Refrigerated Warehousing Market Expected to Reach $412.90 Billion by 2031

According to a new report published by Allied Market Research, titled, “Refrigerated Warehousing Market," The refrigerated warehousing market was valued at $129.80 billion in 2021, and is estimated to reach $412.90 billion by 2031, growing at a CAGR of 12.5% from 2022 to 2031.

Asia-Pacific is expected to dominate the global refrigerated warehousing market in 2021. Factors such as rapid production of frozen food and need of refrigerated storage in pharmaceutical industry is anticipated to boost the growth of the market in this region. In addition, continuous development of refrigerated warehouse for temperature-sensitive goods fuel the growth of the market in Asia-Pacific.

The increased demand for refrigerated warehousing for fresh fruits and vegetables has resulted in development of new and expanded refrigerated warehousing technology and structural improvements. Several logistics companies are also opening new refrigerated warehouses to store and import/export fruits & vegetables, which supplements the growth of the segment. For instance, February 2022, Transitex, a Lisbon-based logistics operator, opened its first refrigerated warehouse in Elvas, with the initial investment of $2.03 million (EUR 2 million). The new facility will provide integrated services to fruit and vegetable exporters in Portugal and Spain.

The global refrigerated warehousing market is witnessing growth, due to increasing demand for perishable goods, and increase in refrigerated warehouse. However, high operational cost is the factor hampering the growth of the market. Furthermore, adoption of technologies by refrigerated warehousing industry is the factor expected to offer growth opportunities during the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic has affected the refrigerated warehousing market in a negative manner. Owing to pandemic, government enforced lockdowns which resulted in closure of restaurants, supermarket, and others, which in turn affected the demand for refrigerated warehouse.

COVID-19 also led to a drastic shift in consumer demand away from restaurants, food, service, and other types of “food away from home” toward food consumed at home. Pandemic resulted in decline in demand of packaged food or food consumed in hotel, restaurants and cafes. To maintain proper health throughout the pandemic, consumers started to search for fresh food rather than packaged or canned food. Fruits and vegetables have seen significant rise in demand during pandemic as these provides several health benefits. In addition, food and beverage industry also faced many challenges owing to the implementation of lockdown and transportation.

However, post-pandemic, demand for refrigerated or cold storage warehousing has been rising globally owing to surge in online grocery shopping. The pandemic has accelerated this trend as consumers place increased emphasis on ready-made meal and online grocery ordering.

Moreover, government assistance and the start of vaccination campaigns across the globe are expected to boost the growth of the refrigerated warehousing market during the forecast period.

KEY FINDINGS OF THE STUDY

• By ownership, the private and semi-private segment is anticipated to exhibit significant growth in the near future.
• By temperature, the chilled segment is anticipated to exhibit significant growth in the near future.
• By application, the drugs & pharmaceuticals segment is anticipated to exhibit significant growth in the near future.
• By region, Europe is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global refrigerated warehousing market include AGRO Merchants Group, LLC, AmeriCold Logistics LLC, Burris Logistics, China Vanke Co. Ltd (VX Logistics), Confederation Freezers, Congebec Logistics Inc., Frialsa Frigoríficos, S.A. de C.V., Lineage Logistics Holding, LLC, NewCold Advanced Cold Logistics, Nichirei Corporation, Nor-Am Cold Storage, Inc., Tippmann Group, Trenton Cold Storage Inc., United States Cold Storage, and XPO Logistics Inc.