The compound rate of the Cold storage (CS) market's value estimates at 14% for the forecasting period 2022-2030. It may reach up to 397.34 USD billion by the period.
Analysts have projected rapid growth in the Cold Storage market's share in the future. The rise in demand for perishable food products, processed food, and medical equipment are the key drivers dominating the expansion of the market size and structure. Although, the market has received benefits from the supply of temperature-sensitive products. Though, the trading industry assures of the development in upcoming years. The growing retail sectors and increasing automation in refrigerated warehouses expect a rise in demand shortly.
The cold storage is built by locking the space and decreasing its temperature simultaneously. It does so by using heat removal equipment of the refrigerator. Meanwhile, keeping food at low temperatures can reduce spoilage, increasing the lifespan of cooking oils. However, to do so, it requires many facilities like dock-to-stock process, humidity control system and condensation, calculates guaranteed inventory counts, etc. All these factors provide better functioning to the frozen food locker. Its functionalities and growth of the multinational food retail sector are driving the global Cold Storage Market to new heights.
Cold storage accredits the endurance of food or any other element in a deep freezer or icebox. Keeping food items in the refrigerator prevents the items from food spoilage. Thus, cold storage management is now an essential part of Supply Chain Management. It helped the temperature-sensitive products store and transported quickly from one place to another. Plus, it offers advanced refrigeration technology, maintenance, and tracking for fruits, vegetables, etc. With the help of advancement functions, the possibility of food wastage decreases itself.
However, the CoViD-19 outbreak has adverse impacts on almost every industry. Following the global restrictions, cold storage disrupted the supply chain of the food market under government orders. Investments also went down in the situation. Like any other market, the CS market is also struggling to lead the path.
The market segmentation of cold storage relies on five things, i.e., warehouse, temperature, construction, application, and region. Warehouse type classifies into public, private, and semi-private areas. The market segment based on temperature divides into two things, i.e., chilled and frozen. Based on construction, the market segments into time, cost of building material operation, and maintenance. Moreover, the application segments into processed food, vegetable, fruits, dairy products, seafood, and pharmaceuticals.
The regional classification of the cold storage classifies into Europe, North America, South America, the Asia-Pacific region, and MEA. Among all the areas, the dominance of North America at the growth of the Cold storage market is higher. The United States, Mexico, and Canada drive North America's market. The economic changes and government rules in Mexico may strive to build demand in the upcoming period. Meanwhile, there are possibilities seen in Asia-Pacific countries to head the competition in the future.
Cold storage is the highest sized freezer to store and transport temperature-sensitive products. Although, with the rise in demand and technical advancement, the market is expecting rapid growth by the forecasting period at a CGAR rate of 14%.