The India Cold Storage Market is projected to thrive during the forecast period, driven by government initiatives such as the PM Kisan Samman Yojana. These initiatives, coupled with the rising necessity of cold storage facilities in the agriculture sector to prevent post-harvest losses (which account for around 28% of total food produce due to inadequate storage conditions), are key factors in the market’s expansion.
Recent Growth and Demand Drivers
The market has experienced substantial growth recently, fueled by the increasing demand for dairy and frozen foods, as well as the burgeoning pharmaceuticals and healthcare industries. India’s significant contribution to global milk production, which saw a 58% increase over nine years to reach 230.58 million tonnes in 2022-23 (around 25% of global production), underscores the critical need for efficient cold storage facilities in the dairy sector to maintain product quality. Currently, India boasts over 10,000 fully frozen vehicles and approximately 8,000+ cold storage units with a combined capacity exceeding 32 million metric tons, with about 70% dedicated to single commodities, predominantly potatoes.
Potential for Expansion
According to the National Centre for Cold Chain Development (NCCD), India requires 35-40 million metric tons of cold storage but currently only has about 32 million metric tons, indicating a significant opportunity for expansion. Furthermore, stringent regulations and quality standards, such as the Food Safety and Standards Authority of India (FSSAI) guidelines, mandate proper storage and handling of perishable goods, further propelling the growth of the cold storage market in India.
Market Segmentation
By Facility Type
Cold rooms and refrigerated warehouses are expected to dominate the market, driven by the increasing production of food grains and dairy items. For instance, milk production is projected to grow by over 6%, potentially reaching $602.9 billion by 2032, currently contributing around 5% to the economy.
By Component
Compressors are anticipated to lead the India cold storage industry during the forecast period. As a crucial component responsible for compressing refrigerant gas, raising its pressure and temperature, compressors facilitate effective heat transfer and cooling within storage spaces, making them widely adopted as the core component of refrigeration systems.
By Compressor Type
Reciprocal compressors are expected to dominate the market due to their lower initial costs and maintenance expenses compared to screw/rotary screw and scroll compressors. This cost-effectiveness makes them a preferred choice, especially for small and medium-sized cold storage facilities, which constitute a significant portion of the market in India.
