Global Demand for Commercial Refrigeration Equipment to Approach $30 Billion

Global demand for commercial refrigeration equipment is projected to rise 5.2 percent per year through 2014 to $29.7 billion.  Demand will benefit from an acceleration in the key US market, which will rebound from dismal levels in 2009.  Demand growth in the Asia/Pacific region will also outpace the global average through 2014.  China will remain the fastest growing national market and comprise 18 percent of the growth in global demand.  Above-average growth will also occur in India due to solid gains in fixed investment expenditures and rising per capita incomes. These and other trends, including market share and product segmentation, are presented in World Commercial Refrigeration Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Despite a modest outlook in the shorter term, US demand for commercial refrigeration equipment is expected to rise 5.6 percent per year through 2014.  Gains will result from an improved macroeconomic outlook, as rising consumer spending encourages food industry participants to expand the number of retail outlets and restaurants.  In addition, food industry participants will be more willing to make equipment upgrades that had been deferred due to a weak economy.  Advances in other developed areas, such as Canada and Japan, will be slower, reflecting already high usage rates.  Advances in developed nations will benefit from consumers’ busy lifestyles, as retailers offer a wider range of convenient “grab and go” options, as well as a broader variety of frozen foods. 

Beverage equipment demand will post the fastest gains among products.  This will be due to recovery in the key US market, as well as the growing number of restaurants, especially in the fast food segment.  Reach-in and walk-in coolers and freezers are expected to post solid gains due to their widespread use in all of the major markets -- food processors, restaurants and food retailers -- and are expected to post solid gains in developing regions.  Display cases will benefit from a growing middle class, which will spur gains in the food and beverage retail segment.  Growth in demand for ice machines will benefit from the increasing number of restaurants globally, but will be limited by the fact that some cultures are comfortable drinking room temperature beverages.  Vending machine gains will be solid, reflecting technological innovations. 

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.