The 2025 I.CON Cold Storage Conference in Phoenix, Arizona, brought together some of the most experienced and forward-thinking leaders in the cold storage and food & beverage sectors. Discussions at the event highlighted both challenges and opportunities shaping the industry today. Below are a few of the national trends the Colliers Food & Beverage team is tracking as we look toward 2026.

 Big Food vs. Regional Competition

The traditional “big food” giants are facing intensified competition from smaller, more agile regional food and beverage companies. These regional players are growing rapidly, capturing market share through localized production, faster decision-making, and closer ties to consumers.

However, the question remains — will it last? As these regional brands scale up, many expect the industry to enter a new wave of mergers and acquisitions over the next 12 to 24 months. Larger food conglomerates may look to acquire rather than organically grow, tapping into regional expertise and established supply networks to maintain competitiveness.

Rates, Tariffs, and the Perfect Storm of Cost Pressures

The cold storage industry continues to navigate a complex mix of economic headwinds. Higher interest rates, rising construction costs, global trade tensions, and increased supply have created a challenging environment for everyone, from third-party refrigerated warehouse (PRW) operators like Lineage Logistics and Americold to regional food manufacturers.

The uncertainty around tariffs — particularly involving China — has made long-term planning and forecasting extremely difficult. Markets exposed to import/export disruptions are feeling the impact most acutely, while others may actually benefit as supply chains shift geographically.

Since 2021, investors and developers have rushed into the cold storage sector. For many, it’s been a steep learning curve, as the realities of operating in a capital-intensive, infrastructure-dependent asset class become more apparent.

The Power Problem: Capacity and Cost

Power availability has become one of the most significant challenges facing the cold storage industry. While not unique to this sector, the demand for high-capacity power is creating delays in both expansions and new developments.

According to the Global Cold Chain Alliance, power is now the third-largest component of operating costs for refrigerated space across the U.S., trailing only labor and rent/mortgage expenses. Electricity costs, which historically rose at a steady 3% annually, have jumped 30% since 2020, drastically altering cost structures for operators and tenants alike.

The Next 12 Months

Speculative cold storage development has slowed dramatically over the past year. Instead, the market is shifting toward build-to-suit (BTS) projects, acquisitions, and retrofitting existing facilities to meet specialized operational requirements.

Cold storage and food manufacturing facilities are inherently complex. Every tenant’s operation demands unique temperature zones, cooling systems, floor layouts, and employee amenities, from dock configurations to welfare spaces. This high level of customization makes speculative development risky and reinforces the trend toward more targeted, user-specific investments.

Food for Thought: The Ozempic Effect

An emerging discussion point in the sector is whether the increasing use of weight-loss medications such as Ozempic and other semaglutides is beginning to impact consumer eating habits — and, in turn, grocery demand.

Some analysts suggest these drugs are contributing to reduced grocery spending, potentially lowering demand for temperature-controlled space. Others believe the opposite may prove true, with consumers shifting toward healthier, fresh food options, such as lean proteins and produce, categories that rely heavily on cold storage infrastructure.

Final Takeaway

The cold storage sector remains one of the most active and growing areas of industrial real estate. While near-term headwinds are testing operators and investors, the long-term fundamentals, driven by e-commerce grocery demand, consumer preferences, and food supply chain modernization, remain strong.