Refrigerated Storage in the US Industry Market Research Report Now Available from IBISWorld

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Innovative solutions introduced by third-party logistics providers helped reduce inventory costs and enhance customer service within the Refrigerated Storage industry. Larger players embraced new technologies, leading to the automation of refrigeration warehouses, which may prove challenging for the industry in the future as the requirement of warehousing activity is anticipated to reduce significantly. In the wake of the recession, industry firms are consolidating to take advantage of economies of scale. For these reasons, industry research firm IBISWorld has added a report on the Refrigerated Storage industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The industry weathered the recession, with revenue falling only slightly

The Refrigerated Storage industry has fared relatively well over the past five years. During this time, revenue grew steadily, increasing an average of 1.7% per year to $5.9 billion. Strong demand for food and pharmaceutical products supported growth. The recession had a minimal impact on the industry, with revenue declining just 1.6% in 2009. Demand from the storage of frozen foods, fruit, vegetables and pharmaceutical goods stayed relatively strong, and revenue only fell in 2009 as consumer spending and total trade value fell. “As consumer spending and demand continue to grow,” says IBISWorld industry analyst Lauren Setar, “industry revenue is expected to grow 2.5% in 2012.”

Along with relatively steady revenue growth, the number of establishments in the industry is expected to remain stable, growing at an average annual rate of just 0.6% over the five years to 2012. Increased capital requirements made it more difficult for new entrants to enter the industry. Moreover, says Setar industry firms have undergone a large amount of merger and acquisition activity, which has raised the industry's concentration over the past five years. The only major player in the Refrigerated Storage industry, Americold Logistics LLC, accounts for less than a fifth of industry revenue. Most firms operate regionally, and the industry has a low level of concentration.

Over the past five years, capital investment in the industry increased to improve efficiency and lower costs. Operators invested in new tracking and monitoring systems and in larger warehouses with complex environmental management systems. As the US economy continues to recover from the recession and credit becomes more freely available, operators are expected to continue to invest in new technologies and additional services. Revenue is forecast to continue to grow over the next five years, supported by an increase in refrigerated storage capacity to help industry firms lower operating costs. During the five years to 2017, the industry will benefit from steady improvements in per capita disposable income and growth in the total trade value. Increases in demand and ongoing efficiency improvements are expected to bolster average industry profit margins. For more information, visit IBISWorld’s Refrigerated Storage in the US industry report page.

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IBISWorld industry Report Key Topics

Firms in this industry operate refrigerated warehousing and storage facilities. Temperature-controlled services include blast freezing and tempering. Establishments primarily engaged in storage of furs for trade are included in this industry. These furs are used as raw materials for the manufacturing of garments and personal accessories like bags and shoes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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