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The global refrigerator market Size was valued at USD 64.17 billion in 2018 and is projected to reach USD 103.95 billion by 2026, exhibiting a CAGR of 6.3% during the forecast period.
Refrigerators are widely used across households and commercial places to provide convenient and safe means of food preservation. They are available in different types based on size, features, and applications. Manufacturers in the industry are keenly focusing on introducing a higher level of luxury and innovative refrigeration products to attract the end-users. Various prominent companies associated with the industry such as Haier, Samsung, L.G., GE Appliances, and many others are using merger and acquisition strategies to expand their global market reach with the retail outlets. Nowadays, companies in the home appliances industry are coming up with environmentally friendly refrigeration products that limit the carbon footprints and provide ease in the green initiatives towards environmental sustainability.
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Increasing Inclination of the Population towards Smart Home Appliances to Drive Growth
Rising infrastructural developments related to smart homes and buildings for commercial and residential purposes enhances the demand for highly efficient home appliance products among people. This increases the growth of innovative refrigeration products. Moreover, the introduction of innovative technological features such as IoT, digital connectivity, and custom interface with the freezing products by prominent companies would drive the purchase of smart refrigeration products. For instance, in December 2019, Xiaomi launched the Yunmi Internet Smart freezer to provide high-end features such as IoT connectivity, AI voice control, etc. At the same time, the company is trying to compete with Samsung and LG in the market with the Yunmi Internet Smart freezer.
Rising Global Housing Demand for Residential and Commercial Purposes is Projected to Drive the Market Growth
Refrigerators are increasingly used in residencies for daily kitchen use. Therefore, growing housing construction is expected to drive the adoption of freezers. According to a report named ‘Construction Statistics: Great Britain 2018’, published by the House of Commons Library, in 2018, housing accounted for the highest value of new orders of USD 23.76 billion, which is 35% of the total construction orders in the U.K. In addition to this, freezers with high cooling features are commonly used in hotels and quick-service restaurants to avoid food spoilage and to have an effective food storage system. Hence, the rising demand for the hotel and hospitality sector would flourish the sales of high-end refrigeration products. The increasing number of ice cream parlors and bars would result in the rising consumption of the freezers. Refrigerators are essential for providing custom cooling range options in the freezer that are mainly utilized in ice cream parlors and bars to store cold drinks and ice creams. In addition to this, the growing consumption of the various frozen and processed food items across the globe is set to enhance the needs for freezing products.
Moreover, the rising rate of urbanization of the global population coupled with the growth in nuclear families would enhance necessities for them to purchase newer home appliance products. According to a report called ‘World Urbanization Prospects 2018’, published by the United Nations Department of Economic and Social Affairs, it is estimated that globally, nearly 55% of the population lives in the urban areas and it is projected to increase to 68% in 2050. Also, increasing spending of the people for home appliances, coupled with the growing trend of home decoration, renovation, and remodeling activities are set to propel the adoption of high-end home appliance products and would drive the refrigerator market growth.
Government Initiative Towards Energy Efficient Home Appliances to Drive Growth
In order to minimize the energy consumption of home appliances, the government is coming up with newer policies. The policies support the manufacturing and consumption of energy-efficient home appliances and provide ease in the contribution towards environmental sustainability. This, in turn, would fuel the consumption of energy-efficient cold storage devices.
According to the article ‘Accelerating the Global Adoption of Climate Friendly and Energy Efficient Refrigerators’, published by United4Efficiency Organization, the government has provided a supportive policy to offer mandatory Brazilian comparison label which would help to enable consumers to decide on purchasing under the consideration of energy efficiency of the refrigerator. In addition to this, governmental initiatives to promote and increase the manufacturing capability of electronic products such as ‘Make in India’ campaign would boost the supply of the electronic home appliances in India. Additionally, incentive schemes such as coupons, discounts, and vouchers provided by the companies would attract the consumers towards purchasing electric appliances and help in the growth of the market.
Higher Repair and Maintenance Cost of Refrigeration products is Expected to Hamper Growth
Higher repairing and maintenance cost associated with high-end refrigeration products is anticipated to hamper the market growth from the lower-income group of people. Moreover, lesser availability of the repairing services for home appliance products would hamper the purchase of smart refrigerators. In addition to this, increasing competition in the electric appliances products would create entry barriers for the new entrants in the industry.
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Based on product type, the refrigerator market analysis is segmented into top freezer, bottom freezer, side by side, and French door refrigerators. The top freezer segment is likely to dominate the market owing to its feature of having a combined freezer and shelf size in a single unit that avoids necessities to buy separate chest freezer or to find separate space for food storage.
Moreover, such type of products provides more usable storage space than the other types of units. However, the side by side category is set to exhibit the fastest growth in the forecast period as people can easily and quickly locate the required food product in these refrigerators because of their open side shelf sections and also, they provide more shelf space for the consumer usage.
The bottom freezer category is commonly popular among senior citizens as it does not have a mobility issue which make them difficult to stoop down to address food items. The French door segment witnessed considerable growth because of their deeper drawer freezers that are widely used for storing frozen food items.
The Offline Channel Segment is Projected to Dominate the Market
The offline channels segment, including retail outlets, shopping malls, and specialty stores is expected to hold a major refrigerator market share because the customer can touch, see, and understand the product in a better way as compared to the online channels. In addition to this, a wide variety of choices are available for the customers to choose the fridges as per their requirements in such a mode of distribution.
Moreover, they prefer to buy refrigerators from physical stores so that they can bargain and get discounts while purchasing the product. Hotels and restaurants prefer to purchase branded smart freezers for cooling and food storage systems in their kitchen and hence, they usually purchase from specialty stores.
However, the online channel of distribution is projected to increase shortly owing to the advancement in the e-commerce industry coupled with the rising internet penetration that would foster online shopping activities by the people.
Asia Pacific Refrigerator Market Size, 2018
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Asia Pacific is expected to dominate the market owing to the presence of a large population and households. Additionally, increasing infrastructural demand in this region would result in the increasing adoption of home appliance products. Other key factors that are supporting the growth of the market in Asia-Pacific include robust replacement demand from traditional to smart appliances, rising disposable income, increasing urbanization, & the number of households. China and India are the largest markets for refrigeration products in Asia Pacific and are projected to showcase a CAGR growth of 5.9% and 7.2%, respectively, during the forecast period from 2019 to 2026.
Europe is projected to grow at a faster rate because of the introduction of technologically advanced refrigeration products by prominent companies in the region. That would attract and influence people to purchase smart refrigerators. For instance, in 2019, Samsung Electronics opened a new era of kitchen design with its latest BESPOKE fridges to introduce the new lifestyle innovations of quality craftsmanship and BESPOKE to satisfy the unique needs of each household in Europe.
North America is expected to hold a considerable share of the market because of the higher disposable income of the population in countries such as the United States and Canada. Moreover, factors such as large urban population base and increasing nuclear families would result in the larger adoption of smart electrical appliances in the region. South America is projected to grow at a considerable rate owing to the growing middle-class population in countries such as Brazil and Argentina. Moreover, the increasing interest of people towards energy-efficient home appliances would help to create demand for energy-efficient refrigeration products in the region.
However, the Middle East and African market is driven by the smaller manufacturing base of home appliances brands such as Panasonic, Hitachi, and more. Moreover, a stiff increase in the spending power of the population for home appliances products is set to create demand for refrigerators in these regions.
The Market is Highly Fragmented and is Comprised of Diversified Product Portfolio
The refrigerator market is highly fragmented, owing to the presence of a large number of players across the globe. Manufacturers are focusing on developing energy-efficient products, as well as are engaged in substantial promotional activities to attract consumers and gain a strong foothold in the market. Additionally, companies are focusing on developing spacious & customizable interiors and usage of LED bulbs for brighter lighting which can save energy. This, in turn, is projected to propel refrigerator industry growth.
The refrigerator market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and distribution channels.
An Infographic Representation of Refrigerator Market
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Besides this, the report offers insights into the market trends and highlights vital Refrigerator industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
By Product Type
By Distribution Channel
Fortune Business Insights says that the global market size was USD 64.17 billion in 2018 and is projected to reach USD 103.95 billion by 2026.
In 2018, the market value stood at USD 64.17 billion.
Growing at a CAGR of 6.3%, the market will exhibit steady growth in the forecast period (2019-2026).
Top freezer category is expected to be the leading segment under the product type in this market during the forecast period.
Rising global housing demand for residential and commercial purposes is driving the market growth.
Haier, Whirlpool, Electrolux, L.G., and Samsung are few of the leading players in the global market.
Asia Pacific dominated the global market in terms of share in 2018.
Increasing inclination of the population worldwide towards smart home appliances is expected to drive the adoption of refrigerator products.
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