U.S. consumers are leading busier lives than ever before. It’s increasingly difficult to make time to get to the grocery store, pick up our prescriptions or cook healthy, delicious meals for our families. But, we still have to eat, and we still need our medications. The solution to this quandary is a growing number of services that deliver everything from prepackaged, precooked meals, to organic grocery items, to refrigeration-required medication. Companies like HelloFresh, Blue Apron, and Home Chef are on the rise causing a spike in the need for safe, quality cold storage supply chain management. Chilled food, frozen good, and Cold Pharma medications are the leading industries driving this growth.
Economic Impact on the Cold Storage Growth
In 2016, the cold storage global market was valued at $73.96 billion USD. Today, with the upsurge of supply chain robotics, modernized conveyor belts, motorized truck loading, and most importantly cloud-based technology, refrigerated cold storage warehouses are becoming more automated. By 2025, the cold storage market is expected to more than double to upwards of $200 billion USD. But, how are the chilled food, frozen good, and Cold Pharma industries contributing to this exponential growth?
The inherent risks associated with the packaging and delivery of refrigeration-required medications are many. In addition, pharmaceutical supply chains must remain compliant with current federal regulations. These valuable medications must be delivered on time, every time with appropriate labeling and instructions. Failure to deliver accordingly may result in tragic loss of life. Manufacturers of Cold Pharma medications must increasingly rely on cold chain suppliers who have up-to-date temperature-controlled processes in their warehouses.
Food Delivery Services
Chilled and frozen foods cold storage warehouses across the country have had to adapt to the rapidly rising and ever-changing demand for temperature-sensitive food items. As consumer food buying options expand, the need for versatile refrigerated storage systems has become an essential part of the supply chain industry. This demand for refrigerated storage is expected to increase even more over the next few years. According to a Grand View Research, Inc. report on the cold storage market, the frozen segment is anticipated to grow at a CAGR of 11.4%.
This growth is largely the result of changes in consumer food buying trends. Years ago, consumers had to stroll up and down aisles of at least one grocery store searching for their favorite food items. Now, they can have any number of domestic and international foods delivered—cool and fresh—to their front door.
Ready-to-cook meals play a huge part in the growth of the cold storage industry as well. These meals come with everything one needs to prepare a meal perfectly every time. This means less waste because consumers are buying only what they need for each meal. Retailers are also noticing shifts in consumer preferences from fresh to frozen foods, which are quick, easy and microwaveable.
As consumers become busier, and as the Internet makes the world marketplace smaller, the cold storage industry will continue to grow. Make sure your warehouse partner is up to speed on the best cold storage practices. If you have questions about how to improve or implement safe, federally regulated cold storage systems, call the experts, at Merchandise Warehouse today. With more than 60 years of cold storage experience; they have the answers you need.