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Cold storage warehouse are used to store perishable items, such as fruits, vegetables, meat, seafood, and dairy products, at a desired temperature to maintain the quality of the product for a long time.

Cold storages plays a critical part in the supply chain that ships groceries, medicines, and other temperature-sensitive products. High initial investment is required to set up a cold storage unit.

It requires facilities, such as dock-to-stock process (using temperature control docks to move inventory quickly and safely), systems to control humidity and moisture, calculate guaranteed inventory counts, and contingency plans in case of any disaster.

Cold storage warehouse can be in variety of places. A manufacturer may have a private cold storage warehouse market facility to warehouse products before sending them to end consumers.

End-users (for instance, hotels) may have cold storage facilities to store temperature-controlled products after receiving from suppliers. Moreover, cold storage is outsourced to third party logistic provider (3PL) where products stay until they are ready to be shipped to end-users.

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Rise in Online Grocery Shopping to Drive the Global Cold Storage Warehouse Market

Increase in online grocery purchasing trend globally is anticipated to boost the demand for cold storage warehouses. With the advent of several online grocery shopping service providers, such as Walmart, Amazon, Kroger, and Target Corporation, the demand for cold storage warehouses is anticipated to increase.

These companies serve as a link between grocery sellers and end consumers, and require cold storage units to stock substantial amount of food products. Thus, with rapid urbanization, the demand for online grocery shopping is likely to increase, which, in turn, will fuel the demand for cold storage warehouses.

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Diverse Cooling Requirements and High Initial Investments to Hamper Cold Storage Warehouse Market

One of the major concerns associated with cold storage warehouses is varied cooling requirements as per different inventory products. Different products have different shelf life and require diverse cooling temperatures to maintain suitable quality. Managing such a diverse product portfolio is a task.

Additionally, high initial investments and maintenance cost associated with cold storage warehouse restricts the growth of the cold storage warehouse market. Cold storage warehouses requires ammonia, refrigeration, piping systems, and HVAC systems, among others that require high initial investment.

Cold storage facilities with average cost per square foot range between US$ 80 and US$ 120 based on different markets. Furthermore, high rental cost associated with cold storage facilities also hamper market growth.

Asia Pacific to Hold a Leading Share of Global Cold Storage Warehouse Market

Geographically, the global Cold Storage Warehouse market can be divided into five regions: North America (NA), Europe (EU), Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SA).

North America country-level analysis features the U.S., Canada, and Rest of North America. Analysis and forecast of the Cold Storage Warehouse market in Europe includes markets across the U.K., Germany, France, and Rest of Europe. Similarly, Asia Pacific includes India, China, Japan, and Rest of Asia Pacific. Middle East & Africa includes the Cold Storage Warehouse market analysis and forecast of GCC countries, South Africa, and Rest of Middle East & Africa. The South America Cold Storage Warehouse market is segmented into Brazil, and Rest of South America.

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Asia Pacific dominates the market share due to growing consumer preference for online grocery shopping.

However, North America is anticipated to grow at a fastest CAGR growth rate during the forecast period. Rising demand of chilled and frozen food is projected to drive cold storage warehouse market in the region.

Key Players Operating in the Cold Storage Warehouse Market:

The Cold Storage Warehouse market is competitive with several global and regional players. Major players are adopting various strategies, such as regional expansion to enhance their position in the market.

Companies are focusing on increasing awareness about eco-friendly and zero waste products. Companies are expanding their business across different region to cater to the demand of consumers. The company focuses on emerging markets to expand its customer base.

A few of the key players operating in the global Cold Storage Warehouse market are:

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