Cold Storage Market To Reach Value Of US$212 Billion

Wednesday, November 22nd, 2017 | 1116 Views


Asia Pacific dominated the Cold Storage Market To Reach Value Of US$212 Billion in terms of refrigerated storage capacity in 2016, with India leading the market with a cold storage capacity of around 131 cubic metres, according to a report by market intelligence company Grand View Research.

The global cold storage market is projected to reach US$212 billion by 2025, growing at a compound annual growth rate (CAGR) of 12.4 percent.

The processed food application is anticipated to witness a high growth rate, growing at a CAGR of 16.1 percent over the projected period. Low carbon design, environmental auditing, and construction of energy efficient Cold Storage Market warehouses are drivers anticipated to fuel the market demand.

The study found that the retail sector in emerging economies such as India and China are increasingly getting organised. This trend among others is expected to augment the cold storage market demand over the forecast period. Additionally, government policies to deregulate the entry of foreign player have increased the foreign direct investment in the organised retail sector.

Compared to the traditional stores, organised retail stores use better refrigeration and improved storage technology thus, customers are increasingly purchasing frozen foods from these stores. With the increased demand for the chilled and frozen foods and growth of the organized retail sector the demand for the cold storage market is expected to grow over the projected period.

Given massive investments necessary for setting up the refrigerated warehouse business, cold chain operators must make significant volumes to attain the break-even point in a stipulated period. As a result, the growth of the cold chain services translates into the growth of the international organised retail market.

Lack of infrastructure necessary to sustain the cold chain is the major challenge for the industry players to expand cold chain in the emerging markets. Additionally, lack of power hook-ups for reefer trailers at transportation hubs and ports coupled with the lack of reliable power supply for cold warehouses further increases the operation costs. However, this also opens opportunities for industry players to develop unique solutions or leverage alternative energy sources that can overcome the unreliable power supply in emerging markets.

Moreover, new transportation means—such as versatile refrigerated containers—are being developed to overcome the lack of adequate transportation facility. These solutions can provide access to international markets and open opportunities for farmers and small businesses.

 

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