Refrigerated Warehousing Market Growth by Emerging Trends, Analysis, & Forecast
Key Factors behind Market’s Rapid Growth
The refrigerated warehousing market is estimated to be valued at 17.98 billion in 2017 and is projected to grow at a CAGR of 10.2%, to reach USD 29.17 billion by 2022. The refrigerated warehousing market is driven by the rise in consumer demand for perishable foods such as fruits & vegetables, and meat, seafood, and dairy products. The rapid economic growth in countries such as China, India, and Australia & New Zealand has led consumers to opt for convenience foods. This, in turn, is increasing the demand for refrigerated warehousing, making Asia Pacific the fastest-growing region in the world. Expansion of retail channels in the form of supermarkets, hypermarkets, and convenience stores has further increased the importance of the refrigerated warehousing market.
Governments in several countries are taking initiatives to reduce food and agricultural waste by framing food wastage policies and supporting the food-related industries by setting up refrigerated warehousing facilities. For instance, the Canadian Food Safety and Quality Program (CFSQP) invested USD 49.7 million in the food industry for setting up refrigerated warehousing facilities.
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However, high energy consumption and infrastructure costs are expected to restrain the market growth over the next few years, especially in developing countries such as China, India, and Brazil where frequent power cuts are a major issue.
Based on technology, the blast freezing segment is projected to grow at the highest CAGR from 2017 to 2022. Blast freezing is the most versatile method for freezing seafood, meat, and other food products. 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.
Based on temperature, the frozen segment is projected to grow at a higher CAGR during the forecast period. The frozen segment accounted for a larger market share as perishable food products such as meat, fish, and seafood require frozen temperature for storage.
Based on application, the fruits & vegetables segment is projected to grow at the highest CAGR through 2022, making it a key revenue pocket for the refrigerated warehousing industry players. Freezing fruits & vegetables helps retain their nutritional composition. Also, deep-frozen vegetables do not need tedious cleaning or cutting.
Asia Pacific is projected to grow at the highest CAGR from 2017 to 2022, owing to rise in disposable income and increasing food wastage awareness. The major countries that contribute significantly to the growth of the Asia Pacific region are China, Japan, India, and Australia & New Zealand.
The expansion of supermarkets and quick-service restaurants due to the consumption of fast foods in countries such as India, Australia, and New Zealand is further expected to boost the refrigerated warehousing market.