Are you making the most of your F&B warehouse space?

James Sharples 16 luglio 2026

Tempo di lettura: 5 minuti

Food and beverage manufacturers are facing a warehouse space crisis, and most of them did not see it coming. Production expanded. Storage followed. Over time, an organized operation became a fragmented footprint of disconnected warehouses, rising third-party costs, and a site nobody would have designed on purpose. This article examines why the space problem is structural and how automation is helping manufacturers solve it without building a new site.

Quick facts

F&B manufacturers consistently prioritize production space over warehouse space, creating a compounding storage problem over time
The average cost of standard pallet storage in a dry US warehouse is $20.17 per pallet per month, rising significantly for climate-controlled environments
Cold storage vacancy in the US sat at approximately 3.4% in H1 2024, meaning available space is scarce and aging
Moving to automated storage delivers approximately 300% more capacity than block stacking within the same building footprint
One major snack food manufacturer increased on-site storage locations by 300% across multiple Swisslog projects over 22 years, without building a new site

Why do F&B manufacturers keep running out of warehouse space?

Production space generates revenue. Warehouse space does not. When the two compete for the same footprint, production wins and warehousing gets whatever is left over, or moves off-site entirely.

Over years of incremental growth, storage ends up distributed across multiple areas in buildings of different ages, connected by logistics flows nobody planned. Geography compounds the challenge. Many established F&B sites are in towns, tied to water sources, ports, or the communities where the brand was founded. Expanding outward is simply not an option.

What does off-site storage cost?

The standard response to running out of space is third-party logistics. But the true cost is consistently higher than it first appears.

According to a 2025 survey by The Fulfillment Advisor, the average cost to store a standard pallet in a dry US warehouse is $20.17 per pallet per month, with climate-controlled storage commanding a further premium. On top of that, manufacturers pay inbound transport, receiving and put-away fees, and outbound costs when product returns. This double touching inflates the real cost well beyond the headline rate. For F&B manufacturers, short-term seasonal storage attracts a further premium still.

Is the F&B warehouse space problem getting worse?

Cold storage vacancy in the US sat at approximately 3.4% in H1 2024. Most existing stock is 30 to 40 years old. Across Europe, vacancy rates average around 6%, with cold-chain space tighter still. Inventory buffers are growing as manufacturers hold more safety stock, and regulation is restricting where new facilities can be built. The option of simply finding more space elsewhere is narrowing at the same time as the need for it is growing.

How is automated storage solving the F&B space constraint?

The answer is density. Block stacking uses around 30% of available building height. Conventional racking reaches approximately 60%. Automated storage systems use 90% or more, delivering around 300% more capacity within the same footprint.

Swisslog offers three technologies matched to different building types: vertical stacker crane systems for very high-bay buildings up to 48 meters, bidirectional deep-lane shuttle systems for buildings up to 45 meters with lower SKU counts, and 4-way roaming pallet shuttle solutions for irregular layouts and lower ceiling heights. Intelligent software coordinates all three in real time, integrating with existing WMS and ERP systems.

One major snack food manufacturer has worked with Swisslog for 22 years, increasing on-site storage by 300% across multiple projects without opening a new site.

Conclusion

The space problem in F&B manufacturing is structural, not cyclical. Manufacturers who invest in density find that the space they need was already there. It just was not being used.

For the full analysis, including a five-question diagnostic for your own site, a breakdown of the true cost of 3PL dependency, and a detailed guide to automation options, download the full white paper:

Download the handbook

FAQ

What is causing the warehouse space crisis in food and beverage manufacturing?

Production consistently takes priority over warehousing, meaning storage gets whatever space is left over. Over years of incremental growth, warehousing becomes fragmented and costly.

How much does third-party pallet storage cost in food and beverage?

According to The Fulfillment Advisor's 2025 survey, the average is $20.17 per pallet per month for standard dry storage in the US, with further premiums for climate-controlled environments and short-term seasonal allocations.

How much more storage capacity does warehouse automation deliver?

Automated systems use 90% or more of available building height, delivering around 300% more capacity than block stacking within the same footprint and without structural changes to the building.

Which automated storage system is right for an F&B warehouse?

It depends on the building. Swisslog's white paper covers the full decision framework across crane systems, deep-lane shuttles, and 4-way roaming shuttles.