Unlocking Growth in the European Cold Storage Market: Four Strategic Trends Shaping the Future

The European Cold Storage market is undergoing a significant transformation. Shaped by powerful structural drivers, the sector presents compelling opportunities for investors and operators alike. From continued market demand to the advent of automation, four major trends are redefining the landscape. For decision makers, understanding these dynamics is essential to capitalising on the sector’s next wave of growth.

1.      Sustained Market Growth Driven by Structural Tailwinds

Our research shows demand for European outsourced cold storage capacity to grow at 5–6% annually, supported by enduring tailwinds such as changing consumer consumption patterns, an increased need for external storage and growing demand for cost effective frozen and chilled products. However, growth is not uniform across the continent. Regions such as Eastern Europe and Iberia are expected to outpace markets like DACH and Southern Europe.

Moreover, not all product categories contribute equally. Segments such as frozen potato products, bakery goods and white meat show significantly higher market potential due to continued growth in production of frozen goods. On the other hand, certain regions that are exposed to production of red meat, especially pork, may experience more challenging demand outlook.

Finally, there is still considerable potential for capacity that is currently being managed in-house by food producers, to be outsourced to cold storage operators. French Fries, bakery goods, ice cream and meat are the most promising product categories to target for outsourcing.

2.      Consolidation: Continued Opportunity Despite Maturity

Over the past decade, the European cold storage market has seen significant M&A activity, particularly driven by international platforms pursuing buy-and-build strategies. Yet approximately 40% of market capacity still lies with independent operators, suggesting ample headroom for further consolidation.

The share of independent operators in the market is even higher in Southern, Central and Eastern Europe, and we expect M&A activity to therefore gradually shift to these regions that have been less in focus in the last decade.

The continued consolidation of the market provides opportunities for independents wanting to attract capital to invest or exit. We see tangible advantages for scale players, from commercial synergies and network optimisation to institutionalised M&A processes and improved ESG credentials.