Canada's cold storage sector is expanding as demand for refrigerated and frozen storage increases, driven by agricultural output, food processing, and international trade, according to FCC Economics.

In 2025, Canadian vegetable harvest volumes increased 8.0 per cent to approximately 2.6 billion kilograms. Revenue from frozen food manufacturing, which includes frozen fruit and vegetables, increased from C$5.4 billion in 2020 to C$8.0 billion in 2024, representing growth of approximately 48 per cent.

Between 2020 and 2026, Canadian exports of frozen fruit and vegetable preparations increased 37.2 per cent, equivalent to approximately 415,000 tons. Fresh or chilled vegetable exports rose 33.4 per cent, while frozen fruit and frozen vegetable shipments increased 13.3 per cent and 12.3 per cent, respectively.

Frozen fruit and vegetable preparations are expected to reach 1.53 million tons in 2026, accounting for 52.8 per cent of frozen-food export volumes. Approximately 99.6 per cent of Canadian frozen vegetable exports went to the U.S. in 2026. Meanwhile, frozen fruit shipments to Japan, China, and the Netherlands increased compared with 2020, while exports to the U.S. declined.

The 2026 estimates are annualized using January to August data and are not seasonally adjusted.

Cold storage capacity and investment

Among three Canadian cold storage operators, refrigerated warehouse capacity increased approximately 27 per cent, from 159 million cubic feet in 2023 to 203 million cubic feet in 2026.

Further expansion is planned, including two projects in Atlantic Canada and Québec representing more than C$100 million in investment. These include a 190,000-square-foot facility with 22,000 pallet positions and additional refrigerated and frozen storage space.

FCC Economics identifies warehouse utilization, temperature requirements, and transport connectivity as factors influencing profitability. Operators must align storage capacity with demand for frozen, chilled, and ambient conditions.

Additional services, including blast freezing, repacking, and handling, can generate revenue beyond storage fees.

Energy costs remain a consideration, with Canadian electricity prices approximately 36 per cent above 2014 levels. Investments in refrigeration efficiency, insulation, and energy management can reduce operating expenses.

Automation is also being adopted. Projects include a refrigerated distribution center in Québec valued at more than C$240 million and a C$222 million cold storage facility in Alberta incorporating automated storage, retrieval, and material-handling systems.

Warehouse management systems and real-time temperature monitoring can improve inventory control, traceability, and temperature management throughout the cold chain.

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Source: Farm Credit Canada November 10, 2026 news release