Global sales of commercial refrigeration equipment declined 11% in 2020 and will remain weak in early 2021 due to the COVID-19 pandemic, as it restrained consumer spending, restricted mobility of people, disrupted equipment supply chains, and reduced fixed investments, according to new research by Freedonia Group. The pandemic also wreaked havoc on foodservice operators, one of the largest markets for commercial refrigeration equipment. However, the report states, sales will improve significantly in 2022 as the effects of the pandemic recede, with nations that handled the pandemic better than others – such as China and South Korea – likely to experience a stronger recovery through 2024.
As such, multiple trends will support recovery at the global level, including population growth and increasing personal incomes in developing regions, boosting consumer spending on food and beverage products; expanding consumer preference for fresh and high-quality frozen foods; growing use of advanced refrigeration technologies in mature markets to improve performance and reduce the environmental impact of refrigerants; and a shift from fairly basic models to more sophisticated commercial refrigeration machinery in Eastern Europe and developing middle-income countries in the Asia/Pacific and Africa/Mideast regions.
Global commercial refrigeration equipment sales are forecast to grow 1.8% annually through 2024 and reach a value of USD35bn at the end of the forecast period. Although demand for commercial refrigerated equipment will generally grow at an above-average in the developing countries of Central and South America, the Asia/Pacific, and the Africa/Mideast region, the markets in these areas will remain small due to underdeveloped electrical grids and widespread poverty. In North American and Western Europe, opportunities will be limited by a large amount of commercial refrigeration equipment already in use and prolonged weakness in nonresidential investment.