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The demand for cold storage facilities in India is likely to rise on the back of increase in online grocery. Pinterest

The demand for cold storage facilities in India is likely to rise on the back of increase in online grocery and fresh food deliveries and the emerging trend of cloud kitchens, said a report.

As per a CBRE report, the capacity of cold storage real estate is likely to double by 2023. The overall cold storage (CS) capacity in India stood at about 37-39 million tonne in 2019.


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States including Uttar Pradesh, West Bengal, Gujarat, Punjab, Andhra Pradesh, Bihar, Madhya Pradesh, Maharashtra, Haryana and Karnataka accounted for 91 per cent of the total cold storage capacity in India in 2019.

Following the Covid-19 outbreak, the segment is expected to witness robust demand on the back of a surge in online grocery and fresh food sales, it noted.


The emergence of the ‘cloud kitchen’ concept is also likely to boost demand for cold storage facilities, the report said. Pinterest

Online Food Delivery (OFD) revenues in India are likely to grow by more than 60 per cent by 2023 and the increasing demand for OFD services will further boost the overall cold storage capacity.

Anshuman Magazine, Chairman, India & South East Asia, Middle East & Africa, CBRE said, “CS facilities play an integral role in improving the shelf life of products and are an important enabler for several industries working across fresh food production and delivery; along with healthcare and other products such as flowers and chemicals.

Also Read: Here’s Doctor’s Advice on Fasting During Festive Season

“Considering the potential of the CS segment in the country, we expect that consumer/industry-led factors in India would continue to attract the interest of leading players in the coming years,” he said.

The emergence of the ‘cloud kitchen’ concept is also likely to boost demand for cold storage facilities, the report said. (IANS)


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