hookups for refrigerated trailers at docks and transportation hubs may restrain sales growth to some extent.

At the same time, creating public awareness of official Corporate Social Responsibility (CSR) programmes, enforcing strict government rules, and adapting to changing customer expectations all act as obstacles to the creation of an effective packaging system. High power, infrastructural, and maintenance costs as well as expanding government controls enforced on gases used in cold stores are anticipated to act as challenges for the growth of the cold storage construction market.

Country-wise Analysis

What is the Demand Outlook for Cold Storage Facilities in the United States?

“Rapidly Advancing Pharma & Biotech Sectors”

The United States holds a dominating position in the North American market for cold storage construction. The rapidly advancing pharm & biotech industry, rising prevalence of chronic disorders, and increasing research & development activities in the medical sector are boosting demand for cold storage materials.

• According to a January 2022 update by the National Center for Chronic Disease Prevention and Health Promotion, 4 in 10 adults in the United States have two or more chronic diseases, and 6 in 10 adults in the country have at least one chronic disease. These conditions place an annual burden of US$ 3.8 trillion on the country's healthcare system.
• To increase the production of Johnson & Johnson's COVID-19 vaccine, the United States government assisted Merck and J&J in creating a historic manufacturing partnership in March 2021. Merck and J&J are two of the top United States healthcare and pharmaceutical firms.

Rapidly developing R&D activities in the medical field are increasing the demand for cold storage facilities. Cold storage room plays a vital role in storing and preserving temperature-sensitive medicines.

Which Aspects are Generating Opportunities in the United Kingdom Cold Storage Construction Market?

“Ever-increasing Demand for Frozen Foods”

Frozen food sales are increasing in the United Kingdom due to high customer demand for frozen snacks and the widespread availability of both private label and major international brands across all distribution channels. Families and younger shoppers are also choosing economical, wholesome frozen food options with a longer shelf life.

To increase their consumer base, market participants are also concentrating on producing frozen meals made for children. Thus, the rising frozen food industry in the United Kingdom is driving demand for cold storage materials.

• Leading British baby food company Ella's Kitchen just launched its first-ever frozen meal line for children from weaning to three years old.
• Aviko introduced three new frozen potato items in December 2020, namely Bistro Garlicand Herb Wedges, Super Crunch Julienne Fries, and Mashed Potato.

What is Aiding the Sales of Cold Storage Technologies in Asia Pacific?

“Rapidly Progressing Food & Beverage Sector”

India, China, and Japan are some of the leading Asia Pacific countries in the field of food and beverages. The food industry in India is developing at a rapid pace. Japan & China are progressing swiftly in the beverages sector.

Japan is home to some of the leading producers of health-supporting drinks such as fruit juices and sports drinks. Yakult is one of the top brands in Japan. According to Fact.MR, a market research and competitive intelligence provider, sales of cold storage construction materials are expected to expand at a CAGR of 12% from 2023 to 2033.

Category-wise Analysis

Why are Public Warehouses Widely Preferred?

“Availability of Big Storage Capacity and Advanced Features”

Private & semi-private warehouses and public warehouses are some of the types of warehouses. Public warehouses are widely preferred by several end-use industries.

• The capacity of public warehouses makes up around 75% of the total capacity of refrigerated storage in the United States, according to the Global Cold Chain Association.

A public warehouse is run as a stand-alone company that provides different services, including handling, transporting, and storing for a fixed or variable price. Public warehouses usually referred to as duty-paid warehouses, may be owned by a person or an organization.

Proprietary warehouses are another name for private warehouses. The company that owns the goods that are processed and stored at the facility also built and owns such warehouses. They may be run as an independent department within a company. They provide more cost flexibility, decision-making power, and control over the overall operations and priorities of the facility.

Which Sectors Widely Use Cold Storage Facilities?

“Food & Beverages and Medical Fields Mandatorily Need Cold Storage Rooms”

Cold storage warehouses are used by several end-use industries such as food & beverages, pharma & healthcare, and chemicals. Food and beverages sectors mostly need cold storage rooms, because of their products such as processed foods, fruits, vegetables, meat & fish, dairy, and more. The highly perishable product needs to be stored under low temperatures to maintain and secure its lifespan.

Pharmaceutical and personalized medicines are gaining traction due to continuous ongoing advancements and the rising prevalence of chronic disorders. Cold storage technologies are needed to store and prevent highly temperature-sensitive medicines such as vaccines and customized drugs. Thus, the developing medical industry is boosting sales growth.

Competitive Landscape

To meet user demand, key players in the cold storage construction market are concentrating on regional expansion. The leading companies in the cold storage construction market are aiming to acquire customers in emerging economies to increase their consumer base.

• The introduction of a new service at AGRO Merchants Group's California operations was announced in March 2020. AGRO Merchants Group is a world leader in cold storage and logistics solutions. To provide value and aid in supply chain integration, AGRO provides port drayage services to its clients.
• Americold Logistics LLC acquired Hall's Warehouse Corp to increase its warehouse facilities in New Jersey by using this expansion strategy.
• Vertical Cold Storage introduced a customer-centric business strategy in May 2021 to boost productivity and reduce waste. Along with partners, Vertical Cold Storage is developing the first cold warehouses in Nebraska and Kansas.

Key Segments of Cold Storage Construction Industry Research

• By Type :

  • Production Stores
  • Bulk Stores
  • Ports

• By Warehouse :

  • Private & Semi-private Warehouses
  • Public Warehouses

• By Application :

  • Food & Beverages
  • Pharma & Healthcare
  • Chemicals

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA