Australia Cold Storage Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Australia Cold Storage Market Overview

The Australia cold storage market growth is underpinned by its essential role in preserving perishable goods, reducing food waste, and stabilising supply chains. Increasing demand for refrigerated storage extends shelf life of key agricultural products, fruits, vegetables, dairy, and meat, bolstering export potential, particularly to Asia. Sustainability imperatives further drive adoption, minimising environmental impact. Australia has 10.2 million cubic metres of refrigerated warehouse capacity, with the food & beverage sector as a primary growth driver, supporting an anticipated AUD 200 billion food retail spend by 2028.

Optimisation of logistics operations is a significant driver in the cold storage market, enhancing supply chain efficiency, impacting the Australia cold storage market revenue. The sector stimulates economic development by creating employment in warehousing and logistics, benefiting both regional and national economies. Additionally, cold storage is crucial for public health, enabling secure storage of pharmaceuticals, vaccines, and biologics, thereby advancing healthcare delivery.

Australia Cold Storage Market Growth

Advancements in refrigeration and energy-efficient technologies are transforming the Australia cold storage market dynamics and trends, driving operational efficiencies and sustainability. The surge in e-commerce, particularly for fresh food and pharmaceuticals, amplifies demand for reliable cold storage solutions. The November 2024 merger between Chemist Warehouse and Sigma Healthcare formed a pharmaceutical giant valued at AUD 8.8 billion, comprising 1,000 stores and 16 distribution centres across Australia and New Zealand. This consolidation highlights a broader trend reshaping cold chain logistics and altering market dynamics.

Cold storage capabilities extend the shelf life of seasonal produce, stabilising prices and supply availability, thereby creating growth opportunities in the Australia cold storage market. This infrastructure supports supermarkets in maintaining consistent fresh and frozen product offerings while mitigating supply chain risks such as delays or disruptions. Expansion into rural regions also stimulates regional economic development, generating employment beyond metropolitan hubs and reinforcing the sector’s strategic value in national growth.

Key Trends and Developments

The Australia cold storage market growth is driven by sustainability and energy efficiency, e-commerce expansion driving demand, growth in pharmaceutical cold chain logistics, and technological innovation and automation.

June 2025

NewCold expanded its Australian cold storage capacity with a new Sydney facility adding 100,000 pallet positions and job creation. Melbourne sites also grew, increasing total capacity to 405,000 pallets. The acquisition of Karras transport enhanced end-to-end refrigerated logistics, strengthening NewCold’s position as Australia’s leading cold storage and transport provider.

October 2024

The ACCC approved Lineage Logistics' acquisition of Fremantle City Coldstores (FCC), concluding that it wouldn't substantially reduce competition in Perth's cold storage market. The review found that FCC represents a small share of the market, and competition from other suppliers, including Americold and Golden West, remained strong.

April 2024

Baiada began constructing a new poultry processing plant in Tamworth, New South Wales, that is set to open in 2026. The facility will process up to 3 million chickens weekly and feature sustainable technologies, including advanced water systems and fully automated cold storage. It will employ over 700 people at full capacity.

December 2022

NewCold announced an AUD 240 million investment to build its first cold storage warehouse in Sydney’s west, expanding its Australian presence to over AUD 700 million. The facility, in Marsden Park, aimed to address cold storage shortages, create 270 jobs, and enhance supply chain traceability with advanced digital technologies, supporting local food manufacturers and boosting imports from New Zealand.

Sustainability and Energy Efficiency are Boosting the Growth of the Australia Cold Storage Market

Heightened regulatory focus and corporate sustainability targets are propelling investment in energy-efficient refrigeration technologies within the Australian cold storage market. These advancements significantly lower operational costs and carbon emissions, supporting compliance with national environmental policies. Market participants prioritise sustainable practices to meet investor and consumer expectations, enhancing brand reputation and long-term viability, thereby driving the sector’s growth and innovation.

E-commerce Expansion Driving Demand for the Australia Cold Storage Market

The surge in e-commerce, particularly for fresh food and pharmaceutical products, is intensifying demand for cold storage facilities across Australia. Enhanced cold chain infrastructure supports rapid last-mile delivery, preserves product integrity, and improves consumer convenience. This trend compels logistics providers and retailers to expand capacity and adopt advanced temperature-controlled solutions, positioning cold storage as a vital enabler of digital retail growth and competitive differentiation.

Growth in Pharmaceutical Cold Chain Logistics is Impacting the Australia Cold Storage Industry Revenue

Australia’s pharmaceutical cold storage segment is experiencing robust growth, fuelled by increasing demand for temperature-sensitive biologics and vaccines. Investment in specialised facilities ensures regulatory compliance and product safety, critical to healthcare delivery. This sector’s expansion is reinforced by government initiatives and private sector collaboration, underscoring cold storage’s strategic importance in public health and pharmaceutical supply chain resilience.

Technological Innovation and Automation is a Key Trend in the Australia Cold Storage Market

Integration of IoT devices, automation, and real-time monitoring is transforming cold storage operations in Australia. These technologies enhance efficiency by optimising temperature control, improving inventory management, and ensuring compliance with stringent safety standards. Enhanced data analytics enable predictive maintenance and spoilage reduction, driving cost savings and operational excellence. Such innovation positions businesses to meet rising quality expectations and regulatory requirements effectively.

Australia Cold Storage Market Trends

The growth of the Australia cold storage market is increasingly driven by the adoption of advanced technologies, including IoT sensors, automation, and AI, which enhance temperature monitoring, inventory management, and product condition tracking. These innovations optimise energy consumption and operational efficiency, supporting stringent quality standards and addressing growing demand. In June 2023, Dutch technology was instrumental in mitigating cold storage shortages in Australia. NewCold, a leader in temperature-controlled logistics, expanded its Melbourne operations since its 2017 market entry, now boasting over 200,000 pallet positions, with a strong emphasis on sustainability and supply chain efficiency, reinforcing its market position.

Opportunities in the Australia Cold Storage Market

The demand of the Australia cold storage market is driven by increasing industry emphasis on energy efficiency and sustainability. Market players are integrating eco-friendly refrigeration technologies, solar-powered infrastructure, and energy optimisation strategies to reduce environmental impact and operational costs. In October 2024, The LEGO Group, in partnership with Kuehne+Nagel, launched a cutting-edge distribution centre in Truganina, Victoria. Spanning 26,500 sq m with 26,000 pallet positions, the facility incorporates advanced automation and sustainable features such as solar panels and water-saving systems, achieving a 5-star Green Star Rating. This exemplifies the sector’s commitment to sustainable development and innovation.

Market Restraints

The Australia cold storage market encounters notable restraints including elevated operational costs driven by high energy consumption, refrigeration upkeep, and skilled labour shortages. Regional infrastructure deficits increase transportation expenses and reduce supply chain efficiency, particularly in remote areas.

Additionally, stringent regulatory frameworks, fluctuating energy prices, and limited facility space compound operational complexities, raising compliance and overhead expenditures. Growing environmental concerns are expected to intensify regulations on energy use and refrigerants, necessitating substantial capital outlays for sustainable technology adoption.

Australia Cold Storage Market Share

Market Analysis by Storage Type

The Australia cold storage market benefits from facilities offering comprehensive services such as warehousing, inventory management, and temperature-controlled storage, addressing critical needs across food, pharmaceutical, and retail sectors. These services ensure regulatory compliance and product integrity, supporting supply chain reliability. According to the Department of Agriculture, Fisheries and Forestry (DAFF), Australia exported 68.6 million tonnes of winter broadacre crops worth AUD 26.3 billion in 2022-23, with wheat representing 60% of the output, highlighting cold storage’s essential role in preserving export quality and boosting market demand.

The Australia cold storage market growth is propelled by advanced storage technologies, including pallet racking and specialised refrigerated units, which enhance space utilisation, product organisation, and accessibility. These systems maintain optimal temperatures and prevent contamination, increasing operational efficiency for diverse perishables. In March 2023, global real estate firm Hines expanded its presence in Australia’s cold storage sector with a strategic acquisition in Queensland by Hines Asia Property Partners. This marked HAPP’s second Queensland investment and its seventh industrial asset nationally, reflecting rising institutional confidence in the sector’s growth potential.

Market Analysis by Application

As per the Australia cold storage market report, the market is driven by its critical function in preserving the quality and safety of perishable food and beverage products, including meat, dairy, fruits, and vegetables. This capability reduces spoilage and waste, extends shelf life, and ensures year-round product availability, which is vital for supply chain continuity. The Department of Agriculture, Fisheries and Forestry (DAFF) forecasts a 2% growth in poultry meat production value to AUD 3.9 billion by 2024–25, underpinning rising demand for advanced cold storage infrastructure to support the agricultural sector’s expansion.

The pharmaceutical segment significantly bolsters the cold storage market in Australia. The sector relies heavily on temperature-controlled storage to safeguard sensitive medications and vaccines, ensuring their efficacy and safety. According to the Pharmaceutical Benefits Scheme (PBS), 68.6% of Australians accessed at least one PBS-subsidised medicine in 2022, reflecting sustained demand for pharmaceutical cold chain logistics. This trend necessitates investment in specialised cold storage facilities to meet regulatory requirements and patient needs, thereby stimulating market growth.

Australia Cold Storage Market Regional Insights

New South Wales Cold Storage Market Overview

New South Wales benefits from a prime location, top-tier infrastructure, and a robust transport network, enabling efficient cold storage solutions for sectors like food, pharmaceuticals, and retail, with strong demand and growth prospects. According to the NSW Government, the 2023-24 GVP is 23% above the 10-year average, highlighting the continued strength and resilience of the state’s agricultural, fishing, and forestry industries.

Queensland Cold Storage Market Trends

Queensland’s cold storage market is experiencing heightened demand due to agriculture, seafood exports, and increasing retail requirements. Technological innovations and sustainability initiatives are driving operational efficiency and minimising environmental impacts. In July 2024, Tasman Logistics expanded its cold storage capacity at Morningside, Queensland, with a new facility capable of storing 7,400 frozen and 1,300 chilled pallets.

Western Australia Cold Storage Market Dynamics

Western Australia’s cold storage market is shaped by the region’s mining, agriculture, and export sectors. The rising demand for temperature-sensitive goods, such as seafood and fresh produce, is fuelling market growth and driving technological advancements. In December 2024, Perth Markets Group Limited (PMGL) completed the multi-tenant cold chain warehouse, S2, at its 51-hectare Canning Vale site, enhancing the logistics and distribution of fresh produce across Western Australia.

Victoria Cold Storage Market Drivers

Victoria’s well-developed transport networks and proximity to major ports make it a pivotal region in the Australia cold storage market. The state’s robust agricultural and food manufacturing sectors fuel demand for advanced cold storage solutions, enabling efficient supply chains and export capabilities. Additionally, Victoria’s growing pharmaceutical industry further drives market expansion through increased requirements for temperature-controlled logistics and warehousing.

Australian Capital Territory Cold Storage Market Opportunities

The Australian Capital Territory benefits from its focus on healthcare, research, and government services, which are key drivers in the cold storage market. The region experiences rising demand for pharmaceutical and biotech cold chain logistics, supported by government investment in medical infrastructure. This demand fosters innovation and strengthens the ACT’s position in providing specialised cold storage solutions to critical sectors.

Competitive Landscape

The Australia cold storage market key players drive growth by offering comprehensive warehousing, distribution, and transportation services across retail, healthcare, and FMCG sectors. Their focus on operational excellence and reliability enhances supply chain efficiency. These companies invest in advanced cold chain technologies and tailored solutions, addressing sector-specific demands in food production, pharmaceuticals, and retail. Their innovation and scalability underpin market expansion, meeting rising requirements for product quality and regulatory compliance in Australia’s evolving cold storage landscape.

Key Industry Players

Karras Cold Logistics: Karras Cold Logistics is a leading Australian provider of cold storage and logistics solutions, specialising in temperature-sensitive goods. Headquartered in Melbourne, Australia, the company offers warehousing, distribution, and transportation services. It has built a strong reputation for reliability and operational excellence in the cold chain industry.  

Linfox Pty Ltd.: Linfox Pty Ltd. is an Australian logistics company offering a wide range of services, including cold storage, transportation, and supply chain management. Established in 1956 and headquartered in Melbourne, Australia, Linfox operates across multiple sectors, such as retail, healthcare, and FMCG, providing innovative solutions to meet client needs.  

Americold Logistics, Inc.: Americold Logistics, Inc. is a global leader in temperature-controlled warehousing and logistics solutions. Founded in 1903 and headquartered in Atlanta, United States, the company operates a vast network of facilities across North America, Europe, and Asia, offering services to the food, retail, and pharmaceutical industries.  

Melbourne Cold Storage: Melbourne Cold Storage is a prominent Australian cold storage provider specialising in the handling, warehousing, and transportation of temperature-sensitive goods. Established in 1947 and based in Melbourne, Australia, the company offers advanced cold chain solutions, supporting industries such as food production, pharmaceuticals, and retail.

Another key player in the Australia cold storage market report is MFRH COOL LOGISTICS PTY LTD among others.