A cold storage warehouse is a structure or facility built to maintain specific climatic conditions in order to protect temperature-sensitive items. These warehouses appear to be ordinary warehouses on the outside, but they differ on the inside to serve a specific function. In general, cold storage warehousing is classified into two types based on the required temperature: temperature-regulated refrigeration (ranging from 0 to 10 °C) and fully frozen (ranging from -30 to 0 °C). Each sort of cold storage has a distinct purpose. A refrigerated storage warehouse, often for food, seeks to keep items at an optimal temperature to prevent rotting and increase product life. A freezer warehouse, on the other hand, maintains a steady, stable temperature to reduce the possibility of product damage or change from its ideal state.
The global cold storage construction market is segmented based on type and application. Based on type, it is sub-segmented into production stores, bulk stores, ports, and others. Based on application, the market is sub-segmented into food and beverages, medical, chemicals, and others.
Industry Demand
According to OMR Research, the global cold storage construction market is projected to grow at a CAGR of 10.6% during the forecast period (2023–2029). The rise of retail channels, such as supermarkets, hypermarkets, and convenience stores, has been the key driver of the market. Large food retail chains such as Walmart, Tesco, Spar, and 7-Eleven are expanding their stores in developed countries such as the UK, Germany, and the US, as well as in emerging markets such as China, Brazil, and Argentina. Further, the increase in the economies of emerging nations is expected to increase the accessibility of cold storage building installation, which is expected to fuel market expansion. The growth of the pharmaceutical and chemical industries is another key factor driving the market’s growth. Cold storages are used for storing formulations in solid, liquid, and semisolid forms, including capsules, topical medication formulations, tablets, and syrups. Thus, the industry’s growth will directly affect the market as well. Furthermore, a growth in global transportation for perishable goods will also drive the expansion of the cold storage building industry.
Recent Developments
The key players in the market include A M King, Americold Logistics, Burris Logistics, Hansen Cold Storage Construction, Lineage Logistics Holdings, Nichirei Logistics Group, Preferred Freezer Services, Primus Builders, Swire Cold Storage, Tippman Group, and others. To stay competitive in the global market, the companies are using a variety of strategies, such as partnerships, acquisitions, new product launches, and investments. Some recent developments in the market include-
• In January 2023, the project for the development of a 4,000 ton cold storage unit at Lhaviyani atoll, Felivaru was given to an Indian company, Rinac India Limited. According to a news statement from the Ministry of Economic Development, the Maldives Industrial Fisheries Company and the ministry jointly decided to build a cold storage complex in Felivaru and an ice factory in Gaafu Alifu Gemanafushi (MIFCO).
• In January 2023, IMG Citrus, a prominent integrated fresh citrus firm based in Vero Beach, Florida, acquired the Vero Beach-based J&J Fresh Produce assets. The acquired assets include a new 185,000 sq ft cold storage and packaging plant, as well as 1,000 acres of agricultural land in the Delta Farms water area.
• In October 2022, RLS Logistics, a third-generation supplier of cold chain solutions, completed its 83,000-square-foot (3,900,000-cubic-foot) temperature-controlled warehouse, its newest full-service refrigeration warehouse facility, through its affiliate company, RLS Partners, in Sturbridge, Mass. The facility includes 18,000 pallet positions and moveable racking technology, which allows it to house 40%-45% more pallet positions than typical double deep racking. According to the corporation, the facility will also feature an ecologically friendly refrigeration technology that uses less power than standard ammonia-based systems.
• In March 2022, Compass Cold, a new cold storage company, announced its plans to establish a 70,000 square foot cold storage facility. Customers in central and northwest Arkansas who are food wholesalers, retailers, and manufacturers can store their products at the facility. The storage complex will be adaptable and convertible, with temperatures ranging from 40°F to -20°F. Pallet racks made of structural steel will hold 8,500 pallets. This incorporates a blast freezing and pallet racking in-rack freezing system.
• In February 2022, Minnesota-based JonnyPops opened a new cold storage facility at Albert Lea. The new Vortex Cold Storage is 170,000 sq. ft. large and contains JonnyPops products as well as a range of other items. The facility offers temperature-controlled, Safe Quality Food Certified warehousing with temperatures ranging from 40 degrees to 20 degrees below zero, as well as additional configurable warehouse services.