The cold storage warehouse industry in the US

The Citizen

8 hours ago

The cold storage warehouse industry in the US is experiencing robust growth driven by several powerful trends: the surge in online grocery sales, growth in pharmaceuticals and perishable imports, and transformative upgrades in technology and infrastructure. Despite challenges with supply and construction costs, current market dynamics reflect strong demand and a continually evolving sector.persistencemarketresearch+3

Market Size and Growth

The US cold storage market is expected to reach a value of between $39.6 billion and $46.47 billion in 2025, with projections of more than $91 billion by 2032, representing a compound annual growth rate (CAGR) ranging from 12.3% to 12.7%. This impressive expansion is largely due to rising domestic consumption of perishable goods such as dairy, meat, seafood, fruits, and vegetables. Online grocery sales, which soared from $28 billion in 2019 to nearly $95 billion in 2025, have emerged as a major driver—fueling demand for cold warehouses close to high-population centers.mantoniscre+2

Industry Trends and Drivers

Increased consumer demand for fresh, organic, and ready-to-eat foods, as well as surge in meal kits, is pushing for more sophisticated and safe cold-chain logistics.linkedin
Pharmaceuticals, especially products like insulin and vaccines, require consistent temperature control, making cold storage essential beyond food supply chains.mantoniscre
E-commerce giants and local grocers alike are rapidly expanding decentralized cold storage hubs to support speedy, last-mile delivery.mantoniscre
Investments in automation, robotics, IoT, energy efficiency, and real-time asset tracking are not only improving operational efficiency but also addressing challenges like high energy and construction expenses.coherentmarketinsights+1

Infrastructure Challenges and Supply Constraints

Despite over 214 million square feet of cold storage warehouse space in the US, vacancy rates hover below 4%, reflecting intense competition among grocery chains, logistics firms, and food producers for access to these specialized facilities.libn
Limited land availability, especially near urban areas, keeps expansion slow and land costs high. The average age of cold storage facilities is 42 years, highlighting a need for significant modernization and new, state-of-the-art construction.nmrk
Construction of new sites is projected to reach $18.6 billion by 2027, but high costs and zoning hurdles remain key obstacles to faster development.brownaltmandileo+1

Regional and Market Segmentation Insights

The Southwest US leads the regional market, accounting for approximately 34% of the country’s cold storage market share in 2025.persistencemarketresearch
High-growth regions such as Texas, Florida, and Georgia make up nearly half of all new cold storage construction, reflecting both population growth and logistical advantages.foodlogistics
Refrigerated warehouses dominate the market, representing nearly 60% of market share and catering mostly to the food and beverage sector.coherentmarketinsights

Future Outlook

Though uncertainty remains around near-term supply and U.S. policy, the sector’s long-term prospects appear bright. Continued investments in technology, a focus on sustainability, and pressures from both consumer demand and the pharmaceutical supply chain will keep the US cold storage industry on a growth trajectory for years to come.nmrk+3

In summary, the US cold storage warehouse industry is at a pivotal moment, integrating technology, expanding capacity, and adapting to new consumption patterns while facing infrastructure and real estate challenges head-on.persistencemarketresearch+3

Market Size and Growth

Industry Trends and Drivers

Infrastructure Challenges and Supply Constraints

Regional and Market Segmentation Insights

Future Outlook

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