SAN JOSE, Calif. — The global market for refrigerated display cases is forecast to reach $11.4 billion by 2020, spurred by the rising importance of visual merchandising as a cost effective way to boost retail sales, according to a new report by Global Industry Analysts Inc.
The global refrigerated display cases market is witnessing growth supported by an improving economic climate, rising employment rates, strengthening consumer confidence, recovery in consumer discretionary spending, and gradual revival in retail investments, notes the report. The market is also benefiting from the growing awareness over the importance of visual merchandising and its role in encouraging impulse buying among customers. Faced by intense competition and strict food safety laws, food retailers are keen on improving the visibility of products in order to boost sales, and optimize consumer convenience. The key demographic factors favoring growth in the market include changes in lifestyle and food habits, rise in the number of dual income households, expanding base of women in the workforce and the resulting rise in preference for easy to prepare packaged frozen and chilled food. Global sales of refrigerated display cases are also driven by the growth in the commercial food service sector, against a backdrop of growing consumer demand for convenience, quality, and variety in food options.
In addition to the food industry, refrigerated display cases are finding increased use in the biomedical and pharmaceutical sectors for storing medical samples and drugs at low temperature. The use of refrigerated medicine cabinets for storing medicines and cosmetics is growing in pharmacies and drug stores. The growing government level focus on energy conservation is spurring demand for advanced, eco-friendly, and energy efficient refrigeration equipment. To conform to stringent regulations, demand is forecast to grow strongly for refrigeration equipment that uses environmentally friendly alternatives to synthetic refrigerants, such as chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). Natural refrigerants, such as hydrocarbons, ammonia, and CO2, which are relatively energy-efficient and less harmful, are therefore growing in popularity. Digital illumination systems, LED lighting, close-the-case mechanisms, anti-fogging display case doors, and solar PV power supply systems are some of the notable features being incorporated into the new range of green refrigerated display cases.
As stated in the new report, Europe represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a compound annual growth rate (CAGR) of 9.6 percent over the analysis period, buoyed by a rapidly growing urban population, rising disposable income, increase in the size of the female labor force, greater time constraints on home meal preparation, and other lifestyle changes fueling demand for chilled and convenience food products.
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Publication date: 3/16/2015