Cold Storage Market Trends

Growth Drivers

• Growing awareness to reduce food waste - 11% of food produced worldwide is wasted (in households, 5 percent in food service, and 2 percent in retail), while approximately 14% of food produced is lost globally between harvest and retail. Therefore, the growing awareness of reducing food waste is driving the market's growth rate in cold storage. All over the world, food waste is a major problem.
  
  A lack of suitable storage facilities accounts for the majority of food waste. Perishable goods are typically transported through the supply chain at a variety of temperatures, which may result in food spoilage and waste.
   
• Increased adoption of fuel cell-based technology - The use of fuel cell technology can help warehouse managers save valuable warehouse space, which is often occupied by battery charging stations and batteries. For instance, the fuel cell infrastructure takes up more than 60% less space when compared to traditional energy and battery power infrastructures.
  
  Also, by deploying fuel cell forklifts to increase the range of electric vehicles, warehouse productivity can be increased by up to 15% due to hydrogen fuel cell efficiency.
   
• Growing utilization of sustainable warehouses - Low carbon design and investment in environmental audits and innovative construction practices are being adopted by the players of the cold storage market. Sustainable and smart warehouses can be created by a low-carbon design, which reduces energy consumption.
  
  Reducing energy costs and reducing the carbon footprint of these facilities can be achieved by using energy-efficient technologies, such as intelligent automation and control systems. For instance, along with DHL, Mars UK formally opened a brand-new, cutting-edge warehouse. The new facility, which is situated in the UK, completes Mars UK's new, "world-class" logistics operation, which is intended to further the business's environmental initiatives.

Challenges

• Higher initial cost - One of the main things impeding the cold storage industry's expansion is the large initial expenditure required to build a facility. Building a cold storage facility, installing the required equipment, and maintaining and repairing the infrastructure all demand large financial investments.
  
  For businesses that are just entering the market, this cost may be particularly significant because they must make investments in superior insulation, refrigeration systems, and infrastructure to guarantee appropriate temperature control and energy efficiency.
   
• Electricity fluctuations - Power outages or electrical fluctuations can cause cooling systems to malfunction. Coolant failures and insufficient cooling circulation can negatively impact cold chain management, leading to increased maintenance costs. Excessive heat exposure can reduce the quality and competitiveness of perishable commodities, leading to significant waste.