Is cold storage a profitable business?

How much land is required for cold storage?

Cold storage is a profitable business in developed and developing countries. You can find cold storage in two types, a single product and multipurpose. The cold storage of multi-purpose ascertains overall profitability and better returns. 


Is cold storage a profitable business is a question arising among new investors. The cold storage industry over 2019-2023 is expecting a CAGR of 13-15% growth. It is driven mainly by the need for fresh vegetables and fruits, processed food, bio-pharmaceuticals, and seafood. 

How do you expect profits?

Cold storage now uses advanced technologies. It is more expensive in comparison to standard storage. It is the reason more companies meet the warehousing needs by storing in third-party warehousing facilities. 


The cold storage examples are cold rooms, chillers, refrigerated containers, and pharmaceutical-grade cold storage.


Cold storage is the right place to store vegetables and fruits. It can be used to avoid spoilage and extend food life. Processed foods such as beef and fish require preservation. It prevents the development of microorganisms. Cold rooms are smart ideas as things are in colder areas than the room temperature.


Is cold storage a profitable business? Cold storage is the place to use the freezer space to store food products with pharmaceuticals. It is a refrigeration system featuring regulating temperatures. The purpose of cold storage is to retard or control the microbial growth level to maintain storage commodities.


To know more about profits in this business, contact NSSPL. They will throw light on earning profits.

This blog is also worth reading for you:- What are the requirements for a cold room?

Earning profits through cold storage business

The distribution chain having agricultural products needs to preserve the product’s freshness, retain its originality, and extend life. Products such as meat, kinds of seafood, biomedical products, and pharmaceuticals are a few things that require cold storage. 

Is cold storage a profitable business? How to build to earn profits?

Step 1- Determining the business requires surrounding the area demanding cold storage. If a particular area shows the need, lacks cold storage facility, and is the right place. Observe, if there is demand, and consider planning to fill that void.


Step 2– Prepare the best method after a careful study of implementing plans and performing them. Seek advice from people who are into this business or get good thoughts. If your determination is strong, you can test the run by initiating a smaller unit.


Step 3– You can start with a small freezer to use as a storage device and to cater to small-scale companies and commercial fishermen. Here the initial functional cost may be higher, and it is anticipated for all start-up companies.


Step 4– You can give the idea a test run to precede with a full-scale business. It will help in choosing the right way of continuing. You can procure to finance or fund and make a decision. You may choose to stick to expanding and pay more to earn more profits.


Step 5– The initial step is to advertise and set up the company. Understand the market to target to ensure earning business profits. The first is to look for nearby markets and fishermen.


Step 6– Expanding the market and earning profits is possible when you sell something different from others. Selling a product requires storing merchandise products, packing, and selling as per the demand. In this way, you store the product and get a competitive advantage.


The answer to your question ‘Is cold storage a profitable business is yes. It is a highly profitable business, and many states in India offer subsidies and loans to initiate cold storage units.

How can I start a cold storage business in Karnataka
Benefits of Using Cold Storage

Cold storage describes the way of storing fruits and vegetables, besides medicines, fish, and potatoes. Many businesses are difficult to run without reliable cold storage facilities. Cold lockers and freezers are new business possibilities.

Freezer systems and cold storage will assist in selecting shipping items, buying appropriate equipment, and properly packaging products. Deeper temperatures facilitate meat and fish storage facilities. It is due to fish and other types of meat rapid rotting. You can benefit from the catch and ensure the meat and fish varieties are stored properly. Storing for a longer time is a facility for the end user, and storing facilitates shipping.

The Indian government improves and develops the warehousing and cold storage industry. It has accomplished carefully crafted schemes to assist the industry with essential requirements. It attracts foreign investors, the comfort of doing business, its continued growth, and expands its market share. The tax incentives and breaks ensure the sector expands as the economy at the same pace.

The main goal of cold storage schemes provides an integrated cold chain. The infrastructure preservation facility helps in making the business profitable.

Is cold storage a profitable business, know it from NSSPL. The company provides support with advanced technology and introduces you to acknowledged service providers all over the country.

For authentic and more perfect turnkey solutions, call NSSPL now!

This blog is also worth reading for you:– What is subsidy for cold storage?

Yogesh Dahiya

Yogesh Dahiya

The Managing Director of Natural Storage Solutions Pvt Ltd is known for his expertise in setting up cold storage, chilling plants and food processing units.

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Have you come to my website for cold storage business information? If yes then you can watch video related to cold storage business by clicking here.

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Have you come to my website for cold storage business information? If yes then you can watch video related to cold storage business by clicking here. 

YouTube Channel Video List