Warehouse shortage limits growth of Brazil’s cold logistics

Domestic consumption and exports are driving the growth of cold logistics in Brazil, a sector that serves industries ranging from agribusiness to pharmaceuticals. However, companies operating in this market increasingly rely on creativity and innovation to adapt to the lack of infrastructure and suitable spaces for their operations across the country.

According to Fortune Business Insights, the global cold storage market was valued at approximately US$4.46 billion in 2025 and is expected to reach US$8.34 billion by 2034, supported by growing demand from the food, pharmaceutical, seed and industrial product sectors.

According to Marcelo Ostrowski, Commercial Director for Brazil at Emergent Cold LatAm, the country is responding to this growth with enthusiasm and a leading role, but discussions around the development of infrastructure specifically designed to accommodate these operations still receive limited attention.

Cold storage warehouses account for 14.16% of Brazil’s more than 37 million square meters of logistics space, with a strong concentration in the Southeast, which represents 81.6% of total gross leasable area. Ostrowski notes that location decisions directly reflect the requirements of cold storage facilities, including the quality of the power grid, the availability of specialized labor, and licenses and permits from health authorities. However, the main constraint on expansion is the availability of qualified assets.

“There is a shortage of assets with the right technical specifications, especially outside the main logistics hubs. Operations that attempt to secure permits and licenses after construction face greater obstacles.”

Growing demand is not being matched by the availability of space, which is already affected by a broader shortage. Data from SiiLA’s Market Analytics platform shows the intense competition among tenants for qualified assets, as vacancy has fallen to 4.42%, the lowest level on record. Another defining feature is the concentration of Class A+ cold storage assets serving this type of operation, with more than 2 million square meters out of a total of 5.3 million square meters.

Adapting existing facilities is not always effective. Even with significant investment in retrofitting, technical requirements often encounter structural limitations in the original design, making built-to-suit projects the most viable option.

“In many cases, the existing infrastructure was designed for a different market reality and has not kept pace with the growth in handled volumes or with clients’ new requirements for efficiency, traceability and sustainability,” Ostrowski said.

The challenging environment requires investment based on an integrated approach that combines location and broader infrastructure development in other parts of the country. Ostrowski notes that this need is a strong driver encouraging the market to direct more resources toward these sectors.