Cold storage market in 2020, growth unexpected
Dec 29 , 2020

At the beginning of 2020, the epidemic suddenly arrived. Every day, the refrigeration entrepreneur worried about how long the epidemic would last. When does it start? How many customers are we losing? How do you pay rent and back loans without business?

The outbreak was quickly brought under control. In March, enterprises resumed work and production one after another. In April and May, the market of freezing and refrigeration reversed, and retailatory growth was ushered in. Many engineering feedback, never thought, this year’s cold storage construction service unexpectedly so hot.

In the post-CoVID-19 era, these cold storage facilities are getting more attention.

Since the resumption of work, February by the supply and logistics of greater impact. March is basically back to the same level last year. After April production and sales rise, the month-on-month growth, year-on-year flat. May, June, July can be used to describe the demand, like the cold storage needs of the warehouse board, two, refrigeration units and other enterprises, a car goods, year-on-year, month-on-month are up. In August and September, the growth was not as strong as before, but the market was still very dynamic.

On the whole, the performance of this type of cold storage is more outstanding.

First, the warehouse is in hot demand. The epidemic has blocked the circulation channels, and a large number of goods have been overstocked in the cold storage, making it difficult to find a warehouse within a period of time. For example, shopping malls, convenience store distribution centers, supermarkets, wholesale markets,etc. During the epidemic, they made a lot of money in stock and fresh food, so they invested more. In addition, agricultural and sideline products, food factories because of the epidemic has been stored for several years of goods are sold out.

Second, in the field of medical and health care, the government has invested heavily in hospitals, disease control and other grass-roots health institutions. For example, Shenzhen has invited tenders for more than 100 cold storage units, and even Qingyuan has dozens of medical cold storage units, which are equipped with community health service centers and vaccination centers. It is understood that Changsha, Changde and other cities in Hunan province have completed the bidding, and other cities will also begin bidding.

The policy continues to increase, the cold storage investment more emboldened.

In the first half of 2020, a number of departments, including The State Council, The Ministry of Commerce, The Ministry of Fiance an the Ministry of Agriculture, issued a number of polities related cold chain logistics infrastructure to strongly support the construction of China’s cold chain logistics infrastructure and optimize the cold chain market environment. As one of the cold chain infrastructure, cold storage continues to receive favorable policies.

Data shows that in the first half of 2020, the demand for cold storage in China exceeded 612,200 square meters. Among the demand types of refrigerated warehouses in China, the demand of refrigerated warehouses accounts for the largest proportion, reaching 55.7%, mainly storing pork, beef, mutton, frozen noodles, meatballs and other goods. The second is cold storage, which accounts for 25.8% of the demand.

Policy support, so in recent years, large logistics or cold chain enterprises are optimistic about the cold storage investment. In addition, from the perspective of information from the cold storage construction companies in various regions, a well-operated cold storage has a much higher return on investment than other projects. After a short period of cost recovery, the future profit will be more substantial.

Cold storage construction in coastal areas still has advantages, Hubei, Henan full potential.

According to the physical union YunCang, according to data released from the perspective of the regional distribution of cold storage resources, in the first half of 2020, China east cold storage area of 2.17 million square meters, cold storage area of 20942 million square meters, in southwest China central China cold storage area of 14418 million square meters, cold storage area of 13806 million square meters in northeast China, south China and southwest cold storage area of 10224 million square meters, 10073 million square meters and 406400 square meters, thus, cold storage concentrated distribution in east China and southwest China.

In terms of refrigerated storage area of each province, Liaoning, Sichuan and Henan ranked top three in the first half of 2020 respectively. The refrigerated storage area of these three provinces exceeded on million, with 1090600 square meters, 1078400 square meters and 1046600 square meters respectively.

At present, there are more cold storage in the developed coastal areas, such as Shandong, Jiangsu, Shanghai and Zhejiang. However, from the potential to speak of Hubei, Henan, such as full power.

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