The cold storage market - France

The global cold storage market has grown significantly in recent years, and is expected to continue expanding at an annual rate of 11.6%. The frozen food segment dominates, not least due to the increase in frozen food consumption in emerging markets such as India and China. In Europe, the main cold store suppliers are measured by their temperature-controlled capacity, with companies such as Kloosterboer, NewCold Advanced Cold Logistics, and Nichirei Logistics Group leading the way.

In France, the cold storage sector experienced accelerated growth before 2020, but faced a slowdown during the pandemic, with sales estimated at around €1.44 billion in 2021. The French market was influenced by a variety of factors, including the rise of e-commerce, which reached 129.1 billion euros in 2021, and a significant shift in consumer behavior towards online food purchasing during the health crisis.

The Covid-19 pandemic particularly benefited the frozen food market, with companies like Picard gaining over 500,000 new customers in 2020. However, the sector faces challenges such as the difficulty of finding labor, strict regulations and managing rising energy costs, which have risen sharply in recent years.nergy costs, which have risen dramatically, with the electricity cost index for cold stores more than doubling from 199.71 in July 2020 to 406.99 in July 2022.

Despite these challenges, the sector continues to evolve, with automation and innovative storage solutions increasingly adopted to optimize efficiency.

Trends in demand for cold storage solutions in the French market

The French market for cold storage solutions is facing a dynamic but challenging environment. With demand for perishable goods such as meat, fish, eggs, dairy products, fruit, vegetables and pharmaceuticals on the rise, cold storage facilities have become an essential component in maintaining the integrity of these products. Two main forms of cold storage are used: positive cold storage, with temperatures between 0°C and 15°C, and negative cold storage, with temperatures below 0°C. Some facilities offer multi-temperature capacities to accommodate a wide variety of goods.

The market is experiencing strong growth, with large, sophisticated warehouses in demand to meet the growing needs of e-commerce. This expansion is supported in particular by the growing popularity of online food retailing. However, the trend towards fresh and local produce poses a challenge to the cold storage market, underlining a preference for shorter distribution channels, albeit a marginal segment. Employment in the cold storage sector is considerable, with the number of people employed rising from 15-20 million to 20-25 million by 2021, representing growth of over 20%. Companies range from general freight forwarders to cold logistics operators and players specializing in cold storage. Big names like XPO Logistics and Nagel Group, with revenues in the billions, demonstrate a substantial market presence.

Cost dynamics in this market are largely influenced by the high energy consumption typical of cold-storage operations, which puts strong cost pressure on operators, not least due to rising electricity prices. For example, the electricity cost index for cold stores has more than doubled in the space of two years, indicating a sharp increase in an essential operating expense.

The sector is also faced with stringent regulatory frameworks governing health and food safety, adding further complexity to operations. Automation is rapidly emerging as a transformative force in cold storage, improving efficiency through digitization and mechanized processes. Innovations such as mobile racking, automated operations that eliminate the need for forklifts, and anthropomorphic robots for palletizing are reshaping traditional warehouse models.

E-commerce remains one of the main drivers of demand, with sales rising sharply, translating into a multi-billion euro market. Food sales are set to follow this trajectory, with a large proportion of the population opting for online shopping, further accentuating the need for reliable and efficient cold storage solutions.

In conclusion, the French cold storage market is developing against a backdrop of growing environmental awareness, regulatory frameworks and technological advances.

Main competitors in the cold storage arena

In the competitive landscape of the cold storage market, several players are emerging as figureheads, each with distinct roles and specializations in their segment. These key entities have carved out a place for themselves by drawing on their expertise, extensive networks and comprehensive logistics solutions to meet a wide range of needs in the cold storage and refrigerated transport sectors. Let's discover the remarkable profiles of these market leaders in the context of cold logistics.

Freight forwarders and general logistics operators

• XPO Logistics is a global provider of cutting-edge supply chain solutions for the most successful companies in a variety of sectors. Its significant presence in the logistics market demonstrates its ability to meet all freight transport demands, including cold chain requirements.
• Rhenus Logistics is a multi-faceted logistics service provider, offering a wide range of solutions from global freight logistics to innovative value-added services. Its tailor-made logistics strategies meet the individual requirements of temperature-sensitive product shipments.
• ID Logistics is another major logistics specialist offering global solutions, but with particular expertise in contract logistics. With a focus on innovation and social responsibility, it manages complex supply chains and ensures impeccable temperature management for perishables and pharmaceuticals.
• Sofrilog stands out for its focus and expertise in the cold logistics sector, providing robust solutions for the storage, handling and transportation of frozen and refrigerated products.

Specialized transporters and cold logistics operators

• The Nagel Group specializes in food logistics throughout Europe. It has created a vast network dedicated to the optimal transport and storage of food products, promising the best possible conditions for temperature-sensitive goods.
• Olano is a name synonymous with refrigerated transport and logistics services. It provides complete cold chain logistics solutions, combining temperature-controlled transport and warehousing capabilities to meet the specific needs of its customers.
• Delanchy offers a combination of transport logistics and cold storage expertise, and stands out in the niche market of fresh and frozen goods logistics.

Cold storage specialists

• STEF is an emblem of expertise in cold storage logistics. As a specialist, it goes beyond simple storage solutions, integrating a range of services tailored to the complex requirements of the temperature-sensitive products industry.
• Iris Logistique and Logistisud are key players in the cold storage sector. These companies emphasize their ability to offer scalable storage facilities capable of meeting the dynamic requirements of a variety of perishable products.
• Newcold and Somat are also active players in the market.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 24/08/2022

Summary and extracts

List of charts

• Leading cold storage suppliers
• Sales trends in cold storage services
• Trends in cold storage sales
• Pharmaceutical logistics expenditure, by type
• Pharmaceutical sales by type of transport
• E-commerce sales
• Market shares of supermarket groups
• Answer to the question "Which retailer do you usually buy your frozen food from?"
• The main players in the specialty frozen foods market
• Refrigerated storage cost indices
• Index of electricity costs for cold storage
• Evolution of the relative weight of electricity in the cost of cold storage
• Number of companies operating in the sector
• Number of people employed in the industry