Experts estimate that the cold storage market will reach $212.5 billion by 2025 and, by the year 2026, 100 million square feet of storage will be necessary to meet the growing demands in the market. Let’s take a look at why the cold storage market is heating up.
An Increase in Demand
The demands and strain being placed on cold storage warehouses are greater than they’ve ever been, but legacy facilities aren’t keeping pace. The rise of eCommerce and the needs of our growing population will create additional warehouse demand. Existing facilities are aging (the average age of cold-storage facilities is 34 years) and there is very little vacancy in cold storage facilities. Layer on a need for vaccine storage, which needs to be stored at below freezing temperatures and there is definitely pressure on the supply chain to keep up.
During the onset of the COVID-19 pandemic, we got a preview of what happens if we can’t keep up with the growth in demand. Building new facilities is quite costly and very little speculative building is occurring. Therefore, it’s critical to ensure you have experienced partners at the table when you are developing specifications for new cold-storage facilities.
KPS Global is here to support you in updating your cold storage warehouses. There isn’t a one-size-fits-all solution. Instead, we work with you to create a playbook that works for your specific cold storage requirements and goals. With a focus on sustainability, KPSG Global aims to provide cold storage solutions. The key is working with a trusted partner to design a solution that fits your unique needs and allows your operation to keep pace with the ever-evolving landscape of grocery, eCommerce and more. To learn more, contact us today.