Indian-headquartered research firm, Fortune Business Insights, is predicting big things for the coldroom market.
In its latest report, ‘Walk in Coolers and Freezers Market, 2021-2028’, the company predicts the cooler and freezers sector to grow from US$12.67bn this year to US$20.22bn in 2028 at a CAGR of 6.9% during the forecast period. The market stood at US$11.93bn in 2020.
Fortune Business Insights says the market size is set to gain impetus from the increasing shift of prominent companies towards offering reliable and efficient customised commercial refrigeration equipment for restaurants, cold storage warehouses, and floral storage applications.
In 2020, the walk in freezers and coolers industry apparently showed a moderate downfall amid the pandemic. But the research firm forecast that the rising need to store Covid-19 vaccines in the healthcare sector, partial openings of retail food beverage stores, and commercial restaurants’ takeaway services from are set to affect growth positively.
By type, the market for walk-in coolers and freezers is categorised into indoor and outdoor within the report. Based on the application, it is divided into commercial kitchen and restaurants, retail stores, pharmaceuticals, cold storage warehouses, and others. Out of these, the commercial kitchen and restaurants segment earned 31.6% in terms of the walk in coolers and freezers market share in 2020. Fortune Business Insights attributes this growth to the rising need to store raw or cooked foodstuffs for daily production and inventory preservation.
The increasing number of grocery and retail stores worldwide is reportedly propelling the demand for novel walk in freezers and coolers. It is mainly occurring because of the rising preference of these stores for purchasing numerous items at once. Also, the expansion of economies and rising disposable incomes should aid the walk in coolers and freezers market growth in the forthcoming years, according to the research firm. However, the constant fluctuation in the prices of commercial refrigeration equipment may obstruct growth.
Geographically, North America generated US$5.81bn in 2020 owing to the expansion of retail, healthcare, and foodservice industries. Coupled with this, the increasing construction of bakeries, restaurants, and hotels in Mexico, Canada, and the US would drive regional growth, says Fortune.
In Asia Pacific, on the other hand, the market is anticipated to grow significantly in the near future on account of the high demand for takeaway offers and restaurant meals from consumers. Apart from that, the rising non-residential construction activities in the region are likely to bolster the demand for walk-in coolers and freezers, the research firm believes.
Fortune Business Insights analysed that the global coldroom market contains various companies that are focusing on merger and acquisition strategies to compete with their rivals, expand their footprints and improve their services. In June 2019, for instance, The Viessmann Group took over IAC Vestcold to provide full support to Norwegian customers. And prior to that in September 2018 Arctic Industries acquired Duracold Refrigeration Manufacturing Company to broaden its geographic presence in the western US.