Running on Ice: Europe’s Cold Storage Sector Is Heating Up

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All thawed out

(Photo: Jim Allen/FreightWaves)

OC&C Strategy Consultants has released a new report titled Unlocking Growth in the European Cold Storage Market: Four Strategic Trends Shaping the Future. They identified the four big trends that are coming through the cold chain industry as follows:

Sustained Market Growth Driven by Structural Tailwinds

According to OC&C, demand for outsourced cold storage is projected to grow 5–6% per year, fueled by rising frozen food consumption, producers outsourcing logistics, and regional supply chain shifts. Eastern Europe and Iberia are especially ripe for growth, outpacing more mature markets like Germany and Austria. “Europe’s cold chain is at an inflection point,” says the OC&C team. “What was once a fragmented, low-tech sector is becoming increasingly strategic and tech-enabled.”

Consolidation: Continued Opportunity Despite Maturity

40% of market capacity still lies with independent operators, suggesting ample headroom for further consolidation in European cold storage markets. The share of independent operators in the market is even higher in Southern, Central, and Eastern Europe. The independent operators portion of the market will continue to fuel M&A activity in the space as larger companies move to buy the capacity needed, instead of building it.

Professionalisation of Customer Needs and Service Standards

Cold storage customers are demanding more than just a place to park frozen pallets. As supply chains become more complex, expectations are rising: real-time visibility, ESG transparency, and tailored, regionalized service are quickly becoming the new norm.

Operators that can’t offer flexible, tech-enabled service risk being left behind. “Success today is less about square footage and more about operational agility,” OC&C explains.

Automation: A Growing but Selective Enabler

Automated High-Bay (AHB) warehouses are gaining traction, especially where high volume and standardization make them feasible. These facilities promise efficiency and help address rising labor costs, but the report cautions against assuming one-size-fits-all.

“Automation is an enabler, not a universal solution,” OC&C points out. “Fresh produce, for example, is still better suited to conventional sites.”

The combination of these trends, growth, consolidation, higher expectations, and automation, makes this a critical moment for the cold chain. With inflationary pressure, regulatory shifts, and evolving food and pharma demands, strategic investment in the cold storage sector isn’t just timely, it may be essential.

The full report can be found here.

Temperature checks

(Photo: Jim Allen/FreightWaves)

Greenville, South Carolina & Nashville, Tennessee, welcome new logistics sites from Roadtex, a subsidiary of Echo Global Logistics. The company has announced the opening of two new facilities that specialize in LTL (less-than-truckload) freight and cold-chain logistics.

Roadtex caters mainly to food and pharmaceutical supply chains. The new Greenville site specifically adds warehouse space and temperature-controlled shipping services for the Southeast market. The Nashville location enhances Roadtex’s ability to serve central U.S. distribution needs.

Echo acquired Roadtex in May of 2022, in a move that added a national cold storage and refrigerated LTL footprint. The acquisition brought 32 cold storage facilities.

"Our new facilities come equipped with new technology," said Matt Zucconi, Vice President of Operations at Roadtex, in a news release. "In addition to GPS tracking of trailer locations, enabling us to monitor temperature-controlled shipments on the road, we’re also implementing electronic manifesting for real-time track and trace, greatly reducing the risk of loss and further advancing our services."

Food and drug

(Photo: Jim Allen/FreightWaves)

P.F. Chang’s is bringing new fan favorites to the freezer aisle, and sadly, it’s not the legendary lettuce cups. The new items are hitting the shelves this month, and the new flavors are:

Mongolian‑style Beef – A single-serve entrée featuring beef tossed with onions, string beans, red peppers, and scallions in a sweet-savory sauce, served over white rice.
Shrimp Fried Rice – Ideal for family meals, this jasmine rice dish is loaded with shrimp, eggs, carrots, and green onions.
Chicken Dumplings – The only appetizer, this box includes 16 dark-meat dumplings stuffed with cabbage and scallions, plus a signature dipping sauce.

Consumers are looking for more at-home and freezer-friendly options. With consumers wanting more international style options and more high-quality frozen meals, this threads the needle there perfectly. Bringing restaurant-quality meals to consumers with an under-10-minute preparation time.

Cold chain lanes

SONAR Tickers: ROTVI.RDU, ROTRI.RDU

The Raleigh, North Carolina, reefer market is seeing tightening capacity as reefer outbound tender volumes continue to rise and reefer outbound tender volumes continue to fall. Reefer outbound tender volumes are up 440 basis points week over week for a ROTRI of 19.72%. While reefer outbound tender volumes are up 1.71% w/e but the overall trend is lower than the beginning of the month.

Shippers with outbound freight can expect contract compliance to continue to erode as the Fourth of July brings a three-day weekend. Carriers, on the other hand, stand to be in an advantageous position as rejections continue to climb and put upward pressure on spot rates.

Reefer outbound tender rejections for this time of year are significantly higher than seasonal norms. Rejections are you 1,565 basis points year over year. There is some seasonal disruption with produce season, but this capacity crunch appears to be in addition to that.

Is SONAR for you? Check it out with a demo!

Shelf life

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Wanna chat in the cooler? Shoot me an email with comments, questions or story ideas at moconnell@freightwaves.com

See you on the internet,

Mary

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