In the past, families prepared their own meals and purchased ingredients from the local grocery store. But today, busy consumers are increasingly shopping for groceries online. At the same time, food sources are more global than they used to be.
This has had a positive impact on the cold storage sector. Cushman & Wakefield quoted Research and Markets as saying that the global cold storage market will be worth $190 billion in 2024 and is expected to grow at a compound annual growth rate of 17% through 2030.
To provide clarity on where the sector is headed, Cushman & Wakefield cold storage experts Greg Millerd, Stephen Fife and Mike Schaeffer shared their insights and outlook in a recently published article.
Definition of Cold Storage
The experts explained that cold storage facilities are specialized, often purpose-built buildings designed to store various products at controlled temperatures, generally between -20 and 55 degrees Fahrenheit. Their design features include clear heights of 100 feet, special floor systems with glycol lines, vapor barriers to prevent condensation, and refrigerated cold dock areas.
The different types of cold storage include:
- Cool or frozen cross dock
When selecting the right location for a cold storage facility, developers take into account the requirements regarding location, logistics, power supply and zoning.
Trends in cold storage
The experts found that consumer preferences are driving demand (or lack thereof) in the cold storage industry. Families continue to rely on frozen foods because they are convenient and inexpensive. In addition, frozen foods are finding their way onto menus and into fast-casual restaurants, according to the American Frozen Food Institute.
Meanwhile, the five states with the largest gross storage capacity (in million cubic square feet) were:
The future of cold storage
While there is a trend toward fresh, less processed foods, some food companies are introducing products that appeal to health-conscious, time-strapped consumers. In addition, as the global economy recovers from the pandemic, trade activity in the U.S. will increase, which will benefit the growth of the cold storage industry.
