Australia Cold Storage Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Australia Cold Storage Market Trends

The growth of the Australia cold storage market is driven by its role in enhancing food security through extending the shelf life of perishable goods, reducing waste, and ensuring reliable food supplies. It aids agriculture by preserving fruits, vegetables, dairy, and meat, while enhancing Australia's export potential, particularly to Asian markets. Additionally, it helps minimise food waste, contributing to sustainability. According to CBRE Research, Australia currently has 10.2 million cubic metres of refrigerated warehouse capacity. The food & beverage and pharmaceutical sectors are the primary drivers of cold chain logistics, with both expected to continue expanding. CBRE Research predicts Australian consumers will spend over AUD 200 billion on food retail by 2028.

Cold storage ensures food safety by maintaining regulated temperatures, which reduces contamination risks. It optimises logistics efficiency, further impacting the Australia cold storage market revenue. Additionally, the market stimulates economic growth by creating employment opportunities in logistics and warehousing. It also supports the storage of pharmaceuticals, including vaccines and biologics, thus contributing to the advancement of public health.

Australia Cold Storage Market Growth

Innovation in refrigeration and energy efficiency is revolutionising the cold storage sector, influencing the Australia cold storage market dynamics and trends. The growth of e-commerce is supported by the increased use of cold storage for fresh food and pharmaceuticals, enhancing convenience. Modern cold storage technologies also contribute to reducing carbon footprints, while Australia’s strong infrastructure bolsters its global competitiveness. In November 2024, the merger between Chemist Warehouse and Sigma Healthcare, forming an USD 8.8 billion pharmaceutical giant, garnered mixed reactions from regional chemists. The deal, approved by Australia’s competition regulator, results in a company with 1,000 stores and 16 distribution centres across Australia and New Zealand.

Cold storage extends the shelf life of seasonal products, stabilising prices and availability, thus driving opportunities in the Australia cold storage market. It also facilitates retail growth by ensuring the availability of fresh and frozen goods in supermarkets. Furthermore, cold storage reduces supply chain risks, such as delays and disruptions. Its expansion into rural areas also fosters regional development, creating jobs beyond major cities.

Australia Cold Storage Market Insights

• As e-commerce contributed USD 45 billion (18% of total retail) to Australian retail spending in 2022, according to the Australia Post 2023, cold storage becomes vital for handling perishable goods. Cold storage ensures safe, efficient delivery of fresh and frozen products, meeting rising demand from online grocery and food retail sectors.
• Australia's export of agricultural, fish, and forestry products, valued at nearly USD 49.7 billion in 2022, highlights the importance of cold storage in maintaining product quality. Cold storage facilities are essential to preserve perishable goods for international markets, ensuring compliance with global standards and enhancing export opportunities.
• With bulk and non-bulk freight reaching 778.7 billion tonne-kilometres in 2022-23, as per ABS, cold storage is crucial for Australia’s expanding freight network. It ensures perishable goods remain at optimal temperatures throughout the transportation process, mitigating spoilage and guaranteeing that fresh products are delivered efficiently to domestic and global markets.

Australia Cold Storage Market Drivers

Technology Integration

The Australia cold storage market is increasingly implementing advanced technologies such as IoT sensors, automation, and AI to monitor temperatures, inventory, and product conditions, driving trends in the sector. This integration enhances management, reduces energy use, and improves operational efficiency, enabling companies to uphold high-quality standards, cut costs, and meet rising demand. In June 2023, Dutch technology helped address cold storage shortages in Australia. NewCold, a specialist in temperature-controlled logistics, expanded in Melbourne after opening its first facility in 2017, increasing pallet capacity to over 200,000 while focusing on sustainability and efficiency in the food supply chain.

Sustainability Focus

The demand for the Australia cold storage market is growing as the industry places more focus on energy-efficient and sustainable practices. This includes the adoption of eco-friendly refrigeration systems, solar-powered facilities, and optimising energy use, all supporting Australia’s aim to reduce carbon emissions and enhance sustainability in the supply chain. In October 2024, The LEGO Group launched a new distribution centre in Truganina, Victoria, with Kuehne+Nagel. Covering 26,500 sq m, it features 26,000 pallet spaces, advanced automation, and sustainable practices like solar panels and water-saving technologies, achieving a 5-star Green Star Rating.

Opportunities in the Australia Cold Storage Market

As demand for fresh and frozen products grows, especially in e-commerce and exports, the cold chain logistics sector is accelerating the Australia cold storage market expansion. This growth involves enhancing temperature-controlled storage and transport networks to ensure safe and efficient delivery of perishable goods, both domestically and internationally. In December 2022, NewCold invested AUD 240 million to construct its first cold storage warehouse in western Sydney, increasing its total investment in Australia to over AUD 700 million. The facility, with a capacity of 80,000 pallets, aimed to tackle cold storage shortages and enhance supply chain traceability.

Market Restraints

The Australia cold storage market faces several challenges, including high operational costs due to energy consumption, refrigeration maintenance, and skilled labour. Limited infrastructure in regional areas increases transportation costs and reduces efficiency. Strict regulations, fluctuating energy prices, and space constraints further complicate operations.

Labour shortages, particularly in remote areas, impact productivity. Additionally, growing environmental concerns may lead to stricter regulations on energy use and refrigerants, increasing operational costs and requiring investment in sustainable technologies. These factors hinder market growth and profitability.

Australia Cold Storage Market Share

Market Analysis by Storage Type

According to the Australia cold storage market analysis, the facilities offer a wide range of services, including warehousing, inventory management, and temperature-controlled storage. They cater to industries such as food, pharmaceuticals, and retail, ensuring product safety and adherence to regulatory standards. These services provide businesses with flexibility, scalability, and efficiency in managing perishable goods. The Department of Agriculture, Fisheries and Forestry (DAFF) reports that in 2022–23, Australia exported 68.6 million tonnes of winter broadacre crops, valued locally at USD 26.3 billion, with wheat being the most produced winter crop, accounting for 60% of all winter crops sold.

Growth of the Australia cold storage market is driven by various storage equipment types, such as pallet racking systems and specialised refrigerated units, which offer key advantages like maximised space use, improved organisation, and easier product access. These systems ensure optimal temperature control, prevent contamination, and boost operational efficiency, especially for handling a range of perishable goods. In March 2023, Hines, a global real estate investment and property management firm, announced that Hines Asia Property Partners had expanded into the cold storage sector with an acquisition in Queensland, Australia. This acquisition marked HAPP's second in Queensland and its seventh industrial asset in Australia.

Market Analysis by Temperature Range

The growth of the Australia cold storage market is driven by chilled storage, which provides a controlled environment for products like dairy, fresh produce, and beverages, ensuring optimal quality and shelf life. This temperature range reduces spoilage, preserves freshness, and guarantees food safety, benefiting industries that require moderate temperature control for perishable items.

Frozen storage in Australia is vital for preserving products such as meat, seafood, and ready-made meals. The -18°C to -25°C range ensures long-term preservation by slowing bacterial growth and maintaining the nutritional value of products. This storage type supports industries involved in frozen food production and distribution with effective storage solutions.

Deep-frozen storage, with temperatures below -25°C, offers enhanced preservation for items like ice cream, frozen fruits, and specialty pharmaceuticals, expanding opportunities in the Australia cold storage market. This ultra-low temperature prolongs product shelf life by inhibiting microbial activity while preserving texture, flavour, and quality, making it essential for industries requiring extended storage for sensitive goods.

Market Analysis by Application

According to the Australia cold storage market report, the cold storage sector is essential for maintaining the quality and safety of perishable food and beverage items. It helps preserve products such as meat, dairy, fruits, and vegetables, reducing spoilage and waste, while extending shelf life and ensuring availability throughout the year. The Department of Agriculture, Fisheries and Forestry (DAFF) forecasts a 2% increase in the value of poultry meat production, reaching USD 3.9 billion by 2024–25, which is expected to drive market demand.

Cold storage is also crucial for Australia's pharmaceutical industry, as it ensures the safe preservation of temperature-sensitive medications and vaccines, further boosting demand for the Australia cold storage market. It guarantees that these products retain their efficacy by preventing degradation from exposure to incorrect temperatures. This is particularly critical for biologics and vaccines, which require strict temperature control during both storage and transport. The Pharmaceutical Benefits Scheme (PBS) in Australia subsidises medications, with 68.6% of the population receiving at least one PBS-subsidised medicine in 2022.

Australia Cold Storage Market Regional Insights

New South Wales Cold Storage Market Overview

New South Wales benefits from a prime location, top-tier infrastructure, and a robust transport network, enabling efficient cold storage solutions for sectors like food, pharmaceuticals, and retail, with strong demand and growth prospects. According to the NSW Government, the 2023-24 GVP is 23% above the 10-year average, highlighting the continued strength and resilience of the state’s agricultural, fishing, and forestry industries.

Queensland Cold Storage Market Trends

Queensland’s cold storage market is experiencing heightened demand due to agriculture, seafood exports, and increasing retail requirements. Technological innovations and sustainability initiatives are driving operational efficiency and minimising environmental impacts. In July 2024, Tasman Logistics expanded its cold storage capacity at Morningside, Queensland, with a new facility capable of storing 7,400 frozen and 1,300 chilled pallets.

Western Australia Cold Storage Market Dynamics

Western Australia’s cold storage market is shaped by the region’s mining, agriculture, and export sectors. The rising demand for temperature-sensitive goods, such as seafood and fresh produce, is fuelling market growth and driving technological advancements. In December 2024, Perth Markets Group Limited (PMGL) completed the multi-tenant cold chain warehouse, S2, at its 51-hectare Canning Vale site, enhancing the logistics and distribution of fresh produce across Western Australia.

Competitive Landscape

The Australia cold storage market key players provide warehousing, distribution, and transportation services. They have established a solid reputation for reliability and operational excellence within the cold chain industry, serving various sectors, including retail, healthcare, and FMCG. These companies offer innovative solutions to meet the specific needs of their clients and deliver advanced cold chain solutions, supporting industries like food production, pharmaceuticals, and retail.

Key Industry Players

Karras Cold Logistics: Karras Cold Logistics is a leading Australian provider of cold storage and logistics solutions, specialising in temperature-sensitive goods. Headquartered in Melbourne, Australia, the company offers warehousing, distribution, and transportation services. It has built a strong reputation for reliability and operational excellence in the cold chain industry.

Linfox Pty Ltd.: Linfox Pty Ltd. is an Australian logistics company offering a wide range of services, including cold storage, transportation, and supply chain management. Established in 1956 and headquartered in Melbourne, Australia, Linfox operates across multiple sectors, such as retail, healthcare, and FMCG, providing innovative solutions to meet client needs.

Americold Logistics, Inc.: Americold Logistics, Inc. is a global leader in temperature-controlled warehousing and logistics solutions. Founded in 1903 and headquartered in Atlanta, United States, the company operates a vast network of facilities across North America, Europe, and Asia, offering services to the food, retail, and pharmaceutical industries.

Melbourne Cold Storage: Melbourne Cold Storage is a prominent Australian cold storage provider specialising in the handling, warehousing, and transportation of temperature-sensitive goods. Established in 1947 and based in Melbourne, Australia, the company offers advanced cold chain solutions, supporting industries such as food production, pharmaceuticals, and retail.

Another key player in the Australia cold storage market report is MFRH COOL LOGISTICS PTY LTD among others.

Recent Developments

October 2024

The ACCC approved Lineage Logistics' acquisition of Fremantle City Coldstores (FCC), concluding that it wouldn't substantially reduce competition in Perth's cold storage market. The review found that FCC represents a small share of the market, and competition from other suppliers, including Americold and Golden West, remained strong.

April 2024

Baiada began constructing a new poultry processing plant in Tamworth, New South Wales, set to open in 2026. The facility will process up to 3 million chickens weekly and feature sustainable technologies, including advanced water systems and fully automated cold storage. It will employ over 700 people at full capacity.