Household Refrigerators and Freezers Market Overview:
Household Refrigerators and Freezers Market was sized at USD 83.9 billion in 2021, witnessing a CAGR of 4.98% during the forecast period (2022-2030), and the market is projected to be worth USD 129.93 billion by 2030.
Household refrigerators and freezers are appliances intended for residential use to keep food and drink cool to increase their shelf life by restoring their perishability. They are in great demand as their primary purpose is to simplify daily food storage tasks. The major reason behind the promising growth prospects of the market during the forecast period is the increasing consumer preference for smart gadgets to simplify daily food storage tasks. Increasing demand for smart home appliances, rising disposable income, growing customer expenditure on home improvement goods, and the emergence of energy-efficient appliances are the major factors upholding this industry.
With the changing dietary habits of consumers, the consumption of processed foods such as frozen meats, vegetables, and dairy products has increased, driving the household refrigerators and freezers market growth in countries like Indonesia and the Philippines. With busy lifestyles, consumers are increasingly dependent on processed and ready-to-eat foods, which require refrigerators for storage. Constant modernization is increasing the energy consumption and power costs associated with running these types of machinery. Regulatory bodies around the globe are focused on reducing the energy consumption and greenhouse gas (GHG) emissions of refrigerators and freezers to reduce their environmental impact. The European Commission (EC) requires manufacturers based in Europe to label their products with the appropriate energy label. In 2021 new regulations have been introduced by the European Commission. This factor is majorly responsible for the growth of this market in European countries.
- This market is growing tremendously due to an increase in the no. of nuclear families, low power consumption, the concept of modular kitchens, and the automatic defrost feature.
- Less emission of greenhouse gases is an advanced feature in-built into these refrigerators is less toxic to the environment.
- Increased intake of processed food such as frozen meat and dairy products subjects the demand for these refrigerators in every home. Product innovation is an important factor in fueling the growth of this market.
- Currently, household equipment combines energy efficiency, design aesthetics, and temperature moderation to prevent food from spoilage. Furthermore, modification in compressor technologies and improved insulation has also helped this industry to grow.
The key factor which is restraining the growth of the market is the fancy manufacturing cost of these refrigerators and freezers. The insulators and compressors which are installed in these refrigerators are expensive. Moreover, their repair and maintenance charge is also high. Some major aspects that hamper the growth of the market are the high cost of refrigerator parts, hazardous gas emissions, and energy consumption, as well as low penetration and inadequate infrastructure in rural areas.
The scope of integrating IoT technology into conventional refrigerators and freezers will emerge as a functional product that will boost the industry. Manufacturers should introduce innovative human-machine interface designs into refrigerators to produce refrigerators that can automatically detect the weight and type of food stored in the refrigerator and adjust and monitor the temperature as needed. This will open vast opportunities in the household refrigerators and freezers market.
The advent of the pandemic has reshaped the industry and fundamental dynamics of the market. A temporary production halt in manufacturing due to the sudden lockdown has resulted in a fall in sales. The shipment and transportation of the product were completely ceased. Demand for these products is expected to grow at a promising pace shortly, as the majority of consumers are using these products relatively frequently due to expanding work-from-home policies. This trend, therefore, helps manufacturers to recover from the losses incurred during the pandemic period.
Household Refrigerators and Freezers Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||129.93 Billion|
|By Door Type||Double door and French door|
|By Capacity||15-30 cu. Ft., less than 15 cu. Ft. and more than 30 cu. Ft.|
|By Structure||Built-in and Freestanding|
|By Geography||North America, Europe, Asia, Pacific, Latin America, Middle East, and Africa|
|Key Players||LG Electronics, Whirlpool Corporation, Philips Electronics, Samsung, Haier Group Corporation, Dover Corporation, AB Electrolux|
By Door Type
Based on the door type, the market is bifurcated into the double door and French door. The double-door segment led the global household refrigerators and freezers market with the highest revenue share of 68% in 2020 and is expected to retain its dominance throughout the forecast period. These have specialized features like door bins and adjustable temperature control features for the freezing compartment. Automatic defrost cooling technology, one of the key attributes of the double door construction, also speaks for this segment. In addition, the double-door refrigerator systematically divides the compartments for different food and beverages to provide more storage space, making it more convenient and efficient. French door refrigerators are also ruling the market and have several advantages over other refrigerators, such as spacious cabinets for storing drinks and food. The French door refrigerator also has a freezer compartment to help keep food longer by providing extra space and temperature settings.
The capacity segment is divided into 15-30 cu. Ft., less than 15 cu. Ft. and more than 30 cu. Ft. The 15 to 30 cups. The ft. segment holds the largest share in the market at nearly 50% and hence ruling the industry. One of the most important factors to consider when purchasing a home refrigerator or freezer is storage capacity. The majority of homes worldwide require 4-6 cu. Ft. Since the average family consists of 3-4 people, medium-power refrigerators with built-in freezers are preferred for households, around the world. Refrigerators of a capacity of more than 30 cu. Ft. are of large volume and hence, mostly used in hospitality industries. However, more available capacity often leads to greater energy consumption behavior, which directly impacts electricity bills. To prevent this, manufacturers are integrating energy efficiency features.
Based on the structure, the market is separated into built-in and freestanding refrigerators. The freestanding segment is dominating the market generating an annual revenue of nearly 56% in 2020. Freestanding refrigerators are the most commonly used refrigerators in homes around the world. The refrigerators are easy to move, readily available, and easy to repair and maintain, and various door options contribute exponentially to the growth of this segment in the global market. The built-in segment is also contributing to increasing the CAGR by nearly 5% from 2020-2026. The sharp rise in this segment is due to the rapidly growing concept of modular kitchens and less space occupied by these refrigerators. Hence, this segment is showing tremendous growth in the household refrigerators and freezers market.
Asia Pacific accounted for the highest revenue at 36% and is expected to rule the market during the forecast period. The increasing urbanization and government policies in developing countries like India, Nepal, the Philippines, and Indonesia are largely consuming these products and hence promoting the growth of the market. The region is a manufacturing center home to the headquarters of many market-leading companies such as LG Electronics, Panasonic Corporation, Samsung, and Haier Group. Led by the US, North America is another major supporter of the market. In addition, rising disposable incomes, increasing demand for luxurious products, increasing adoption rates of innovative technologies, increasing demand for home improvement products, increasing consumer awareness of sustainable refrigerators, and Easy availability of desired brands. These are all favorable factors for the growth of the household refrigeration and freezers market.
Household Refrigerators and Freezers Market Competitive Landscape:
The market is experiencing exponential growth all over the world, with a large number of domestic and foreign companies operating across the globe. However, strong players have established positions in the market with their brand image, diversified product portfolios, and relentless focus on innovation. Leading vendors are also spending more on research and development activities to deploy modern systems that help them gain a competitive edge in the market. Key players in the market include-
- LG Electronics
- Whirlpool Corporation
- Philips Electronics
- Haier Group Corporation
- Dover Corporation
- AB Electrolux
- In September 2022, LG Electronics launched its MoodUP refrigerator with color-changing LED door panels. It also has a built-in speaker to play music and the users can choose the color for the door panel.
- In June 2022, Samsung unveiled its 2022 line of Digi Touch Cool and Curd Maestro series refrigerators featuring an “India-centric design.
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