Understanding Demand for Cold Storage Facilities by Region or Industry

Edison Vasquez
May 1
3 min read

The demand for cold storage facilities varies significantly across regions and industries, driven by factors such as population growth, economic development, and industry-specific needs.

While demand for cold storage is growing across the board, it is particularly strong in regions with robust population growth, strategic transportation hubs, and areas with significant food production or import activities.

Here's an overview of the regional and industry-specific trends in cold storage demand:

Regional Variations Specific to Cold Storage

Texas and the Southern United States

Texas and other southern states are experiencing rapid growth in cold storage demand:

Texas has nearly 2.7 million sq. ft. of speculative cold storage projects delivered or underway since 2019.
Dallas/Ft. Worth is a top market for cold storage, handling distribution of Midwest agricultural products throughout the South.
The Texas Triangle (Austin, San Antonio, Houston, Dallas/Fort Worth) is a major area for cold storage development, driven by solid demographic fundamentals and economic output.
Houston's cold storage market is growing rapidly due to its port's role in handling seafood and produce from Central and South America.

West Coast

Los Angeles is a critical location for cold storage due to its major port facilities, vast consumer market, and role as a gateway for international trade, particularly from Asia.

Northeast

The New Jersey/New York metropolitan area is a prime market for cold storage, benefiting from its proximity to one of the largest consumer bases in the United States and extensive transportation networks.

Midwest

Chicago remains a key hub for cold storage facilities due to its strategic central location, robust transportation infrastructure, and access to major highways and railroads.

Southeast

North Carolina and South Carolina are expected to witness CAGRs of over 15.2% and 14.7%, respectively, from 2022 to 2030 in cold storage market growth.

Industries such as food and beverage, pharmaceuticals, flower and agriculture are the primary drivers of this increased demand, with technological advancements and e-commerce trends further accelerating growth in the sector.

Industry-Specific Demand

Food and Beverage

The food and beverage industry is a primary driver of cold storage demand, with the market size estimated at USD 120.64 billion in 2024 and expected to reach USD 290.63 billion by 2030.
Growth in e-commerce and online grocery shopping has significantly increased demand for cold storage space to fulfill direct-to-consumer orders for perishable goods.
Rising consumer demand for fresh produce, dairy, meat, and seafood is driving expansion in cold storage capacity.

Pharmaceuticals and Healthcare

The pharmaceutical and biotechnology industries are creating increased demand for specialized cold storage solutions, particularly for temperature-sensitive vaccines and biologics.
Surging demand for vaccines and biologics is generating new growth opportunities in cold storage for healthcare.

Agriculture

The agriculture sector is seeing rising adoption of cold storage, driving market growth as farmers seek to extend the shelf life of their produce.

Flower

The flower market is a strong economic engine in Miami. Close to 90% of the flowers that are imported into the United States, go through Miami International Airport. Companies in this industry occupy a large portion of refrigerated warehouse space adjacent to Miami International Airport.

Technological and Market Trends

Automation and technological advancements are reshaping the cold storage industry, with innovations in energy-efficient refrigeration systems and automated storage and retrieval systems (ASRS) becoming increasingly popular.
Speculative construction of cold storage facilities is on the rise, particularly in high-growth regions like Texas, Florida, and Georgia, which account for 47% of all cold storage developments since 2020.
The average asking rents for cold storage facilities have risen by more than 96% since 2019, reflecting the scarcity of modern facilities and the critical role of cold storage in global supply chains.

In conclusion, while demand for cold storage is growing across the board, it is particularly strong in regions with robust population growth, strategic transportation hubs, and areas with significant food production or import activities. Miami and South Florida are good examples. Industries such as food and beverage, pharmaceuticals, flower and agriculture are the primary drivers of this increased demand, with technological advancements and e-commerce trends further accelerating growth in the sector.

The Industrial Team at ComReal has an extensive experience helping users and investors of refrigerated and cold storage facilities in Miami and South Florida. Additionally, through the SIOR network of industrial specialist, the team can assist users and investors locate refrigerated warehouses across the country. Contact our team for information on existing cold storage facilities and the current market statistics.

The Industrial Team at ComReal specializes on the industrial properties in South Florida. For over 40 years, out team has help users and investors located the right industrial property. Contact us for more information on the market and our industrial properties.