by The US cold storage market provides temperature-controlled facilities for storing perishable commodities such as fruits, vegetables, meat, dairy, fish and other seafood products. Cold storage warehouses ensure preservation and protection of nutritional value and freshness by maintaining temperatures between -10°C to 10°C. Growing demand for frozen and processed foods along with need to reduce post-harvest losses have boosted the adoption of cold storage facilities in the country.
The US cold storage market is estimated to be valued at USD 41.38 Bn in 2024 and is expected to reach USD 92.04 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 12.1% from 2024 to 2031.
Key Takeaways
Key players operating in the cold storage market are Lineage Logistics, Americold Logistics, U.S. Cold Storage, Inc., Interstate Warehousing, Inc., FreezPak Logistics, Conestoga Cold Storage, Burris Logistics, Vertical Cold Storage, and ColdPoint Logistics. These players dominate the market owing to large storage capacity and advanced temperature-controlled warehousing facilities.
The demand for US Cold Storage Market Demand is growing in the US due to expansion of food processing industry and rising consumption of perishables like fruits, vegetables and seafood. Cold storage allows longer preservation of perishables and availability of products throughout the year. It has helped processing companies and retailers to cater to changing consumer needs.
Globalization has also facilitated the expansion of cold storage market in the US. Growing imports of perishable commodities from other countries and reliance of exporters on cold storage logistics has boosted infrastructure development. Cold storage facilities near ports provide seamless transfer of imported and exported perishable goods.
Market key trends
Automation is a key trend gaining traction in the US cold storage industry. Technologies like automated racking and stacking systems, automated guidance vehicles and warehouse management systems are being adopted to improve operational efficiency. Automation allows higher storage density, reduces labor costs and manual errors. It helps cold storage players to scale up capacities and meet the increasing inventory handling needs of food companies. This trend is expected to further surge with advancement of Industry 4.0 technologies.
Porter’s Analysis
Threat of new entrants: High capital requirements and high economies of scale pose significant barriers for new participants.
Bargaining power of buyers: Large buyers like food processing units have significant bargaining power due to the consolidated nature of industry.
Bargaining power of suppliers: Supply of resources like storage spaces, refrigerated trucks etc. are available from many local suppliers at competitive rates.
Threat of new substitutes: No close substitutes exist for cold storage yet demand for newer storage technologies is rising.
Competitive rivalry: Intense competition exists between established national and regional players to acquire more market share.
Geographical Regions
The US cold storage market is highly concentrated in major agricultural producing regions of the country. California, Washington and Idaho account for over 30% of the total market value due to large horticulture and dairy industries established here requiring perishable goods storage.
The Midwest region spanning states of Iowa, Illinois, Minnesota and Wisconsin is growing at the fastest rate amongst all locations. Increased meat and dairy processing in these Midwestern states have led to rise in demand for cold storage facilities to store finished goods for distribution nationwide. With continued expansion of food processing capacities, the need for supporting cold storage infrastructure will keep growing in the Midwest over the coming years.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
