The U.S. cold storage market size is estimated to reach USD 19.69 billion by 2025, expanding at a CAGR of 3.7% over the forecast period, according to the new report conducted by Grand View Research, Inc. U.S. is widely regarded as one of the leading markets in developing technologies responsible for effective management of cold storage processes. The market is expected to offer growth opportunities for the pharmaceutical industry. Inventory management of pharmaceutical goods such as vaccines and medicines is an expensive process, which necessitates adequate security measures to be undertaken for protection of product quality. Advanced cold storage technologies that offer beneficial features, such as advanced refrigeration technologies and monitoring and tracking systems of various products like fruits and vegetables, significantly mitigate the possibility of wastage of temperature-sensitive goods.
Growth of the U.S. cold storage market is profoundly influenced by extensive demand for perishable goods worldwide along with the availability of food and health supplies, and economic and political scenario. For instance, trade conflicts between U.S. and China is expected to negatively impact the growth. In March 2018, U.S. imposed a 25.0% tariff on steel and 10.0% on aluminum imported from China. The latter country, in turn, announced a 15-25.0% tariff on products imported from U.S., including pork, fruits, wine, nuts, and vegetables. These high tariffs imposed on food and agriculture produce are expected to negatively affect market growth.
Furthermore, outsourcing cold and frozen storage operations offers manufacturers various cost benefits. This can help eliminate costs associated with warehouse space and management, technology, transportation, and labor. Operational costs such as employee salaries, heating and cooling expenses, insurance, and electric power cost can also be reduced by working with supply chain partners. As a result, manufacturers can increase their profit margins and focus on core business activities such as quality product manufacturing, expanding customer base, and satisfaction of customer needs.
Browse Full Report (Tables & Figures) @ https://www.grandviewresearch.com/industry-analysis/us-cold-storage-market
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