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The Cold Storage Boom: 8 Trends Driving Demand

Cold storage is quickly becoming one of the fastest-growing sectors in commercial real estate. A recent Skyquest report shows demand is expected to grow from $43.2 billion in 2023 to $118.8 billion by 2031. This surge is fueled by changing consumer habits, new technology, and broader economic shifts.

Understanding what drives this demand is essential for businesses investing in or managing these facilities. Here are eight major trends behind this growth.

1. Growth in eCommerce & Online Grocery Shopping

Online shopping has transformed how we buy nearly everything, including groceries. As more people order fresh and frozen items for home delivery, cold storage has become essential. Companies are expanding storage and streamlining logistics to keep up with this shift.

Consumers’ Rising Demand for Fresh Products

The rise of ecommerce, especially since COVID-19, has created a huge demand for online grocery shopping and quick delivery of perishables. To meet these high standards for freshness, businesses are expanding cold storage facilities.

Direct-to-Consumer Models on the Rise

More companies are selling fresh and frozen foods directly to consumers. This trend requires greater storage capacity to handle inventory efficiently and has led to more investment in refrigerated storage solutions.

2. Expansion of Pharmaceutical & Biotechnology

Pharmaceutical and biotech industries rely on temperature-controlled environments to keep products safe. Cold storage is crucial for maintaining these conditions as demand grows.

Cold Storage for Vaccines and Biopharmaceuticals

Vaccines and biopharmaceuticals often require ultra-low temperatures, creating the need for specialized storage solutions. As these sectors expand, so does the need for robust cold storage to ensure safe transport and storage of temperature-sensitive treatments.

3. Food Industry Trends

The food industry is evolving as consumers want fresher, less processed options. Cold storage is essential for meeting these expectations and managing the global flow of perishable goods.

Emphasis on Fresh, Organic Options

More consumers are choosing fresh, organic, and minimally processed foods. To meet this demand, companies are investing in refrigeration that preserves quality.

Managing Global Food Supply Chains

Temperature-controlled warehousing supports the quality of perishable imports and exports, making it a critical part of a global food network. Well-managed storage solutions help meet consumer expectations worldwide.

4. Technological Advancements

Modern technology is reshaping climate-controlled facilities, making them more efficient, cost-effective, and attractive to investors. These spaces are becoming smarter, greener, and easier to manage.

Revolutionizing Refrigeration and Automation

New refrigeration technology boosts energy efficiency and reliability, while automation and data analytics streamline operations and inventory management. Together, these advancements enhance space utilization and reduce costs, making these facilities attractive investments.

5. Urbanization & Changing Consumer Lifestyles

Urban growth and the demand for convenience are driving the need for refrigerated storage facilities close to consumers.

Meeting Urban and Lifestyle Needs

As cities expand, so does the demand for convenient, ready-to-eat foods. Cold storage near urban centers helps ensure quick access to fresh and frozen goods, keeping up with today’s fast-paced lifestyles.

6. Regulatory Requirements & Food Safety

Stricter food safety regulations and consumer demand for transparency are prompting businesses to invest in modern cold storage solutions.

Compliance with Food Safety Standards

New food safety regulations require businesses to update their facilities. Investing in modern refrigerated storage solutions helps companies meet these standards, avoid penalties, and deliver safer products to consumers.

Meeting Traceability and Transparency Goals

Consumers want to know where their food comes from and how it’s handled. Cold chain logistics support this need for traceability and transparency, ensuring products meet the highest standards from source to shelf.

7. Supply Chain Resilience

The pandemic revealed weaknesses in global supply chains, leading companies to build more resilient cold storage solutions to protect their inventory.

Local Storage and Increased Inventory

Investing in local climate-controlled facilities helps companies maintain steady supplies of perishable goods, even in times of crisis. Many businesses are also increasing inventory levels, which requires more storage space.

8. Investment, Market Trends & Aging Buildings

Cold storage is a hot asset in commercial real estate as demand outpaces supply. Aging facilities present both challenges and opportunities for modernization.

An Appealing Real Estate Investment

High returns and long leases make cold storage an appealing option for investors, drawing interest from developers and private equity firms.

Upgrading Aging Infrastructure

With many cold storage facilities over 40 years old, modernization is crucial. Upgrading these facilities to meet today’s standards ensures efficiency and compliance with current codes.

Strengthen Your Cold Storage Facility With a Seismic Retrofit

As demand for temperature-controlled storage grows, resilience and safety become critical. Seismic retrofits significantly enhance facility safety, extending its life and appeal to tenants.

Seismic retrofits protect cold storage facilities against earthquake damage, ensuring continuous operations and peace of mind for both tenants and investors.

At Saunders Seismic, we specialize in seismic retrofits for climate-controlled facilities. Our experienced team provides quality solutions that enhance resilience and are delivered on time and within budget.

Contact us today to learn more about our comprehensive retrofit services with a free consultation. We’ll help fortify your cold storage facilities for a safer, more reliable future.

 

Posted Under: Commercial & Industrial Real Estate