Learning About Cold Storage Market
Cold storage is a method or technique to preserve edible products and commodities like fresh and wholesome state for a large period of time by controlling temperature and humidity within a storage system. In a cold storage facility, perishable products are handled in bulk between the production and the market processing. The cold storage environment is a combination of sulfur dioxide, carbon dioxide and other elements based on the nature of the product to be stored in the facility. This process is an important aspect of the supply chain management.
Global Cold Storage Market
In 2020, the global cold storage market was evaluated at USD 107 billion. The market is estimated to expand at a rate of 13.5% from 2021-2028. The market has benefited a lot from the government policies and regulations over the production and supply of temperature-sensitive products. The market is set to grow unprecedentedly during the forecast period due to the increasing organized retail sectors. In addition to that, automation technologies in refrigerated warehouses, e.g., cloud technology, robots, conveyor belts, truck loading automation, energy management, will also increase the consumer demand.
In case of transportation and storage of temperature-sensitive products, refrigerated storage has become essential to Supply Chain Management. The growth in trade of edible products has increased the consumer demand for refrigerated storage solutions. Suppliers and consumers of temperature-controlled packaging systems are aiming to reduce the impact of cold chain shipping on the environment. Some other challenges to development of suitable packaging systems includes formal CSR (Corporate Social Responsibility) policies, stringent government regulations and the rapidly changing consumer expectations.
Segmentation of the global cold storage market
On the basis of construction
- Bulk storage: It holds the largest market share and is estimated to exhibit the highest compound annual growth rate during the forecast period. It is best suited for storing fruits and vegetables in bulk. It is also used for extending the availability of other bulk materials like flour, cooking ingredients and canned goods.
- Production stores
On the basis of temperature
- Frozen: This segment holds the largest share in the global cold market during the forecast period. The consumption of frozen foods has been growing rapidly in emerging markets like India and China, has also led to the rise of frozen food segment. The demand for this segment has fueling due to the change in consumers’ preferences to ready-to-cook food, rising awareness regarding the convenience and hygiene and the ease of use of frozen food in terms of packaging and support for microwave cooking.
On the basis of application
- Fruits and vegetables
- Meat and seafood: This segment have been witnessing the highest consumer annual growth ratio during the forecast period. The factors that are key to the advancements in the seafood packaging are expected to affect the meat and seafood market.
- Processed food
On the basis of geography
- North America: The rapid increase in connected devices and the large consumer base is the main reason behind the propelling growth of North America. It is expected that Mexico will witness the highest exponential growth in this region because of the strong network of warehouses and the rise in investments to develop logistics infrastructure. In addition to that, the rapid economic growth and changes in Mexican government policies to streamline the customs program and projects will boost the market there.
- Asia Pacific
- Rest of the world
Egypt cold storage market report 2020-2027
This market report provides an overview of the cold storage industry through detailed market segmentation, thorough information about the overview and scope of the market, key drivers, limitations, and emerging trends in the market. It reflects quantitative as well as qualitative aspects of the industry.
Some of the key factors encouraging the growth of cold storage facility and cold storage logistics in Egypt are the rising attention of the Egyptian government towards improving the logistics infrastructure and the overall development in industrial activities, the growing customer base, increase in transportation activities, expansion of logistics industry, increase in demand of products and the rise in export and import.
In addition to the above, the advanced technologies such as adoption of automation and WMS (warehouse management system) to enhance functionality and efficiency, decrease in cost of operation are some other key factors that have led to the growth of cold storage facility and cold storage logistics in Egypt. Some other factors include the rise in demand for frozen food like meat, increase in demand of quality products, and expansion of retail and FMCG (fast-moving consumer goods) industry. However, there are some other factors too that are retarding the growth such as lack of required and proper infrastructure in Egypt.
It is expected that the warehousing industry in Egypt is set to increase at a higher CAGR in the forecast period due to rise in demand for warehouses to store perishable products. Moreover, the increasing internet penetration has led to the adoption of an online platform to buy groceries, the rise in government efforts to improve the logistics infrastructure and the implementation of advanced technologies in warehousing, have altogether led to the growth of the market in Egypt.
The Processed of Frozen food market is expected to grow at a higher compound annual growth rate in the forecast period as a result of increasing demand for such food products among the consumers in Egypt. The reason behind this increase in demand is the rapid urbanization and the growing disposable income. Other factors driving the growth of this market includes the increasing working population and increase in the convenience involved in processed or frozen food products due to less time and effort.
The cold storage market of Egypt is divided on the basis of type, application, verticals, type of storage, and region. Further, on the basis of type, the market is divided into freezer, chiller and blast freezer and chiller. On the basis of application, the market is divided into meat and seafood, fish, pharmaceuticals, dairy, processed or frozen food, fruits and vegetables, industrial chemicals, etc. On the basis of verticals, the market is divided into healthcare and hospitality, government and transportation, retail and logistics, industry and manufacturing, etc. On the basis of storage type, the market is divided into refrigerator ships, refrigerated containers, air cargo, warehousing, refrigerated trucks, etc.