Refrigerated storage capacity not keeping pace with demand.

According to US media reports, by 2022 online grocery sales had reached 72.2 billion USD, according to Grocery Dive, which forecasts double-digit annual growth for the sector over the next 5 years. A report published by American Frozen Food Institute reveals that retail sales of frozen foods grew by +37% between 2018 and 2022.

 

But cold storage capacities are not keeping up with this growing demand. Over 70% of existing sites are too old to be energy efficient, and new builds are few and far between. Only 3.3 million square feet (306,580 m2) had been developed by Q2 2022, the most recent period for which statistics are available, according to real estate services company CBRE Group.

 

GBRE Group predicts that new cold storage projects will multiply across the country, but it will probably be months or years before total capacity is able to meet demand.