The refrigerated warehousing market is projected to grow at a CAGR of 10.2% from 2017, to reach a value of USD 29.17 Billion by 2022. The global demand for refrigerated warehousing is increasing significantly due to the growing demand for frozen food products such as fish, meat, and seafood, leading to a rise in the requirement for refrigerated storage for these perishable foods. Growing health-consciousness among consumers and rising incomes have boosted the consumption of a wide variety of perishable products, particularly seafood, meat, and fruits & vegetables.
On the basis of technology, the refrigerated warehousing market was led by the blast freezing segment in 2016. Blast freezing is the most versatile method for freezing seafood, meat, fruits, and vegetables. This technology ensures increased control and protection from bacteria, preserves the nutrients of the food products, and is one of the most cost-effective methods for storing food products over a long period of time.
The refrigerated warehousing market, on the basis of application, is segmented into fruits & vegetables, bakery & confectionery, milk & dairy products, meat, seafood, and beverages. The fruits & vegetables segment accounted for the largest market share in 2016; this is attributed to the growing health-consciousness among consumers and their rising incomes which have boosted the consumption of a wide variety of frozen and chilled products, particularly fruits & vegetables. In North America and Europe, health concerns are driving the demand for fruits & vegetables, as consumers prefer healthier and more nutritious options in their diet.
The refrigerated warehousing market, based on temperature, is segmented into chilled and frozen. The frozen segment accounted for the larger market share owing to the increase in demand for perishable food products such as meat, fish, and seafood which require frozen temperature for storage. The demand for frozen food is increasing, particularly in the North American region.
Asia Pacific accounted for the largest share of the refrigerated warehousing markets in 2016, owing to rapid urbanization and the expansion of retail channels. The major countries that contribute significantly to the growth of the Asia Pacific region are China, Japan, India, and Australia & New Zealand. The increasing demand for frozen food is further expected to boost the refrigerated warehousing market.
The major restraining factor for the refrigerated warehousing market is high energy consumption and infrastructure cost.
Companies such AmeriCold Logistics (US), Lineage Logistics (US), Preferred Freezer Services (US), John Swire (UK), and AGRO Merchants (US) have acquired a leading market position through the provision of large refrigerated warehousing capacity, catering to the varied requirements of the market, along with a focus on the diverse end-user segments. They also focus on expanding their presence geographically.
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