US Cold Storage Market, By Type (Refrigerated Warehouses, Cold Storage Containers, Blast Freezers, and Others), By Application (Food & Beverages, Pharmaceuticals, Chemicals, and Others)

Published In : Sep 2024

Code : CMI7406

Pages :110

Formats :

Excel and PDF

Industry : Consumer Goods

Market Concentration and Competitive Landscape

US Cold Storage Market Concentration By Players

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Rising demand for perishable food items

Changing demographics and lifestyles have increased the consumption of perishable food categories tremendously over the past decades. For instance, according to the U.S. Department of Agriculture (USDA), the sales of fresh fruits and vegetables increased dramatically during the pandemic. For example, fresh produce sales rose by over 20% in the early months of 2020 compared to the previous year, as consumers sought healthier food options to boost their immune systems. Younger population is consuming fresher, single-serve, and convenient packaged products. There is also a rising health and wellness trend where consumers prefer natural, fresh, and minimally processed foods. Expenditure on perishables like fruits, vegetables, seafood, meat, and dairy has seen robust growth. Likewise, the consumption of exotic fruits and vegetables has also risen which need special cold chain handling. Meeting this exponential demand spike for such perishable items requires a robust cold storage infrastructure.

Modern retail formats like supermarkets and online grocery platforms also drive the need for cold logistics. Supermarkets maintain large displays of fruits, vegetables, and refrigerated sections to attract customers. They need a consistent supply of quality produce throughout the year which can only be ensured through efficient cold storage network. Similarly, e-commerce channels expanding in grocery delivery keep pushing the need for multiple temperature-controlled distribution and fulfillment centers. As customers increasingly expect very fast delivery, retailers rely on optimized cold storage locations situated strategically closer to demand pockets.

Moreover, customers today demand variety and off-season availability of produce. Advanced cold storage facilitates long-distance movement of perishables and their storage for extended periods without loss of quality. This has enabled year-round supplies of seasonal items in domestic markets. It has also supported exports of perishable commodities globally. All these factors related to dynamic consumption patterns and modernizing retail are stimulating significant investments in new cold storage construction as well as technological advancements in existing infrastructure.

Key Players Insights