Cold Storage Construction Market Size, Share, Growth and Industry Analysis by Type (Production Stores, Bulk Stores, Ports, And, Others), By Application (Food & Beverages, Medical Products, Chemicals, And, Others), Regional Insights, and Forecast From 2024 To 2031

Updated On: 13 November 2023

Cold Storage Construction Market Report Overview

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The global cold storage construction market size gained substantial revenue in 2023 and is projected to touch USD 13403.83 million by 2031 with a CAGR of 7.9 % during the forecast period.

Cold storage is a cabin or a building that is created to store food items. It is designed in such a way that it can prevent the wastage of rotting of food that are perishable in nature. The temperature is maintained in such a way that is suitable to store food without it going bad. Cold storage constructions are used in the food industry extensively to preserve food items.

Cold storages are widely used in many sectors. Medicine, chemical, and food & beverage sectors are markets where cold storage constructions are prominently used. This is considered as the latest development in the market.

Cold storage techniques increase the shelf-life of perishable food items. Controlled atmosphere storage, and warehouse refrigeration are some of the techniques that are used in storing items. All of these factors have contributed in the growth of the cold storage construction market share.

COVID-19 impact: Decrease in Sale of Perishable Food Items During Pandemic Decreased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The outbreak of pandemic of COVID-19 resulted in heavy losses among many industries. During the pandemic, many markets lost demand due to factors such as changing preference of consumers, and lockdowns. Maintaining hygiene and cleanliness was of utmost importance to people during the pandemic period. 

As  result people started to decrease the consumption of outside food. The consumption of perishable food items decreased. Cold storage constructions are used in fast food joints and restaurants to store food items. The number of people visiting restaurants during pandemic had drastically reduced. This brought down the market share during pandemic. 

LATEST TRENDS

"Rise in Demand for Fast Food Among People to Increase Market Growth"

Post pandemic, the demand for fast food has seen a considerable rise. Most of the restaurants, hotels, and fast-food joints will require cold storage constructions to preserve food for a prolonged period of time. Some of the food items could be perishable, and they have to be kept at a very cool temperature in order to prevent their spoilage. The popularity of packaged food items among consumers has also driven the market growth.

Cold storage constructions are not just limited to the food and beverages market. Other products like medicines, temperature sensitive drugs, and certain chemicals will also need to be stored in cool areas to prevent them from going bad. This can be considered as the latest trend in the market.

Cold Storage Construction Market Segmentation

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• By Type:

The market can be divided on the basis of type as follows:

Production stores, bulk stores, ports, and, others. The production stores segment is projected to hold the dominant market share through 2028.

• By Application:

Classification based on application is as follows:

Food & beverages, medical products, chemicals, and, others. The food & beverages segment is predicted to dominate the market through the forecast period.

DRIVING FACTORS

"Higher Shelf-life of Food Items When Stored in Cold Storage to Amplify Market Growth"

The main aim of using cod storage construction is to prevent the spoilage of food and increase their shelf-life. The food items are stored in temperature usually below the average level. There are many ways of achieving of cold storage.

Some of the methods include controlled atmosphere storage, and warehouse refrigeration. Under the controlled atmosphere storage, the gases are regulated and controlled in a particular manner. Nitrogen, carbon monoxide, carbon dioxide and oxygen gases are regulated with the help of certain devices and precision instruments. The oxygen content present in the air is lowered to keep fruits and vegetables fresh. These systems also have he option to regulate humidity. All of these factors are propelling the market growth. 

"Easy and Convenient Storage of Chemicals to Augment Market Development"

Cold storage constructions are also used in chemical industries to preserve certain materials and chemicals. Several substances within the chemical industry are volatile in nature that is they can easily get evaporated.

In order to prevent the evaporation of chemicals when they are exposed to high temperatures, they must be stored in appropriate containers, at right conditions with consistent temperatures. Many solvents can be stored only in very low temperatures. The shelf life of certain substances like rubber and explosives can be prolonged when they are kept in cold storages. The usage of this device in medical and chemical sector has propelled the cold storage construction market share.

RESTRAINING FACTOR

"Decrease in Nutritional Value of Food Items to Decrease Market Growth"

The major drawback of using cold storage constructions is that they can decrease the nutritional value of a food item. If a food substance is stored for a long duration of time in a cold environment, it may not retain its original properties.

The food can also become very stale by losing all its fragrance, juiciness, and taste. Many times, certain chemicals can also be added to cold storage structures. This can badly affect the health of the consumers. All of these factors can hamper the market growth

Cold Storage Construction Market Regional Insights

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"Asia Pacific to Dominate Market During Forecast Period"

Asia Pacific accounts for the largest share in cold storge construction market. The main reason for development of market here is the growing rate of population in this region. With the rapid growth of population, the food and beverages industry has evolved with time.

Cold storage constructions are increasingly being adopted in the food and beverages market to store perishable items. Certain medications and chemical companies also require usage of cold storage. Many new technologies have introduced in the market. Warehouse management, automated loading and unloading systems are some of the techniques that have been integrated into the market. All of these factors have amplified the market development in Asia Pacific.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• Preferred Freezer Services (U.S.)
• Lineage Logistics Holdings, LLC (U.S.)
• Americold Logistics, LLC (U.S.)
• Burris Logistics (U.S.)
• Nichirei Logistics Group Inc (Japan)
• Swire Cold Storage Ltd. (U.K.)
• Hansen Cold Storage Construction (Australia)
• Primus Builders (U.S.)
• Tippman       Group (U.S.

Report Coverage

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations.