Asia Pacific to drive global momentum with Southeast Asia markets and China leading in terms of growth opportunities.

Cold storage facilities offer substantial untapped growth opportunities in Asia Pacific (APAC) despite the market moderating from a 2021 high. According to JLL (NYSE: JLL), refrigerated warehouse capacity demonstrated consistent growth from 2014 to 2020 and is projected to rise by 25 percent over the next five years and reach over 1,100 million cubic metres by 2030 globally, with Asia Pacific driving the bulk of activity.

Cold storage facilities remain a promising long-term investment asset class backed by strong market fundamentals – Asia Pacific’s emerging middle class is expected to drive consumption, and e-commerce as a share of total retail sales is expected to rise from 17.3 percent in 2024 to 21.4 percent by 2029 globally.

The cold storage sector demonstrates resilience, with demand for essential services involving perishable goods such as groceries and online food delivery on the rise, while the region’s aging population spells growing demand for pharmaceuticals, biotechnology products, and other temperature-sensitive medical goods. Asia Pacific is also the largest regional third-party logistics market, accounting for about one-third of the global market.

“While we’ve observed a moderation in cold storage investment activity compared to the 2021 peak, this sector remains far from reaching its full potential,” said Ben Horner, Executive Director, Supply Chain & Logistics Solutions, Asia Pacific, JLL. “Investors seeking long-term growth opportunities should look towards markets such as Indonesia, Philippines, Vietnam, China and Malaysia with underserved refrigerated warehouse capacity. The cold storage market continues to be strengthened by fundamental shifts towards online services such as groceries and food and beverage, and an aging population that requires cold storage for perishable medical products.”

In Asia Pacific, markets with the most substantial growth opportunities include Indonesia, Philippines, Vietnam, China, and Malaysia, which have the lowest refrigerated warehouse capacity per urban resident, ranging from 0 to 0.2 cubic metres per urban resident. Meanwhile, mid-tier markets such as India, Japan, and Australia (0.2 to 0.4 cubic metres per urban resident) offer strategic expansion possibilities for operators looking to increase market share in developing but not yet saturated markets.

South Korea is a mature market (0.4 to 0.6 cubic metres per urban resident) where competitive differentiation through technology, sustainability, and value-added services would be critical for new entrants. Meanwhile, with the highest capacity at 0.6 to 0.8 per urban resident, New Zealand is a market that might require specialised offerings or consolidation strategies for successful investment.

Recent buyer profiles reveal a significant shift in cold storage investment trends, with developers emerging as increasingly dominant buyers while investment managers pivot toward divestment strategies. This realignment suggests a deliberate portfolio restructuring across the sector rather than distressed selling. Notably, the current developer-led purchasing activity runs counter to traditional market cycles, where development entities typically reduce acquisition activity during investment downturns. This contrarian approach demonstrates strong confidence in the cold storage sector’s fundamental strength and long-term growth trajectory, even amid broader economic headwinds.

“We are starting to see greater vertical integration within the cold storage ecosystem, as stakeholders recognise that combining development expertise with operational capabilities has become increasingly critical to maximising value in temperature-controlled logistics assets,” said Elizabeth Low, Director, Research, Asia Pacific, JLL. “Sophisticated investors with the right expertise have an advantage and can stand to capture more comprehensive returns across the entire cold storage value chain.”

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About JLL  

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.