Why is the Demand Rising for Cold Warehouse Storage?

September 26, 2019

The demand for cold storage is growing fast—so fast that nearly 100 million square feet of industrial warehouse space will be dedicated to it by 2024. But what’s the reason for this increased demand, and what could it mean for your business?                                         

Understanding the Increased Demand for Cold Warehouse Storage          

There are two main trends that can be attributed to the increased demand for cold warehouse storage: 

1) The Rise of Online Grocery Delivery

The market value for online grocery delivery has doubled from $12 billion in 2016 to $26 billion in 2018. While 10% of all U.S. consumers saying they regularly shop online for groceries today, this number is expected to grow to 13% by 2022. Companies are rushing to get their piece of the profits, with everyone from traditional grocers like Walmart and Kroger to eCommerce retailers like Amazon entering the grocery delivery market.

As more companies start offering grocery delivery services, a new need arises—space to store and refrigerate massive quantities of meats, fruits and vegetables, and other fresh goods that aren’t going directly to the grocery store, but sitting in a distribution center or warehouse until purchased and delivered to an end-consumer’s home.             

2) Escalating Trade Tensions      

Amid escalating trade tensions between the U.S. and China, China has introduced tariffs on many types of U.S. goods, from avocados to eggs to salmon. Because food shipments are being held up so they can be properly accounted for and taxed, perishable food is spending more time sitting in warehouses before it can actually be loaded onto trucks and transported to its next destination. 

In fact, according to the Department of Agriculture, these tariffs from China on U.S. meat alone caused a record 2.5 billion pounds of chicken, turkey, pork and beef to be placed into cold storage in the United States.  

What These Trends Mean for the Cold Warehouse Storage Industry

Between the rising demand for online grocery delivery and constantly changing trade tariffs and laws, the infrastructure of cold warehouse storage must evolve to ensure food products are making it all the way from the field to the table. 

According to Global Cold Chain Alliance, refrigerated warehouses currently make up only 1-3% of the U.S. industrial market, but owners and operators of these kinds of temperature-controlled buildings and distribution centers are expected to have a 4% compound growth rate from 2018 to 2022.

So, as more food and distribution companies are seeking cold grocery storage solutions, more cold warehouse storage facilities are being built to meet the rising demand. 

How SSE's Storage Handling Solutions Can Improve Your Cold Storage Warehouse Management

Whether you own or manage a traditional warehouse that is looking to add cold storage capabilities, already have a cold storage warehouse and are looking to enhance its capabilities, or are looking to build an entirely new cold storage facility, SSE’s storage handling solutions can help. How? We offer comprehensive services to meet the needs of any business, including:

Storage and Handling Consulting Services

Not sure if your existing warehouse is capable of adding cold storage space? Building a new facility and not sure what kind of cold storage warehouse equipment you’ll need? No matter what kinds of storage and handling questions you have, we can help answer them. Our warehouse storage and shelving specialists will work with you to assess the ideal shelving options for your needs!

Best-in-Class Storage and Handling Equipment 

We offer a variety of pallet storage systems and industrial shelving options to help you stay organized, efficient, and make the most out of warehouse space restraints. No matter what your cold storage warehouse equipment needs are, we can help you identify and install the products that are the best fit solution for you—then continue to offer guidance and support so you’re able to make the most out of them throughout your day-to-day operations!

Planned Preventative Maintenance and Repairs

Once your cold storage warehouse equipment is implemented, we offer preventive maintenance and repair services to ensure it stays running at maximum efficiency and safety. Prioritizing maintenance and making the necessary repairs is incredibly important in cold storage facilities. After all, since your inventory is perishable, you don’t have time to waste due to faulty equipment or drawn out repair processes!

If you’re looking for storage handling solutions in your cold warehouse storage facility, reach out to the experts at SSE today!

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