Demand for Cold Storage Continues Higher on Strength of Food and Pharmaceuticals

 

Rich Alterman, The Food Institute

Jan 8, 2021

 

Main Points:

 

·         Total capacity of refrigerated warehouses worldwide was 719 million cubic meters in 2020, 16.7% higher than 2018.

·         Among the factors driving growth are online grocery sales, subscription meal services, consumer preferences for fresh and perishable goods, and the rise of pharmaceutical products that require specialized storage.

·         Growth is seen at a compound annual growth rate of 11.71% from 2019 to 2026.

 

 The global cold storage industry has been strong for some time, fueled by the popularity of online grocery sales and subscription meal services, consumer preferences for fresh and perishable goods, and the growth of pharmaceutical products that require specialized storage.

 

The pandemic also added an additional layer of industry support, forcing producers to abandon just-in-time inventory models, make significant changes to processes, and incorporate cold storage into their operations.

 

In its 2020 Global Cold Storage Capacity Report, the Global Cold Chain Alliance detailed the expansive reach of cold chain suppliers and trends within the industry:

 

·         The total capacity of refrigerated warehouses worldwide was 719 million cubic meters in 2020, 16.7% higher than 2018.

·         North America and China accounted for most of the increase in reported capacity since 2018.

·         The United States, at 156 million cubic meters, was the single largest country market, followed by India at 150 million cubic meters.

·         Canada, the United States, Brazil and the Netherlands all had average warehouse size of more than 100,000 cubic meters.

·         The top three global players are Lineage Logistics, Americold Logistics and United States Cold Storage.

·         Mexico, Brazil and China have the largest unmet need for refrigerated warehouse space.

·         Worldwide, the average 2020 cold storage capacity per urban resident was 0.15 cubic meters.

 

Against this backdrop, the cold storage market was valued at $89.32 billion in 2018 and is projected to reach $217.59 billion by 2026, growing at a compound annual growth rate of 11.71% from 2019 to 2026.

 

OBSTACLES AHEAD ...

 

INNOVATION PUSHING THE MARKET FORWARD ..

 

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