United States Cold Storage Market Assessment, By Product Type By Warehouse Type, By Temperature, By Application, By Region, Opportunities and Forecast, 2018-2032F

United States cold storage market is projected to witness a CAGR of 13.62% during the forecast period 2024-2032, growing from USD 47.53 billion in 2024 to USD 132.01 billion in 2032. The United States cold storage industry is witnessing strong growth fueled by growing demand for perishable commodities such as dairy, produce, meat, and seafood due to changing consumer behavior towards fresher and healthier food choices. Growing e-commerce and stringent food safety requirements also drive market growth.

However, the market is constrained by shortages of skilled labor and volatile energy prices, which affect operating expenses. The limited infrastructure in rural regions also discourages efficient delivery.

There are opportunities for greater automation, using IoT and blockchain for supply chain traceability, and using renewable refrigeration technologies. Americold and Lineage Logistics are the leading players in the market, with an emphasis on efficiency and technological advancements. The market experiences rising consolidation in the form of mergers and acquisitions. Finally, the American cold storage market is set for further growth because of technological innovation and strategic investment in new facilities. The market evidence convergence of technologies such as automation, artificial intelligence, IoT, and blockchain, which maximize the process.

For instance, in October 2024, Lineage, Inc. marked the grand opening of its new, state-of-the-art cold storage warehouse in Hazle Township, Pa. The next-generation cold storage facility incorporates leading-edge technology and a location to assist in delivering increased value for Lineage's customers and an enhanced supply chain for consumers. Lineage's Hazleton warehouse is positioned to provide added value for its customers and their consumers. It also supports Lineage's existing Pennsylvania cold storage network.

Expanding Dependence on E-Commerce and Online Grocery in Daily Life

Increased reliance on online food purchasing services and online shopping is the top growth indicator in the United States cold storage industry. With consumers becoming fonder of utilization of online shopping for perishables such as dairy products, fresh fruits and vegetables, meats, and fish, demand has intensified for up-to-date, effective, and trusty cold storage facilities. The shift calls for robust temperature-regulated warehousing and vehicles to transport perishable items flawlessly. E-commerce growth requires cold storage facilities to be strategically located to provide prompt delivery, particularly in urban and densely populated areas. Furthermore, the requirement for year-round availability of products and strict food safety regulations underpins the significance of advanced cold storage solutions in guaranteeing product quality and safety along the supply chain. This trend is transforming the landscape of cold storage, inviting investments in new-generation infrastructure and state-of-the-art technologies.

For instance, in June 2024, Home Depot extended its partnership with Instacart to broaden its same-day delivery offering, after the pilot program was a success. This partnership takes advantage of Instacart's Big & Bulky fulfillment solution, which allows heavy items for up to 60 pounds to be delivered. Products such as garden items, building materials, and lighting fixtures are now available to customers in as little as an hour from almost 2,000 Home Depot store locations.

Technological Advancements in Storage Facilities Fueling the Scalability

Technological advancements in cold storage warehouses are driving scalability in the United States cold storage market. The implementation of automated systems like advanced storage and retrieval technologies (ASRS), robotics, and artificial intelligence-based systems is revolutionizing operational efficiency and reducing labor dependency. These systems streamline workflows, enhance inventory management, and expand throughput capacity, enabling facilities to effectively handle large quantities of temperature-controlled products.

Besides, the use of IoT and blockchain technologies also offers increased supply chain traceability and transparency. Real-time temperature and condition monitoring by IoT sensors and secure and tamper-proof records by blockchain ensure compliance with stringent regulatory standards and preserve the quality of perishable goods throughout the supply chain. This increased efficiency coupled with enhanced openness allows scalability in the form of expansion of business by cold storage providers to serve the growing needs of the pharma and food industries.

For example, in November 2024, Gather AI, a Pittsburgh-based company announced its expansion into freezer and cold storage environments. The company revealed its drone inventory system will now be able to count temperature-sensitive items. Gather AI's freezer-compatible drones bring cutting-edge Inventory Intelligence to industries requiring cold chain storage precision. This shows how technology is being integrated into everyday operations.

Growing Need for Pharmaceutical Storage in the United States

The growing need for pharmaceutical goods, along with the requirement for strict temperature control, plays a major role in the development of the United States cold storage market. Most pharmaceutical goods, such as vaccines, biologics, and some drugs, need to be kept at the correct temperature during supply so that their effectiveness and safety are not affected. With the growing United States pharmaceutical market fueled by a graying population, expanding rates of chronic diseases, and biotechnology breakthroughs, demand for high-end cold storage facilities to provide these stringent standards becomes greater.

The use of cold storage by the pharmaceutical sector permeates through the supply chain to warehousing, transportation, distribution, and retail. Mandatory regulations, including those implemented by the FDA, also require conformity with stringent temperature control standards, driving pharmaceutical firms to invest in strong cold chain systems. This need is driving temperature monitoring, storage technology, and validation process innovation, leading to huge growth prospects for the United States cold storage market.

For example, as per the US Food and Drug Administration, the United States has very high rates of diet-related diseases such as cardiovascular disease, diabetes, obesity, and certain cancers. There are 42 countries with lower rates of diet-related diseases than the United States. FDA is also taking steps to combat the epidemic of diet-related chronic disease that leads to the growth of demand for drugs and medicines.

Dominance of Perishable Goods in the Cold Storage Market

The United States cold storage industry is largely influenced by the demand for storage of perishable goods, which is the largest product type segment. Demand for fresh, healthy food products, such as fruits, vegetables, dairy, meat, and seafood, drives the demand for temperature-controlled storage facilities. These storage facilities ensure that perishable products retain nutritional value, quality, and safety from farm to table, fulfilling consumer demands for freshness and security. Growing demand for quick-to-prepare and ready-to-eat foods intensifies the need for proper cold storage facilities even more. In response, enormous investments go into building contemporary, energy-efficient cold storage buildings to meet the growing demand for perishable products, solidifying its stronghold in the United States cold storage market.

In 2023, as per USDA ERS (Economic Research Service), a government agency of the United States, food spending by consumers, businesses, and Government entities reached a high of USD 2.57 trillion. This translates to USD 7,672 in spending per person, a 7.5% increase from the previous year even as price increases eased up. This rise was primarily fueled by a 12% increase in spending on food away from home, which grew to USD 4,485 per capita in 2023 from USD 4,004 in 2022. This shows how perishable goods are widely consumed in the United States.

West Dominates Cold Storage Market Share

The West region, and specifically California, strongly leads the United States cold storage industry for various reasons. California's huge population generates a huge demand for cold temperature storage of sensitive products such as produce, dairy, and meat. The strong agricultural base in the state as a top fruit and vegetable producer requires massive cold storage space to preserve product quality and shelf life. In addition, California's geographical advantage as a principal port of entry for imported products also fuels the demand for cold storage facilities. The synergy of strong consumer demand, agricultural production, and import/export activity makes California, and by extension, the West region, the leader in the United States cold storage market.

For instance, as per the California Department of Food and Agriculture, over a third of the country's vegetables and three-quarters of the country's fruits and nuts are grown in California. California's top commodities for the 2023 crop year include dairy products, milk, grapes, lettuce, strawberries, tomatoes, and more which require adequate cold storage facilities for maintenance as well as transportation.

Future Market Scenario (2025 - 2032F)

The industry is increasingly embracing automation, such as storage and retrieval systems, robotics, and artificial intelligence, to improve operational effectiveness and minimize labor dependency.

Sustained growth in the use of dairy products, fruits, vegetables, meat, and seafood will continue to drive demand for temperature-controlled warehousing and transportation.

The evolution and implementation of renewable refrigeration technologies offer a major opportunity for more energy-efficient and sustainable cold storage operations.

Development of rural cold storage facilities to enhance supply chain efficiency and provide timely delivery of frozen and fresh products to under-served markets will be crucial.

Key Players Landscape and Outlook

The United States cold storage industry is led by players competing based on their vast networks, operating efficiency, and sophisticated temperature control systems. The sector is getting consolidated through acquisitions and mergers, promoting competition. The increasing focus on sustainability is compelling businesses to implement green technologies and alternative energy solutions. In the future, the market will be influenced by greater automation and convergence of IoT and blockchain technology, to improve supply chain transparency and operational efficiency. The players are increasingly creating technologies for improved performance efficiency.

In December 2024, Americold Realty Trust was honored when its Russellville, Arkansas facility was recognized as the winner of the 2024 Built by The Best Award by the Controlled Environment Building Association (CEBA). This award highlights Americold's best-in-class design, innovation in construction, and operational capabilities, after this facility was recently named Site of the Year by one of Americold's largest customers for its flawless startup and ramp to full capacity.

In November 2024, MEDLOG, the logistics arm of MSC, recently formally broke ground on a new 291,000 square foot, state-of-the-art cold storage facility in Savannah, Georgia. The groundbreaking project represents a major expansion of poultry, pork and meat producers' export capabilities in the U.S. Southeast and Midwest. MEDLOG's Savannah cold storage facility will bring approximately 20,000 freezer/cooler pallet positions to the regional market and will have the capacity to handle up to three million pounds of blast freezing daily.