Refrigerator Market Size, Share & COVID-19 Impact Analysis, By Product Type (Top Freezer Refrigerator, Bottom Freezer Refrigerator, Side by Side Refrigerator, and French Door Refrigerator), By Distribution Channel (Offline and Online), and Regional Forecast, 2023-2030

The global refrigerator market size was valued at USD 68.72 billion in 2022 and is projected to grow from USD 71.55 billion in 2023 to USD 103.96 billion by 2030, exhibiting a CAGR of 5.48% during the forecast period.

The growing demand for smart and Internet of Things (IoT)-based home appliances, including intelligent refrigerators is projected to drive the market growth. Nowadays, consumers demand smart and innovative domestic appliances that will provide them convenience and minimize their efforts in operating the devices. Moreover, the increasing inclination of consumers toward frozen food products such as ready-to-eat snacks, vegetables, and fruits is also propelling the product demand. Besides, the growing popularity of the e-commerce sector and flourishing trade between different countries are also anticipated to augment the market growth during the forecast period.

COVID-19 IMPACT

Closure of Electrical Stores and Other Supermarkets During the COVID-19 Pandemic to Hinder Market Growth

The COVID-19 pandemic impacted the market growth owing to the shutdown of electronics stores and the closure of supermarkets and hypermarkets. The uncertainty in the distribution of raw materials halted the production of electronic goods, including refrigerators. Moreover, lack of labor in the manufacturing units decreased the inventory capacity, raising the price of the final goods in the near term. These factors had a severe impact on the overall market of refrigerators.

LATEST TRENDS

Increasing Demand for Sustainable Home Appliances to Push Market Growth

Consumers are increasingly opting for eco-friendly electrical goods that would provide high energy efficiency and release less harmful effects in the long run. Moreover, governments of different countries have also taken several sustainable initiatives to make consumers aware of the benefits of using eco-friendly products. Conversely, the key players in the market are constantly increasing their R&D expenditure to innovate new and intelligent devices that are sustainable in nature. This is, in turn, expected to drive the global refrigerator market growth.

DRIVING FACTORS

Positive Outlook Toward Smart Refrigerators to Amplify Market Growth

Smart and Artificial Intelligence (AI)-based refrigerators assist consumers with several benefits, including automatic temperature control, command-based functioning, in-built screen automation, and others. Smart refrigerators' innovative and digital features reduce consumers' struggles to control the device. Smart refrigerators save energy costs and increase the appliance's efficiency by constantly monitoring the glitches and allowing the device to detect its solutions automatically. Therefore, consumers' rising demand for intelligent freezers further drives the global market expansion. For instance, in March 2021, Samsung launched its automated refrigerator range ‘4-Door Flex’, equipped with smart and intelligent features.

Growing Inclination of Consumers Toward Frozen Foods to Drive Market Growth

Frozen foods such as frozen meat, snacks, vegetables, and others are among the fastest-growing food categories in ready-to-eat categories. Recently, consumers' attraction toward frozen foods has grown significantly, owing to their fast and busy lifestyle, which propels the need for ready-to-eat food items. These types of foods not only offer convenience but also provide nutritional value to consumers. This augments the product demand as these food items require storage facilities to keep the products fresh, which can be used in the long run. For instance, according to the data published by the American Frozen Food Institute (AFFI), 2021, the retail sales of frozen foods reached USD 65.10 billion in 2020, an increase of 21% compared to 2019.

RESTRAINING FACTORS

Less Penetration of Refrigerators in Developing Countries to Hinder Market Growth

Developing countries, such as Indonesia, India, South Korea, and others, have less access to smart home appliances, including intelligent refrigerators, owing to their low disposable income and a poorer living standard. Moreover, refrigerators consume a massive portion of energy, which becomes expensive for emerging countries to afford the extra cost of smart refrigerators. This is expected to restrict the demand for the product. For instance, according to data reported by the World Energy Council (WEC) in 2020, the highest energy consumption intensity has been witnessed in Asia Pacific and the Middle East & Africa, and the per capita energy consumption in emerging nations is expected to increase by ~3.4% annually.

SEGMENTATION

By Product Type Analysis

Energy-efficient Features of Top Freezer Refrigerators to Drive Segment Growth

Based on product type, the market is segregated into top freezer refrigerator, bottom freezer refrigerator, side-by-side refrigerator, and French door refrigerator. Top freezer refrigerator segment is anticipated to reign the market due to their excellent features in saving energy costs and wide availability of the products. Therefore, the top freezer refrigerator segment held a market share of 37.58% in 2022 and is projected to increase in the coming years.

By Distribution Channel Analysis

Wide Variety of Products in Retail Stores to Trigger Offline Segment Demand

The market is segmented into offline and online based on distribution channel. Offline channels include brand stores, retail shops, hypermarkets, and supermarkets, which provide consumers the convenience of picking from an extensive range of products and allow them to check and validate the realness of refrigerators. Also, offline channels offer consumers with several discounts and gift vouchers that attract individuals to purchase from retail stores.

On the contrary, online channels such as Flipkart, Amazon, and e-retail websites of companies have also experienced steady growth in recent years. This is due to their easy availability, hassle-free delivery systems, and flexible installation process.

REGIONAL INSIGHTS

In terms of region, the global market is subdivided into Asia Pacific, North America, Europe, South America, and the Middle East & Africa.

Asia Pacific acquired the largest refrigerator market share. The region is expected to grow at a considerable pace during the forecast period. The increasing population level in India, China, Singapore, and other Asian countries has fostered the demand for home appliances, including refrigerators. Moreover, rapid urbanization has led to the establishment of various supermarkets and hypermarkets in the region, contributing to the growth of the Asia Pacific market.

Europe is the second largest region, holding a significant share, followed by Asia Pacific. The growing awareness of European consumers about the benefits of using intelligent refrigerators is further driving the European market growth. Smart appliances provide flexibility to consumers and save time for them in terms of operating the devices.

Furthermore, North America also captures a substantial share in the global market owing to the presence of renowned manufacturers of home appliances in the region. Moreover, the propelling e-commerce sector that allows smooth delivery of products and easy payment options is also projected to augment regional demand in the long run.

The market of South America has experienced strong growth during the forecast period and seized a market share of 11.14% in 2022. The increasing partnerships of prominent players with different local brands with a viewpoint to expand their product portfolio and obtain significant market share, accelerating the sales of refrigerators in the region.

The growth of the Middle East & Africa market has been attributed to the growing establishments of local brands of home appliances, which, in turn, generated a massive chunk of revenue in the overall market of South America. Besides, the increasing trend for home renovation has also led to the growing demand for smart devices, augmenting the region’s growth.

KEY INDUSTRY PLAYERS

Rising Government Initiatives Focused on Producing Energy-efficient Appliances to Accelerate Market Growth

The governments of different countries have adopted several developing initiatives regarding energy-efficient appliances and product sustainability. In addition, consumers nowadays are looking for products that support better energy-efficient ratings, which propels the demand for intelligent refrigerators in the near term. This is further projected to surge the demand in the freezer market. For instance, in April 2020, the Government of India laid down a developing scheme, ‘Production-Linked Incentive Scheme’, to support the local manufacturers of white goods, including air conditioners and refrigerators.

LIST OF KEY COMPANIES PROFILED:

• Samsung (South Korea)


• LG Electronics Inc. (South Korea)


• Whirlpool Corporation (U.S.)


• Panasonic Corporation (Japan)


• Hitachi, Ltd. (Japan)


• Electrolux AB (Sweden)


• Godrej Group (India)


• Haier Group Corporation (China)


• Midea Group (China)


• Voltas Limited (India)


• GE Appliances (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2021 - Samsung launched a new range of refrigerators called the 4-Door Flex Series. This range of refrigerators is equipped with Family Hub and Stainless Steel and automated features with all the smart functions.


• May 2021 - Electrolux AB announced the selection of 7 partners in its innovation program to display their product portfolio range in home appliances, including refrigerators.


• May 2022 – Whirlpool Corporation launched its new marketing office in North America, ‘WoW Studios’, to display its brands, including JennAir, KitchenAid, Maytag, and others.


• September 2022 – LG Electronics launched its new refrigerator set ‘MoodUP’ range equipped with color-changing LED panels at IFA 2022.


• March 2021 – Samsung launched its ‘4-Door Flex Refrigerators’ in North America, including digital and smart features incorporated within the freezers and flexible interior storage.

REPORT COVERAGE

The report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sales channels, and application usage areas. Besides this, the research report provides insights into the refrigerator market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market growth in recent years.

Report Scope & Segmentation