India Commercial Refrigerated Display Cabinet Market - Forecast(2024 - 2030)
India Commercial Refrigerated Display Cabinet Market Overview
The India Commercial Refrigerated Display Cabinet Market size is forecast to reach $929.3 million by 2027, growing at a CAGR of 7.2% from 2022 to 2027. In the Indian Commercial Display Cabinet Market, the top 5 players included DAIKIN Group with 16.4%, Panasonic with 10.6%, Carrier with 5.5%, followed by followed by Haier with 5.0% and Danfoss with 4.4%. However, there are several other local players offering varied types of commercial refrigerated cabinets be it plug-in or remote, and serving end users like retail shops, ranging from supermarkets, hypermarkets to small shops, restaurants, bakeries, and so on. In May 2020, Haier India announced about the launch of industry’s first display bar refrigerators, namely LC-138WB and LC-133K, which are designed with low emissivity transparent glass. These range of bar refrigerators are capable of reducing energy loss by upto 40%, coupled with anti-reflective coating on the glass, thus ensuring food is stored more hygienically for longer durations. Plug-in display cabinets can be referred to as those in which both compressor and condensing unit is incorporated or built within the cabinet itself. These types of refrigerated display cabinets eliminate the need for any machinery room, coupled with flexible layout variations, which in turn have helped it gain wide popularity across retail stores involved in sales of pastries, meats, dairy items as well as many other low-temperature products including chilled refrigerators and frozen refrigerators. Significant trends like timely upgradation of retail store display outlook as well as growing demand by store owners regarding frequent changes or variations in floor setting plans as per convenience, can be considered as some of the vital factors driving the growth of plug-in display/open cabinets in the Indian markets. Growing initiatives towards new construction projects of supermarkets and hypermarkets, rise in sales of frozen food products alongside growth in number of organized meat/fish retailing outlets by companies like TenderCuts, Fipola and many others can also help in accelerating the market demand for plug-in display/open cabinets and other cooling systems in the long run.
Report Coverage
The
report: “India Commercial Refrigerated Display Cabinet Industry Outlook
– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of
the following segments in the India Commercial Refrigerated Display Cabinet
industry.
Key Takeaways
- With the outbreak of Covid-19 pandemic coupled with lockdowns and most people working from home, demand for ready-to-eat food products witnessed a significant surge within the country. In 2020, one of the leading online grocery stores in India, named Grofers reported a sale surge of about 170% in the ready-to-eat category, comprising of 31% for the ready-made meals and mixes category, thus indicating a sudden consumer shift from home-cooked food to ready-to-eat products.
- Growing young population, rising inclination towards healthier and high protein diet fitness enthusiasts, and rapid or surging convenience growth plans of quick-service restaurants is set to drive the demand for commercial refrigerated display cabinets for storing dairy items, meat, and bakery products, like yogurt, curd, ice-creams, cakes, and so on, in the country.
- With the country’s population working long hours, expanding income levels, the rising volume of consumers capable of affording high pricing products, and the significant surge in the establishment of convenience stores within the country is set to drive the market growth for commercial refrigerated display cabinets.
India Commercial Refrigerated Display Cabinet Market Size Share, By Product Placement, 2021 (%)
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India Commercial Refrigerated Display Cabinet Industry Segment Analysis - By Product Placement
Horizontal segment dominated the Indian Commercial Refrigerated Display Cabinet market size in 2021, with a market size of $334.9 Million and is estimated to reach $516.2 Million in 2027, with a CAGR of 7.4% during 2022-2027. Since horizontal placement or horizontally mounted refrigeration units have the capacity to hold large amount of food products, this in turn drives its adoption in commercial end use applications. In March 2022, Vijetha Supermarkets announced about the expansion plan through the launch of its biggest store in Kondapur, Hyderabad. The establishment of this superstore included food categories, like fresh meat, seafood, sweets, or confectionery, ice-creams of popular brands, and many more, intended to offer better product visibility to its customers. In December 2020, a renowned hypermarket chain, Big Bazaar revealed about setting up additional 16 stores over the next three quarters. This expansion strategy was adopted by the company to focus on expanding its facilities, across smaller tier-II Indian cities, which faced lesser pandemic impacts. Rapid rise of supermarkets, hypermarkets, and related establishments, coupled with significant emphasis towards improving visual appeal for its customers majorly in self-service restaurants, will impact the market growth further.
India Commercial Refrigerated Display Cabinet Industry Segment Analysis - By Application
Based on application, food segment held the major market share in 2021, with a market size of $299.2 million, and estimated to reach $453.7 million by 2027, growing with the CAGR of around 7.2% during the forecast period 2022-2027. However, retail segment is anticipated to witness the fastest growth with a CAGR of 7.96% during 2022-2027, attributed to a rapid rise in expansion projects of retail stores like hypermarkets, supermarkets, convenience stores, and so on, alongside increasing online sales of packaged food or grocery items, with many others. According to Bizom, which tracks sales of around 7.5 million Indian retail stores, sales of ready-to-eat products witnessed a surge of 9.1% in August 2021 compared to previous month. With outbreak of COVID-19 pandemic, there was stringency of stay-at-home advisory, which helped in accelerating demands for ready-to-cook foods/frozen food products segment within the country. A fresh food packaged brand is thereby driving demand for frozen refrigerators and chilled refrigerators, iD Fresh Food revealed about having 60% rise in frozen paratha sales during April to June 2020, in comparison to previous quarter. Factors including increased mobility, reopening of offices, hotels and restaurants, as well as growth of travel, social or public gatherings is assisting the need for commercial refrigeration display cabinets in the country.
India Commercial Refrigerated Display Cabinet Market Drivers
Rising Demand for Impulse Coolers
Impulse coolers are generally used for storing beverage items like cold drinks, fruit juices, beverage cans and so on, capable of keeping the drinks cooler for a longer time interval irrespective of any electric source requirement. Due to its versality and energy-saving benefits without compromising performance or functionality, these coolers serve as an ideal choice for convenience retail outlets including liquor, mom & pops, national chains and so on. According to the Indian Council for Research on International Economic Relations ((ICRIER), India is one of the fastest-growing alcoholic beverages market globally, with estimated market size of about Rs 3.9 lakh crore (USD 52.5 billion). In addition to this, the institute had further stated that the market is estimated to grow at a CAGR of 6.8% till the year 2023. In December 2020, German wholesale retailer, Metro Cash and Carry had revealed its plans on opening more small-format stores, as kirana shops emerged as the key providers of essential items to Indian consumers amidst the country’s protracted pandemic lockdown. The company had aimed of setting up around five-six stores between October 2020 and September 2021, out of which only one will be a typical large-format store, rest followed by a combination of small stores in big and mid-sized cities. These factors coupled with growing consumption of alcoholic beverages and energy drinks, increasing trend towards product premiumization, rise in medium-size walk-in retail stores or satellite food & beverage outlets as well as significant demand for bottled or aerated soft drinks and juices during high-temperature climatic conditions, is set to drive the demand for impulse cooling systems in the Indian commercial refrigerated display cabinet market size.
Rising Demand for Frozen Food to drive market
According to a tech-driven Indian B2B company, Bakers Circle, there is higher preference towards frozen food products from large-scale restaurants and hotels overtime, since they can be conveniently used for meeting rising consumer demands. However, the company further stated that the market for frozen products will be graduating to the next level, and is expected to witness tremendous or exponential growth by the next 5 years. In January 2020, a diversified conglomerate company, ITC had revealed its plans of capturing upto 20% of the Rs 7,400-crore frozen food market in India within the next three years. The company which had made a foray into the frozen food segment under the ITC Master Chef brand, for targeting both retail as well as food service players including restaurants, cafes and so on, announced about expanding its reach to over 30 cities within the retail segment and 100 cities in food services segment during that time period. Due to the stay-at-home advisory amidst the pandemic situation, there was significant accelerating growth for the ready-to-cook foods/frozen food products segment within the country. In July 2020, a fresh packaged food brand, iD Fresh Food announced that it witnessed 60% rise in paratha sales during April to June 2020, as compared to the previous quarter. This will drive demand for cooling systems such as chilled refrigerators and frozen refrigerators.
India Commercial Refrigerated Display Cabinet Market Challenges
Energy and Global Warming Impact of CFC and HFC Refrigerants
To reduce the negative
impacts of refrigerants on the environment, industries shifted to HFCs (Hydrofluorocarbons).
Previously they were using CFCs for making air conditioners but due to the
negative impact of the refrigerants on the environment, the industries decided
to shift to better alternative. As per some studies, HFC have zero amount in depleting
ozone layer but it is causing harm to environment and causing global warming.
The emissions of HFC increase the warming of Stratosphere, which reacts with
the environment and destroy the ozone layer. In order to prepare
socioeconomically acceptable solutions tailored to meet these needs, it is
necessary to minimize greenhouse gas emissions, as well as to work towards
better protection of the ozone layer and reduce the greenhouse gas emissions by
using refrigerants neutral in the atmosphere. Replacement of this refrigerant
with the best alternative that contributes less to the greenhouse effect is a
subject of extensive research and debate on global warming, which exacerbates
the problem by raising the question of selecting a suitable refrigerant
India Commercial Refrigerated Display Cabinet Industry Outlook
Product
launches, acquisitions, and R&D activities are key strategies adopted by
players in the India Commercial Refrigerated Display Cabinet Market. The key
players in the India Commercial Refrigerated Display Cabinet Market include
- Daikin
- Panasonic
- Carrier
- Danfoss
- Haier
- Frigoglass
- Dover
- Stellar Gastronoms
- Werner Chillers
- Arctic Refrigeration
Recent Developments
- In April 2022, Blue star had revealed about its plans on doubling production capacity of deep freezers including vertical freezers, through expansion of a new facility in Wada of Palghar district in Maharashtra, India. As per the company, this facility expansion will help in increasing production capacity of deep freezers to 2 lakh per annum, with commercial run to begin by May.
- In March 2022, Vijetha Supermarkets announced about the expansion plan through the launch of its biggest store in Kondapur, Hyderabad. Establishment of this superstore included food categories, like fresh meat, seafood, sweets, or confectionery, ice-creams of popular brands, and many more, intended to offer better product visibility to its customers.
- In May 2020, Haier India announced about the launch of industry’s first display bar refrigerators, namely LC-138WB and LC-133K, which are designed with low emissivity transparent glass. These range of bar refrigerators are capable of reducing energy loss by upto 40 per cent, coupled with anti-reflective coating on the glass, thus ensuring food is stored more hygienically for longer durations.
Relevant Report Titles:
Report Code: ESR 0277
Report Code: ESR 0524
Report Code: FBR 37064
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