Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A freezer is an electric appliance that keeps food frozen at extremely low temperatures. Generally, a household freezer is built into a refrigerator to keep ice cubes and ice creams. A beverage cooler is smaller than a conventional refrigerator and uses less energy to cool the beverage containers. It is typically designed for holding cans and bottles. There are different types of freezers including ice-cream freezer, chest freezer, and upright freezer. Moreover, there are different types of coolers namely beverage coolers and wine coolers.
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 Dynamics- Drivers
- Increase in packaged foods and non-alcoholic drink sales is expected to drive growth of the SEA freezer & beverage cooler market during the forecast period
The demand for food and non-alcoholic drinks has increased significantly in South-East Asia in the recent past. According to the Coherent Market Insights’ analysis, the packaged food and non- alcoholic beverage market in the five major SEA countries reached US$92.4 billion in 2010. Indonesia had the highest packaged food sales in the region. According to the same source, Vietnam witnessed the fastest growth in retail sales of packaged food and beverages at CAGR of 14.7% from 2007 to 2014. Ice Cream, Chilled Processed Food, and Frozen Processed Food witnessed high sales growth in Indonesia. Furthermore, according to the same source, from 2006 to 2011, Indonesia witnessed the highest retail sales growth for packaged food and beverages, at 92.2%. Therefore, these factors are expected to drive growth of the SEA freezer & beverage cooler market during the forecast period.
- Rapid growth of the tourism industry is expected to propel the SEA freezer & beverage cooler market growth over the forecast period
The tourism industry has witnessed rapid growth in SEA in the recent past. It has, in turn, enhanced the shopping experience. There is a massive shift from traditional grocery shops including small independent stores, wet markets, and food stalls to modern retail segment, which includes a supermarket, forecourt retailers, cash and carries, duty-free stores, e-commerce, warehouse clubs, and bakeries. According to Coherent Market Insights’ analysis, the consumer expenditure in Indonesia was the largest at $150 billion followed by Thailand, Philippines, Malaysia, and Vietnam. Hence, these factors are expected to propel the SEA freezer & beverage cooler market growth over the forecast period.
Indonesia held dominant position in the SEA freezer & beverage cooler market in 2019, accounting for 30.9% share in terms of value, followed by Vietnam, Thailand, Philippians and Malaysia respectively.
Figure 1: SEA Freezer & Beverage Cooler Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
- International regulations are expected to restrain growth of the SEA freezer & beverage cooler market during the forecast period
Various international protocols make it mandatory for commercial refrigeration manufacturers to comply with rules set by HCFC. Furthermore, the Environmental Protection Agency (EPA) has implemented the clean air act in an attempt to phase out the class-I chlorofluorocarbon. Implementation of these regulations has a negative impact on local and regional manufacturers across the SEA to establish the business at early stage as the technology to design, develop, and manufacture is expensive. Therefore, these factors are expected to restrain growth of the SEA freezer & beverage cooler market during the forecast period.
- High switching cost is expected to hamper the SEA freezer & beverage cooler market growth over the forecast period
Many freezer and beverage cooler manufacturers are endorsing the use of energy-efficient products, in order to curb carbon emission and impact of electronic equipment onto environment governments across the region. However, the switching cost involved in upgrading the old commercial refrigeration equipment to new rules complied and energy-efficient equipment is comparatively high. Thus, these factors are expected to hamper the SEA freezer & beverage cooler market growth in the near future.
SEA Freezer & Beverage Cooler Market Report Coverage
||Market Size in 2019:
||US$ 596.8 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 957.5 Mn
- By Product Type: Ice-cream Freezers, Chest Freezer, Upright Freezer, Beverage Coolers, Wine Coolers.
- By Capacity: 500 & Above Liters, 300 to 500 liters, 200 to 300 liters, 200 & Below liters.
- By Door Type: 4 Door & Above, 3 Door, 2 Door, 1 Door.
AB Electrolux, Sharp Electronics Co. Ltd., Concepcion Industrial Corporation, Sanden Intercool, Frigoglass SA, Samemax Refrigeration Sdn Bhd., GE Corporation, PT. Royal Sutan Agung, Hoshizaki Singapore Pte Ltd., and Midea Group.
- Increase in packaged foods and non-alcoholic drink sales
- Rapid growth of tourism industry
|Restraints & Challenges:
- High switching cost
- International regulations
- Rapid urbanization and tendency for hygienic lifestyle can present lucrative growth opportunities in the SEA freezer & beverage cooler market
Rapid urbanization and advent of BPO and KPO industry across the SEA region have made life more sophisticated and busy for almost every class of society. As such Frozen food and foodservice outlets enable them to fulfill their food requirement. This has led to immense opportunity for global fast food players and commercial refrigeration equipment manufacturers to establish a business in the SEA region. Apart from emerging economies China and India, the SEAn economies have made it to the top 10 leading countries list for industry activity in the outsourcing sector.
- Growing investment in research development activities can provide major business opportunities in the SEA freezer & beverage cooler market
Many companies in the market are focused on research and development activities, in order to innovate novel products and gain a competitive advantage in the market. For instance, in November 2018, Midea Group introduced Toshiba brand home appliances including refrigerators and water heaters.
Figure 2: SEA Freezer & Beverage Cooler Market Value (US$ Mn), 2017 - 2027
The SEA freezer & beverage cooler market was valued at US$ 596.8 Mn in 2019 and is forecast to reach a value of US$ 957.5 Mn by 2027 at a CAGR of 6.1% between 2020 and 2027.
- Indonesia Trends
Indonesia is the largest populated country among the SEAn countries. Indonesia is also the fourth-most populous country in the world with 251.5 million people. The population is expected to reach 256.3 million by 2017 and 262.6 million by 2020. The country has witnessed a strong growth of GDP on a YoY basis for the last few years. The food and beverage industry is the largest in terms of volume when compared with other Southeast Asian economies. Due to the large proportion of the population that still has low incomes and low nutrition rates, fortified products and supplements are the main health and wellness products on the market although Vie health and wellness as a broader food category is not really a popular concept in Indonesia. Typically, Indonesians purchase their groceries fresh every day, with traditional (non-modern) retailing controlling around 80% of the grocery market. However, more and more consumers are purchasing their groceries on a weekly basis from the growing number of hypermarkets, supermarkets, and convenience stores. Increasing urbanization has helped this growth, as more consumers are demanding and purchasing packaged foods, ready-meals, frozen foods, sauces, and dressings.
- Vietnam Trends
Vietnam has been in transition from a centrally-planned to a market- based economy since the late 1980s. Vietnam's dynamic, young, and educated population with GDP per capita of US$ 3,750 and growing is one of the driving forces behind the foodservice sector. Also, the tourism sector is one of the largest contributors to Vietnam’s economy contributing US$ 6.3 billion in 2012 and US$ 6.7 billion in 2013 respectively. Total international arrivals reached 7.8 million visitors at the end of 2014 as reported by the department of Tourism Vietnam, Government of Vietnam.
SEA Freezer & Beverage Cooler Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The disruption in the supply chain has adversely affected the food & beverage industry in almost all regions such as North America, Europe, Asia-Pacific and Rest of the world. The Chinese government has shut down all the restaurants and cafe in the country. The industry is facing a reduction in production, disruption in supply, and price fluctuations. For instance, Coca Cola Co. experienced delays in its raw material supply from china due to spread of COVID-19 in China. The company outsourced sucralose from both the US and China. The Chinese supplier have experienced delay in the production and export. Due to this pandemic, hotel & restaurants have been forced to slow down their operations till the time this situation is gets better.
Major companies involved in the SEA freezer & beverage cooler market are AB Electrolux, Sharp Electronics Co. Ltd., Concepcion Industrial Corporation, Sanden Intercool, Frigoglass SA, Samemax Refrigeration Sdn Bhd., GE Corporation, PT. Royal Sutan Agung, Hoshizaki Singapore Pte Ltd., and Midea Group.