Freedonia Market Research Analyzes Commercial Refrigeration Industry

Demand for commercial refrigeration equipment in the US is forecast to rise 3.9 percent annually through 2012, reaching $9.2 billion.  Advances will slow from the historical pace due to rising fuel and food prices, which are increasing costs for food industry participants such as distributors, retailers and restaurants at a time when consumers are increasingly cost-conscious.  These factors combine to result in narrowing profit margins, which will discourage many operators from investing in new equipment. Other factors such as slowing construction of hotels and motels will further limit demand for commercial refrigeration equipment.  These and other trends, including market share and company profiles, are presented in Commercial Refrigeration Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Foodservice is expected to remain the largest market for commercial refrigeration equipment through 2012.  About 49 percent of consumer food expenditures in 2007 occurred outside the home at foodservice outlets such as restaurants, bars and cafeterias, and this share is expected to rise, benefitting commercial refrigeration equipment demand.  The food and beverage retail market will post gains, due to the rising number of food retailers in the US.  In addition, consumers’ growing appetite for a widening range of refrigerated foods (such as organic meat) will increase the amount of refrigeration equipment per store.

Commercial refrigeration products expected to experience the best demand growth are cryogenic equipment, display cases and transportation equipment.  Cryogenic equipment will benefit from the rising level of expenditures on health care in the US, as well as from increasing medical and scientific research.  Display cases will benefit from the need of retailers to maintain new, aesthetically pleasing displays to encourage impulse purchasing. In addition, the number of display cases per store is expected to rise as the average size of food stores rises.  Transportation refrigeration equipment will continue to be the largest product segment, due to the high unit cost of this equipment and to the rising level of refrigerated food shipped within and from the US.  Gains in this segment will be adversely affected by high fuel prices, which will continue to affect profit margins for fleet operators.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.