Technavio’s latest home, kitchen, and large appliances industry report covers the present scenario and growth prospects of the global beverage refrigerator and cooler market 2016-2020.

In this report, Technavio’s new research areas experts announce their key market highlights for the global beverage refrigerator and cooler market. Their findings include:

Global beverage refrigerator and cooler market expected to post a CAGR of over 5% by 2020

The global beverage coolers market was valued at USD 20.3 billion in 2015 and is expected to exceed USD 26 billion by 2020, growing at a CAGR of 5.1%. The beverage cooler market will grow at a consistent pace in the forecast period with major demand arising from Western and Southern European countries and the US, where consumption of a variety of beverages is relatively high.

“There has been major growth recently in the market for alcoholic as well as non-alcoholic beverages and the trend is expected to continue throughout the forecast period. In major economies like Western Europe and North America, low calorie spirits, cocktails, and craft beers are major propellants in the beverage market,” said Technavio lead kitchen appliances analyst Jhansi Mary. “In China, premium priced imported beverages will see major demand from aspirational consumers. As beverage brands invest more on social media marketing and create emotional engagement through advertisements, the market will attract more consumers especially from the millennial generation,” Jhansi added.

Europe and North America account for nearly 90% of the market share

The global beverage coolers market is highly concentrated in Europe and North America. In 2015, Europe accounted for 49.33%, while North America accounted for 40.35% of the market.

Major growth in the beverage coolers market in Europe is expected to come from Western European countries like the UK, France, Spain, Italy, Netherlands, and especially Germany which recorded a healthy growth in 2013. This growth stemmed from a major shift toward energy-efficient products. The beverage coolers market in Europe will see an increase in demand from Russia as well. Electric goods retailers and kitchen specialty stores have emerged as the primary distribution channels forming 49% and 16% of the volume sales of beverage coolers, respectively.

“Even emerging nations in Eastern Europe will see an increase in demand for built-in beverage coolers with the increased investments in kitchen renovations and luxury homes,” said Jhansi. “Another major trend which is expected to propel the market in the forecast period is the emerging trend towards off-trade consumption of beverages. Instead of going to restaurants, bars and pubs, consumers are increasingly purchasing beverages from hypermarkets and supermarkets to consume at home which in turn will increase the installation of beverage coolers and wine chillers.”

The market growth in North America is attributed to the investments made by the consumers on home improvement, kitchen remodeling, and renovations to improve the aesthetic appeal of their residences. These investments also assure better resale value in the future and propel the growth of market for built-in appliances like built-in beverage coolers.

During the recessionary period in 2008, to mitigate expenses owing to stressful financial conditions, most consumers refrained from visiting restaurants and settled for recreational activities at home. Post-recession, despite the economic recovery and improved financial conditions, this trend has prevailed, resulting in a developed platform to launch innovative products such as built-in beverage coolers. Features which were primarily part of commercial and professional quality appliances are now being incorporated in appliances meant for residential customers.

Average annual expenditure per consumer on home appliances saw a downward trend after the 2008 financial crisis in the US. However, the market has recovered and consumers have increased their expenditure on home appliances. 32.45% of the expenditure on home appliances in 2015 was on refrigerators and freezers. The trend is likely to continue in the forecast period and will propel the growth of the market in North America.

Modular kitchens gaining popularity

Modular kitchens are gaining traction not only in developed countries but also in emerging nations like India. With increase in per capita income and standards of living, consumers are opting for more well-equipped and modernized kitchens. The market for modular kitchens is being propelled by the need for affluent households to incorporate more style, appeal and functionality based designs in the kitchen. This trend has created the market opportunity for appliances like built-in beverage coolers.

Companies are engaging in joint ventures with international players to foray into the market in emerging economies. The multinational corporations like Hafelle which enter emerging nations benefit from the established distribution networks of local firms, while local firms benefit from the quality and technological efficiency of international players.

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