Exclusive: Warehousing Market Evolves

supply chain

The capacity of temperature-controlled (both frozen and chilled) warehousing is increasing in Europe, with reports of expansions in the Benelux, UK, and Germany mainly. In this exclusive interview with the Global Cold Chain Alliance (GCCA), we discuss challenges and opportunities of the European and global market for cold storage and warehousing.

By Dan Orehov

What is the current market situation in Europe, compared to other regions of the world, pertaining to the segment of cold storage and warehousing facilities?

Consumer trends and global trade are driving this growth, with increasing demand for European products – both frozen and fresh – in the other continents, and in parallel an increasing demand of the European consumer for ‘exotic’ products. Convenience consumption also stimulates the need for temperature-controlled logistics in the supply chain. Some Eastern countries like Lithuania and Ukraine are suffering from today’s geopolitical conditions, while others enjoy a more favorable position in the corridor connecting the South of Europe to German and Dutch harbors. Spain and Portugal are affected by the growing importance that retailers are taking on the cold storage market, investing in their own infrastructure to carry out temperature-controlled logistic activities themselves.

Who are the top players in Europe and what are their combined market size/coverage?

Groups like STEF, Kloosterboer, Lineage Europe (formerly Partner Logistics), Agro Merchants and NewCold would rank among the largest in Europe. Together they represent around 20 million cubic meters of temperature-controlled (both frozen and chilled) storage.

What countries are the most dynamic at present, in terms of growth potential in Europe?

As mentioned above, we see more significant growth in Western and Northern Europe, in countries with strong food production history/background and development, track record of international trade, strategic geographical location including large port activities, and where the culture of food plays a major role in consumer habits, amongst others.

The full version of this interview is available in the July-August print issue of Frozen Food Europe