SEA Freezer & Beverage Cooler Market is Estimated to Witness High Growth Owing to Rising Demand from Food Service Industry

The SEA Freezer & Beverage Cooler Market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

The SEA freezer & beverage cooler market is estimated to account for US$ 957.5 Mn in terms of value by the end of 2027.

Market Overview:

SEA freezer & beverage coolers are used to store and display frozen food and beverage items in food service establishments like restaurants, bars, convenience stores etc. These appliances provide temperature controlled storage for food/beverages to extend their shelf life.

Market Dynamics:

The SEA freezer & beverage cooler market is projected to witness significant growth over the forecast period owing to rising demand from food service industry in Southeast Asian countries. Rapid growth of food service sector in emerging economies like Indonesia, Thailand and Vietnam coupled with increasing number of quick service restaurants, retail food outlets is augmenting the demand for commercial refrigeration equipment including freezers and beverage coolers. Furthermore, growing middle class population and rising disposable incomes in the region is increasing the demand for frozen and chilled food items which is positively impacting the market growth. Strong economic growth and increasing foreign direct investments in food processing and food service sectors are some other factors expected to fuel the SEA freezer & beverage cooler market between 2023 and 2030.

Driver: Increasing demand for frozen and chilled processed food and beverages in SEA region

The SEA region, comprising of countries like Indonesia, Thailand, Vietnam, Philippines, Malaysia etc is witnessing rapid economic growth and rising disposable incomes of middle class population. This has led to increasing demand for convenience and processed food products in the region which need to be stored in freezers and coolers. The growing working population has less time for cooking and prefers ready to eat options. Also, increasing urbanisation is driving the demand for modern retail formats like supermarkets and hypermarkets in major cities of SEA, stocking various frozen and chilled food and beverage products. All these factors are contributing to the rising installations of commercial freezers and beverage coolers in food processing companies and retail stores catering to this growing demand.

Driver: Expansion of quick service restaurants chains in the region

The quick service restaurant chains like KFC, McDonald's, Pizza Hut etc have seen tremendous expansion across major cities and towns of SEA region in the last decade due to changing lifestyles and food preferences of young population. These chains require large walk-in freezers and beverage coolers for storing and displaying various frozen and chilled food items and beverages. The setting up of every new outlet leads to additional sales for freezer and cooler manufacturers. Several international and domestic restaurant chains have announced aggressive expansion plans in the coming years to tap the vast potential, which will drive the demand for commercial refrigeration equipment in the region.

Restrain: High initial installation and maintenance cost

While the demand for commercial freezers and beverage coolers is growing due to various drivers, the high initial cost of these refrigeration equipment is a major challenge, especially for small businesses and retail stores. The energy efficient models suited for tropical climate of SEA countries tend to be more expensive. Moreover, periodic maintenance and service contracts also involve significant costs. This acts as a deterrent for many potential customers and restrains the mass adoption of advanced equipment. The users prefer low cost alternatives or delay the purchase due to high upfront investment requirement.

Opportunity: Growth of organised food retail sector

The organised retail sector in SEA countries is in a phase of high growth benefiting from rising consumer spending power and changing lifestyles. Major retail chains focusing on supermarket and hypermarket formats are expanding aggressively across cities. This presents a large untapped opportunity for freezer and cooler manufacturers. The organised retail sector adheres to global standards of food safety and storage, thereby relying heavily on commercial refrigeration. Every new store launched by these retail giants translates into demand for walk-in freezers and beverage coolers. Their demand for large volumes also allows manufacturers negotiate better deals.

Trends: Innovation in energy efficient and smart cooling technologies

With concerns rising around SEA Freezer & Beverage Cooler Market  carbon footprint of commercial refrigeration, manufacturers are focusing on developing more energy efficient and environment friendly models. Technologies like inverter compressors, advanced insulation and automated controls are becoming common to reduce power consumption substantially. There is also a trend of introducing ‘Smart Refrigeration’ systems integrated with IoT capabilities like remote monitoring. This allows end users better manage inventory levels and optimise operations. Such energy efficient and smart cooling innovations are gaining popularity in the SEA market and will drive replacement sales as existing users upgrade to new technologies.