North America’s Food Industry Shaped by Shifts in Retail and Surging Demand for Cold Storage Infrastructure
According to the latest ATMO report, U.S. supermarket sales in 2024 declined by 1.8% year-over-year to $829.9 billion. In contrast, the convenience store market performed strongly, growing by 12.1% to $45.5 billion. In Canada, both supermarkets and convenience stores saw sales dip—by 4% and 3.2%, respectively—highlighting an overall contraction in food retail across the region.
At the same time, markets tied to cold storage and refrigeration infrastructure have remained resilient. Growing corporate focus on sustainability and food waste reduction helped drive revenue in the cold storage sector up 2.3% to $8.6 billion. Notably, North America accounted for over 45% of global cold storage construction activity in 2023, and the sector is projected to expand at a compound annual growth rate (CAGR) of 14% from 2024 onward.
This growth is fueled not only by frozen food logistics, but also by rising refrigeration needs in pharmaceuticals, chemicals, and data centers. According to the USDA, the U.S. maintains 299 million cubic feet of refrigerated storage capacity. Additionally, the Global Cold Chain Alliance (GCCA) reports that the top 25 cold storage operators collectively offer 470 million cubic feet of temperature-controlled warehouse space.
From a macroeconomic perspective, U.S. inflation is moderating, dropping to 2.5% year-over-year by August 2024. With supply chain disruptions easing, businesses are ramping up technology investments to enhance productivity, mitigate risk, and support reshoring and diversification strategies.
On the consumer front, demand for sustainable products continues to grow—particularly among Gen Z and millennial shoppers, who are willing to pay premium prices for eco-conscious goods. A key reason for the increase in frozen food purchases is food waste reduction, in addition to convenience, long shelf life, and nutritional value. Retail sales of frozen food rose by 2.9% in Q1 2024.
However, actual consumer spending on sustainable products has seen a slight dip, prompting calls for companies to step up efforts on decarbonization and ESG (Environmental, Social, and Governance) compliance. With tightening HFC refrigerant regulations and a surge in ESG-driven investment, building sustainable cold chain infrastructure is fast becoming a competitive imperative.
Key Terms
- Cold Storage Construction: A fast-growing sector focused on building temperature-controlled facilities for food, pharmaceuticals, and other sensitive goods, particularly strong in North America.
- Sustainability: Initiatives that reduce food waste and environmental impact, increasingly important to both consumers and corporate strategy.
- Supply Chain Resilience: Strategies to strengthen logistics systems in response to labor shortages, natural disasters, or global disruptions, including diversification and reshoring.
